CHALLENGER GOLD LIMITED — Capital/Financing Update 2021

Oct 24, 2021

ASX Release 25 Oct 2021

==> picture [130 x 66] intentionally omitted <==

Challenger significantly expands tenement position at its Hualilan Gold Project

Highlights

• Option to acquire 97.5 square kilometres of concessions in the greater Hualilan area.

• Increases CEL's land position from approximately 80 to 177.5 square kilometres.

• The concessions are located 3 kilometres north of CEL's existing Hualilan tenements, adjoining Newmont's concessions, and cover approximately 15 kilometres of prospective strike.

• The tenements contain the same limestone and sedimentary sequence that hosts Hualilan.

• Limited previous exploration, which was never followed up, returned stream sediment samples over 2 g/t gold which is exceptionally high for stream sediment samples and suggests a proximal gold source.

• The company has a 4-year option to acquire 100% of the tenements for a total of US$450,000

Challenger Exploration ( ASX: CEL ) (“ CEL ” the “ Company ”) is pleased to announce that it has entered into agreements to acquire a package of Exploration Licences adjacent to the Company's existing Hualilan Gold Project. The concessions comprise five contiguous exploration licenses which are collectively called the Cordon del Peñon tenements.

The Cordon del Peñon tenements cover 97.5 square kilometres and are located 3 kilometres north of Challenger's existing Hualilan Project concessions which cover approximately 80 square kilometres. The tenements are bounded by Newmont on the eastern and southern boundaries (Figure 1). They contain the same package of sedimentary rocks and limestones which host the Hualilan Gold project and cover approximately 15 kilometres of prospective strike.

Commenting on the acquisition of the new concessions CEL Managing Director, Mr Kris Knauer, said

"Hualilan has emerged as a discovery of significance, and it is rare for a discovery the scale of Hualilan to be the only gold deposit in a district. Prior to Challenger acquiring Hualilan, both the Hualilan Gold Project, and the entire surrounding area, had received only cursory exploration in the previous 15 years.

This acquisition is part of our strategy of being the first mover to control a district scale land package around Hualilan. We feel the entire greater Hualilan area is significantly under-explored and see no reason why it cannot host additional Hualilan style discoveries. Given the knowledge we have from Hualilan itself, we feel Challenger is the best placed to unlock the potential of the Hualilan District."

Challenger Exploration Limited ACN 123 591 382 ASX: CEL Website: www.challengerex.com

Issued Capital Australian Registered Office 973.8m shares Level 1 49.6m options 1205 Hay Street 120m perf shares West Perth WA 6005

Directors

Mr Kris Knauer, MD and CEO Mr Scott Funston, Finance Director Mr Fletcher Quinn , Chairman

Contact T: +61 8 6380 9235 E: admin@challengerex.com

16m perf rights

www.challengerex.com

ASX Release 25 Oct 2021

==> picture [130 x 66] intentionally omitted <==

==> picture [408 x 605] intentionally omitted <==

Figure 1 - Existing Hualilan Mineralisation and new tenement Position

Challenger Exploration Limited ACN 123 591 382 ASX: CEL Website: www.challengerex.com

Australian Registered Office

Issued Capital 973.8m shares Level 1 49.6m options 1205 Hay Street 120m perf shares West Perth WA 6005 16m perf rights

Directors

Mr Kris Knauer, MD and CEO Mr Scott Funston, Finance Director Mr Fletcher Quinn , Chairman

Contact

T: +61 8 6380 9235 E: admin@challengerex.com

www.challengerex.com

ASX Release 25 Oct 2021

==> picture [130 x 66] intentionally omitted <==

The most recent historical work was done on the tenements in 2017 prior to the Company's Hualilan Gold Project emerging as a discovery of significance. This work was completed by TSX listed Centenera Mining Corporation (Centenera) and involved the collection of 110 stream sediment samples and 26 rock chip samples across the concession.

Two of the stream sediment samples assayed 2.3 g/t (2,300ppb) gold and 2.2 g/t (2,219ppb) gold, which is exceptionally high for stream sediment samples. This was interpreted by Centenera as suggesting the presence of a proximal gold source. The two high-grade samples are supported by additional stream sediment samples which define 4 discrete gold geochemical targets within a zone of anomalous geochemistry over approximately 10km strike length. These stream sediment samples and rock chip sample results were never followed up and the source has not been identified.

