Challenger Deep Resources Corp. ("Challenger" or the "Company") (TSX
VENTURE:CDE) is pleased to announce that, through its wholly owned subsidiary,
PT Bestindo Energy, it has entered into an Exclusivity Agreement relating to the
right to mine and market coal from the KEM coal project in Central Kalimantan,
Indonesia.


The Exclusivity Agreement with CV Kara Elmas Madenleri ("KEM") gives Challenger
the exclusive right, for a period of sixty days, to conduct due diligence on the
KEM coal project and to enter into a Mining Operation - Production Agreement for
the project. The Mining Operation - Production Agreement will give Challenger
full control of all coal production and marketing within the KEM project area. 


KEM owns 100% of the KEM Coal Project which is located in the Murah Teweh
district of Central Kalimantan. The KEM Project is located 12 kilometers east of
the Barito River, the main river transportation route for the area. 


The KEM Project covers 335ha with an IUP Operation Production license in place.
KEM is a multi-seam high-quality thermal coal project with existing
infrastructure in place to enable an early start to production. Infrastructure
in place includes a 12km haul road and loading jetty. 


Coal can either be sold FOB barge at the jetty site or transhipped further
downstream to a stockpile for later, direct loading on the Mother Vessel for
shipment to the final consumption markets. 


The Company has staff onsite to complete due diligence, to begin mine plan
drilling and to prepare infrastructure agreements. The Mining Operation -
Production Agreement with KEM is planned to be signed later this month.


"This is a very important development for Challenger", states Ranjeet Sunder,
President and CEO of Challenger. "The KEM Project gives us the potential to
generate near-term cash flow which will provide funding for our Tabang Project
development and will enable us to capitalize on other high-quality
opportunities, while minimizing dilution to our shareholders during these
difficult capital markets. We view this project as having very low risk and
relatively low capital requirements which are both key elements in our
Indonesian coal strategy"


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. 


About Challenger

Challenger Deep Resources Corp. is an exploration company focused on the Asian
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 exploration and production and marketing
activities. 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 and mining permits, surface access and other licenses
from Indonesian regulatory authorities, 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 and development programs in
Indonesia or other project acquisitions will be completed or, if completed, will
be successful or that coal production and sale will be achieved. Readers are
cautioned that there has been insufficient exploration to define a mineral
resource on the KEM Project and that it is uncertain when or if the KEM Project
will be put into production.


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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Challenger Deep Resources Corp.
Ranjeet Sundher
President
+65-6220-7745


Challenger Deep Resources Corp.
Kirk Gamley or Mas Kobuchi
Investor Relations
604-689-7422
www.challengerdeep.ca