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CHALLENGER GOLD LIMITED Capital/Financing Update 2021

May 16, 2021

64637_rns_2021-05-16_2bc90cbc-72b8-4808-98b8-5e20d0b58106.pdf

Capital/Financing Update

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ASX Release 17 May 2021

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CEL Delivers Exceptional Metallurgical Test Work Results from the Hualilan Gold Project

Highlights

  • The first test in a series of metallurgical tests on the lower-grade intrusion-hosted mineralisation at the Hualilan Gold Project has produced outstanding results:

  • gold recovery of 94.9% from gravity separation followed by single stage flotation;

  • production of an attractive, and saleable, gold and silver concentrate.

  • Analysis of the concentrate from the high-grade material confirms it has significant advantages:

  • it is low in all deleterious elements and exceptionally low in arsenic; and

  • discussions with potential off-takers have indicated it will have high payability.

  • These results compliment the recoveries of 91-94% from the high-grade skarn mineralisation from Phase 1 metallurgical testing in February 2021.

Commenting on the results, CEL Managing Director, Mr Kris Knauer, said;

“Hualilan has a foreign resource of over six hundred thousand ounces of high-grade gold, however the Company believes that the recently discovered lower-grade intrusion hosted mineralisation will provide the majority of the gold at Hualilan.

The initial results from metallurgical testing of this lower grade material are outstanding and far exceeded our expectations. They show the viability of a concentrate production and export route which provides us with a simple, low risk industry standard flotation flowsheet that unlocks value of the lower-grade intrusion-hosted material at Hualilan.

We are encouraged by discussions we have had with off -takers and traders. The clear message is that the grades and nature of our concentrates make them attractive and should translate to strong payability. Additionally, we expect to further increase their quality via more test work."

Challenger Exploration ( ASX: CEL ) (“ CEL ” or the “ Company ”) is pleased to announce further results from ongoing Phase 1 metallurgical testing at the Company's flagship Hualilan Gold project in San Juan Argentina. The results are extremely encouraging and materially above the Company's expectations.

The first test on the low-grade intrusion-hosted mineralisation, which represents the majority of the gold mineralisation at Hualilan, has produced almost 95% gold recovery. Ongoing testing of the concentrate from the high-grade mineralisation has shown it is exceptionally clean and likely to have high payability. Additionally, leach testing of the float tails has shown the potential to significantly increase gold recoveries into the high 90 percent level.

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital 658.2m shares 86.6m options 120m perf shares 16m perf rights

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

Directors

Directors Contact Mr Kris Knauer, MD and CEO T: +61 8 6380 9235 Mr Scott Funston, Finance Director E: [email protected] Mr Fletcher Quinn , Chairman

www.challengerex.com

ASX Release 17 May 2021

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HIGHLIGHTS

Intrusion-hosted mineralisation

The testing was conducted on a representative composite of the intrusion-hosted mineralisation from the Gap Zone and Magnata grading 1.1 g/t gold 7.0 g/t silver and 0.10 % zinc. The first test produced recoveries of 95% (gold) and 87% (silver) into an attractive gold/silver concentrate from simple gravity separation followed by single stage sulphide flotation at an exceptionally low mass pull of 3.1%. Fine grinding was not required with the results achieved using an 80 micron grind and 65% of the gold was recovered via a gravity into a concentrate grading 283 g/t gold and 693 g/t silver.

These recoveries were significantly better than both the historical recoveries on the high-grade material and the Company's initial expectations. This significantly de-risks the project as it confirms a simple and conventional, and low cost, process route is available for the material the Company believes will provide the bulk of the gold mineralisation at Hualilan.

Product Weight Weight Assays (g/t - Au/Ag % - Cu/Pb/Zn/S) Assays (g/t - Au/Ag % - Cu/Pb/Zn/S) Assays (g/t - Au/Ag % - Cu/Pb/Zn/S) Assays (g/t - Au/Ag % - Cu/Pb/Zn/S) Assays (g/t - Au/Ag % - Cu/Pb/Zn/S) Assays (g/t - Au/Ag % - Cu/Pb/Zn/S)
Distribution(%)
g % Au Ag Cu Pb Zn S Au Ag Cu Pb Zn S
Gravity Conc 9.7 0.2 283 693 65.9 16.9
Gravity Conc + Clnr Conc 125.9 3.1 31.4 274 0.51 0.54 2.72 32.2 94.9 86.9 62.2 62.9 85.6 92.3

Table 1 -Summary Metallurgical Test Results - Intrusion-hosted mineralisation

High-grade mineralisation

The results from detailed analysis of the concentrate produced from the high-grade material show that it is low in all deleterious elements and extremely low in Arsenic. The arsenic content was below the 30 ppm detection level which is rare for a gold concentrate creating the potential for the concentrate to attract a significant premium for blending. Clean gold concentrates are becoming more sought after as environmental regulations tighten regarding importation and processing of concentrates high in deleterious elements.

Preliminary discussions with potential off-takers confirm that given its composition, and the good gold grades, the concentrate has a number of advantages over most gold concentrates and it is likely to be highly sought and should achieve a high payability.

Exploratory leach testing

The Company conducted an exploratory cyanide leach test on the tailings from the concentrate from the high-grade mineralisation. The 5-10% of the gold that was not recovered by floatation was lost into the float tailings. The recovery of approximately 70% of this gold and silver in the float tails via a cyanide leach is a positive, and unexpected, result. This has the potential to increase gold recoveries from the high-grade material into the high 90 percent range. It also provides the flexibility to target a higher-grade concentrate, and resultant increased payability, while still maintaining high gold recoveries.

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital 658.2m shares 86.6m options 120m perf shares

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

Directors

Contact

16m perf rights

Mr Kris Knauer, MD and CEO T: +61 8 6380 9235 Mr Scott Funston, Finance Director E: [email protected] Mr Fletcher Quinn , Chairman

www.challengerex.com

ASX Release 17 May 2021

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FIRST FLOTATION TEST (LOW-GRADE INTRUSION-HOSTED MATERIAL)

Bulk Sample

The first test was conducted on a 4 kilogram sub-sample of a 55.6 kg bulk sample of quarter core from 4 drill holes across the project; GNDD-113, GNDD113A, GNDD155 (Gap Zone) and GNDD157 (Magnata). The bulk sample provides material which has a grades and composition representative of the low-grade intrusion-hosted mineralisation intersected to date. Assays for holes used for the metallurgical bulk sample are shown in Table 1. The weighted average grade of the bulk sample is 1.1 g/t gold, 7.0 g/t silver, 0.01% copper, 0.03% lead and 0.09% zinc.

Drill hole
From
To		 Drill hole
From
To		 Total Au Ag Zn Cu
Pb
weight
(#)
(m)
(m)		 (m) (g/t) (g/t) (%) (%)
(%)
(kg)
GNDD113 154.00
161.50		 7.50 0.86 32.0 0.18 0.06
0.13
10.95
GNDD113A 352.00
360.00		 8.00 1.06 0.90 0.02 0.00
0.01
12.88
GNDD155 195.00
200.00		 5.00 0.92 1.26 0.10 0.00
0.02
10.38
GNDD155 248.00
253.00		 5.00 1.39 0.95 0.07 0.00
0.01
10.06
GNDD157 345.00
352.00		 7.00 1.27 0.53 0.11 0.00
0.00
11.38

Table 1: Grades and weights of core samples that contributed to metallurgical sample

Initial Floatation Test Result

The first test on the intrusion-hosted material (Test F7) was a repeat of the Test F5 test conducted on the higher-grade material, which produced excellent recoveries from a combination of gravity separation and single stage bulk sulphide float. It was conducted at a slightly finer P80 = 80 micron grind. Gravity separation recovered 65.9% of the gold into a gravity concentrate grading 283 g/t gold and 693 g/t silver. As in the tests done on the higher-grade material gravity separation consisted of a Knelson Concentrator followed by a Mozely Table.

The tailings grades of 0.04 g/t Au and 0.90 g/t Ag are exceptionally low and correspond to a combined gravity and bulk rougher gold recovery of 96.4%. A single cleaning stage was added after the bulk sulphide float which was extremely effective. This produced a small (1.5%) reduction in recovery from 96.4% to 94.9% (gold) and 91.6% to 86.9% (silver) at a significantly lower mass pull of 3.1%, down from 7%. The end concentrate, from the combination of the gravity and first cleaner float concentrate, produced a concentrate containing 31.5 g/t gold, 274 g/t silver, 0.5% copper, 0.5% lead, 2.7% zinc and 32% sulphur. Recoveries were 94.9% (gold), 86.8% (silver), 62.2% (copper), 62.9% (lead), 85.6% (zinc).

The Company is repeating the test using a 12 kg sample as SGS Lakefield have advised the initial test, using a 4gk sample, may have understated the gravity component to the concentrate. The composition of the concentrate from this 12 kg test will be analysed to confirm that, like the concentrate from the high-grade material, it is low in deleterious elements.

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital 658.2m shares 86.6m options 120m perf shares

Australian Registered Office Level 1 1205 Hay Street

West Perth WA 6005

Directors

Contact

Mr Kris Knauer, MD and CEO T: +61 8 6380 9235 Mr Scott Funston, Finance Director E: [email protected] Mr Fletcher Quinn , Chairman

16m perf rights

www.challengerex.com

ASX Release 17 May 2021

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This is the first in a series of tests and, given the effectiveness of the single cleaning stage, the Company expects is will further improve the concentrate grade with minimal trade-off in recovery. Additionally, the likelihood of the recovery of the majority of any residual gold and silver in the cleaner concentrate tails via a cyanide leach provides further flexibility to target a higher-grade concentrate without a significant reduction in overall recoveries.

Higher gold and silver grades in concentrate are likely to further improve the project economics through higher concentrate payability.

The next test will involve evaluating a finer primary grind. Subsequent tests will involve the addition of a second bulk cleaner to reject more non-sulphide minerals. Additionally, given the good rougher recovery, the Company will perform a short regrind of the rougher concentrate rather than a finer primary grind. Sulphides commonly grind preferentially hence a finer primary grind may lead to elevated sulphide fines losses to the rougher tailings.

Regardless of any further improvements the Company is extremely encouraged by the excellent gold and silver recoveries that this first test has demonstrated are able to be achieved from a combination of a gravity and single stage bulk sulphide float.

The production of a single stage bulk concentrate will be the lowest capital and operating expenditure option on a per tonne throughput basis when compared to other processes. It is also a significant positive that these high recoveries from Phase 1 testing have been achieved without the need for fine grinding.

Product Weight Weight Assays Assays Distribution Distribution Distribution
g % Au
(g/t)		 Ag
(g/t)		 Cu
(%)		 Pb
(%)		 Zn
(%)		 Au
(%)		 Ag
(%)		 Cu
(%)		 Pb
(%)		 Zn
(%)
Mozley Conc
1st Clnr Conc
1st Clnr Tails
Ro Tails		 9.7
116.2
154.0
3722.0		 0.2
2.9
3.8
93.0		 283
10.4
0.41
0.04		 693
239
12.1
0.90		 0.55
0.01
<0.01		 0.59
0.021
<0.01		 2.95
0.059
0.013		 16.9
69.9
4.7
8.4		 62.2
1.5
36.3		 62.9
3.0
34.1		 85.6
2.3
12.1		 94.78
1.8
3.4
Head (calc)
Head (direct)		 4001.9 100.0 1.04
1.72		 9.92
11.2		 0.03
0.02		 0.03
0.06		 0.10
100
0.10		 100 100 100 100

Table 2 -test F7 Metallurgical Balance Table

ANALYSIS OF THE CONCENTRATE FROM THE HIGH-GRADE MATERIAL

Detailed analysis of the composition of the concentrate produced from the high-grade skarn mineralisation (namely the combination of the first cleaner concentrate and the gravity concentrate from the high-grade material test F5 - see metallurgical balance below) has demonstrated that the concentrate has significant advantages over most concentrates.

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

658.2m shares 86.6m options 120m perf shares

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

Directors

Contact

Mr Kris Knauer, MD and CEO T: +61 8 6380 9235 Mr Scott Funston, Finance Director E: [email protected] Mr Fletcher Quinn , Chairman

16m perf rights

www.challengerex.com

ASX Release 17 May 2021

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The composition of the concentrate is shown in Table 3.

Of particular note is the arsenic content, below the 30 ppm (g/t) detection level which is rare for a gold concentrate, and all other deleterious elements being well below the level at which they would incur smelter penalties. This significantly expands the number of potential treatment routes.

Preliminary discussions with potential offtake partners and concentrate traders have indicated that this concentrate is likely to be highly sought and will attract a significant premium to most similar grade gold concentrates. Early indicative payabilities show that the sale of a concentrate from the combined gravity and single stage float is an attractive and robust option to use to evaluate the economics of the project. The Company will also continue to advance the production and sale of separate zinc, copper, and lead concentrate streams.

**Ag g/t ** **Alg/t ** **Asg/t ** **Bag/t ** **Beg/t ** **Big/t ** **Cag/t ** **Cdg/t ** **Clg/t ** **Cog/t ** **Crg/t ** **Cug/t **
(ppm) (ppm) (ppm) (ppm) (ppm) (ppm) (%) (ppm) (ppm) (ppm) (ppm) (ppm)
113 1,510 < 30 7.5 0.28 < 20 4.6 1,130 20 < 5 65 0.6
**Feg/t ** F % **Hg g/t ** **Kg/t ** **Lig/t ** **Mg g/t ** **Mng/t ** **Mog/t ** **Nag/t ** **Nig/t ** **Pg/t ** **Pbg/t **
(ppm) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm) (%)
30.3 22 < 0.3 344 < 40 2,460 7,130 < 5 185 < 20 < 200 1.4
**Sbg/t ** **Seg/t ** **Sng/t ** **Srg/t ** **Tig/t ** **Tlg/t ** **Ug/t ** **Vg/t ** **Yg/t ** **Zng/t ** Au
(ppm) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm) (%) (ppm)
< 30 < 30 < 20 32.6 60.1 < 30 < 50 < 4 1.7 11.6 54.2

Table 3 - Composition of combined gravity and first cleaner concentrate test F5 (high grade skarn)

Product Weight Weight Assays Assays Percentage Percentage
(g) (%) Au
(g/t)		 Ag
(g/t)		 Cu
(%)		 Pb
(%)		 Zn
(%)		 S
(%)		 Au
(%)		 Ag
(%)		 Cu
(%)		 Pb
(%)		 Zn
(%)		 Zn
(%)
Mozley Conc
1st Clnr Conc
1st Clnr Tails
Ro Tails		 8.3
470.4
148.4
1372.9		 0.4
23.5
7.4
68.6		 1538
28.0
7.5
2.05		 147.0
40.6
10.0		 0.14
0.70
0.19
0.03		 40.3
1.67
0.42
0.16		 0.58
13.9
2.15
1.32		 32.4
42.8
2.6
0.53		 42.8
44.1
3.7
9.4		 77.8
6.8
15.4		 83.7
7.2
9.1		 73.6
5.8
20.6		 75.4
3.7
20.9		 94.78
1.8
3.4
Head (calc)
Head (direct)		 2000.0 100.0 14.9
17.2		 44.5
44.0		 0.20
0.20		 0.53
0.70		 4.33
4.45		 10.62 100 100 100 100 100 100

Table 4 -Test F5 Metallurgical Balance Table (high grade skarn)

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital 658.2m shares 86.6m options 120m perf shares 16m perf rights

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

Directors

Contact

Mr Kris Knauer, MD and CEO T: +61 8 6380 9235 Mr Scott Funston, Finance Director E: [email protected] Mr Fletcher Quinn , Chairman

www.challengerex.com

ASX Release 17 May 2021

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EXPLORATORY CYANIDE LEACH OF THE FLOAT TAILS

For completeness, the Company undertook an exploratory cyanide leach of the F5 concentrate tails produced in the flotation testing of the high-grade skarn material. Some 9.4% of the gold from the higher grade sample is lost into the float tails in the combined gravity single stage float with the float tails grading 2.1 g/t gold and less than 10 g/t silver. Additionally, the first cleaner float tails contain 3.7% of the gold at a grade of 7.5 g/t.

Given that historical bulk sample bottle roll testing, which was used to determine the effectiveness of cyanide to recover the gold at Hualilan, had produced recoveries of 20-40% it was not expected that cyanide would recover a significant portion of the residual gold In the float tails.

Testing was conducted on a 1.34 kg sample of the F5 float tails over a 48 hour leach duration. Surprisingly, the testing resulted in the recovery of 70% of the gold and 72% of the silver. The cyanide consumption of 4.25 kg/t NaCn was at the higher end, however it represents a viable option to significantly increase recoveries. Additionally, no attempt has been made to further clean the float tails to remove the residual zinc and copper which are likely to be responsible for the majority of the cyanide consumption.

The likelihood of the recovery of the majority of any residual gold and silver in the concentrate tails provides not only improved recoveries and most likely a better outcome. It also provides the flexibility to target a higher grade concentrate without significantly reducing overall recoveries.

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 [email protected] [email protected] [email protected]

ASX: CEL

Issued Capital

658.2m shares

86.6m options

120m perf shares 16m perf rights

Australian Registered Office Level 1 1205 Hay Street

West Perth WA 6005

Directors

Contact

Challenger Exploration Limited ACN 123 591 382

Mr Kris Knauer, MD and CEO T: +61 8 6380 9235 Mr Scott Funston, Finance Director E: [email protected] Mr Fletcher Quinn , Chairman

www.challengerex.com

ASX Release 17 May 2021

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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 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 in Ecuador.

The Company is fully funded for the next 2 years with cash at bank of $50 million and it has committed to an 8-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 20 months CEL has completed 250 drill holes for more than 55,000 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 almost 2 kilometres of strike and extended the known mineralisation along strike and at depth in multiple locations. Recent drilling has demonstrated this high-grade skarn mineralisation is underlain by a significant intrusion-hosted gold system with intercepts including 116m at 1.0 g/t Au, 4.0 g/t Ag, 0.2% Zn and 39.0m at 5.5 g/t Au, 2.0 g/t Ag, 0.3% Zn in porphyry dacites. 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 1995 and 1997 targeting gold in hydrothermal breccias. Historical drilling has demonstrated potential to host significant gold and associated copper and silver mineralisation. Historical drilling has returned a number of intersections including 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 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. The Company is completing preparations for its maiden drill program which will; commence In July 2021.

Issued Capital 658.2m shares 86.6m options

120m perf shares 16m perf rights

Australian Registered Office Level 1 1205 Hay Street

West Perth WA 6005

Directors

Contact

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Mr Kris Knauer, MD and CEO T: +61 8 6380 9235 Mr Scott Funston, Finance Director E: [email protected] Mr Fletcher Quinn , Chairman

www.challengerex.com

ASX Release 17 May 2021

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Hualilan Project Location Map
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Challenger Exploration Limited Issued Capital Australian Registered Office Directors Contact
ACN 123 591 382 658.2m shares Level 1 Mr Kris Knauer, MD and CEO T: +61 8 6380 9235
ASX: CEL 86.6m options 1205 Hay Street Mr Scott Funston, Finance Director E: [email protected]
120m perf shares West Perth WA 6005 Mr Fletcher Quinn , Chairman
16m perf rights
----- End of picture text -----

www.challengerex.com

ASX Release 17 May 2021

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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 fulltime 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

Issued Capital Australian Registered Office Directors Contact 658.2m shares Level 1 Mr Kris Knauer, MD and CEO T: +61 8 6380 9235 86.6m options 1205 Hay Street Mr Scott Funston, Finance Director E: [email protected] 120m perf shares West Perth WA 6005 Mr Fletcher Quinn , Chairman

16m perf rights

www.challengerex.com

JORC Code, 2012 Edition – Table 1 report template

Section 1 Sampling Techniques and Data -Hualilan Project

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

Criteria
JORC Code explanation		 Commentary
Sampling
techniques
-
Nature and quality of sampling (eg cut channels, random
chips, or specific specialised industry standard
measurement tools appropriate to the minerals under
investigation, such as down hole gamma sondes, or
handheld XRF instruments, etc). These examples should
not be taken as limiting the broad meaning of sampling.
-
Include reference to measures taken to ensure sample
representivity and the appropriate calibration of any
measurement tools or systems used.
-
Aspects of the determination of mineralisation that are
Material to the Public Report.
-
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.		 For historic exploration data, there is little information provided by previous explorers to detail sampling
techniques. Drill core was cut with a diamond saw longitudinally and one half submitted for assay. Assay
was generally done for Au. In some drill campaigns, Ag and Zn were also analysed. There is limited
multielement data available. No information is available for RC drill techniques and sampling.
For CEL drilling, diamond core (HQ3) was cut longitudinally on site using a diamond saw. Samples lengths
are from 0.5m to 2.0m in length (average 1m), taken according to lithology, alteration, and mineralization
contacts.
For CEL reverse circulation (RC) drilling, 2-4 kg sub-samples from each 1m drilled are collected from a
face sample recovery cyclone mounted on the drill machine.
Core samples were crushed to approximately 85% passing 2mm. A 500g or a 1 kg sub-sample was taken
and pulverized to 85% passing 75µm. A 50g charge was analysed for Au by fire assay with AA
determination. Where the fire assay grade is > 10 g/t gold, a 50g charge was analysed for Au by Fire
assay with gravimetric determination.
A 10g charge was analysed for 48 elements by 4-acid digest and ICP-MS determination. Elements
determined were Ag, As, Ba, Be, Bi, Ca, Ce, Co, Cr, Cs, Cu, Fe, Ga, Ge, Hf, In, K, La, Li, Mg, Mn, Mo, Na, Nb,
Ni, P, Pb, Rb, Re, S, Sb Sc, Se, Sn, Sr, Ta, Te, Th, Ti, Tl, U, V, W, Y, Zn and Zr.
Ag > 100 g/t, Zn, Pb and Cu > 10,000 ppm and S > 10% were re-analysed by the same method using a
different calibration.
Sample intervals were selected according to geological boundaries. There was no coarse gold observed
in any of the core.
Drilling techniques
-
Drill type (eg core, reverse circulation, open-hole hammer,
rotary air blast, auger, 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).		 Collar details for diamond core drilling (DD) and reverse circulation (RC) historic drilling campaigns is
provided below from archival data cross checked with drill logs and available plans and sections where
available. Collars shown below are in WGS84, zone 19s which is the standard projection used by CEL for
the Project. Collar locations have been check surveyed using differential GPS (DGPS) by CEL to verify if
the site coincides with a marked collar or tagged drill site. In most cases the drill collars coincide with
historic drill site, some of which (but not all) are tagged. The collar check surveys were reported in
POSGAR (2007) projection and converted to WGS84.
Hole_id
Type
East
(m)
North
(m)
Elevation
(m ASL)
Azimuth
(°)
Dip
(°)
Depth
(m)
Date

Challenger Exploration Limited Issued Capital ACN 123 591 382 658.2m shares ASX: CEL 86.6m options 120m perf shares

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

Directors

Contact

Mr Kris Knauer, MD and CEO T: +61 8 6380 9235 Mr Scott Funston, Finance Director E: [email protected] Mr Fletcher Quinn , Chairman

16m perf rights

www.challengerex.com

Criteria
JORC Code explanation		 Commentary
AG01
DD
2504908.0
6602132.3
1807.6
000
-90
84.5
Jan-84
AG02
DD
2504846.5
6602041.1
1803.4
112
-70
60.0
Jan-84
AG03
DD
2504794.5
6601925.6
1803.1
080
-55
110.0
Jan-84
AG04
DD
2504797.1
6602065.5
1806.6
000
-90
168.0
Jan-84
AG05
DD
2504843.5
6601820.3
1798.1
000
-90
121.8
Jan-84
AG06
DD
2504781.9
6601922.8
1803.8
000
-90
182.2
Jan-84
AG07
DD
2504826.3
6601731.0
1796.9
000
-90
111.5
Jan-84
AG08
DD
2504469.8
6600673.7
1779.7
090
-57
80.2
Jan-84
AG09
DD
2504455.7
6600458.5
1772.6
000
-90
139.7
Jan-84
AG10
DD
2504415.5
6600263.9
1767.7
000
-90
200.8
Jan-84
AG11
DD
2504464.8
6600566.5
1775.9
000
-90
141.0
Jan-84
AG12
DD
2504847.6
6602161.7
1808.8
000
-90
171.4
Jan-84
AG13
DD
2504773.6
6601731.3
1798.7
000
-90
159.5
Jan-84
AG14
DD
2504774.7
6601818.8
1801.2
000
-90
150.2
Jan-84
AG15
DD
2504770.7
6601631.4
1796.7
000
-90
91.3
Jan-84
AG16
DD
2504429.5
6600665.8
1779.8
000
-90
68.8
Jan-84
Hole_id
Type
East
(m)
North
(m)
Elevation
(m ASL)
Azimuth
(°)
Dip
(°)
Depth
(m)
Date
MG01
RC
2504825.5
6602755.4
1800.0
100
-60
51.0
Jan-95
MG01A
RC
2504810.5
6602755.4
1800.0
100
-60
116.0
Jan-95
MG02
RC
2504835.5
6602805.4
1800.0
100
-60
90.0
Jan-95
MG03
RC
2504853.5
6602880.4
1795.0
100
-60
102.0
Jan-95
MG04
RC
2504843.5
6602975.4
1800.0
100
-60
120.0
Jan-95
MG05
RC
2506130.5
6605055.4
1750.0
85
-60
96.0
Jan-95
MG06
RC
2506005.5
6605115.4
1750.0
100
-60
90.0
Jan-95
MG07
RC
2506100.5
6605015.4
1750.0
100
-60
96.0
Jan-95
MG08
RC
2505300.5
6603070.4
1740.0
95
-70
66.0
Jan-95
MG09
RC
2505285.5
6603015.4
1740.0
0
-90
102.0
Jan-95
MG10
RC
2505025.5
6600225.4
1724.0
100
-60
120.0
Jan-95
MG11
RC
2503380.5
6598560.5
1740.0
100
-60
78.0
Jan-95
MG12
RC
2503270.5
6597820.5
1740.0
100
-60
66.0
Jan-95
Hole_id
Type
East
(m)
North
(m)
Elevation
(m ASL)
Azimuth
(°)
Dip
(°)
Depth
(m)
Date
Hua01
RC
2504845.3
6602041.2
1809.7
117
-50
60.0
1999
Hua02
RC
2504889.5
6602081.1
1809.7
125
-55
45.0
1999

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

658.2m shares

86.6m 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

T: +61 8 6380 9235

E: [email protected]

16m perf rights

www.challengerex.com

Criteria
JORC Code explanation		 Commentary
Hua03
RC
2505003.3
6602158.6
1810.7
000
-90
100.0
1999
Hua04
RC
2504873.3
6602169.1
1809.7
000
-90
100.0
1999
Hua05
RC
2505003.2
6602152.6
1810.7
180
-60
100.0
1999
Hua06
RC
2505003.3
6602161.6
1810.7
360
-60
100.0
1999
Hua07
RC
2504967.7
6602153.2
1810.2
000
-90
100.0
1999
Hua08
RC
2504973.2
6602153.7
1810.2
000
-90
13.0
1999
Hua09
RC
2504940.7
6602150.3
1809.7
180
-60
100.0
1999
Hua10
RC
2504941.8
6602156.8
1809.7
360
-60
100.0
1999
Hua11
RC
2504913.3
6602167.4
1809.7
360
-60
88.0
1999
Hua12
RC
2504912.8
6602165.9
1809.7
000
-90
100.0
1999
Hua13
RC
2504912.3
6602156.9
1809.7
180
-60
90.0
1999
Hua14
RC
2504854.3
6602168.2
1809.7
360
-60
100.0
1999
Hua15
RC
2504854.8
6602166.2
1809.7
117
-60
100.0
1999
Hua16
RC
2504834.2
6601877.8
1800.7
000
-90
100.0
1999
Hua17
RC
2504865.9
6602449.8
1814.1
90
-50
42.0
1999
Hua20
RC
2504004.1
6600846.4
1792.7
000
-90
106.0
1999
Hua21
RC
2504552.9
6600795.0
1793.9
000
-90
54.0
1999
Hole_id
Type
East
(m)
North
(m)
Elevation
(m ASL)
Azimuth
(°)
Dip
(°)
Depth
(m)
Date
DDH20
DD
2504977.3
6602133.3
1804.8
116
-54
49.1
1999-00
DDH21
DD
2504978.3
6602118.3
1804.8
000
-90
88.6
1999-00
DDH22
DD
2504762.9
6601587.1
1769.8
116
-65
66.0
1999-00
DDH23
DD
2504920.4
6601994.3
1767.9
000
-90
58.8
1999-00
DDH24
DD
2504821.0
6601938.8
1802.0
116
-80
100.3
1999-00
DDH25
DD
2504862.6
6601964.5
1803.7
116
-74
49.2
1999-00
DDH26
DD
2504920.4
6601975.3
1795.0
312
-60
80.3
1999-00
DDH27
DD
2504752.7
6601565.1
1806.6
116
-60
43.2
1999-00
DDH28
DD
2505003.6
6602174.3
1806.6
116
-50
41.7
1999-00
DDH29
DD
2504964.1
6602136.6
1810.0
350
-52
113.5
1999-00
DDH30
DD
2505004.1
6602156.3
1809.3
059
-85
62.1
1999-00
DDH31
DD
2504897.6
6602112.7
1808.1
116
-75
41.4
1999-00
DDH32
DD
2504939.4
6602139.2
1809.1
350
-51
100.7
1999-00
DDH33
DD
2504939.4
6602139.2
1809.1
350
-65
62.9
1999-00
DDH34
DD
2504826.5
6601920.2
1801.3
116
-70
69.4
1999-00
DDH35
DD
2505003.9
6602156.7
1808.8
310
-85
174.6
1999-00
DDH36
DD
2504637.5
6600777.3
1799.9
330
-50
45.5
1999-00
DDH37
DD
2504826.5
6601920.2
1809.4
000
-90
121.0
1999-00

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

658.2m shares 86.6m 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

T: +61 8 6380 9235

E: [email protected]

www.challengerex.com

Criteria JORC Code explanation Commentary Commentary
DDH38 DD 2504820.8 6601912.2 1801.1 116 -75 67.7 1999-00
DDH39 DD 2504820.8 6601912.2 1801.1 116 -81 90.7 1999-00
DDH40 DD 2504832.3 6601928.1 1801.7 116 -70 85.7 1999-00
DDH41 DD 2504837.8 6601937.5 1801.6 116 -70 64.2 1999-00
DDH42 DD 2504829.2 6601952.5 1801.8 116 -60 65.1 1999-00
DDH43 DD 2504829.2 6601952.5 1801.8 116 -70 70.8 1999-00
DDH44 DD 2504811.3 6601895.1 1802.0 116 -60 102.2 1999-00
DDH45 DD 2504811.3 6601895.1 1802.0 116 -83 95.3 1999-00
DDH46 DD 2504884.4 6601976.3 1805.9 116 -45 71.6 1999-00
DDH47 DD 2504884.4 6601976.3 1805.9 116 -65 71.0 1999-00
DDH48 DD 2504866.9 6601962.7 1803.1 116 -47 30.7 1999-00
DDH49 DD 2504866.9 6601962.7 1803.1 116 -72 41.9 1999-00
DDH50 DD 2504821.4 6601913.9 1801.1 116 -77 87.5 1999-00
DDH51 DD 2504821.4 6601913.9 1801.1 116 -80 87.5 1999-00
DDH52 DD 2504825.5 6601901.1 1800.9 116 -83 74.0 1999-00
DDH53 DD 2504504.1 6600714.0 1788.7 090 -62 85.7 1999-00
DDH54 DD 2504504.1 6600714.0 1788.7 090 -45 69.1 1999-00
DDH55 DD 2504997.9 6602163.5 1808.6 360 -53 63.1 1999-00
DDH56 DD 2504943.1 6602171.3 1810.5 360 -75 50.6 1999-00
DDH57 DD 2504943.1 6602171.3 1810.5 000 -90 66.2 1999-00
DDH58 DD 2504970.3 6602153.3 1809.1 360 -71 62.0 1999-00
DDH59 DD 2504970.3 6602153.3 1809.1 000 -90 66.3 1999-00
DDH60 DD 2504997.9 6602162.5 1809.0 360 -67 59.9 1999-00
DDH61 DD 2504997.9 6602162.5 1809.0 000 -90 58.1 1999-00
DDH62 DD 2504751.4 6601602.6 1789.2 170 -45 68.4 1999-00
DDH63 DD 2504751.4 6601602.6 1789.2 170 -70 131.5 1999-00
DDH64 DD 2504776.3 6601596.9 1789.1 170 -45 66.7 1999-00
DDH65 DD 2504552.7 6600792.0 1793.8 194 -45 124.8 1999-00
DDH66 DD 2504552.7 6600792.0 1793.8 194 -57 117.0 1999-00
DDH67 DD 2504552.7 6600792.0 1793.8 194 -66 126.1 1999-00
DDH68 DD 2504623.9 6600779.0 1800.7 000 -90 79.5 1999-00
DDH69 DD 2504623.9 6600779.0 1800.7 194 -60 101.5 1999-00
DDH70 DD 2504595.5 6600797.7 1798.1 190 -81 128.0 1999-00
DDH71 DD 2504631.6 6600797.4 1799.0 194 -63 136.3 1999-00
DDH72 DD 2504547.2 6600764.1 1799.6 194 -45 75.6 1999-00
DDH73 DD 2504593.4 6600766.5 1807.5 190 -57 70.8 1999-00
DDH74 DD 2504598.2 6600831.8 1795.3 190 -62 190.9 1999-00
DDH75 DD 2504731.2 6600784.7 1821.4 194 -45 40.2 1999-00

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

658.2m shares 86.6m 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

T: +61 8 6380 9235

E: [email protected]

