Challenger Developments Option Gold Properties in Tanzania
11/23/2009

IAMGOLD reportedly undertook a drilling program consisting of reverse circulation (RC) and diamond drilling (DDH). The most significant results came from a RC hole which was later twinned by a diamond drill hole:

KM01 (RC) 12m @ 19.48g/t gold from 4m to 16m including 198.9g/t from 12 to13 m.
KM02 (DDH) 2m@22.0g/t from 12m to 14m including 1m@42.1g/t

Online PR News – 23-November-2009 – – TSX-V: CDQ November 17, 2009

News Release

Option Gold Properties in Tanzania
Challenger Development Corp. (the “Company”) is pleased to announce that it has entered into an Option Agreement with Harbour Green Investment Limited to acquire a 70-per-cent interest in the Buziba-Busolwa gold claims in the prolific Lake Victoria Gold Fields of Tanzania. The property is located within the Rwamagaza area Nyanzian greenstone belt approximately 100 km south west of Mwanza, Tanzania. The Buziba-Busolwa gold claims are located 100 kilometers south west of Mwanza and consist of thirty primary mining licenses with a total area of 2.385 square kilometers.
Tanzania is now the third-largest gold producer in Africa, after South Africa and Ghana. This has been achieved with the opening of three major open-pit mines (Golden Pride, Geita and North Mara) and one major underground mine (Bulyanhulu) in recent years. These mines are all located in the Nyanzian greenstone belt, in the Lake Victoria Goldfields.

IAMGOLD reportedly undertook a drilling program consisting of reverse circulation (RC) and diamond drilling (DDH). The most significant results came from a RC hole which was later twinned by a diamond drill hole:

KM01 (RC) 12m @ 19.48g/t gold from 4m to 16m including 198.9g/t from 12 to13 m.
KM02 (DDH) 2m@22.0g/t from 12m to 14m including 1m@42.1g/t

Small scale, active artisanal mining operations within the Buziba-Busolwa claims, indicate a good potential for discovery of further gold mineralisation. Although artisanal miners are typically targeting alluvial gold mineralisation, this type of gold mineralisation may overlie larger zones of yet undiscovered gold mineralisation in depth.
Consideration for the acquisition is a cash payment of CDN$350,000 and incurring exploration expenditures of CDN$1,500,000 on the property over a three-year period. Upon TSX Venture Exchange approval and company’s due diligence the Company will issue 2,000,000 common shares from treasury to the vendor. The vendor retains a 2-per-cent Net Smelter Return, up to one percent of which may be purchased by the Company for CDN$2-million.
Private Placement Financing

The Company has entered into a private placement for the sale of 4,500,000 units at a price of $0.17 per unit for a total of $765,000. Each unit will consist of 1 common share and 1 share purchase warrant for the purchase of 1 further common share of the Company within two years at the price of $0.35 per share.
These transactions are subject to regulatory approval. The maximum allowable finder’s fee shall be paid in shares and cash with regard to the value derived from the Agreement and the private placement financing as per the TSX Venture Exchange’s policy guidelines.

Incentive Stock Options

The Company also announces the granting of 2,000,000 incentive stock options to certain directors, officers and consultants. These options are exercisable for up to five years at a price of $0.25 per share.
Derrick Strickland, P. Geo., a qualified person under NI 43-101, has reviewed the technical content of this news release.
Challenger Development Corp.

“Simon Tam”
Simon Tam
Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction.