Well the wording is a bit confusing, this is what it says
If a model with this special rule is reduced to 0 wounds by close combat attacks or stomps, he can immediately make a single deathblow attack before he is removed as a casualty. A deathblow attack can be resolved against any enemy unit in base contact and, it's unusual sequencing aside, is resolved exactly like a normal close combat attack (and therefore uses any special rules that would normally apply to the models close combat attacks). If a model with the deathblow special rule is slain in a a challenge, his deathblow attack must be directed at the opposing model in the challenge. Once the deathblow has been resolved, remove the model as a casualty and resolve the rest of the combat (including anymore deathblows).
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