16m perf rights

www.challengerex.com

Criteria
JORC Code explanation		 Commentary
DDH76
DD
2504731.2
6600784.7
1821.4
180
-60
138.7
1999-00
DDH77
DD
2504734.1
6600785.0
1821.6
000
-90
85.6
1999-00
DDH78
DD
2504731.2
6600784.7
1821.4
180
-75
132.9
1999-00
DDH79
DD
2504721.6
6600790.1
1820.4
060
-70
38.6
1999-00
Hole_id
Typ
e
East
(m)
North
(m)
Elevation
(m ASL)
Azimuth
(°)
Dip
(°)
Depth
(m)
03HD01A
DD
2504627.8
6600800.1
1798.4
180
-60
130.2
03HD02
DD
2504457.9
6600747.8
1782.9
180
-60
130.5
03HD03
DD
2504480.1
6600448.6
1774.0
360
-45
100.2
04HD04
DD
2504436.6
6600439.3
1773.4
360
-60
104.6
04HD05
DD
2504420.9
6600256.8
1769.5
110
-68
122.6
04HD06
DD
2504428.6
6600236.6
1768.1
110
-68
136.0
04HD07
DD
2504415.7
6600277.7
1769.0
100
-63
108.2
04HD08
DD
2504826.5
6601920.2
1801.3
116
-70
70.0
04HD09
DD
2504832.3
6601928.1
1801.7
116
-70
75.9
04HD10
DD
2504648.5
6600788.9
1801.5
205
-60
120.0
04HD11
DD
2504462.0
6600428.3
1773.6
075
-62
95.1
04HD12
DD
2504449.3
6600648.9
1779.6
360
-60
77.4
04HD13
DD
2504434.5
6600646.6
1779.7
360
-60
74.0
04HD14
DD
2504461.1
6600748.4
1783.1
180
-70
130.6
04HD15
DD
2504449.9
6600646.2
1779.6
360
-64
160.0
04HD16C
DD
2504457.1
6600311.7
1770.3
195
-65
225.5
04HD17
DD
2504417.5
6600256.6
1769.5
110
-72
213.2
04HD18
DD
2504528.5
6600792.0
1791.9
170
-50
140.7
04HD19
DD
2504648.5
6600788.9
1801.5
205
-77
120.0
04HD20
DD
2504648.5
6600788.9
1801.5
205
-80
120.0
04HD21
DD
2504648.5
6600788.9
1801.5
205
-60
120.0
04HD23
DD
2504441.0
6600456.0
1772.5
075
-82
499.7
04HD24
DD
2504389.0
6600252.0
1766.5
090
-81
188.2
04HD25
DD
2504456.0
6600294.0
1768.5
155
-84
500.8
04HD26
DD
2504424.0
6600409.0
1771.5
180
-69
464.9
04HD27
DD
2504461.0
6600428.0
1773.0
100
-45
60.0
04HD28
DD
2504461.0
6600428.0
1773.0
100
-60
63.7
04HD29
DD
2504438.0
6600087.0
1764.5
108
-45
265.0
04HD30
DD
2504421.0
6600044.0
1764.0
108
-45
128.2
04HD31
DD
2504687.0
6601326.0
1794.0
045
-60
242.9
04HD32
DD
2504828.0
6601916.0
1801.3
116
-70
68.4

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

658.2m shares 86.6m 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

T: +61 8 6380 9235

E: [email protected]

16m perf rights

www.challengerex.com

Criteria
JORC Code explanation		 Commentary
05HD33
DD
2505410.0
6601983.0
1765.0
000
-60
81.4
05HD34
DD
2505451.0
6602079.0
1763.0
273
-60
269.0
05HD35
DD
2504905.0
6601689.0
1794.0
140
-65
350.0
05HD36
DD
2504880.0
6601860.0
1802.0
295
-70
130.0
05HD37
DD
2504866.0
6601888.0
1797.0
295
-70
130.0
05HD38
DD
2504838.0
6601937.0
1796.0
115
-70
70.0
05HD39
DD
2504964.0
6602128.0
1814.0
030
-70
217.5
05HD40
DD
2504964.0
6602128.0
1814.0
030
-50
150.0
05HD41
DD
2504931.0
6602125.0
1812.0
022
-60
142.5
05HD42
DD
2504552.7
6600791.5
1797.0
194
-57
120.0
05HD43
DD
2504552.7
6600791.5
1797.0
194
-45
95.5
05HD44
DD
2504603.0
6600799.0
1798.0
190
-61.5
130.5
05HD45
DD
2504362.0
6600710.0
1767.0
088
-60
121.5
05HD46
DD
2504405.0
6600282.0
1766.0
090
-75
130.7
05HD47
DD
2504212.0
6599177.0
1729.0
065
-45
181.5
05HD48
DD
2504160.0
6599164.0
1728.0
065
-60
100.7
CEL drilling of HQ3 core (triple tube) was done using various truck and track mounted drill machines that
are operated by various Argentinian drilling companies based in Mendoza and San Juan. The core has
not been oriented.
CEL drilling of reverse circulation (RC) drill holes is being done using a track-mounted LM650 universal
drill rig set up for reverse circulation drilling. Drilling is being done using a 5.25 inch hammer bit.
Collar details for DD drill holes and RC drill holes completed by CEL are shown below in WGS84, zone 19s
projection. Collar locations for drill holes to GNDD105 are surveyed using DGPS. Collar location for
GNDD060 and holes from GNDD106 are surveyed with a handheld GPS to be followed up with DGPS.
Hole_id
East (m)
North (m)
Elevation
(m)
Dip
(°)
Azimuth
(°)
Depth
(m)
GNDD001
504803.987
6601337.067
1829.289
-57
115
109.0
GNDD002
504793.101
6601312.095
1829.393
-60
115
25.6
GNDD002A
504795.405
6601311.104
1829.286
-60
115
84.5
GNDD003
504824.427
6601313.623
1827.768
-70
115
90.2
GNDD004
504994.416
6601546.302
1835.345
-60
115
100.0
GNDD005
504473.042
6600105.922
1806.448
-55
090
110.0
GNDD006
504527.975
6600187.234
1817.856
-55
170
100.9

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

658.2m shares 86.6m 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

T: +61 8 6380 9235

E: [email protected]

16m perf rights

www.challengerex.com

Criteria JORC Code explanation Commentary
GNDD007 504623.738 6600196.677 1823.447 -68 190 86.3
GNDD007A 504624.021 6600198.394 1823.379 -68 190 219.0
GNDD008 504625.047 6600198.059 1823.457 -60 184 109.4
GNDD008A 504625.080 6600199.718 1823.264 -60 184 169.0
GNDD009 504412.848 6599638.914 1794.22 -55 115 147.0
GNDD010 504621.652 6600196.048 1823.452 -68 165 146.5
GNDD011 504395.352 6599644.012 1794.025 -64 115 169.2
GNDD012 504450.864 6599816.527 1798.321 -55 115 120.0
GNDD013 504406.840 6599613.052 1792.378 -58 112 141.0
GNDD014 504404.991 6599659.831 1793.728 -59 114 140.0
GNDD015 504442.039 6600159.812 1808.700 -62 115 166.7
GNDD016 504402.958 6599683.437 1794.007 -60 115 172.0
GNDD017 504460.948 6600075.899 1806.143 -55 115 132.6
GNDD018 504473.781 6600109.152 1806.458 -60 115 130.0
GNDD019 504934.605 6601534.429 1834.720 -70 115 80.0
GNDD020 504463.598 6600139.107 1807.789 -58 115 153.0
GNDD021 504935.804 6601567.863 1835.631 -60 115 120.0
GNDD022 504835.215 6601331.069 1828.015 -60 113 100.0
GNDD023 504814.193 6601336.790 1828.535 -55 117 100.0
GNDD024 504458.922 6600123.135 1807.237 -70 115 150.0
GNDD025 504786.126 6601137.698 1823.876 -60 115 141.0
GNDD026 504813.588 6601444.189 1831.810 -55 115 100.0
GNDD027 504416.311 6599703.996 1794.702 -55 115 139.2
GNDD028 504824.752 6601321.020 1827.837 -57 115 100.0
GNDD029 504791.830 6601316.140 1829.344 -71 115 120.2
GNDD030 504454.538 6599860.757 1799.266 -60 115 148.0
GNDD031 504622.013 6600198.726 1823.191 -60 130 149.0
GNDD032 504619.803 6600203.906 1822.790 -55 097 166.6
GNDD033 504830.792 6601385.842 1829.315 -55 115 62.0
GNDD034 504862.613 6601524.893 1834.263 -60 115 60.0

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

658.2m shares 86.6m 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

T: +61 8 6380 9235

E: [email protected]

www.challengerex.com

Criteria JORC Code explanation Commentary
GNDD035 504782.969 6601234.234 1827.709 -78 115 119.5
GNDD036 504303.325 6599128.637 1779.458 -55 115 131.0
GNDD037 504462.875 6599831.674 1798.456 -55 115 83.5
GNDD038 504465.362 6600097.111 1806.580 -55 115 87.7
GMDD039 504815.800 6601318.000 1829.100 -70 115 80.0
GMDD040 504402.100 6599641.500 1794.800 -55 115 135.5
GMDD041 504473.000 6600104.000 1806.400 -55 095 95.0
GNDD042 504392.551 6599574.224 1790.603 -60 115 140.0
GMDD043 504815.800 6601320.000 1829.100 -67 115 80.0
GNDD044 504380.090 6599622.578 1791.934 -65 115 185.0
GNDD045 504366.823 6599679.058 1793.712 -57 115 242.0
GNDD046 504364.309 6599702.621 1794.533 -60 115 191.0
GNDD047 504459.642 6599644.133 1793.422 -60 115 101.0
GNDD048 504792.642 6601286.638 1828.497 -74 115 95.0
GNDD049 504807.030 6601419.483 1831.588 -60 115 90.0
GNDD050 504826.614 6601509.677 1833.357 -60 115 80.0
GNDD051 504766.792 6601032.571 1823.273 -60 115 120.0
GNDD060 504803.0 6601065.0 1822.0 -60 115 200.0
GNDD073 504367.546 6599724.992 1795.493 -57 115 150.2
GNDD074 504366.299 6599725.496 1795.450 -73 115 152.0
GNDD077 504821.005 6601145.026 1823.951 -60 115 222.0
GNDD079 504636.330 6600286.824 1823.053 -60 115 181.4
GNDD082 504769.532 6601169.127 1825.621 -60 115 266.0
GNDD083 504646.604 6600336.172 1823.893 -60 115 181.0
GNDD085 504456.068 6599888.509 1799.895 -60 115 90.0
GNDD088 504815.0 6601194 1825.2 -60 115 237.0
GNDD088A 504815.621 6601193.811 1825.210 -60 115 265.0
GNDD089 504635.811 6600285.352 1823.032 -55 133 200.1
GNDD092 504839.792 6601208.375 1824.849 -60 115 300.0
GNDD093 504679.396 6600332.075 1827.365 -55 115 209.0

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

658.2m shares 86.6m 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

T: +61 8 6380 9235

E: [email protected]

www.challengerex.com

Criteria JORC Code explanation Commentary
GNDD095 504804.597 6601219.844 1826.834 -67 115 203.0
GNDD096 504666.622 6600602.793 1820.371 -60 115 215.0
GNDD099 504384.933 6599759.693 1796.525 -60 115 150.0
GNDD100 504424.250 6599784.711 1796.728 -60 115 120.0
GNDD101 504781.691 6600986.509 1821.679 -60 115 220.0
GNDD102 504787.340 6601285.049 1828.549 -57 115 260.0
GNDD103 504432.004 6599482.162 1788.500 -55 115 299.0
GNDD105 504701.392 6601025.961 1824.818 -60 115 300.0
GNDD106 504459.3 6599614.7 1792.9 -55 115 300.0
GNDD108 504895.0 6601154.9 1824.0 -60 115 200.0
GNDD109 504792.0 6601026.4 1822.0 -60 115 209.0
GNDD112 504898.2 6601197.6 1825.8 -60 115 188.0
GNDD113 504704.7 6601067.1 1826.3 -60 115 230.0
GNDD114 504436.0 6600111.0 1808.0 -50 115 116.0
GNDD115 504862.0 6601285.0 1824.4 -60 115 251.0
GNDD116 504443.7 6599555.8 1789.5 -65 115 269.0
GNDD117 504436.0 6600111.0 1808.0 -60 115 120.0
GNDD118 505086.0 6601110.0 1811.2 -60 295 300.0
GNDD119 504827.0 6601540.0 1837.6 -66 115 115.0
GNDD120 504408.2 6600102.0 1808.3 -60 110 164.0
GNDD121 504867.0 6601137.0 1822.1 -57 115 181.0
GNDD122 504658.0 6600647.6 1816.8 -60 115 250.0
GNDD123 504822.0 6601512.0 1835.6 -63 130 130.0
GNDD124 504408.2 6600102.0 1808.3 -70 115 160.0
GNDD125 505138.0 6601130.0 1808.4 -60 295 300.0
GNDD126 504719.2 6601148.6 1828.0 -60 115 196.0
GNDD127 504892.0 6601505.0 1837.0 -55 115 300.0
GNDD128 504712.3 6601108.0 1827.1 -60 115 230.0
GNDD129 504636.0 6600284.0 1820.0 -55 185 291.0
GNDD130 504839.0 6601092.8 1821.4 -60 115 227.0

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

658.2m shares 86.6m 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

T: +61 8 6380 9235

E: [email protected]

www.challengerex.com

Criteria JORC Code explanation Commentary
GNDD131 504655.5 6600737.1 1818.4 -60 115 280.0
GNDD132 504822.0 6601358.0 1830.5 -55 115 300.0
GNDD133 504870.3 6601640.9 1838.5 -60 170 182.0
GNDD134 504636.0 6600284.0 1820.0 -55 154 290.0
GNDD135 504846.0 6601548.7 1834.8 -64 350 135.0
GNDD136 504844.5 6601443.3 1829.3 -55 115 310.0
GNDD137 504650.0 6600695.0 1818.2 -60 115 370.0
GNDD138 504888.0 6601538.0 1837.5 -65 350 237.0
GNDD139 504759.7 6601085.5 1825.3 -60 115 200.0
GNDD140 504994.4 6601546.3 1835.3 -60 60 230.0
GNDD141 504788.4 6601251.8 1827.9 -70 115 270.0
GNDD142 504432.8 6599627.0 1793.2 -62 115 360.0
GNDD143 504898.2 6601197.6 1825.8 -20 115 120.0
GNDD144 504964.6 6601519.7 1837.3 -70 40 410.0
GNDD145 504560.7 6600224.1 1816.1 -64 170 200.0
GNDD146 504776.1 6601210.3 1827.9 -70 115 350.0
GNDD147 504964.6 6601519.7 1837.3 -60 355 240.0
GNDD148 504844.5 6601443.3 1829.3 -24 115 85.5
GNDD149 504844.5 6601443.3 1829.3 -5 115 88.1
GNDD150 504850.2 6601523.3 1836.8 -65 350 251.0
GNDD151 504672.6 6601214.5 1833.6 -60 115 430.0
GNDD152 504893.0 6601470.0 1835.0 -15 115 165.0
GNDD153 504693.0 6600984.0 1824.2 -70 115 326.0
GNDD154 504894.3 6601504.8 1836.3 -65 350 212.0
GNDD155 504780.1 6601120.2 1824.0 -60 115 420.0
GNDD156 504839.1 6601401.6 1829.4 -37 115 59.0
GNDD157 504636.0 6600284.0 1820.0 -55 170 527.0
GNDD158 504807.6 6601535.3 1837.0 -60 350 170.0
GNDD159 504907.7 6601149.3 1825.0 -40 115 202.0
GNDD160 504968.0 6601543.0 1835.4 -55 350 170.0

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

658.2m shares 86.6m 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

T: +61 8 6380 9235

E: [email protected]

www.challengerex.com

Criteria JORC Code explanation Commentary
GNDD161 504667.0 6600820.0 1819.0 -60 115 251.00
GNDD162 504723.0 6601279.3 1832.1 -60 115 180.00
GNDD163 504750.3 6601575.5 1840.3 -60 115 180.00
GNDD164 504673.4 6601523.0 1840.2 -60 115 311.00
GNDD165 504488.0 6599861.0 1805.4 -10 115 253.80
GNDD166 504565.3 6600337.7 1819.6 -60 115 327.00
GNDD167 504730.0 6600879.0 1818.0 -60 115 251.00
GNDD168 504559.6 6600384.5 1815.5 -60 115 314.00
GNDD169 504683.8 6601562.4 1841.0 -60 115 416.00
GNDD170 504663.0 6600335.0 1822.9 -60 170 123.50
GNDD170A 504663.0 6600335.0 1822.9 -60 170 380.00
GNDD171 504679.0 6600903.0 1821.0 -70 115 350.00
GNDD172 504488.0 6599861.0 1805.4 -45 115 119.70
GNDD173 504694.5 6601336.6 1835.6 -60 115 191.00
GNDD174 504473.0 6600105.9 1806.4 -11 115 329.50
GNDD175 504650.3 6601092.5 1829.4 -60 115 353.00
GNDD176 504734.7 6600655.9 1813.5 -60 115 350.00
GNDD177 504761.8 6601481.8 1836.2 -60 115 160.00
GNDD178 504626.0 6600177.0 1823.3 -60 185 145.20
GNDD179 504405.5 6600183.0 1811.3 -55 170 192.10
GNDD180 504653.1 6600782.2 1819.1 -60 115 341.00
GNDD181 504678.0 6600330.0 1824.0 -60 160 400.00
GNDD182 504666.9 6601128.9 1828.8 -60 115 337.00
GNDD183 504777.0 6601519.0 1837.3 -65 115 146.00
GNDD184 504672.7 6601170.3 1830.3 -60 115 321.50
GNDD185 504730.7 6601408.1 1834.9 -60 115 180.00
GNDD186 504738.8 6600742.2 1814.0 -60 115 208.00
GNDD187 504620.9 6601547.6 1843.4 -67 115 320.00
GNDD188 504658.0 6601044.8 1827.4 -60 115 280.00
GNDD189 504473.0 6600105.9 1806.4 -29 115 320.00

