EXHIBIT 11

                 CHALLENGER INTERNATIONAL, LTD. AND SUBSIDIARIES

                        CALCULATION OF EARNINGS PER SHARE

                                   (unaudited)







                                                            THREE MONTHS      THREE MONTHS      NINE MONTHS       NINE MONTHS
                                                                ENDED            ENDED             ENDED             ENDED
                                                               JULY 31          JULY 31           JULY 31           JULY 31
                                                           ---------------- ----------------- ----------------- -----------------
                                                                1995              1994              1995              1994
                                                           ---------------- ----------------- ----------------- -----------------
                                                                                                        

  Primary and Fully Diluted Loss Per Share
  ----------------------------------------
  Shares in issue beginning of period                           10,583,142         9,863,142       10,583,142        10,916,475
  Shares issued (weighted average)                                 374,541            63,562          374,541             2,778
                                                           ---------------- ----------------- ----------------- -----------------
         Weighted average shares in issue end of period         10,947,683         9,926,704       10,947,683        10,919,253

  Dilutive Common Stock Equivalents
             (weighted average)
         Savage Arms Series A convertible redeemable
             preferred stock (weighted average)                          -           600,000                -           600,000
         Savage Arms Series C convertible redeemable
             preferred stock (weighted average)                    160,991           160,991          160,991           160,991
         Other stock options using treasury stock method           562,911           306,116          363,949           387,143
                                                              --------------  --------------   --------------   ---------------
  Total weighted average common shares and
             common stock equivalents                           11,681,585        10,993,811       11,482,624        11,074,838
                                                             ================  =============   ==============   ===============
  
  NET INCOME (LOSS) FOR PERIOD
             (thousands of U.S. Dollars)                     $        (430)    $       1,097   $          681   $         2,059
                                                             ================  ==============  ==============   ===============
                                                                           

  EARNINGS (LOSS) PER  SHARE                                 $       (0.04)    $        0.10   $         0.06   $          0.19
                                                             ================  ==============  ==============   ===============