As a first step in exploration, The Company intends to expand its ground magnetic data to cover the entire 97.5 square kilometres of the new concessions and follow up areas of anomalous surface geochemistry with ground geological mapping to identify the source of the mineralisation. The concession will subsequently be integrated with Challenger's existing exploration program evaluating targets away from the main 3 kilometre mineralised zones at Hualilan.

Acquisition Terms

Under the agreement The Company has made an up front option payment of US$7,000. Additionally, The Company will make annual payments of US$5,000 and sole fund a minimum exploration program over the next 4 years required to keep the concession in good standing. This work program will be determined in consultation with the San Juan Mining Ministry, however the Company anticipates that the acquisition of the ground magnetic data alone will exceed any required expenditure commitment over the next year.

At any time prior to the 4 year period the Company can, at its sole discretion, acquire 100% of the Cordon del Penon tenements for US$450,000, payable $250,000 in cash and $200,000 in cash or CEL shares[1] at Challenger's election.

Ends

This ASX announcement was approved and authorised by the Board.

For further information contact:

Kris Knauer Scott Funston Media Enquiries Managing Director Chief Financial Officer Jane Morgan +61 411 885 979 +61 413 867 600 + 61 405 555 618 kris.knauer@challengerex.com scott.funston@challengerex.com jm@janemorganmanagement.com.au

Previous announcements referred to in this release include:

11 MAY 2021 - CHALLENGER INCREASES THE GROUND POSITION SURROUNDING ITS HUALILAN GOLD PROJECT FOUR-FOLD AND RAISES $42M

1 The price used to determine the US$200,000 in shares will be the 10 day VWAP prior to Challenger notifying the vendor of Its Intention to acquire 100% of the project.

Challenger Exploration Limited Issued Capital Australian Registered Office ACN 123 591 382 973.8m shares Level 1 ASX: CEL 49.6m options 1205 Hay Street Website: www.challengerex.com 120m perf shares West Perth WA 6005

Directors Mr Kris Knauer, MD and CEO Mr Scott Funston, Finance Director Mr Fletcher Quinn , Chairman

Contact T: +61 8 6380 9235 E: admin@challengerex.com

16m perf rights

www.challengerex.com

ASX Release 25 Oct 2021

==> picture [130 x 66] intentionally omitted <==

About Challenger Exploration

Challenger Exploration Limited’s (ASX: CEL) aspiration is to become a globally significant gold producer. The Company is developing two complementary gold/copper projects in South America. The strategy for the 100% owned Hualilan Gold project is for it to provide a high-grade low capex operation in the near term. This underpins CEL with a low risk, high margin source of cashflow while it prepares for a much larger bulk gold operation at both Hualilan and El Guaybo in Ecuador.

The Company is fully funded for the next 2 years with cash at bank of $36 million and it has committed to a 9-rig 120,000 metre drill program at its Flagship Hualilan Gold project.

1. Hualilan Gold Project , located in San Juan Province Argentina, is a near term development opportunity. It has extensive historical drilling with over 150 drill-holes and a non-JORC historical resource[(1)] of 627,000 Oz @ 13.7 g/t gold which remains open in most directions. The project was locked up in a dispute for the past 15 years and as a consequence had seen no modern exploration until CEL acquired the project in 2019. In the past 2 years CEL has completed 400 drill holes for more than 95,000 metres of drilling. Results have included 6.1m @ 34.6 g/t Au, 21.9 g/t Ag, 2.9% Zn , 6.7m @ 14.3 g/t Au, 140 g/t Ag, 7.3% Zn and 10.3m @ 10.4 g/t Au, 28 g/t Ag, 4.6% Zn . This drilling intersected high-grade gold over 2.5 kilometres of strike and extended the known mineralisation along strike and at depth in multiple locations. Recent drilling has demonstrated the high-grade skarn mineralisation is underlain by a significant intrusion-hosted gold system with intercepts including 209.0m at 1.0 g/t Au, 1.4 g/t Ag, 0.1% Zn and 110.5m at 2.5 g/t Au, 7.4 g/t Au, 0.90% Zn in intrusives. CEL's current program which is fully funded includes a 120,000 metres of drilling, metallurgical test work of key ore types, and an initial JORC Compliant Resource and PFS.