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

658.2m shares 86.6m 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

T: +61 8 6380 9235

E: [email protected]

www.challengerex.com

Criteria JORC Code explanation Commentary
GNDD191 504600.0 6601422.7 1841.1 -70 115 260.00
GNDD192 504618.4 6600577.7 1818.6 -60 115 260.00
GNDD193 504689.4 6601427.3 1837.5 -60 115 293.00
GNDD194 504678.0 6600330.0 1824.0 -60 140 300.00
GNDD196 504638.4 6600391.9 1821.4 -60 115 296.00
GNDD197 504860.8 6601484.0 1831.5 -68 350 72.00
GNDD198 504789.3 6601248.3 1828.3 -60 115 161.00
GNDD199 504812.0 6601476.0 1834.9 -56 350 266.00
GNDD201 504307.8 6599795.7 1800.0 -65 115 170.00
GNRC052 504443.927 6599554.145 1790.676 -60 115 90
GNRC053 504452.888 6599589.416 1791.660 -60 115 96
GNRC054 504458.908 6599679.484 1794.408 -60 115 90
GNRC055 504461.566 6599726.253 1795.888 -60 115 102
GNRC056 504463.187 6599763.817 1796.276 -60 115 102
GNRC057 504453.440 6599901.106 1800.270 -60 115 96
GNRC058 504716.992 6600488.640 1825.624 -60 115 102
GNRC059 504785.101 6600721.845 1817.042 -60 115 84
GNRC061 504963.888 6601521.567 1835.635 -60 115 30
GNRC062 504943.260 6601531.855 1834.917 -60 115 30
GNRC063 504914.884 6601499.583 1833.781 -60 115 36
GNRC064 504895.067 6601472.101 1833.039 -60 115 36
GNRC065 504865.673 6601481.570 1831.536 -60 115 60
GNRC066 504896.480 6601506.894 1834.226 -60 115 48
GNRC067 504911.268 6601541.124 1836.127 -60 115 50
GNRC068 504990.546 6601552.694 1835.287 -60 030 114
GNRC069 504934.855 6601579.782 1836.179 -60 115 120
GNRC070 504925.545 6601566.505 1835.127 -60 350 84
GNRC071 504878.397 6601572.030 1833.873 -60 350 54
GNRC072 504877.872 6601568.814 1833.843 -70 350 72
GNRC075 504842.742 6601573.984 1835.428 -60 350 60

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

658.2m shares 86.6m 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

T: +61 8 6380 9235

E: [email protected]

www.challengerex.com

Criteria JORC Code explanation JORC Code explanation Commentary
GNRC076
504828.279
6601539.638
1835.244
-60
115		 76
GNRC078
504842.744
6601450.106
1830.180
-60
115		 70
GNRC080
504864.734
6601560.758
1834.333
-60
115		 86
GNRC081
504815.835
6601460.850
1832.033
-73
115		 86
GNRC084
504965.730
6601530.280
1836.056
-55
030		 145
GNRC086
504838.724
6601402.481
1829.645
-60
115		 60
GNRC087
504858.585
6601345.400
1828.417
-60
115		 30
GNRC090
504821.284
6601359.986
1829.379
-60
115		 60
GNRC091
504789.111
6601376.410
1830.448
-60
115		 80
GNRC094
504852.454
6601307.187
1827.304
-60
115		 60
GNRC097
504831.396
6601289.723
1827.153
-60
115		 70
GNRC098
504784.865
6601253.409
1827.869
-76
115		 96
GNRC104
504780.186
6601228.313
1827.663
-64
115		 150
GNRC107
504623.1
6600197.1
1823.3
-60
185		 120
GNRC110
504502.0
6600107.0
1814.0
-62
90		 60
GNRC111
504427.8
6599739.8
1796.4
-60
115		 120
Drill sample - Method of recording and assessing core and chip sample Drill core is placed into wooden boxes by the drillers and depth marks are indicated on wooden blocks at
recovery recoveries and results assessed. the end of each run. These depths are reconciled by CEL geologists when measuring core recovery.
- Measures taken to maximise sample recovery and ensure
representative nature of the samples.		 Triple tube drilling has been being done by CEL to maximise core recovery.
- Whether a relationship exists between sample recovery RC sub-samples are collected from a rotary splitter mounted to the face sample recovery cyclone. A 2-4
and grade and whether sample bias may have occurred kg sub-samples is collected for each metre of RC drilling. Duplicate samples are taken at the rate of I
due to preferential loss/gain of fine/coarse material. every 25-30 samples using a riffle splitter to split out a 2-4 kg sub-sample. The whole sample recovered is
weighed to measure sample recovery and consistency in sampling.
A possible relationship has been observed between historic sample recovery and Au Ag or Zn grade
whereby low recoveries have resulted in underreporting of grade. Insufficient information is not yet
available to more accurately quantify this. Core recovery is influenced by the intensity of natural
fracturing in the rock. A positive correlation between recovery and RQD has been observed. The
fracturing is generally post mineral and not directly associated with the mineralisation.
Logging - Whether core and chip samples have been geologically Detailed logs are available for most of the historical drilling. Some logs have not been recovered. No
and geotechnically logged to a level of detail to support core photographs from the historic drilling have been found. No drill core has survived due to poor
appropriate Mineral Resource estimation mining studies storage and neglect. No RC sample chips have been found.

Issued Capital

658.2m shares 86.6m 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

T: +61 8 6380 9235 E: [email protected]

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

www.challengerex.com

Criteria
JORC Code explanation		 Commentary
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.		 For CEL drilling, all the core is logged for recovery RQD weathering lithology alteration mineralization and
structure to a level that is suitable for geological modelling resource estimation and metallurgical test
work. RC drill chips are logged for geology, alteration and mineralisation. Where possible logging is
quantitative. Geological logging is done in MS Excel in a format that can readily be transferred to a
database which holds all drilling logging sample and assay data.
Sub-sampling
techniques and
sample preparation
-
If core whether cut or sawn and whether quarter half or
all core taken.
-
If non-core whether riffled tube sampled 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.		 Competent drill core is cut longitudinally using a diamond saw for sampling of ½ the core. Soft core is
split using a wide blade chisel or a manual core split press. The geologist logging the core indicates on
the drill core where the saw cut is to be made to ensure half-core sample representivity.
Sample intervals are selected based on lithology alteration and mineralization boundaries. Sample
lengths average 1.38m. No second-half core samples have been submitted. The second half of the core
samples has been retained in the core trays for future reference.
From hole GNDD073, duplicate diamond core samples have been collected for every 25-30m drilled. The
duplicate diamond core samples are ¼ core samples. Duplicate core sample results and correlation plots
(log scale for Au, Ag and Zn) are shown below:
n
RSQ
mean
median
variance
original
duplicate
original
duplicate
original
duplicate
Au (ppm)
288
0.984
0.306
0.332
0.011
0.008
7.012
9.141
Ag (ppm)
288
0.984
0.87
0.84
0.21
0.19
13.37
16.01
Cd (ppm)
288
0.989
4.70
4.16
0.20
0.17
911.95
703.19
Cu (ppm)
288
0.279
30.49
20.26
3.40
3.35
3.6E+04
1.1E+04
Fe (%)
288
0.991
1.406
1.384
1.490
1.445
3.1
2.9
Pb (ppm)
288
0.990
168.6
166.3
15.3
15.0
1.6E+06
2.3E+06
S (%)
288
0.994
0.409
0.401
0.080
0.080
1.867
1.687
Zn (ppm)
288
0.993
771
677
83
79
2.3.E+07
1.6.E+07
n=count
RSQ = R squared
The correlation for Cu is poor because of 1 pair, where Cu results vary significantly. Removing this outlier
provides at RSQ for Cu of 0.977

Challenger Exploration Limited ACN 123 591 382

ASX: CEL

Issued Capital

658.2m shares 86.6m 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

T: +61 8 6380 9235 E: [email protected]

www.challengerex.com

Criteria
JORC Code explanation		 Commentary
RC sub-samples over 1m intervals are collected at the drill site from a cyclone mounted on the drill rig. A
duplicate RC sample is collected for every 25-30m drilled.
The duplicate RC sample results and correlation plots (log scale for Au, Ag and Zn) are shown below:
n
RSQ
mean
median
variance
original
duplicate
original
duplicate
original
duplicate
Au (ppm)
85
0.799
0.101
0.140
0.017
0.016
0.041
0.115
Ag (ppm)
85
0.691
1.74
2.43
0.59
0.58
13.59
64.29
Cd (ppm)
85
0.989
15.51
16.34
0.41
0.44
4189
4737
Cu (ppm)
85
0.975
47.74
53.86
5.80
5.70
2.4E+04
3.1E+04
Fe (%)
85
0.997
1.470
1.503
0.450
0.410
7.6
7.6
Pb (ppm)
85
0.887
296.0
350.6
26.3
32.4
6.0E+05
7.4E+05
S (%)
85
0.972
0.113
0.126
0.020
0.020
0.046
0.062
Zn (ppm)
85
0.977
3399
3234
158
177
2.5.E+08
2.1.E+08
n=count
RSQ = R squared

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

658.2m shares 86.6m 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

T: +61 8 6380 9235

E: [email protected]

16m perf rights

www.challengerex.com

Criteria JORC Code explanation JORC Code explanation Commentary
CEL samples have been submitted to the MSA laboratory in San Juan and the ALS laboratory in Mendoza
for sample preparation. The sample preparation technique is considered appropriate for the style of
mineralization present in the Project.
Sample sizes are appropriate for the mineralisation style and grain size of the deposit.
Quality of assay - The nature quality and appropriateness of the assaying The MSA laboratory used for sample preparation in San Juan has been inspected by Stuart Munroe
data and laboratory
tests
-		 and laboratory procedures used and whether the
technique is considered partial or total.
For geophysical tools spectrometers handheld XRF		 (Exploration Manager) and Sergio Rotondo (COO) prior to any samples being submitted. The laboratory
procedures are consistent with international best practice and are suitable for samples from the Project.
The ALS laboratory in Mendoza has not yet been inspected by CEL representatives.
instruments etc the parameters used in determining the Internal laboratory standards were used for each job to ensure correct calibration of elements.
analysis including instrument make and model reading
times calibrations factors applied and their derivation etc. CEL submit blank samples (cobble and gravel material from a quarry nearby to Las Flores San Yuan) to
- Nature of quality control procedures adopted (eg
standards blanks duplicates external laboratory checks)
and whether acceptable levels of accuracy (i.e. lack of
bias) andprecision have been established.		 both the MSA laboratory and the ALS laboratory which were strategically placed in the sample sequence
immediately after samples that were suspected of containing high grade Au Ag Zn or Cu to test the lab
preparation contamination procedures. The values received from the blank samples suggest rare cross
contamination of samples during sample preparation.

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

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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

T: +61 8 6380 9235 E: [email protected]

www.challengerex.com

==> picture [740 x 442] intentionally omitted <==

----- Start of picture text -----

Criteria JORC Code explanation Commentary
For GNDD001 – GNDD010 samples analysed by MSA in 2019, three different Certified Standard
Reference pulp samples (CRM) with known values for Au Ag Pb Cu and Zn have been submitted with
----- End of picture text -----

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital 658.2m shares 86.6m 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

T: +61 8 6380 9235 E: [email protected]

www.challengerex.com

Criteria JORC Code explanation Commentary
samples of drill core to test the precision and accuracy of the analytic procedures and determination of
the MSA laboratory in Canada Two of the standards were only used 4 times each and the third . 26
reference analyses were analysed in the samples submitted in 2019. For CRM 1 one sample returned an
Au value > 2 standard deviations (SD) above the certified value. For CRM 2 one sample returned an Au
value < 2SD below the certified value. For CRM 3 (graphs below) one sample returned a Cu value > 2SD
above the certified value. All other analyses are within 2SD of the expected value. The standards
demonstrate suitable precision and accuracy of the analytic process. No systematic bias is observed.
For drill holes from GNDD011 and unsampled intervals from the 2019 drilling, six different Certified
Standard Reference pulp samples (CRM) with known values for Au Ag Fe S Pb Cu and Zn have been
submitted with samples of drill core to test the precision and accuracy of the analytic procedures of both
the MSA and ALS. In the results received to date there has been no observed bias in results of the CRM.
The standards demonstrate suitable precision and accuracy of the analytic process. No systematic bias is
observed. A summaryof the standard deviations from the expected values for CRM’s used is

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

658.2m shares 86.6m 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

T: +61 8 6380 9235 E: [email protected]

www.challengerex.com

Criteria JORC Code explanation

Commentary

summarised below. Generally, an average of standard deviations close to zero indicates a high degree of accuracy and a low range of standard deviations with a low fail count indicates a high degree of precision.

==> picture [390 x 99] intentionally omitted <==

==> picture [390 x 99] intentionally omitted <==

==> picture [391 x 99] intentionally omitted <==

==> picture [391 x 99] intentionally omitted <==

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

658.2m shares 86.6m 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

T: +61 8 6380 9235 E: [email protected]

www.challengerex.com

Criteria
JORC Code explanation		 Commentary Commentary Commentary
Verification of
sampling and
assaying
-
The verification of significant intersections by either
independent or alternative company personnel.
-
The use of twinned holes.
-
Documentation of primary data entry procedures data
verification data storage (physical and electronic)
protocols.
-
Discuss any adjustment to assay data.		 Repeat sampling of 186 coarse reject samples from 2019 drilling has been done to verify sampling.
Original samples were from the 2019 DD drilling which were analysed by MSA (San Juan preparation and
Vancouver analysis). Repeat samples were analysed by ALS (Mendoza preparation and Vancouver
analysis). The repeat analysis technique was identical to the original. The repeat analyses correlate very
closely with the original analyses providing a high confidence in the sample preparation and analysis from
MSA and ALS. A summary of the results for the 186 sample pairs for key elements is provided below:
Mean
Median
Std Deviation
Element
MSA
ALS
MSA
ALS
MSA
ALS
Correlation
coefficient
Au (FA and GFA ppm)
4.24
4.27
0.50
0.49
11.15
11.00
0.9972
Ag (ICP and ICF ppm)
30.1
31.1
5.8
6.2
72.4
73.9
0.9903
Zn ppm (ICP ppm and ICF %)
12312
12636
2574
2715
32648
33744
0.9997
Cu ppm (ICP ppm and ICF %)
464
474
74
80
1028
1050
0.9994
Pb ppm (ICP ppm and ICF %)
1944
1983
403
427
6626
6704
0.9997
S (ICP and ICF %)
2.05
1.95
0.05
0.06
5.53
5.10
0.9987
Cd(ICPppm)
68.5
68.8
12.4
12.8
162.4
159.3
0.9988
Au (FA and GFA ppm)
4.24
4.27
Ag (ICP and ICF ppm)
30.1
31.1
Zn ppm (ICP ppm and ICF %)
12312
12636
Cu ppm (ICP ppm and ICF %)
464
474
Pb ppm (ICP ppm and ICF %)
1944
1983
S (ICP and ICF %)
2.05
1.95
Cd(ICPppm)
68.5
68.8		 0.50
0.49
5.8
6.2
2574
2715
74
80
403
427
0.05
0.06
12.4
12.8		 11.15
11.00
72.4
73.9
32648
33744
1028
1050
6626
6704
5.53
5.10
162.4
159.3

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

658.2m shares

86.6m 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

T: +61 8 6380 9235

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Criteria
JORC Code explanation		 Commentary
As (ICP ppm))
76.0
79.5
Fe (ICP %)
4.96
4.91
REE(ICPppm)
55.1
56.2		 45.8
47.6
2.12
2.19
28.7
31.6		 88.1
90.6
6.87
6.72
98.2
97.6
Location of data
points
-
Accuracy and quality of surveys used to locate drill holes
(collar and down-hole surveys) trenches mine workings
and other locations used in Mineral Resource estimation.
-
Specification of the grid system used.
-
Quality and adequacy of topographic control.		 Following completion of drilling collars are surveyed using a differential GPS (DGPS) relative into the
Argentinian SGM survey. The locations have been surveyed in POSGAR 2007 zone 2 and converted to
WGS84 UTM zone 19s.
The drill machine is set-up on the drill pad using hand-held equipment according to the proposed hole
design.
Diamond core drill holes are surveyed at 30-40m intervals down hole using a Reflex tool. RC drill holes
are surveyed down hole every 10 metres using a gyroscope to avoid magnetic influence from the drill
rods.
All current and previous drill collar sites Minas corner pegs and strategic surface points have been
surveyed using DGPS to provide topographic control for the Project.
Data spacing and
distribution
-
Data spacing for reporting of Exploration Results.
-
Whether the data spacing and distribution is sufficient to
establish the degree of geological and grade continuity
appropriatefor the Mineral Resource and Ore Reserve		 No regular drill hole spacing has been applied across the Project, although a nominal 40m x 40m drill
spacing is being applied to infill and extension drilling where appropriate. The current drilling is designed
to check previous exploration, extend mineralisation along strike, and provide some information to
establish controls on mineralization and exploration potential. No Mineral Resource Estimate to JORC

Challenger Exploration Limited Issued Capital Australian Registered Office Directors ACN 123 591 382 658.2m shares Level 1 Mr Kris Knauer, MD and CEO ASX: CEL 86.6m options 1205 Hay Street Mr Scott Funston, Finance Director 120m perf shares West Perth WA 6005 Mr Fletcher Quinn , Chairman 16m perf rights

Contact

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Criteria JORC Code explanation JORC Code explanation Commentary
estimation procedure(s) and classifications applied. 2012 reporting standards has been made at this time.
- Whether sample compositing has been applied. Samples have not been composited.
Orientation of data - Whether the orientation of sampling achieves unbiased As far as is currently understood the orientation of sampling achieves unbiased sampling of structures
in relation to sampling of possible structures and the extent to which and geology controlling the mineralisation.
geological structure
-		 this is known considering the deposit type.
If the relationship between the drilling orientation and the
Drilling has been designed to provide an unbiased sample of the geology and mineralisation targeted.
orientation of key mineralised structures is considered to
have introduced a sampling bias this should be assessed
and reported if material.
Sample security - The measures taken to ensure sample security. Samples were under constant supervision by site security, senior personnel and courier contractors prior
to delivery to the preparation laboratory in San Juan or Mendoza.
Audits or reviews - The results of any audits or reviews of sampling There has not yet been any independent reviews of the sampling techniques and data.
techniques and data.

