CHALLENGER GOLD LIMITED — Capital/Financing Update 2014

Apr 8, 2014

==> picture [596 x 116] intentionally omitted <==

9 April 2014

The Manager ASX Limited Company Announcements Office

Dear Sir/Madam

Correction to Options Issue Timetable

Following is an amended announcement titled: “Challenger Energy offers shareholders loyalty options” (“Announcement”) originally lodged with ASX earlier today (9 April 2014).

This amended announcement includes a revision to the timetable in relation to the issue of loyalty options, following amended advice from ASX in relation to its timetables for rights issues, which are to change with effect from 14 April 2014.

Under the new timetable, the Ex Date moves from Wednesday, 16 April 2014 to Tuesday 22 April 2014.

All other dates remain the same.

On this basis, there is no material adverse impact on Challenger’s Issue and, in fact, the amended timetable allows shareholders a longer period to trade into CEL shares.

A formal timetable is attached to this announcement.

Yours faithfully

==> picture [98 x 41] intentionally omitted <==

Robert Willes Managing Director

==> picture [595 x 12] intentionally omitted <==

==> picture [596 x 116] intentionally omitted <==

9 April 2014

Challenger Energy offers shareholders “loyalty” options

Challenger Energy Limited ( CEL , the Company ), an ASX-listed junior energy company with unique exposure to South Africa’s emerging shale gas sector, today announced a loyalty options issue to all shareholders. Based on the current capital structure of the Company, Challenger expects to issue up to 65,896,502 Options pursuant to the Offer, to raise approximately $1 million before costs, and will apply for the Options to be quoted by ASX.

The loyalty issue is a fully underwritten, non-renounceable entitlement issue for Shareholders of the Company registered in Australia and New Zealand as at 5.00pm (WST) on 24 April 2014 ( Eligible Shareholders ). The Company is offering Eligible Shareholders one (1) Option for every five (5) Shares held at an issue price of $0.015 (1.5 cents) per Option, exercisable at $0.20 each and expiring 30 June 2016 (the Offer ).

Managing Director Robert Willes said in assessing alternate capital raising structures, the Board had preferred a ‘loyalty’ option.

“We have had tremendous support from our shareholders. As we anticipate the grant of Challenger subsidiary Bundu Energy Limited’s exploration right for the Cranemere Project in South Africa, we considered it appropriate to structure this capital raising to their benefit,” he said.

Funds raised under the Offer will go towards:

• funding the Company’s continuing work in support of its subsidiary’s application for the Exploration Right for the Cranemere Shale Gas Project in South Africa;

• developing further business opportunities relating to the project;

• working capital; and

• covering the expenses of the Offer.

The Offer is fully underwritten by Novus Capital Limited.

Further details of the Offer, including details on how to accept the Offer, and key risks of the Offer, together with a summary of the key terms of the underwriting agreement, are set out in the prospectus released to the ASX today and to be sent to shareholders on 30 April 2014.

==> picture [595 x 12] intentionally omitted <==

==> picture [596 x 116] intentionally omitted <==

Outlined below is a timetable of relevant events and dates relating to the Offer. These events and dates are indicative only and subject to change. Subject to the ASX Listing Rules, the Corporations Act and other applicable laws, the Company’s Board reserves the right to modify all dates, including the Offer closing date.

Lodgement of Prospectus with ASIC and the	Wednesday, 9 April 2014
ASX
Notice sent to Optionholders	Wednesday, 9 April 2014
Notice sent to Shareholders	Friday, 11 April 2014
Ex date	Tuesday, 22 April 2014
Record Date for determining Entitlements	5.00pm (WST) Thursday, 24 April 2014
Prospectus sent to Shareholders & Company	Wednesday, 30 April 2014
announces this has been completed
Closing Date*	Wednesday,14 May 2014
Securities quoted on a deferred settlement basis	Thursday, 15 May 2014
ASX notified of under subscriptions	Monday, 19 May 2014
Issue date/Shares entered into Shareholders’	Thursday, 22 May 2014
security holdings
Quotation of Options issued under the Offer*	Friday, 23 May 2014

Application for Options under the Offer may only be made by completing the Application Form which accompanies the prospectus. Shareholders eligible to participate in the Offer should read the prospectus carefully and consult professional advisers as necessary.

Any enquiries regarding the Offer should be directed to Challenger Energy Limited’s company secretary, Adrien Wing, on +61 3 9614 0600.

ENDS

INVESTOR CONTACT MEDIA CONTACT ROBERT WILLES LUKE FORRESTAL MANAGING DIRECTOR ACCOUNT MANAGER CHALLENGER ENERGY CANNINGS PURPLE +61 410 479 032 +61 411 479 144

CHALLENGER ENERGY (ASX code: CEL) is focused on the fast-emerging, world-scale shale gas province in South Africa’s Karoo Basin. The Karoo is strategic, and central to the South African Government’s agenda, given the country’s power crisis and need for economic growth, jobs and infrastructure development. Through its South African subsidiary, Bundu Gas and Oil Exploration Pty Ltd, Challenger was first to recognise this opportunity and to apply for exploration rights in the Karoo - and has since been followed by Shell and Falcon Oil and Gas, which has brought Chevron in as a joint venture partner.

==> picture [595 x 12] intentionally omitted <==

1. TIMETABLE

Lodgement of Prospectus with the ASIC

Lodgement of Prospectus & Appendix 3B with ASX

Notice sent to Optionholders Notice sent to Shareholders Ex date Record Date for determining Entitlements

Prospectus sent to Shareholders & Company announces this has been completed Closing Date*

Securities quoted on a deferred settlement basis ASX notified of under subscriptions

Issue date/Shares entered into Shareholders’ security holdings

Quotation of Options issued under the Offer*

Wednesday, 9 April 2014 Wednesday, 9 April 2014 Wednesday, 9 April 2014 Friday, 11 April 2014 Tuesday, 22 April 2014 5.00pm (WST) Thursday, 24 April 2014 Wednesday, 30 April 2014

Wednesday,14 May 2014 Thursday, 15 May 2014 Monday, 19 May 2014 Thursday, 22 May 2014 Friday, 23 May 2014

1

Timetable (updated) 08 04 14 - revised