2. El Guayabo Gold/Copper Project covers 35 sq kms in southern Ecuador and was last drilled by Newmont Mining in 1997 targeting gold in hydrothermal breccias. Historical drilling has demonstrated potential to host significant gold and associated copper and silver mineralisation. Historical intersections include 156m @ 2.6 g/t Au, 9.7 g/t Ag, 0.2% Cu and 112m @ 0.6 % Cu, 0.7 g/t Au, 14.7 g/t Ag which have never been followed up. The Project has multiple targets including breccia hosted mineralisation, an extensive flat lying late-stage vein system and an underlying porphyry system target, neither of which has been drill tested. CEL's first results confirm the discovery of large-scale gold system with over 250 metres of bulk gold mineralisation encountered in drill hole ZK-02 which contains a significant high-grade core of 134m at 1.0 g/t gold and 4.1 g/t silver including 63m at 1.6 g/t gold and 5.1 g/t silver . CEL Is currently undertaking its maiden 20,000 metre drill program at El Guayabo. About Challenger Exploration

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Website: www.challengerex.com

Issued Capital 973.8m shares 49.6m options 120m perf shares

Australian Registered Office Level 1 1205 Hay Street West Perth WA 6005

Directors

Mr Kris Knauer, MD and CEO Mr Scott Funston, Finance Director Mr Fletcher Quinn , Chairman

Contact

16m perf rights

www.challengerex.com

T: +61 8 6380 9235 E: admin@challengerex.com

ASX Release 25 Oct 2021

==> picture [130 x 66] intentionally omitted <==

Foreign Resource Estimate Hualilan Project

La Mancha Resources 2003 foreign resource estimate for the Hualilan Project ^	La Mancha Resources 2003 foreign resource estimate for the Hualilan Project ^	La Mancha Resources 2003 foreign resource estimate for the Hualilan Project ^
Category	Tonnes (kt)	Gold Grade (g/t)	Contained Gold (koz)
Measured	218	14.2	100
Indicated	226	14.6	106
Total of Measured & Indicated	445	14.4	206
Inferred	977	13.4	421
Measured, Indicated & Inferred	1,421	13.7	627

^ Source: La Mancha Resources Toronto Stock Exchange Release dated 14 May 2003 -Independent Report on Gold Resource Estimate. Rounding errors may be present. Troy ounces (oz) tabled here

#1 For details of the foreign non-JORC compliant resource and to ensure compliance with LR 5.12 please refer to the Company's ASX Release dated 25 February 2019. These estimates are foreign estimates and not reported in accordance with the JORC Code. A competent person has not done sufficient work to clarify the foreign estimates as a mineral resource in accordance with the JORC Code. It is uncertain that following evaluation and/or further exploration work that the foreign estimate will be able to be reported as a mineral resource. The company is not in possession of any new information or data relating to the foreign estimates that materially impact on the reliability of the estimates that materially impacts on the reliability of the estimates or CEL's ability to verify the foreign estimates estimate as minimal resources in accordance with Appendix 5A (JORC Code). The company confirms that the supporting information provided in the initial market announcement on February 25, 2019 continues to apply and is not materially changed.

Competent Person Statement – Exploration results

The information that relates to sampling techniques and data, exploration results and geological interpretation has been compiled Dr Stuart Munroe, BSc (Hons), PhD (Structural Geology), GDip (AppFin&Inv) who is a full-time employee of the Company. Dr Munroe is a Member of the AusIMM. Dr Munroe has over 20 years’ experience in the mining and metals industry and qualifies as a Competent Person as defined in the JORC Code (2012).

Dr Munroe has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results. Dr Munroe consents to the inclusion in this report of the matters based on information in the form and context in which it appears. The Australian Securities Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.

Competent Person Statement – Foreign Resource Estimate

The information in this release provided under ASX Listing Rules 5.12.2 to 5.12.7 is an accurate representation of the available data and studies for the material mining project. The information that relates to Mineral Resources has been compiled by Dr Stuart Munroe, BSc (Hons), PhD (Structural Geology), GDip (AppFin&Inv) who is a full-time employee of the Company. Dr Munroe is a Member of the AusIMM. Dr Munroe has over 20 years’ experience in the mining and metals industry and qualifies as a Competent Person as defined in the JORC Code (2012).

Dr Munroe and has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration to qualify as Competent Person as defined in the 2012 Edition of the JORC Code for Reporting of, Mineral Resources and Ore Reserves. Dr Munroe consents to the inclusion in this report of the matters based on information in the form and context in which it appears. The Australian Securities Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.