ASX: CEL

Issued Capital

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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

T: +61 8 6380 9235

E: [email protected]

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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 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 current Hualilan project comprises 15 Minas (equivalent of mining leases) and 2 Demasias (mining lease
extensions). This covers approximately 4 km of strike and includes all of the currently defined mineralization.
There are no royalties on the project. CEL is earning a 75% interest in the Project by funding exploration to a
Definitive Feasibility Study (DFS).
Granted mining leases (Minas Otorgadas) at the Hualilan Project
Name
Number
Current Owner
Status
Grant Date
Area (ha)
Cerro Sur
Divisadero
5448-M-1960
Golden Mining
S.R.L.
Granted
30/04/2015
6
Flor de Hualilan
5448-M-1960
Golden Mining
S.R.L.
Granted
30/04/2015
6
Pereyra y Aciar
5448-M-1960
Golden Mining
S.R.L.
Granted
30/04/2015
6
Bicolor
5448-M-1960
Golden Mining
S.R.L.
Granted
30/04/2015
6
Sentazon
5448-M-1960
Golden Mining
S.R.L.
Granted
30/04/2015
6
Muchilera
5448-M-1960
Golden Mining
S.R.L.
Granted
30/04/2015
6
Magnata
5448-M-1960
Golden Mining
S.R.L.
Granted
30/04/2015
6
Pizarro
5448-M-1960
Golden Mining
S.R.L.
Granted
30/04/2015
6
Cerro Norte
La Toro
5448-M-1960
CIA GPL S.R.L.
Granted
30/04/2015
6
La Puntilla
5448-M-1960
CIA GPL S.R.L.
Granted
30/04/2015
6
Name Number Current Owner Status Grant Date Area (ha)
Cerro Sur
Divisadero 5448-M-1960 Golden Mining
S.R.L.		 Granted 30/04/2015 6
Flor de Hualilan 5448-M-1960 Golden Mining
S.R.L.		 Granted 30/04/2015 6
Pereyra y Aciar 5448-M-1960 Golden Mining
S.R.L.		 Granted 30/04/2015 6
Bicolor 5448-M-1960 Golden Mining
S.R.L.		 Granted 30/04/2015 6
Sentazon 5448-M-1960 Golden Mining
S.R.L.		 Granted 30/04/2015 6
Muchilera 5448-M-1960 Golden Mining
S.R.L.		 Granted 30/04/2015 6
Magnata 5448-M-1960 Golden Mining
S.R.L.		 Granted 30/04/2015 6
Pizarro 5448-M-1960 Golden Mining
S.R.L.		 Granted 30/04/2015 6
Cerro Norte
La Toro 5448-M-1960 CIA GPL S.R.L. Granted 30/04/2015 6
La Puntilla 5448-M-1960 CIA GPL S.R.L. Granted 30/04/2015 6

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

658.2m shares 86.6m 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

T: +61 8 6380 9235

E: [email protected]

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Criteria
JORC Code explanation
 Commentary




Pique de Ortega 5448-M-1960 CIA GPL S.R.L. Granted 30/04/2015 6
Descrubidora 5448-M-1960 CIA GPL S.R.L. Granted 30/04/2015 6
Pardo 5448-M-1960 CIA GPL S.R.L. Granted 30/04/2015 6
Sanchez 5448-M-1960 CIA GPL S.R.L. Granted 30/04/2015 6
Andacollo 5448-M-1960 CIA GPL S.R.L. Granted 30/04/2015 6
Mining Lease extensions (Demasias) at the Hualilan Project
Name Number Current Owner Status Grant date Area (ha)
Cerro Sur
North of
"Pizarro" Mine		 195-152-C-1981 Golden Mining
S.R.L.		 Granted 05/12/2014 1.9
Cerro Norte
South of "La
Toro" Mine		 195-152-C-1981 CIA GPL S.R.L. Granted 05/12/2014 1.9
Exploration done
by other parties
-
Acknowledgment and appraisal of exploration by
other parties.




 Intermittent sampling dating back over 500 years has produced a great deal of information and data including
sampling geologic maps reports trenching data underground workings drill hole results geophysical surveys
resource estimates plus property examinations and detailed studies by several geologists. Prior to the current
exploration no work has been completed since 2006.
There is 6 km of underground workings that pass through mineralised zones. Records of the underground

Australian Registered Office

Challenger Exploration Limited

Issued Capital

ACN 123 591 382 658.2m shares Level 1 ASX: CEL 86.6m 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: [email protected]

www.challengerex.com

Criteria JORC Code explanation JORC Code explanation Commentary
geology and sampling are currently being compiled and digitised as are sample data geological mapping trench
data adit exposures and drill hole results. Geophysical surveys exist but have largely yet to be check located and
digitised.
Drilling on the Hualilan Project (Cerro Sur and Cerro Norte combined) extends to over 150 drill holes. The key
historical exploration drilling and sampling results are listed below.
-
1984 – Lixivia SA channel sampling & 16 RC holes (AG1-AG16) totalling 2040m
-
1995 - Plata Mining Limited (TSE: PMT) 33 RC holes (Hua- 1 to 33) + 1500 samples
-
1998 – Chilean consulting firm EPROM (on behalf of Plata Mining) systematic underground mapping and
channel sampling
-
1999 – Compania Mineral El Colorado SA (“CMEC”) 59 core holes (DDH-20 to 79) plus 1700m RC
program
-
2003 – 2005 – La Mancha (TSE Listed) undertook 7447m of DDH core drilling (HD-01 to HD-48)
-
Detailed resource estimation studies were undertaken by EPROM Ltda. (EPROM) in 1996 and CMEC
(1999 revised 2000) both of which were written to professional standards and La Mancha 2003 and
2006.
-
The collection of all exploration data by the various operators was of a high standard and had
appropriate samplingtechniques intervals and custody procedures were used.
Geology - Deposit type geological setting and style of Mineralisation occurs in all rock types where it preferentially replaces limestone, shale and sandstone and occurs
mineralisation. in fault zones and in fracture networks within dacitic intrusions.
The mineralisation has previously been classified as a Zn-Cu distal skarn (or manto-style skarn) with vein-hosted
Au-Ag mineralisation. It has been divided into three phases – prograde skarn retrograde skarn and a late quartz–
galena event the evolution of the hydrothermal system and mineral paragenesis is the subject of more detailed
geometallurgical work.
Gold occurs in native form and as inclusions with sulphide and pyroxene. The mineralisation also commonly
contains pyrite, chalcopyrite sphalerite and galena with rare arsenopyrite, pyrrhotite and magnetite.
Mineralisation is either parallel to bedding in bedding-parallel faults, in veins or breccia matric within fractured
dacitic intrusions, at lithology contacts or in east-west striking steeply dipping siliceous faults that cross the
bedding at a high angle. The faults have thicknesses of 1–4 m and contain abundant sulphides. The intersection
between the bedding-parallel mineralisation and east-striking cross veins seems to be important in localising the
mineralisation.
Drill hole - A summary of all information material to the The following significant intersections have been reported by previous explorers. A cut-off grade of 1 g/t Au
Information understanding of the exploration results including a equivalent (calculated using a price of US$1,300/oz for Au, $15/oz for Ag and $2,500/t. for Zn) has been used
tabulation of the following information for all with up to 2m of internal diltion or a cut-off grade of 0.2 g/t Au equivalent and up to 4m of internal diltion has

Challenger Exploration Limited Issued Capital Australian Registered Office Directors Contact ACN 123 591 382 658.2m shares Level 1 Mr Kris Knauer, MD and CEO T: +61 8 6380 9235 ASX: CEL 86.6m options 1205 Hay Street Mr Scott Funston, Finance Director E: [email protected] 120m perf shares West Perth WA 6005 Mr Fletcher Quinn , Chairman 16m perf rights

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Criteria JORC Code explanation JORC Code explanation Commentary
Material drill holes: been allowed. No metallurcial or recovery factors have been used. Drill collar location is provided in the
- easting and northing of the drill hole collar previous section.
- elevation or RL (Reduced Level – elevation above sea
level in metres) of the drill hole collar		 Hole_id
AG16		 From(m)
38.6		 Interval(m)
1.2		 Au(g/t)
0.1		 Ag (g/t)
28.6		 Zn(%)

1.7
-
-		 dip and azimuth of the hole
down hole length and interception depth		 MG10
DDH36		 108.0
24.7		 3.0
9.3		 1.3
1.6		 No assay
46.3
No assay

1.2
- hole length. DDH53 17.3 1.4 1.0 1.7
0.00
- If the exclusion of this information is justified on the DDH53 24.0 8.9 3.7 239.5
0.03
basis that the information is not Material and this DDH53 35.7 3.9 3.9 87.8
0.06
exclusion does not detract from the understanding of DDH53 41.0 3.0 2.6 7.6
0.20
the report the Competent Person should clearly DDH54 20.0 1.1 1.2 0.7
0.00
explain why this is the case. DDH54 31.1 8.3 3.9 32.1
0.80
DDH65 62.0 8.2 11.0 60.6
1.2
DDH65 82.0 1.0 1.8 33.4
0.30
DDH66 83.1 7.2 23.7 42.9
2.4
DDH66 87.9 2.4 69.9 114.4
2.2
DDH66 104.9 2.8 1.8 29.0
0.10
DDH67 98.7 1.3 0.2 7.8
1.3
DDH68 4.0 17.9 2.2 6.3
0.20
DDH68 73.7 0.5 0.8 9.0
1.2
DDH69 4.0 16.1 2.3 1.6
0.10
DDH69 76.9 0.3 0.1 7.0
28.0
DDH69 79.7 0.8 1.3 120.0
4.5
DDH70 84.0 7.0 5.2 13.5
0.70
DDH71 11.0 2.0 0.5 218.0
0.06
DDH71 39.9 1.0 1.3 6.0
0.03
DDH71 45.5 1.1 0.4 22.8
0.60
DDH71 104.0 10.0 33.5 126.7
7.9
DDH72 26.0 11.7 3.8 14.1
1.3
DDH72 52.7 6.3 1.5 30.4
0.04
DDH73 62.5 3.5 0.5 15.6
0.60
DDH74 119.9 0.5 7.3 98.5
2.6
DDH76 61.3 0.7 4.0 11.1
0.50
DDH76 74.4 4.0 0.8 8.8
0.30
DDH76 84.8 1.2 1.4 10.9
2.0
DDH78 109.1 0.7 1.1 13.4
1.9
03HD01A 90.1 1.7 2.1 37.4
2.4

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

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658.2m shares 86.6m options 120m perf shares

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Directors

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Contact

T: +61 8 6380 9235

E: [email protected]

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Criteria JORC Code explanation Commentary
03HD03 55.0 2.4 2.5 25.6 2.3
04HD05 80.3 2.0 0.9 42.7 0.02
04HD05 97.5 1.8 1.9 35.0 0.04
04HD05 102.0 1.0 1.3 42.1 0.01
04HD05 106.0 1.0 0.7 28.0 0.05
04HD05 108.0 5.6 2.8 19.9 1.2
04HD06 65.4 1.2 46.6 846.0 0.50
04HD06 75.0 1.0 1.0 2.9 0.01
04HD06 104.5 7.6 1.8 5.0 1.2
04HD06 115.1 0.9 16.4 23.1 7.7
04HD07 98.3 2.2 1.4 32.5 0.90
04HD10 44.3 0.2 3.9 81.5 5.6
04HD10 55.5 0.5 1.3 11.5 0.46
04HD10 78.6 1.7 4.8 93.7 2.4
04HD11 28.0 1.0 0.1 9.3 1.4
04HD12 49.3 0.7 1.5 16.1 0.10
04HD13 61.5 1.0 0.8 7.9 0.20
04HD15 103.7 0.3 1.7 32.9 0.80
04HD16C 107.5 6.8 8.6 117.1 9.1
04HD16C 111.8 2.5 7.6 75.6 11.5
04HD16C 144.9 1.9 9.1 31.2 5.5
04HD16C 171.1 0.4 0.5 9.4 1.7
04HD17 134.9 0.7 2.5 14.3 4.1
04HD17 139.1 0.5 10.5 9.4 0.20
04HD17 199.6 0.2 0.8 3.5 5.9
04HD17 202.1 1.9 4.5 1.5 0.70
04HD20 43.2 1.8 0.9 83.9 0.20
04HD21 70.1 0.2 4.8 60.6 6.4
04HD21 141.1 0.6 12.9 105.0 4.8
04HD24 72.0 2.0 2.5 3.2 0.04
04HD24 83.0 2.0 3.1 25.3 0.04
04HD24 94.0 4.2 0.7 21.2 0.10
04HD25 92.0 1.7 2.4 51.5 6.3
04HD26 21.7 2.3 1.5 32.5 3.0
04HD28 42.8 0.4 1.9 4.5 0.10
04HD29 37.0 1.0 0.1 112.0 0.01
05HD42 90.5 1.0 1.9 6.1 0.03

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

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

Directors

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Contact

T: +61 8 6380 9235

E: [email protected]

16m perf rights

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Criteria
JORC Code explanation		 Commentary
05HD42
115.0
3.0
29.0
103.1
0.20
05HD43
69.0
1.0
1.8
2.3
0.01
05HD43
81.0
3.0
2.8
51.5
0.50
05HD43
90.7
2.3
1.4
29.6
0.30
05HD44
87.5
1.1
3.8
3.4
0.01
05HD44
91.2
1.4
0.0
3.6
2.8
From GNDD001 the following significant assay results have been received reported to a cut-off of 1.0 g/t AuEq
(gold equivalent) unless otherwise indicated. Drill collar location is provided in the previous section.
Drilling in 2019:
Hole_id
Interval(m)
From
Au(g/t)
Ag (g/t)
Zn(%)
AuEq (g/t)
GNDD001
10.00
27.00
0.94
4.9
0.33
1.1
(2)
inc
3.00
32.00
2.3
5.8
0.50
2.6
GNDD002A
5.00
31.00
0.74
2.7
0.67
1.1
and
3.00
81.50
3.1
8.6
5.8
5.7
GNDD003
6.10
55.00
34.6
22
2.9
36.2
(1)
GNDD004
20.50
5.50
1.1
5.3
0.45
1.4
(2)
inc
8.47
6.03
2.0
7.8
0.68
2.4
and
3.43
18.67
1.2
3.2
0.26
1.3
GNDD005
19.00
29.00
1.3
8.1
0.62
1.6
(2)
inc
2.00
29.00
0.79
18
3.3
2.5
and
4.00
43.00
5.1
22
0.49
5.6
and
7.00
59.00
7.8
72
1.4
9.3
inc
3.00
61.00
16.5
135
1.6
18.9
(1)
and
10.00
75.00
0.75
38
0.27
1.4
(2)
inc
3.00
77.00
1.7
39
0.43
2.3
inc
1.00
83.00
1.2
156
0.72
3.5
GNDD006
6.50
78.50
4.2
21
0.29
4.6
inc
3.80
78.50
6.8
34
0.41
7.4
and
1.45
90.00
2.1
41
0.92
3.1
GNDD007
45.92
13.00
0.43
7.8
0.12
0.58
(2)
inc
3.00
45.00
1.9
5.2
0.26
2.0
inc
3.00
55.00
2.3
35
0.54
2.9
GNDD007A
27.00
25.00
0.43
7.2
0.09
0.56
(2)
inc
1.80
46.00
2.4
3.1
0.12
2.5

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

658.2m shares 86.6m 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

T: +61 8 6380 9235

E: [email protected]

