EXHIBIT 11 CHALLENGER INTERNATIONAL, LTD CALCULATION OF EARNINGS PER SHARE (UNAUDITED) THREE MONTHS Three months SIX MONTHS Six months ENDED ended ENDED ended APRIL 30 April 30 APRIL 30 April 30 ---------------- ----------------- ----------------- ----------------- 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 9,863,142 Shares issued (weighted average) 348,987 63,562 348,987 52,665 ---------------- ----------------- ----------------- ----------------- Weighted average shares in issue end of period 10,932,129 9,926,704 10,932,129 9,915,808 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 267,934 354,975 264,469 427,657 ---------------- ----------------- ----------------- ----------------- Total weighted average common shares and common stock equivalents 11,361,054 11,031,774 11,357,588 11,104,455 ================ ================= ================= ================= NET INCOME FOR PERIOD (thousands of U.S. Dollars) $ 805 $ 771 $ 1,110 $ 962 ================ ================= ================= ================= EARNINGS PER SHARE $ 0.07 $ 0.07 $ 0.10 $ 0.09 ================ ================= ================= =================