Challenger Exploration Limited ACN 123 591 382 ASX: CEL Website: www.challengerex.com

Issued Capital 973.8m shares 49.6m options 120m perf shares

Australian Registered Office Level 1 1205 Hay Street West Perth WA 6005

Directors

Mr Kris Knauer, MD and CEO Mr Scott Funston, Finance Director Mr Fletcher Quinn , Chairman

Contact

16m perf rights

T: +61 8 6380 9235 E: admin@challengerex.com

www.challengerex.com

ASX Release 25 Oct 2021

==> picture [130 x 66] intentionally omitted <==

JORC Code, 2012 Edition – Table 1 report template

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Commentary
Sampling	• Nature and quality of sampling (eg cut	• Committee Bay Resources (CBR) 2004 - 2006:
techniques	channels, random chips, or specific	reportedly collected 85 stream sediment
	specialised industry standard	samples.
	measurement tools appropriate to the	CEL has no information on how the samples
	minerals under investigation, such as	were taken, the location or the assay
	down hole gamma sondes, or handheld	techniques that were used.
	XRF instruments, etc). These examples	• Cardero Resource Corporation (Cardero) -
	should not be taken as limiting the broad	2007:
	meaning of sampling.	No samples were taken
	• Include reference to measures taken to	• Centenera Mining Corporation (Centenera) –
	ensure sample representivity and the	2016-2017:
	appropriate calibration of any	110 stream sediment samples and 26 rock chip
	measurement tools or systems used.	samples were collected.
	• Aspects of the determination of	CEL has no information on how the samples
	mineralisation that are Material to the	were taken, the precise location or the assay
	Public Report.	techniques that were used.
	• In cases where ‘industry standard’ work
	has been done this would be relatively
	simple (eg ‘reverse circulation drilling was
	used to obtain 1 m samples from which 3
	kg was pulverised to produce a 30 g
	charge for fire assay’). In other cases more
	explanation may be required, such as
	where there is coarse gold that has
	inherent sampling problems. Unusual
	commodities or mineralisation types (eg
	submarine nodules) may warrant
	disclosure of detailed information.
Drilling	• Drill type (eg core, reverse circulation,	• No drilling has been reported by previous
techniques	open-hole hammer, rotary air blast, auger,	explorers
	Bangka, sonic, etc) and details (eg core
	diameter, triple or standard tube, depth of
	diamond tails, face-sampling bit or other
	type, whether core is oriented and if so, by
	_what method, etc). _
Drill sample	• Method of recording and assessing core	• No drilling has been reported by previous
recovery	and chip sample recoveries and results	explorers
	assessed.
	• Measures taken to maximise sample
	recovery and ensure representative nature
	of the samples.
	• Whether a relationship exists between
	sample recovery and grade and whether
	sample bias may have occurred due to

Challenger Exploration Limited Issued Capital Australian Registered Office Directors Contact ACN 123 591 382 973.8m shares Level 1 Mr Kris Knauer, MD and CEO T: +61 8 6380 9235 ASX: CEL 49.6m options 1205 Hay Street Mr Scott Funston, Finance Director E: admin@challengerex.com Website: www.challengerex.com 120m perf shares West Perth WA 6005 Mr Fletcher Quinn , Chairman 16m perf rights