16m perf rights

www.challengerex.com

Criteria
JORC Code explanation		 Commentary
and
0.70
60.30
0.8
25
0.21
1.2
and
6.70
149.00
14.3
140
7.3
19.3
inc
3.06
150.60
27.5
260
12.9
36.5
(1)
and
0.60
176.40
1.9
6.7
0.99
2.4
GNDD008
35.50
16.50
0.33
8.1
0.10
0.47
(2)
inc
1.00
36.00
1.7
6.2
0.08
1.9
inc
1.63
43.37
1.7
8.4
0.14
1.9
inc
1.15
47.85
1.2
16
0.56
1.7
and
5.70
91.00
12.3
182
0.67
15.0
(1)
and
1.00
99.70
0.93
43
0.52
1.7
and
2.40
107.00
6.3
222
1.9
10.0
GNDD008A
35.50
17.50
0.24
13
0.08
0.43
(2)
and
20.00
95.00
3.3
45
0.55
4.1
(2)
inc
2.64
96.60
22.8
218
0.68
25.9
(1)
inc
10.00
105.00
0.6
28.2
0.71
1.2
GNDD009
7.00
72.00
2.3
102
0.08
3.6
and
3.00
100.00
0.85
50
0.02
1.5
and
10.32
109.10
10.4
28
4.6
12.7
inc
4.22
115.20
21.9
58
8.7
26.4
(1)
GNDD010
32.00
27.00
0.29
8.6
0.13
0.46
(2)
inc
5.00
30.00
0.65
21
0.09
0.95
and
1.30
55.00
1.1
30
0.80
1.8
and
7.22
136.00
7.5
60
1.1
8.8
(2)
inc
3.00
139.00
17.7
143
2.5
20.6
(1) cut-off of 10 g/t AuEq
(2) cut-off of 0.2 g/t AuEq
Drilling in 2020:
Hole_id
from
(m)
interval
(m)
Au
(g/t)
Ag
(g/t)
Zn (%)
AuEq
(g/t)
Cu (%)
Pb (%)
Note
GNDD011
81.00
1.00
1.9
43
0.13
2.5
0.01
0.06
and
139.80
4.80
1.4
5.7
2.6
2.6
0.02
0.02
and
147.20
0.70
9.4
13
6.6
12.4
0.07
0.00
1
and
151.40
0.50
1.2
5.5
0.25
1.4
0.00
0.00
GNDD012
40.70
1.00
6.3
290
0.12
10.1
0.18
1.2
GNDD013
116.40
6.93
1.3
12
2.7
2.6
0.05
0.18

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

658.2m shares 86.6m options 120m perf shares

Australian Registered Office Directors Level 1 Mr Kris Knauer, MD and CEO 1205 Hay Street Mr Scott Funston, Finance Director West Perth WA 6005 Mr Fletcher Quinn , Chairman

Contact

T: +61 8 6380 9235

E: [email protected]

16m perf rights

www.challengerex.com

Criteria JORC Code explanation Commentary
inc 122.50 0.83 4.0 61 10.1 9.1 0.21 1.2
GNDD014 118.50 7.55 2.4 15 3.6 4.2 0.05 0.16
GNDD015 54.00 1.00 0.69 8.6 0.39 1.0 0.03 0.24
and 156.00 1.90 1.0 31 2.8 2.6 0.02 0.79
GNDD016 64.00 1.00 0.80 27 0 1.1 0.02 0.06
and 109.50 5.00 1.8 27 8.3 5.8 0.16 0.01
and 116.55 4.45 6.0 83 3.9 8.8 0.13 0.02
GNDD017 34.30 1.7 0.31 24 2.0 1.5 0.06 1.0
GNDD018 37.75 0.85 1.1 3.6 0.1 1.2 0.01 0.05
and 63.20 3.75 7.1 78 3.6 9.6 0.28 3.6
inc 64.40 2.55 10.3 114 4.9 13.9 0.41 5.2 1
GNDD019 24.00 1.90 1.0 5.3 5.3 3.4 0.12 0.03
GNDD020 71.25 8.25 17.7 257 0.30 21.1 0.60 0.68
inc 74.00 5.50 26.0 355 0.42 30.7 0.05 0.21 1
and 83.30 0.65 0.03 2.7 10.70 4.7 0.00 0.02
GNDD021 14.80 1.20 11.0 9.0 0.39 11.3 0.01 0.08 1
and 31.50 0.35 28.1 104 5.8 31.9 0.35 0.12 1
and 98.20 19.80 0.29 2.2 3.4 1.8 0.01 0.04 2
inc 98.20 9.80 0.40 4.4 6.8 3.4 0.01 0.07
inc 104.20 0.80 0.88 13 22.7 10.9 0.02 0.30 1
GNDD022 NSI
GNDD023 58.00 5.00 0.32 3.7 0.1 0.41 0.01 0.09
GNDD024 85.00 6.00 2.5 19 0.15 2.8 0.40 1.4
inc 88.00 1.00 14.9 107 0.46 16.5 2.4 8.3 1
GNDD025 53.00 88.00 0.94 2.3 0.10 1.0 0.00 0.08 2
inc 61.00 14.00 3.1 5.3 0.19 3.2 0.01 0.11
inc 79.00 11.00 1.3 4.1 0.16 1.4 0.00 0.25
inc 93.00 1.00 1.1 2.5 0.09 1.1 0.00 0.37
inc 113.00 2.00 1.2 4.4 0.02 1.2 0.00 0.01
inc 139.00 2.00 0.99 0.50 0.01 1.0 0.00 0.00
GNDD026 NSI
GNDD027 NSI
GNDD028 41.40 18.60 0.21 3.2 2.0 1.1 0.08 0.01 2
inc 52.00 8.00 0.42 6.0 3.8 2.2 0.18 0.02
GNDD029 36.00 12.00 0.17 2.1 0.39 0.36 0.01 0.16 2
GNDD030 33.00 3.00 0.95 53 0.05 1.6 0.01 0.05
GNDD031 32.00 28.00 0.43 5.7 0.15 0.56 0.01 0.04 2

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

658.2m shares 86.6m options 120m perf shares

Australian Registered Office

Directors

Contact

Level 1 Mr Kris Knauer, MD and CEO T: +61 8 6380 9235 1205 Hay Street Mr Scott Funston, Finance Director E: [email protected] West Perth WA 6005 Mr Fletcher Quinn , Chairman

16m perf rights

www.challengerex.com

Criteria JORC Code explanation Commentary
inc 48.00 1.10 3.3 17 0.34 3.7 0.02 0.33
inc 53.00 1.00 4.2 54 0.92 5.3 0.12 0.22
GNDD032 9.00 20.00 0.16 6.7 0.09 0.29 0.00 0.02 2
and 49.00 116.00 1.05 4.0 0.20 1.2 0.01 0.07 2
inc 77.00 3.00 0.93 33.7 2.1 2.3 0.09 0.02
and 101.00 10.00 6.1 18.1 0.11 6.4 0.04 0.47
inc 101.00 6.00 9.6 18.7 0.15 9.9 0.05 0.61 1
and 136.00 4.00 9.8 18.5 1.5 10.7 0.06 0.27
GNDD033 NSI
GNDD034 47.60 0.30 0.03 1.4 24.4 10.6 0.34 0.04
GNDD035 88.75 5.75 9.5 28.7 3.5 11.4 0.10 0.44
inc 88.75 3.15 17.1 28.8 5.6 19.9 0.14 0.56 1
GNDD036 NSI
GNDD037 NSI
GNDD038 71.50 2.85 0.53 15.6 2.8 1.9 0.06 0.13
GNDD042 NSI
GNDD044 NSI
GNDD045 85.90 2.10 1.4 28.8 0.1 1.8 0.01 0.02
GNDD046 82.90 0.45 4.1 27 0.06 4.5 0.01 0.03
and 124.15 2.85 29.5 522 10.8 40.8 0.41 0.25 1
GNDD047 61.00 38.50 1.3 1.2 0.04 1.3 0.00 0.02 2
inc 62.50 6.00 6.3 3.5 0.15 6.4 0.01 0.10
and 74.10 1.50 1.0 1.9 0.00 1.0 0.00 0.00
and 83.55 0.45 7.3 12.2 0.00 7.5 0.00 0.00
and 98.50 1.00 1.2 0.8 0.00 1.2 0.00 0.00
GNDD048 36.00 19.00 0.6 5.0 0.25 0.81 0.01 0.06 2
inc 38.00 3.15 2.7 12.1 0.09 2.9 0.03 0.14
GNDD049 NSI
GNDD050 21.00 22.00 0.21 2.9 0.53 0.48 0.01 0.15 2
inc 21.00 2.00 1.4 4.8 0.07 1.5 0.01 0.07
GNRC051 NSI
GNRC052 69 6 1.7 4.4 0.32 1.9 0.03 0.00
GNRC053 NSI
GNRC054 13 7 0.22 3.9 0.03 0.28 0.00 0.01 2
and 66 15 0.53 4.0 0.66 0.87 0.01 0.13 2
inc 77 3 1.3 8.5 1.9 2.3 0.02 0.31
GNRC055 18 7 0.28 6.9 0.04 0.38 0.00 0.01 2

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

658.2m shares 86.6m options 120m perf shares

Australian Registered Office

Directors

Contact

Level 1 Mr Kris Knauer, MD and CEO T: +61 8 6380 9235 1205 Hay Street Mr Scott Funston, Finance Director E: [email protected] West Perth WA 6005 Mr Fletcher Quinn , Chairman

16m perf rights

www.challengerex.com

Criteria JORC Code explanation Commentary
GNRC056 56 1 2.3 138 0.08 4.1 0.01 0.07
GNRC057 37 12 0.06 2.4 0.58 0.34 0.01 0.06 2
GNRC058 NSI
GNRC059 NSI
GNDD060 NSI
GNRC061 NSI
GNRC062 17 3 3.8 7.9 2.7 5.0 0.24 0.17
GNRC063 19 1 0.01 0.46 2.8 1.2 0.04 0.01
GNRC064 22 1 0.01 4.2 3.8 1.7 0.00 0.00
and 27 1 0.69 27 1.2 1.6 0.35 0.23
GNRC065 33 6 0.00 2.1 4.9 2.1 0.05 0.01
GNRC066 NSI
GNRC067 NSI
GNRC068 9 69 3.4 8.3 2.8 4.7 0.23 0.08 2
inc 9 27 7.9 16 7.0 11.2 0.59 0.16
and 51 1 1.0 40 0.93 1.9 0.08 0.12
and 59 1 1.3 4.9 0.09 1.4 0.00 0.02
and 66 2 1.6 1.2 0.02 1.7 0.01 0.00
and 72 4 1.9 3.0 0.06 1.9 0.01 0.04
GNRC069 18 7 0.62 3.0 0.11 0.71 0.01 0.16 2
inc 19 1 2.2 8.6 0.15 2.4 0.03 0.59
and 53 10 0.65 5.7 0.37 0.88 0.01 0.03 2
inc 59 3 1.7 11 0.84 2.3 0.03 0.07
and 84 15 0.54 2.4 0.13 0.63 0.01 0.00 2
inc 84 4 0.90 5.2 0.36 1.1 0.02 0.01
and 96 1 1.0 1.4 0.06 1.0 0.03 0.00
GNRC070 41 1 6.6 3.1 0.36 6.8 0.02 0.21
GNRC071 48 2 0.45 5.4 2.1 1.4 0.01 0.12
GNRC072 43 19 0.16 4.9 0.13 0.28 0.00 0.09 2
GNDD073 NSI
GNDD074 41 2 1.2 20.5 0.04 1.4 0.00 0.02
and 47 2 0.8 16.7 0.13 1.1 0.03 0.03
GNRC075 31 18 0.78 1.6 0.07 0.83 0.01 0.22 2
inc 37 2 2.2 1.6 0.08 2.2 0.01 0.32
and 46 2 1.8 2.4 0.08 1.9 0.00 0.07
GNRC076 35 5 12.2 7.2 0.02 12.3 0.01 0.10
inc 35 1 53.1 18 0.00 53.3 0.00 0.02 1

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

658.2m shares 86.6m options 120m perf shares

Australian Registered Office

Directors

Level 1 Mr Kris Knauer, MD and CEO 1205 Hay Street Mr Scott Funston, Finance Director West Perth WA 6005 Mr Fletcher Quinn , Chairman

Contact

T: +61 8 6380 9235

E: [email protected]

16m perf rights

www.challengerex.com

Criteria JORC Code explanation Commentary
GNDD077 168.50 14.00 0.68 5.9 0.64 1.0 0.01 0.01 2
inc 168.50 1.00 1.5 59.3 6.6 5.2 0.13 0.08
inc 180.60 1.90 1.8 4.9 0.78 2.2 0.02 0.01
and 192.90 1.10 0.70 5.5 0.61 1.0 0.02 0.00
GNRC078 11 17 0.13 1.7 0.43 0.34 0.01 0.09 2
inc 12 1 0.74 4.8 0.91 1.2 0.03 0.33
GNDD079 21.00 61.00 1.1 1.1 0.11 1.1 0.00 0.02 2
inc 21.00 9.00 1.9 1.9 0.09 2.0 0.00 0.02
inc 40.00 2.00 2.7 1.7 0.08 2.8 0.00 0.06
inc 46.00 6.00 5.0 1.2 0.07 5.1 0.00 0.01
inc 74.00 3.00 1.0 0.86 0.17 1.1 0.00 0.12
GNRC080 NSI
GNRC081 23 30 0.28 2.0 0.33 0.45 0.01 0.10 2
inc 32 5 1.0 3.6 0.73 1.4 0.01 0.20
GNDD082 168.00 15.00 0.68 0.39 0.04 0.70 0.00 0.01 2
inc 168.00 1.00 2.4 0.46 0.11 2.4 0.00 0.02
inc 175.00 0.50 10.0 5.6 0.44 10.2 0.01 0.20
and 193.40 34.10 1.45 1.0 0.25 1.6 0.02 0.13 2
inc 193.40 1.00 2.2 7.9 1.6 3.0 0.14 1.7
inc 203.50 0.90 2.6 10.6 2.9 4.0 0.16 1.4
inc 209.80 2.20 0.59 4.5 0.74 1.0 0.03 0.25
and 235.00 31.00 0.4 0.6 0.08 0.43 0.00 0.00
inc 242.50 1.50 1.0 2.1 0.21 1.1 0.01 0.01
GNDD083 11.00 21.00 0.22 10.0 0.15 0.41 0.00 0.01 2
inc 19.20 1.80 1.0 6.1 0.10 1.1 0.00 0.00
and 170.00 1.00 1.3 3.6 0.22 1.4 0.02 0.26
GNRC084 4 1 1.2 2.0 0.07 1.2 0.00 0.06
and 41 3 5.2 6.4 5.0 7.5 0.08 0.14
and 60 4 3.6 11.6 5.0 6.0 0.02 0.05
and 78 21 0.81 2.6 0.08 0.88 0.00 0.00 2
inc 91 1 6.7 10.7 0.42 7.0 0.01 0.00
and 97 2 1.6 1.2 0.03 1.6 0.01 0.00
and 143 2 0.67 4.9 0.87 1.1 0.00 0.01
GNDD085 22.50 1.30 5.47 75.6 0.08 6.5 0.01 0.09
and 39.30 2.20 2.11 2.4 0.55 2.4 0.01 0.24
GNRC086 3 21 0.38 1.5 0.33 0.55 0.01 0.08 2
inc 4 1 0.85 3.4 0.89 1.3 0.03 0.27

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

658.2m shares 86.6m options 120m perf shares

Australian Registered Office Directors Level 1 Mr Kris Knauer, MD and CEO 1205 Hay Street Mr Scott Funston, Finance Director West Perth WA 6005 Mr Fletcher Quinn , Chairman

Contact

T: +61 8 6380 9235

E: [email protected]

16m perf rights

www.challengerex.com

Criteria JORC Code explanation Commentary
and 22 2 2.9 1.9 0.08 3.0 0.01 0.03
GNRC087 22 4 0.65 15.9 0.26 1.0 0.00 0.04
GNDD088 45.05 23.45 0.07 0.23 0.53 0.31 0.00 0.01 2
and 90.50 1.50 1.8 0.10 0.01 1.8 0.00 0.00
and 224.00 39.00 5.5 2.0 0.30 5.6 0.01 0.00 2
incl 231.50 14.40 14.4 3.3 0.67 14.8 0.00 0.00
incl 238.50 7.40 23.4 5.7 1.27 24.1 0.01 0.01 1
GNDD089 20.00 30.00 0.95 1.69 0.09 1.0 0.00 0.02 2
inc 22.00 2.00 1.4 2.7 0.18 1.5 0.00 0.00
inc 30.50 1.70 2.9 2.3 0.12 3.0 0.00 0.01
inc 40.00 10.00 1.4 0.55 0.09 1.4 0.00 0.02
and 94.50 21.70 0.88 1.59 0.43 1.1 0.00 0.04 2
inc 94.50 5.10 2.4 1.6 0.06 2.4 0.01 0.07
inc 102.50 1.50 1.9 1.5 0.15 2.0 0.01 0.03
inc 109.00 1.50 1.8 11.3 0.32 2.1 0.01 0.16
GNRC090 7 13 0.35 2.7 0.25 0.49 0.01 0.07 2
inc 14 1 1.1 7.3 0.45 1.4 0.02 0.21
GNRC091 30 24 0.38 3.7 0.20 0.51 0.01 0.10 2
inc 43 4 1.4 3.5 0.40 1.6 0.01 0.36
GNDD092 164.50 9.00 0.29 0.72 0.12 0.35 0.00 0.05 2
and 213.00 17.00 0.23 0.63 0.06 0.26 0.00 0.04 2
and 257.50 1.00 3.6 5.9 0.60 3.9 0.05 0.21
GNDD093 75.30 1.40 2.1 10.6 7.8 5.6 0.18 0.22
and 153.65 0.50 1.4 7.3 0.17 1.6 0.11 0.03
GNRC094 13 12 0.83 4.6 0.44 1.1 0.01 0.06 2
inc 13 1 1.1 6.3 0.17 1.2 0.02 0.12
inc 17 1 8.3 20.6 0.27 8.7 0.06 0.52
inc 23 1 0.21 4.5 3.8 1.9 0.01 0.03
GNDD095 47.00 17.47 0.28 1.0 0.44 0.49 0.02 0.09 2
inc 50.00 1.30 1.0 0.92 2.8 2.3 0.18 0.61
and 121.00 1.00 2.6 1.7 0.01 2.6 0.00 0.00
GNDD096 NSI
GNRC097 49 8 0.39 2.2 0.04 0.44 0.00 0.02 2
inc 50 1 1.1 2.8 0.03 1.2 0.00 0.03
GNRC098 40 19 0.21 1.8 0.19 0.32 0.01 0.16 2
and 88 8 4.9 4.5 0.76 5.3 0.02 0.07 2
inc 88 2 15.6 15.9 2.8 17.0 0.07 0.20 2

