Challenger Exercises Option to Purchase DPK Coal Project

CALGARY, ALBERTA--(Marketwire - Dec. 16, 2011) - Challenger Deep Resources Corp. ("Challenger" or the "Company") (TSX VENTURE:CDE) announces that, through its wholly owned subsidiary, Challenger Deep (Indonesia) Ltd., it has exercised an option to purchase an additional coal project in East Kalimantan, Indonesia. In exercising this option, Challenger has entered into a Conditional Sales and Purchase Agreement (the "CSPA") with the shareholders of PT Dua Putri Kutor ("PT DPK") for the purchase of 100% of the issued and outstanding securities of PT DPK.

PT DPK is a privately-held Indonesian company that holds the coal exploration rights to a property which is located in the Sangatta area in East Kalimantan, Indonesia, known as the DPK Project. PT DPK has no other assets and has conducted no business other than holding its interest in the coal property.

Challenger's decision to exercise the option to purchase follows a successful program of initial due diligence conducted on the property. The due diligence program involved field mapping, surveying and limited outcrop sampling. The results of this preliminary program has encouraged Challenger to move to the CSPA stage for the property.

The acquisition of the DPK Project is subject to approval of the TSX Venture Exchange.

DPK Project

The DPK Project is an IUP Exploration stage property with an area of approximately 12,830 hectares and is located approximately 200km North of Samarinda. There are 2 active large coal mining operations (PT Kaltim Prima Coal and PT Perkasa Inaka Kerta) in the area. The DPK project area immediately adjoins the mining activities of PT Kaltima Prima Coal.

General geological mapping indicates that the DPK Project covers the Mangkupa, Kedango, Lembak, Balikpapan and Pulau Balang Formations. Based on management's research of area geology and current coal production in the general Sangatta region, the Mangkupa, Balikpapan and Pulau Balang Formations are known to contain coal mineralizations of economic significance in this area.

Typical coal quality of the formations in this general area (not specifically the DPK Project) based on management's geological research and sampling outside of the DPK Project boundaries are:

• Balikpapan Formation coal ranges from 5,000 – 6,000 Kcal/Kg ADB

• Mangkupa Formation coal ranges from 6,500-8,000 Kcal/Kg ADB. This formation is known to have high fixed carbon (FC) coal based on Challenger's sampling of coal in the general area and is a potential source of coking quality coal in addition to high quality thermal coal.

• Pulau Balang Formation coal ranges from 6,000 – 7,000 Kcal/Kg ADB.

Due Diligence Coal Quality Results

The results of three coal outcrops on the property which were sampled as part of the due diligence program are disclosed below.

No	Sample Description Code		FORMATION AND POSITION	TM	IM	Ash	VM	FC	TS	GCV (Kcal/Kg)
				%,AR	%,ADB	%,ADB	%,ADB	%,ADB	%,ADB	ADB	AR
1	CDR – DPK – OC 1 – 21112011 – AR		Mangkupa Formation, inside IUP	8.07	4.04	9.85	32.43	53.68	1.26	6,896	6,606
2	CDR – DPK – OC 2 – 21112011 – AR		Mangkupa Formation, inside IUP	7.30	3.74	8.92	32.70	54.64	1.47	7,038	6,778
4	CDR - DPK - OC 4 – 21112011 - AR		Mangkupa Formation, inside IUP	7.86	5.59	6.32	31.36	56.73	0.99	6,914	6,748

Coal quality based on the above samples from the Mangkupa formation indicates the potential for high quality thermal coal. The coal samples have high FC content. Coal samples from the planned exploration program will determine the potential for coking coal.

All outcrop samples were processed by SGS Coal Laboratories, Samarinda, East Kalimantan. Industry standard Quality Control and Quality Assurance protocols were employed in the sample acquisition, preparation and analysis procedures.

The Qualified Person (as defined by NI 43-101) responsible for the review, verification and approval of the technical material presented in this news release is Mr. Andre Talaska, a director of PT Bestindo Energy, a wholly owned subsidiary of Challenger. Readers are cautioned that any potential quantity and grade disclosed in this press release is conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the DPK Project being delineated as a mineral resource.

Terms of the DPK Project CSPA

The DPK Project CSPA includes a payment of Rp 500m (approximately CDN$57,226) upon execution and payment of the remaining Rp17 billion (approximately CDN$1.95m) over the next approximately 24 months, in three scheduled payments. Timing of the final payment to be made is based on the date of the issuance of an IUP Operation Production permit by the relevant Indonesian Governmental authority. The CSPA also provides that upon Challenger's production and sale of coal from the property, it will grant and pay to the vendors of the shares of PT DPK, a royalty of USD $1.50 per ton.

"The potential for very high quality coal on this property, based on our limited sampling to date, combined with the property's close proximity to the coast makes for an exciting acquisition," stated Ranjeet Sundher, President and CEO of Challenger. "The coking coal potential is particularly exciting and will be the focus of our initial exploration of the property. We view this as an important step in diversifying our portfolio of properties both geographically and by coal quality."

Jambi Area MOU Extension

Challenger also announces that the previously reported (Press Release dated November 1, 2011) MOUs signed in respect of the PT MBT and PT MP properties in Jambi, Sumatra have been extended to February 1, 2012, in order to allow further geological and legal diligence to proceed.

About Challenger

Challenger Deep Resources Corp. is an exploration company focused on the Indonesian coal industry. Challenger's business plan is to acquire, explore and to bring its viable coal projects into production. Challenger has an experienced Indonesian exploration and mining team with offices in Calgary, Singapore and Jakarta.

CAUTIONARY STATEMENT

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

READER ADVISORY

Statements in this press release may contain forward-looking information including, statements regarding expected exploration activities and future payments relating to the purchase of shares of PT DPK. Any statements that are contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Challenger. Factors that could cause the actual results to differ materially from those in forward-looking statements include, granting of exploration permits, surface access and other licenses from Indonesian regulatory authorities, preliminary exploration results, the continued availability of capital and financing, and general economic, market or business conditions in North America and in the Asia Pacific region. The reader is cautioned not to place undue reliance on any forward-looking information. There can be no assurance that the proposed exploration programs in Indonesia or other project acquisitions will be completed or, if completed, will be successful.

The forward-looking statements contained in this press release are made as of the date of this press release, and Challenger does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities law.