www.challengerex.com

ASX Release 25 Oct 2021

==> picture [130 x 66] intentionally omitted <==

Criteria	JORC Code explanation	Commentary
	preferential loss/gain of fine/coarse
	material.
Logging	• Whether core and chip samples have been	• No rock chip sample or stream sediment
	geologically and geotechnically logged to	sample logs have been found.
	a level of detail to support appropriate
	Mineral Resource estimation, mining
	studies and metallurgical studies.
	• Whether logging is qualitative or
	quantitative in nature. Core (or costean,
	channel, etc) photography.
	• The total length and percentage of the
	relevant intersections logged.
Sub-sampling	• If core, whether cut or sawn and whether	• No details of the sampling techniques, sample
techniques and	quarter, half or all core taken.	sizes and sample preparation has been found.
sample	• If non-core, whether riffled, tube sampled,
preparation	rotary split, etc and whether sampled wet
	or dry.
	• For all sample types, the nature, quality
	and appropriateness of the sample
	preparation technique.
	• Quality control procedures adopted for all
	sub-sampling stages to maximise
	representivity of samples.
	• Measures taken to ensure that the
	sampling is representative of the in situ
	material collected, including for instance
	results for field duplicate/second-half
	sampling.
	• Whether sample sizes are appropriate to
	the grain size of the material being
	sampled.
Quality of	• The nature, quality and appropriateness	• No details of the assay data and laboratory
assay data and	of the assaying and laboratory procedures	tests have been found.
laboratory	used and whether the technique is	• Centenera: Report samples were prepared and
tests	considered partial or total.	analysed by SGS Laboratory in Peru and that
	• For geophysical tools, spectrometers,	blanks, standards and duplicate samples were
	handheld XRF instruments, etc, the	included in the samples sent for analysis. No
	parameters used in determining the	data has been found to check the QAQC.
	analysis including instrument make and
	model, reading times, calibrations factors
	applied and their derivation, etc.
	• Nature of quality control procedures
	adopted (eg standards, blanks, duplicates,
	external laboratory checks) and whether
	acceptable levels of accuracy (ie lack of
	bias) andprecision have been established.
Verification of	• The verification of significant	• No information on sample verification has
sampling and	intersections by either independent or	been found.
assaying	alternative company personnel.
	• The use of twinned holes.

Challenger Exploration Limited Issued Capital Australian Registered Office Directors Contact ACN 123 591 382 973.8m shares Level 1 Mr Kris Knauer, MD and CEO T: +61 8 6380 9235 ASX: CEL 49.6m options 1205 Hay Street Mr Scott Funston, Finance Director E: admin@challengerex.com Website: www.challengerex.com 120m perf shares West Perth WA 6005 Mr Fletcher Quinn , Chairman 16m perf rights

www.challengerex.com

ASX Release 25 Oct 2021

==> picture [130 x 66] intentionally omitted <==

Criteria	JORC Code explanation	Commentary
	• Documentation of primary data, data
	entry procedures, data verification, data
	storage (physical and electronic)
	protocols.
	• Discuss any adjustment to assay data.
Location of	• Accuracy and quality of surveys used to	• No information on sample location surveys or
data points	locate drill holes (collar and down-hole	the grid reference system has been found.
	surveys), trenches, mine workings and	• Centenera: a plan of the combined stream
	other locations used in Mineral Resource	sediment and rock chip samples without
	estimation.	geographic reference was provided in a TSX
	• Specification of the grid system used.	release dated 21 March 2017
	• Quality and adequacy of topographic
	control.

Challenger Exploration Limited ACN 123 591 382 ASX: CEL Website: www.challengerex.com

Issued Capital 973.8m shares 49.6m options 120m perf shares 16m perf rights

Australian Registered Office Level 1 1205 Hay Street West Perth WA 6005

Directors

Mr Kris Knauer, MD and CEO Mr Scott Funston, Finance Director Mr Fletcher Quinn , Chairman

Contact

www.challengerex.com

T: +61 8 6380 9235 E: admin@challengerex.com

ASX Release 25 Oct 2021

==> picture [130 x 66] intentionally omitted <==

Criteria	JORC Code explanation	Commentary
Data spacing	• Data spacing for reporting of Exploration	• No information on the data spacing has been
and	Results.	found.
distribution	• Whether the data spacing and distribution
	is sufficient to establish the degree of
	geological and grade continuity
	appropriate for the Mineral Resource and
	Ore Reserve estimation procedure(s) and
	classifications applied.

Challenger Exploration Limited Issued Capital Australian Registered Office ACN 123 591 382 973.8m shares Level 1 ASX: CEL 49.6m options 1205 Hay Street Website: www.challengerex.com 120m perf shares West Perth WA 6005 16m perf rights