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

658.2m shares 86.6m options 120m perf shares

Australian Registered Office Directors Level 1 Mr Kris Knauer, MD and CEO 1205 Hay Street Mr Scott Funston, Finance Director West Perth WA 6005 Mr Fletcher Quinn , Chairman

Contact

T: +61 8 6380 9235

E: [email protected]

16m perf rights

www.challengerex.com

Criteria JORC Code explanation Commentary
inc 94 2 2.6 1.2 0.13 2.7 0.00 0.03
GNDD099 53.00 2.80 0.42 19.8 2.0 1.5 0.09 0.33
and 64.00 0.90 3.1 9.7 0.22 3.3 0.01 0.01
and 101.00 1.00 2.9 64.4 0.04 3.7 0.01 0.04
GNDD100 NSI
GNDD101 NSI
GNDD102 36.00 11.00 0.59 3.2 0.18 0.71 0.01 0.11 2
inc 36.00 2.00 1.5 5.9 0.13 1.6 0.01 0.14
and 77.40 8.90 0.10 2.5 0.82 0.49 0.01 0.06 2
inc 84.30 0.90 - 1.3 3.3 1.4 0.02 0.03
GNDD103 NSI
GNRC104 141 1 45.6 40.0 2.6 47.2 0.25 3.4 1
GNDD105 NSI
GNDD106 100.00 25.00 0.66 0.29 0.01 0.67 0.00 0.00 2
inc 114.00 1.50 1.8 1.7 0.01 1.8 0.00 0.00
inc 121.00 4.00 2.6 0.34 0.01 2.6 0.00 0.00
and 141.35 1.05 1.2 2.8 0.84 1.6 0.01 0.01
and 205.00 8.00 0.48 1.0 0.02 0.50 0.00 0.00 2
inc 211.00 2.00 1.1 2.2 0.03 1.1 0.00 0.00
GNRC107 16 27 3.6 14.8 0.25 3.9 0.01 0.1 2
inc 23 1 0.17 74.4 0.07 1.1 0.01 0.1
inc 29 2 1.2 12.2 0.06 1.3 0.01 0.1
inc 35 7 13.3 12.6 0.80 13.8 0.02 0.3
and 52 1 0.18 73.2 0.11 1.2 0.00 0.1
and 93 1 0.12 51.2 3.1 2.1 0.03 0.65
GNDD108 NSI
GNDD109 NSI
GNRC110 11 44 2.8 62.7 0.05 3.7 0.01 0.25 2
inc 12 1 1.7 1.0 0.00 1.7 0.00 0.04
inc 20 11 1.8 37.2 0.02 2.3 0.01 0.37
inc 36 12 8.3 190 0.12 10.7 0.02 0.51
inc 41 3 27.3 613 0.05 35.1 0.03 0.87 1
GNRC111 31 18 0.31 12.2 0.13 0.52 0.01 0.03 2
inc 33 1 1.3 59.4 0.02 2.1 0.01 0.27
inc 41 1 2.1 82.7 0.01 3.2 0.01 0.10
GNDD112 95.00 0.40 0.5 26.6 6.0 3.5 0.10 1.9
GNDD113 149.50 37.50 0.59 17.0 0.12 0.86 0.01 0.08 2

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

658.2m shares 86.6m options 120m perf shares

Australian Registered Office

Directors

Contact

Level 1 Mr Kris Knauer, MD and CEO T: +61 8 6380 9235 1205 Hay Street Mr Scott Funston, Finance Director E: [email protected] West Perth WA 6005 Mr Fletcher Quinn , Chairman

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Criteria JORC Code explanation Commentary
inc 151.00 9.00 1.3 56.2 0.17 2.1 0.05 0.11
inc 170.50 1.50 1.7 5.7 0.33 2.0 0.01 0.11
and 219.00 11.00 0.79 2.2 0.08 0.86 0.00 0.08 2
inc 223.00 7.00 1.1 2.5 0.09 1.1 0.00 0.05
GNDD113A 61.00 2.00 0.59 2.6 0.74 0.95 0.03 0.07
and 139.00 107.00 0.30 3.0 0.09 0.37 0.00 0.04 2
inc 185.00 1.40 1.6 2.5 0.07 1.7 0.00 0.05
inc 197.00 2.00 1.2 0.94 0.17 1.3 0.00 0.04
inc 202.00 1.50 3.2 2.4 0.90 3.6 0.02 0.16
inc 209.00 2.00 1.2 1.9 0.25 1.3 0.01 0.25
and 262.00 104.00 1.5 2.7 0.39 1.7 0.01 0.12 2
inc 266.00 2.00 1.0 1.8 0.22 1.1 0.00 0.02
inc 274.00 2.00 1.3 1.4 0.06 1.3 0.00 0.01
inc 280.00 15.00 3.6 6.9 0.56 3.9 0.04 0.73
inc 289.45 3.65 6.7 20.2 1.5 7.6 0.15 2.6 1
inc 298.65 7.45 2.9 3.7 0.63 3.2 0.02 0.01
inc 315.50 1.20 1.0 1.4 0.13 1.1 0.00 0.02
inc 333.80 4.20 11.3 22.8 5.3 13.9 0.12 0.04
inc 333.80 0.70 60.8 133 31.4 76.1 0.70 0.22 1
inc 354.00 4.00 1.4 0.8 0.02 1.4 0.00 0.00
274.00 84.00 1.7 3.3 0.48 2.0 0.02 0.14 4
and 390.00 30.00 0.35 0.36 0.05 0.38 0.00 0.00 2
inc 394.00 2.00 1.2 0.33 0.04 1.2 0.00 0.00
139.00 227.00 0.83 2.7 0.22 1.0 0.01 0.07 3
139.00 281.00 0.71 2.2 0.19 0.82 0.01 0.06 3
106.00 314.00 0.65 2.1 0.17 0.75 0.01 0.05
GNDD114 64.00 14.70 3.2 3.3 0.08 3.3 0.01 0.06
inc 77.80 0.90 50.3 27.2 0.18 50.7 0.03 0.65
GNDD115 68.70 1.10 0.62 9.2 2.0 1.6 0.04 0.36
and 144.00 2.00 0.30 16.2 1.2 1.0 0.07 0.38
and 176.50 34.50 0.28 0.68 0.01 0.29 0.00 0.03 2
GNDD116 27.50 4.50 1.3 14.6 0.06 1.5 0.00 0.02 2
inc 27.50 1.00 3.7 41.4 0.13 4.3 0.01 0.05
and 73.70 0.80 2.4 3.9 0.26 2.5 0.00 0.00
GNDD117 30.00 54.80 0.58 4.2 0.13 0.69 0.01 0.07 2
inc 61.00 10.00 2.5 10.2 0.16 2.7 0.01 0.14
inc 84.20 0.60 1.4 4.1 0.11 1.5 0.01 0.02

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

658.2m shares 86.6m options 120m perf shares

Australian Registered Office Directors Level 1 Mr Kris Knauer, MD and CEO 1205 Hay Street Mr Scott Funston, Finance Director West Perth WA 6005 Mr Fletcher Quinn , Chairman

Contact

T: +61 8 6380 9235

E: [email protected]

16m perf rights

www.challengerex.com

Criteria JORC Code explanation Commentary
and 106.70 0.40 8.5 43.4 3.3 10.5 0.25 2.92 1
GNDD118 NSI
GNDD119 52.40 0.80 0.21 17.4 4.2 2.3 0.03 0.25
GNDD120 NSI
GNDD121 NSI
GNDD122 11.50 18.10 0.64 2.2 0.03 0.68 0.00 0.01 2
inc 21.00 6.00 1.1 3.2 0.04 1.2 0.00 0.01
and 54.00 21.00 0.41 0.80 0.12 0.47 0.00 0.04 2
inc 71.00 2.00 1.2 1.0 0.14 1.2 0.00 0.09
and 191.00 1.50 1.6 24.4 0.95 2.3 0.10 1.24
and 213.80 3.20 1.7 2.1 0.23 1.8 0.01 0.02
and 236.00 1.50 4.8 4.9 0.63 5.1 0.03 0.16
GNDD123 21.00 30.00 0.11 1.6 0.32 0.27 0.01 0.04 2
GNDD124 44.00 7.00 0.08 3.6 0.65 0.40 0.02 0.13 2
GNDD125 NSI
GNDD126 107.30 1.10 12.8 10.3 0.74 13.3 0.00 0.16 1
and 120.00 2.00 3.2 3.6 0.16 3.4 0.01 0.00
and 157.30 0.50 1.0 22.1 2.2 2.2 0.11 2.3
and 179.00 2.00 1.7 0.62 0.01 1.7 0.00 0.00
GNDD127 NSI
GNDD128 63.00 20.00 0.49 0.42 0.02 0.50 0.00 0.00 2
inc 77.50 1.50 4.1 0.36 0.04 4.1 0.00 0.00
GNDD129 15.00 21.00 0.72 1.8 0.10 0.79 0.00 0.05 2
inc 24.00 10.00 1.0 2.1 0.13 1.1 0.00 0.04
and 132.50 0.70 6.7 14.1 0.15 7.0 0.01 0.12
GNDD130 NSI
GNDD131 NSI
GNDD134 17.70 15.30 0.80 7.5 0.07 0.92 0.00 0.11 2
inc 19.00 10.00 1.04 9.9 0.08 1.2 0.01 0.12
and 47.00 39.75 0.26 0.5 0.10 0.31 0.00 0.04 2
and 129.50 7.50 0.45 0.5 0.06 0.48 0.00 0.02 2
and 161.00 20.00 0.29 3.6 0.23 0.44 0.01 0.03 2
inc 177.50 0.50 3.79 29.8 5.23 6.4 0.16 0.10
and 196.00 4.00 5.3 86.2 10.60 11.0 0.24 0.57
and 240.00 2.00 6.2 1.3 0.02 6.2 0.00 0.00
and 272.00 50.00 0.22 0.5 0.14 0.28 0.00 0.00 2
and 500.10 0.95 2.3 8.1 0.16 2.5 0.21 0.00

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

658.2m shares 86.6m options 120m perf shares

Australian Registered Office Directors Contact Level 1 Mr Kris Knauer, MD and CEO T: +61 8 6380 9235 1205 Hay Street Mr Scott Funston, Finance Director E: [email protected] West Perth WA 6005 Mr Fletcher Quinn , Chairman

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Criteria JORC Code explanation Commentary
and 519.00 20.00 0.73 0.7 1.80 1.5 0.02 0.00 2
inc 529.50 2.90 4.7 3.6 11.6 9.8 0.12 0.00
and 560.25 17.75 0.20 0.7 0.38 0.37 0.01 0.00 2
inc 560.25 0.75 0.09 2.0 4.94 2.3 0.05 0.00
inc 570.20 0.50 1.22 9.6 2.36 2.4 0.17 0.02
and 630.30 0.70 0.9 1.6 0.21 1.0 0.18 0.00
GNDD137 27.00 38.00 0.38 1.1 0.05 0.42 0.00 0.02 2
inc 33.00 4.00 1.70 1.2 0.13 1.8 0.00 0.02
and 186.25 1.35 8.12 29.5 7.3 11.6 0.12 0.03
GNDD139 80.00 207.50 0.75 1.7 0.10 0.82 0.00 0.02 2
inc 80.00 32.00 1.6 2.5 0.06 1.6 0.00 0.03
inc 148.00 4.25 1.2 3.8 0.15 1.3 0.00 0.09
inc 167.00 14.00 1.5 0.32 0.01 1.5 0.00 0.01
inc 243.00 9.00 2.4 3.7 0.62 2.8 0.00 0.01
inc 266.00 6.00 1.6 0.61 0.01 1.6 0.00 0.00
243.00 29.00 1.2 1.6 0.24 1.3 0.00 0.00 4
GNDD141 101.50 6.50 14.3 43.6 3.4 16.3 0.15 1.6 2
inc 101.50 2.50 36.8 111 8.6 41.9 0.30 4.2 1
GNDD142 55.8 0.7 0.7 13.3 4.0 2.7 0.05 0.03
and 81.5 27.5 2.4 11.1 0.9 2.9 0.03 0.06 2
inc 92.0 11.5 5.4 19.9 2.0 6.5 0.08 0.13
inc 107.0 2.0 0.9 5.3 0.2 1.0 0.00 0.03
and 125.0 11.0 0.3 3.2 0.1 0.39 0.00 0.01 2
inc 132.9 1.1 1.6 4.6 0.1 1.7 0.01 0.08
and 152.0 40.0 5.1 11.7 1.9 6.1 0.05 0.12 2
inc 153.1 1.0 23.4 40.1 13.5 29.8 0.34 0.00 1
inc 160.0 10.7 10.7 28.4 4.9 13.2 0.13 0.15
inc 166.2 4.5 23.9 41.3 11.0 29.2 0.29 0.27 1
inc 177.2 12.8 5.2 9.3 0.7 5.6 0.02 0.24
inc 187.1 1.0 44.0 53.8 6.5 47.5 0.15 2.1 1
and 237.0 0.5 1.1 2.7 0.1 1.2 0.01 0.17
81.5 110.5 2.5 7.4 0.9 3.0 0.03 0.06 3
GNDD143 NSI
GNDD145 NSI
GNDD148 16.00 7.00 0.14 1.7 0.43 0.35 0.01 0.18 2
and 59.00 2.00 0.00 1.0 2.7 1.2 0.01 0.01
GNDD149 8.00 4.00 0.63 1.5 0.28 0.77 0.01 0.07

Challenger Exploration Limited Issued Capital ACN 123 591 382 658.2m shares ASX: CEL 86.6m options 120m perf shares

Australian Registered Office

Directors

Contact

Level 1 Mr Kris Knauer, MD and CEO T: +61 8 6380 9235 1205 Hay Street Mr Scott Funston, Finance Director E: [email protected] West Perth WA 6005 Mr Fletcher Quinn , Chairman

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Criteria
JORC Code explanation		 Commentary
GNDD151
379.75
0.50
0.71
18.6
8.9
4.8
0.17
0.17
GNDD155
59.00
209.00
1.0
1.4
0.09
1.1
0.00
0.02
2
inc
59.00
34.00
3.8
4.6
0.20
3.9
0.02
0.03
inc
81.00
4.00
13.4
10.5
0.06
13.5
0.05
0.02
inc
102.00
6.00
1.2
1.1
0.10
1.2
0.00
0.03
59.00
49.00
2.8
3.6
0.16
3.0
0.01
0.02
4
inc
151.55
0.45
7.7
2.9
4.5
9.6
0.00
0.10
inc
182.00
1.00
8.8
17.1
2.2
10.0
0.07
0.89
inc
224.00
2.00
2.0
0.29
0.01
2.0
0.00
0.00
inc
244.00
11.00
1.1
0.56
0.04
1.1
0.00
0.00
inc
266.00
0.55
1.8
1.2
0.02
1.8
0.00
0.00
and
338.00
9.00
0.41
0.33
0.05
0.43
0.00
0.00
2
GNDD156
5.00
7.00
0.68
3.0
0.70
1.0
0.02
0.15
GNDD157
20.00
66.00
0.52
1.1
0.08
0.57
0.00
0.07
2
inc
54.00
10.00
2.2
1.8
0.14
2.3
0.00
0.24
and
132.90
10.00
0.18
6.6
0.52
0.48
0.01
0.08
2
inc
132.90
0.50
0.88
13.1
1.4
1.6
0.03
0.67
inc
142.30
0.60
1.0
29.1
6.6
4.2
0.11
0.33
and
237.20
130.80
2.3
1.6
0.37
2.5
0.00
0.01
2
inc
237.20
0.80
1.7
59.1
5.6
4.9
0.18
1.2
inc
255.80
1.20
0.63
5.3
9.4
4.8
0.01
0.01
inc
289.00
12.00
20.4
4.8
1.0
20.9
0.00
0.00
inc
290.50
4.06
55.7
12.9
2.1
56.8
0.01
0.01
1
inc
321.00
2.00
1.3
0.6
0.01
1.3
0.00
0.00
inc
331.00
6.00
2.5
1.9
0.61
2.8
0.01
0.01
inc
343.00
9.00
1.7
0.6
0.10
1.7
0.00
0.00
and
407.50
0.50
2.2
1.2
0.37
2.4
0.00
0.00
GNDD159
NSI
Holes for metallurgical test sample material:
GMDD039
18.00
8.00
0.15
1.9
0.60
0.43
0.01
0.07
2
GMDD039
67.60
1.00
24.5
58
3.9
26.9
0.27
1.8
1
GMDD040
116.72
8.68
5.5
12
2.2
6.7
0.06
0.00
inc
122.50
2.90
11.8
24
4.2
14.0
0.14
0.00
1
GMDD041
31.00
16.0
2.6
4.9
0.27
2.8
0.01
0.25
2
inc
41.70
2.0
20.0
29
1.2
20.8
0.06
1.7
GMDD041
63.50
5.1
7.9
83
7.9
12.3
0.47
0.21
GMDD043
18.00
10.00
0.09
1.7
0.48
0.32
0.01
0.10
2