Directors Contact Mr Kris Knauer, MD and CEO T: +61 8 6380 9235 Mr Scott Funston, Finance Director E: admin@challengerex.com Mr Fletcher Quinn , Chairman

www.challengerex.com

ASX Release 25 Oct 2021

==> picture [130 x 66] intentionally omitted <==

Criteria	JORC Code explanation	Commentary
	• Whether sample compositing has been
	applied.
Orientation of	• Whether the orientation of sampling	• There has been no exploration data that has
data in	achieves unbiased sampling of possible	been taken relative to the orientation of the
relation to	structures and the extent to which this is	geological controls.
geological	known, considering the deposit type.
structure	• If the relationship between the drilling
	orientation and the orientation of key
	mineralised structures is considered to
	have introduced a sampling bias, this
	should be assessed and reported if
	material.
Sample	• The measures taken to ensure sample	• No detailed sample security information has
security	security.	been found
		Centenera: State that their samples were
		under supervision of their geologists in
		accordance with standard industry practice.
Audits or	• The results of any audits or reviews of	• No audits have been undertaken.
reviews	sampling techniques and data.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria JORC Code explanation	Commentary	Commentary	Commentary	Commentary	Commentary
Mineral tenement and land tenure status • Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. • The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	• The Cordon del Peñon is composed of six Minas (Mining Leases) and one Cateo (Exploration Licence):
		File No.	Area	Name	Owner
	Cateo	414-998-M-	721.90		ArmandoJ. Sanchez
	Mine	1124-045-S-	2,921.05	Guillermina	ArmandoJ. Sanchez
	Mine	1124-114-S-	1,500.00	Agu 3	ArmandoJ. Sanchez
	Mine	1124-343-S-	1443.50	Agu 5	ArmandoJ. Sanchez
	Mine	1124-623-S-	1500.00	Agu 6	ArmandoJ. Sanchez
	Mine	1124-622-S-	1459.00	Agu 7	ArmandoJ. Sanchez
	Mine	2478-C-71	18.00	El Petiso	Armando J. Sanchez & Carlos Ocampo
	• The licences are currently held in good standing. • CEL has an option to acquire the Cordon del Peñon within 4 years of the date of the agreement for US$250,000 cash and US$ 200,000 in cash or shares at 10 day VAWP prior to notifying the Vendor of the intention to acquire the project. CEL will make annual payments of US$5,000 for the first 4 years. • There are no known impediments to operating within the Cordon del Peñon

Challenger Exploration Limited Issued Capital Australian Registered Office ACN 123 591 382 973.8m shares Level 1 ASX: CEL 49.6m options 1205 Hay Street Website: www.challengerex.com 120m perf shares West Perth WA 6005 16m perf rights

Directors

Mr Kris Knauer, MD and CEO Mr Scott Funston, Finance Director Mr Fletcher Quinn , Chairman

Contact

www.challengerex.com

T: +61 8 6380 9235 E: admin@challengerex.com

ASX Release 25 Oct 2021

==> picture [130 x 66] intentionally omitted <==

Criteria	JORC Code explanation	Commentary
Exploration	• Acknowledgment and	• Previous exploration has been completed by Committee Bay
done by other	appraisal of exploration by	Resources (CBR), Cardero Resource Corporation and
parties	other parties.	Centenera Mining Corporation (Centenera).
		CEL have not been able to appraise the results of previous
		exploration as there has been no data provided in which to
		base an appraisal.
		CEL only has public releases hade to the TSX provided by
		Centenera dated 9 November 2016 and 21 March 2017
Geology	• Deposit type, geological	• CBR and Centenera considered mineralisation may be
	setting and style of	Carlin-style sediment hosted replacement mineralisation on
	mineralisation.	the basis of the anomalous element assemblage from the
		stream sediment and rock chip samples (Au-Ag-As-Sb, Th,
		Te and W).
		CEL are keeping an open mind on the style/s of
		mineralisation which may be present at the Cordon del
		Peñon given that the source of the mineralisation has not
		been identified and the anomalous mineral assemblage
		indicate multiple mineralisation styles are possible.
Drill hole	• A summary of all	• There are no drill holes reported on the Cordon del Peñon
Information	information material to the
	understanding of the
	exploration results including
	a tabulation of the following
	information for all Material
	drill holes:
	o easting and northing of
	the drill hole collar
	o elevation or RL (Reduced
	Level – elevation above
	sea level in metres) of the
	drill hole collar
	o dip and azimuth of the
	hole
	o down hole length and
	interception depth
	o hole length.
	• If the exclusion of this
	information is justified on
	the basis that the
	information is not Material
	and this exclusion does not
	detract from the
	understanding of the report,
	the Competent Person
	should clearly explain why
	this is the case.
Data	• In reporting Exploration	• No weighted average or aggregate results are reported
aggregation	Results, weighting averaging
methods	techniques, maximum

Challenger Exploration Limited Issued Capital Australian Registered Office Directors Contact ACN 123 591 382 973.8m shares Level 1 Mr Kris Knauer, MD and CEO T: +61 8 6380 9235 ASX: CEL 49.6m options 1205 Hay Street Mr Scott Funston, Finance Director E: admin@challengerex.com Website: www.challengerex.com 120m perf shares West Perth WA 6005 Mr Fletcher Quinn , Chairman 16m perf rights

www.challengerex.com

ASX Release 25 Oct 2021

==> picture [130 x 66] intentionally omitted <==

Criteria	JORC Code explanation	Commentary
	and/or minimum grade
	truncations (eg cutting of
	high grades) and cut-off
	grades are usually Material
	and should be stated.
	• Where aggregate intercepts
	incorporate short lengths of
	high grade results and
	longer lengths of low grade
	results, the procedure used
	for such aggregation should
	be stated and some typical
	examples of such
	aggregations should be
	shown in detail.
	• The assumptions used for
	any reporting of metal
	equivalent values should be
	clearly stated.
Relationship	• These relationships are	• No information is known of mineralisation widths
between	particularly important in the
mineralisation	reporting of Exploration
widths and	Results.
intercept	• If the geometry of the
lengths	mineralisation with respect
	to the drill hole angle is
	known, its nature should be
	reported.
	• If it is not known and only
	the down hole lengths are
	reported, there should be a
	clear statement to this effect
	(eg ‘down hole length, true
	_width not known’). _
Diagrams	• Appropriate maps and	• A plan of the Centenera stream sediment sample results is
	sections (with scales) and	provided above which was published by Centenera in a
	tabulations of intercepts	release dated 21 March 2017
	should be included for any
	significant discovery being
	reported These should
	include, but not be limited to
	a plan view of drill hole
	collar locations and
	appropriate sectional views.
Balanced	• Where comprehensive	• CEL believes the information provided is representative of
reporting	reporting of all Exploration	the known data for the Cordon del Peñon
	Results is not practicable,
	representative reporting of
	both low and high grades
	and/or widths should be

Challenger Exploration Limited Issued Capital Australian Registered Office Directors Contact ACN 123 591 382 973.8m shares Level 1 Mr Kris Knauer, MD and CEO T: +61 8 6380 9235 ASX: CEL 49.6m options 1205 Hay Street Mr Scott Funston, Finance Director E: admin@challengerex.com Website: www.challengerex.com 120m perf shares West Perth WA 6005 Mr Fletcher Quinn , Chairman 16m perf rights

www.challengerex.com

ASX Release 25 Oct 2021

==> picture [130 x 66] intentionally omitted <==

Criteria	JORC Code explanation	Commentary
	practiced to avoid
	misleading reporting of
	Exploration Results.
Other	• Other exploration data, if	• Cardero Resources Corporation completed ASTER satellite
substantive	meaningful and material,	alteration mapping and a structural study. The results of
exploration	should be reported including	this work are not available to CEL
data	(but not limited to):
	geological observations;
	geophysical survey results;
	geochemical survey results;
	bulk samples – size and
	method of treatment;
	metallurgical test results;
	bulk density, groundwater,
	geotechnical and rock
	characteristics; potential
	deleterious or
	contaminating substances.
Further work	• The nature and scale of	• The following initial exploration program is indented to be
	planned further work (eg	undertaken by CEL:
	tests for lateral extensions or	• Ground magnetic survey on E-W survey lines spaced 80 –
	depth extensions or large-	100m apart, covering as much of the Cordon del Peñon as
	scale step-out drilling).	possible with a ground based survey.
	• Diagrams clearly	• Surface geological mapping (stream and creek traverses)
	highlighting the areas of	over key areas identified by previous stream sediment and
	possible extensions,	roc chip sample surveys with the intention of identifying
	including the main	and sampling possible sources for past stream sediment
	geological interpretations	anomalies.
	and future drilling areas,
	provided this information is
	not commercially sensitive.

Challenger Exploration Limited Issued Capital ACN 123 591 382 973.8m shares ASX: CEL 49.6m options Website: www.challengerex.com 120m perf shares

Directors

Contact

E: admin@challengerex.com

16m perf rights

www.challengerex.com

Australian Registered Office Level 1 1205 Hay Street West Perth WA 6005

Mr Kris Knauer, MD and CEO Mr Scott Funston, Finance Director Mr Fletcher Quinn , Chairman

T: +61 8 6380 9235