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

658.2m shares 86.6m options 120m perf shares

Australian Registered Office Directors Level 1 Mr Kris Knauer, MD and CEO 1205 Hay Street Mr Scott Funston, Finance Director West Perth WA 6005 Mr Fletcher Quinn , Chairman

Contact

T: +61 8 6380 9235

E: [email protected]

16m perf rights

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Criteria
JORC Code explanation		 Commentary
GMDD043
70.50
0.30
25.9
81
9.4
31.0
0.33
3.1
1
(1) cut off 10 g/t Au equivalent
(2) cut off 0.2 g/t Au equivalent
(3) combined zones with 0.2 g/t Au cut off (grades include internal dilution from between zones)
(4) combined zones with 1.0 g/t Au cut-off (grades include internal dilation from between zones)
NSI: no significant intersection
Data aggregation
methods
-
In reporting Exploration Results weighting averaging
techniques maximum 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.		 Weighted average significant intercepts are reported to a gold grade equivalent (AuEq). Results are reported
to cut-off grade of a 1.0 g/t Au equivalent and 10 g/t Au equivalent allowing for up to 2m of internal dilution
between samples above the cut-off grade and 0.2 g/t Au equivalent allowing up to 6m of internal dilution
between samples above the cut-off grade. The following metals and metal prices have been used to report
gold grade equivalent: Au US$ 1780 / oz Ag US$24 /oz and Zn US$ 2800 /t.
Metallurgical recoveries for Au, Ag and Zn have been estimated from metallurgical test work completed by
SGS Metallurgical Operations in Lakefield, Ontario using a combination of gravity and flotation of a combined
metallurgical sample from 5 drill holes. Using data from the test results, and for the purposes of the AuEq
calculation gold recovery is estimated at 89%, silver at 84% and zinc at 79%. Accordingly, the formula used is
AuEq (g/t) = Au (g/t) + [Ag (g/t) x (24/1780) x (0.84/0.89)] + [Zn (%) x (28.00*31.1/1780) x (0.79/0.89)].
Metallurgical test work and geological and petrographic descriptions suggest all the elements included in the
metal equivalents calculation have a reasonable potential of eventual economic recovery. While Cu and Pb
are reported in the table above, these metals are not used in the Au equivalent calculation at this early stage
of the Project.
No top cuts have been applied to the reported grades.
Relationship
between
mineralisation
widths and
intercept lengths
-
These relationships are particularly important in the
reporting of Exploration Results.
-
If the geometry of the 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’).		 The mineralisation is moderately or steeply dipping and strikes NNE and ENE. For some drill holes, there is
insufficient information in most cases to confidently establish the true width of the mineralized intersections at
this stage of the exploration program.
Apparent widths may be thicker in the case where bedding-parallel mineralisation may intersect ENE-striking
cross faults and veins.
Cross section diagrams have been provided with release of significant intersections to allow estimation of true
widths from individual drill intercepts.
Diagrams
-
Appropriate maps and sections (with scales) and
tabulations of intercepts 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.		 Representative maps and sections are provided in the body of report.

Challenger Exploration Limited Issued Capital Australian Registered Office Directors Contact ACN 123 591 382 658.2m shares Level 1 Mr Kris Knauer, MD and CEO T: +61 8 6380 9235 ASX: CEL 86.6m options 1205 Hay Street Mr Scott Funston, Finance Director E: [email protected] 120m perf shares West Perth WA 6005 Mr Fletcher Quinn , Chairman

16m perf rights

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Criteria JORC Code explanation JORC Code explanation Commentary
Balanced - Where comprehensive reporting of all Exploration All available data have been reported.
reporting Results is not practicable representative reporting of
both low and high grades and/or widths should be
practiced to avoid misleading reporting of
Exploration Results.
Other - Other exploration data if meaningful and material Geological context and observations about the controls on mineralisation where these have been made are
substantive should be reported including (but not limited to): provided in the body of the report.
exploration data geological observations; geophysical survey results;
geochemical survey results; bulk samples – size and		 229 specific gravity measurements have been taken from the drill core recovered during the drilling program.
method of treatment; metallurgical test results; bulk These data are expected to be used to estimate bulk densities in future resource estimates.
density groundwater geotechnical and rock
characteristics; potential deleterious or Eight Induced Polarisation (IP) lines have been completed in the northern area. Each line is approximately 1
contaminating substances. kilometre in length lines are spaced 100m apart with a 50m dipole. The initial results indicate possible extension
of the mineralisation with depth. Data will be interpreted including detailed re-processing and drill testing.
A ground magnetic survey and drone magnetic survey have been completed. The results of these data are being
processed and interpreted with the geological information provided from surface and in the drilling and will be
used toguide future exploration.
Further work - The nature and scale of planned further work (eg •
CEL Plans to undertake the following over the next 12 months
tests for lateral extensions or depth extensions or •
Additional data precision validation and drilling as required;
large-scale step-out drilling). •
Detailed interpretation of known mineralized zones;
- Diagrams clearly highlighting the areas of possible •
Geophysical tests for undercover areas.
extensions including the main geological
interpretations and future drilling areas provided this
information is not commercially sensitive.
•
Structural interpretation and alteration mapping using high resolution satellite data and geophysics to
better target extensions of known mineralisation.
•
Field mapping program targeting extensions of known mineralisation.
•
Investigate further drilling requirements to upgrade both the unclassified mineralisation and
mineralisation in the existing historical resources to meet JORC 2012 requirements;
•
Initial drill program comprising verification (twin holes) and targeting extensions of the historically
defined mineralisation;
•
Further metallurgical test work on lower grade mineralisation in the intrusions and oxidised
mineralisation.

Challenger Exploration Limited

ACN 123 591 382

ASX: CEL

Issued Capital

658.2m shares 86.6m 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

T: +61 8 6380 9235

E: [email protected]

16m perf rights

www.challengerex.com

Section 3 Estimation and Reporting of Mineral Resources

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

Criteria JORC Code explanation Commentary
Database -
Measures taken to ensure that data has not been corrupted by for		 Geological logging completed by previous explorers was done on paper copies and transcribed into
integrity example transcription or keying errors between its initial collection and the drill hole database. The data was checked for errors. Checks can be made against the original
its use for Mineral Resource estimation purposes. logs and core photographs.
-
Data validation procedures used.
Assay data is received in digital format. Backup copies are kept and the data is copied into the drill
hole database.
The drill hole data is backed upand is updatedperiodicallybya CompanyGIS and data team.
Site visits -
Comment on any site visits undertaken by the Competent Person and		 Site visits have been undertaken from 3 to 16 October 2019 15 to 30 November 2019 and 1-19
the outcome of those visits. February 2020. The performance of the drilling program collection of data and sampling procedures
-
If no site visits have been undertaken indicate why this is the case.		 were initiated duringthese visits.
Geological -
Confidence in (or conversely the uncertainty of) the geological		 The interpretation is considered appropriate given the stage of the project and the nature of
interpretation interpretation of the mineral deposit. activities that have been conducted. The interpretation captures the essential geometry of the
-
Nature of the data used and of any assumptions made.		 mineralised structure and lithologies with drill data supporting the findings from the initial
-
The effect if any of alternative interpretations on Mineral Resource		 underground sampling activities.
estimation.
-
The use of geology in guiding and controlling Mineral Resource		 The most recent resource calculation (2006 and 2003 – La Mancha) used all core drilling at the time
estimation. and detailed underground channel sampling collected by EPROM CMEC and La Mancha. Overlying
-
The factors affecting continuity both of grade and geology.		 assumptions included a reduction of the calculated grade in each resource block by a factor of 10% to
account for possible errors in the analyses and samples. An arbitrary reduction factor was applied to
the 2006 resource whereby the net reported tonnage was reduced by 25% for indicated resource
blocks 50% for inferred resource blocks and 75% of potential mineral resource blocks. The reason for
the application of these tonnage reduction factors was not outlined in the resource report. It is noted
that at the time of this report La Mancha was in a legal dispute concerning the project with its joint
venture partner and given the acquisition of a 200000 Oz per annum producing portfolio the project
was likely no longer a core asset for La Mancha at that time. Additionally under the original
acquisition agreement La Mancha had to issue additional acquisition shares based on resource
targets.
The effect of removing the assumptions relating to application of the arbitrary tonnage reduction
factors applied increases the overall resource tonnage by in excess of 50%. Removing these
correction factors would bringthe overall tonnage andgrade close the earlier(2003 1999 and 1996)

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital 658.2m shares 86.6m 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

T: +61 8 6380 9235

E: [email protected]

16m perf rights

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Criteria JORC Code explanation JORC Code explanation Commentary
tonnage and grade estimates albeit in different categories (lower confidence) which are considered
more appropriate.
The mineralisation is defined to the skarn and vein bodies detailed cross section and plan maps were
prepared for these bodies with their shapes used in controlling the resource estimate.
The structure of the area is complex and a detailed structural interpretation is recommended as this
may provide a better understanding of the continuity of mineralisation and possible extensions to it.
The deposit contains bonanza gold values and while very limited twinning has indicated acceptable
repeatability a rigorous study of grade continuity needs to be undertaken as part of future resource
calculations.
Dimensions - The extent and variability of the Mineral Resource expressed as length For the historic resource no reliable information has been provided to the owner however through
(along strike or otherwise) plan width and depth below surface to the further ongoing investigation is being conducted by the owner to address this information gap.
upper and lower limits of the Mineral Resource.
Estimation and - The nature and appropriateness of the estimation technique(s) applied The historic resource estimation techniques are considered appropriate. The 2003 and 2006
modelling and key assumptions including treatment of extreme grade values resources used a longitudinal section polygonal method was used for estimating resources with
techniques domaining interpolation parameters and maximum distance of
extrapolation from data points. If a computer assisted estimation		 individual blocs representing weighted averages of sampled underground and/or areas of diamond
drill pierce points with zones of influence halfway to adjacent holes. The area of the block was
method was chosen include a description of computer software and calculated in AutoCad directly from the longitudinal sections.
parameters used.
- The availability of check estimates previous estimates and/or mine Check assaying by PG Consulting returned values in the check assay sample which were 3.4% and
production records and whether the Mineral Resource estimate takes 13% greater for Au and Ag than the original assays. A number pf previous resource estimates were
appropriate account of such data. available to check the 2006 resource estimate when the arbitrary tonnage reduction factors are
- The assumptions made regarding recovery of by-products. removed brings the overall tonnage and grade close the earlier (2003 1999 and 1996) tonnage and
- Estimation of deleterious elements or other non-grade variables of grade estimates albeit indifferent categories which are considered more appropriate.
economic significance (eg sulphur for acid mine drainage
characterisation). It was assumed only gold silver and zinc would be recovered and that no other by products would be
- In the case of block model interpolation the block size in relation to the recovered. This is viewed as conservative given metallurgical data pointing to the production of a
average sample spacing and the search employed. saleable zinc concentrate.
- Any assumptions behind modelling of selective mining units.
- Any assumptions about correlation between variables. Based on the preliminary metallurgy estimation of deleterious elements or other non-grade variables
- Description of how the geological interpretation was used to control the
of economic significance was not required.
resource estimates.
- Discussion of basis for using or not using grade cutting or capping. The minimum mining width of 0.8m was assumed for veins less than 0.6m and for wider widths a
- The process of validation the checking process used the comparison of dilution of 0.2m was used to calculate the grade.
model data to drill hole data and use of reconciliation data if available

Challenger Exploration Limited Issued Capital Australian Registered Office Directors Contact ACN 123 591 382 658.2m shares Level 1 Mr Kris Knauer, MD and CEO T: +61 8 6380 9235 ASX: CEL 86.6m options 1205 Hay Street Mr Scott Funston, Finance Director E: [email protected] 120m perf shares West Perth WA 6005 Mr Fletcher Quinn , Chairman 16m perf rights

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Criteria JORC Code explanation JORC Code explanation Commentary
No assumptions were made regarding correlation between variables.
The mineralisation is defined within skarn and associated vein deposits. Detailed cross section and
plan maps were prepared for these domains with their shapes used in controlling the resource
estimate. Long sections of the veins and skarn were taken and sampling was plotted and the blocks
outlined considering this.
Grade cutting was not used in the calculation of the resource and no discussion was given as to why
it was not employed. It is recommended that a study be undertaken to determine if an appropriate
top cut need be applied
No data is available on theprocess of validation.
Moisture - Whether the tonnages are estimated on a dry basis or with natural No data is available.
moisture and the method of determination of the moisture content.
Cut-off - The basis of the adopted cut-off grade(s) or quality parameters applied.
The Mineral Resource Estimate is above a cut-off grade of 3.89 g/t Au. This is based on the assumed
parameters mining cost at the time of the estimate.
Mining factors or - Assumptions made regarding possible mining methods minimum The Mineral Resource Estimate considered the assumptions outlined below which are considered
assumptions mining dimensions and internal (or if applicable external) mining appropriate;
dilution. It is always necessary as part of the process of determining -
Metal prices: Au US$550 Oz Ag US$10 Oz
reasonable prospects for eventual economic extraction to consider -
Metallurgical Recovery; Au – 80% Ag – 70% Zn - nil
potential mining methods but the assumptions made regarding mining -
Operating cost: US$55t based on underground cut and fill mining and flotation and
methods and parameters when estimating Mineral Resources may not cyanidation combined
always be rigorous. Where this is the case this should be reported with The minimum mining width of 0.8m was assumed for veins less than 0.6m and for wider widths a
an explanation of the basis of the mining assumptions made. dilution of 0.2m was used to calculate the grade.
Metallurgical - The basis for assumptions or predictions regarding metallurgical Historical metallurgical test-work assumptions were 80% recovery for Au, Ag and Zn.
factors or amenability. It is always necessary as part of the process of determining
-
The most recent historic test work was conducted in 1999 by Lakefield Research
assumptions reasonable prospects for eventual economic extraction to consider
potential metallurgical methods but the assumptions regarding		 (cyanidation) and CIMM Labs (flotation) in Chile on 4 samples which all contain primary
sulphide minerals and so can be considered primary, partial oxide or fracture oxide
metallurgical treatment processes and parameters made when samples.
reporting Mineral Resources may not always be rigorous. Where this is -
The test work was conducted using a 150 micron grind which would appear to coarse based
the case this should be reported with an explanation of the basis of the on petrography conducted by CEL which shows that the gold particles average 30-40
metallurgical assumptions made. microns.
-
Rougher flotation tests were performed with a 20 minute and 30 minute flotation time.
Generally, the longer residence time improved recovery. Recoveries to concentrate for
gold range from 59.6% - 80.6% and for silver from 63.1% – 87.2%.

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital 658.2m shares 86.6m 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

T: +61 8 6380 9235

E: [email protected]

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Criteria JORC Code explanation JORC Code explanation Commentary Commentary
- Knelson concentrate tests with flotation of tailings were also completed. Applying a joint
process Knelson concentrator and flotation of the tailings of the concentrator it is found
that the global recovery is approximately 80% for gold.
- While the testwork was focused predominantly on gold recovery some rougher flotation
testwork was undertaken targeting Zn recovery producing up to 85% recoveries. In
sulphide samples this produced a Zn concentrate containing 42% Zn with grades in excess
of 50% Zn in concentrate expected with additional flotation stages.
- The report concluded that it was possible to produce a commercial Au-Ag concentrate and
a Zn concentrate.
- Extraction of gold and silver by cyanidation was tested on 3/8 and ¾ inch (9.525mm and
19.05mm) crush sizes that are designed to test a heap leach processing scenario. Bottle roll
of these crush size resulted in 41-39% gold recovery and 31-32% silver recovery with high
cyanide consumption. No tests have been done on material at a finer grind size.
More recently, CEL has completed initial metallurgical test work on a 147 kg composite sample
of drill core from GMDD039, GMDD040, GMDD041, GNDD043, GNDD003 and GNDD018. The
sample is of skarn mineralisation in limestone that has a weighted average grade of 10.4 g/t Au,
31.7 g/t Ag, 3.2 % Zn, 0.15 % Cu and 0.46 % Pb. Separate tests on 2 kg sub-samples were done
with differing grinding times, Knelson and Mosley table gravity separation techniques and
flotation techniques to provide a series of gravity and flotation concentrates. Key results are:
- Combined gravity and flotation concentration process resulted in recoveries 85-94% for Au,
82-86% for silver and 77-80% for zinc. Cu had similar recoveries to Ag and Pb had similar
recoveries to Zn.
- A simple gravity separation followed by a sulfide flotation process when re-combined
produced a single product with a median grade of 47 g/t Au, 120 g/t Ag and 13% Zn with a
recovered weight of 24-33% of the sample weight.
- Tailings fragment analysis indicates a grind of (p80) 72-106m. Generally, a coarser grind
resulted in a higher % weight recovered to the concentrate with a corresponding lower
grade without significantly impacting recovery.
- QEMSCAN analysis of the sample indicates much of the Zn not recovered is due to the
presence of Zn oxide (franklinite) and silicates (hemimorphite).
- Sulphides present are dominated by pyrite and sphalerite. Also present are chalcopyrite,
pyrrhotite,chalcocite,bornite andgalena.
Environmental - Assumptions made regarding possible waste and process residue It is considered that there are no significant environmental factors which would prevent the eventual
factors or disposal options. It is always necessary as part of the process of extraction of gold from the project. Environmental surveys and assessments will form a part of future
assumptions determining reasonable prospects for eventual economic extraction to
consider thepotential environmental impacts of the mining and		 pre-feasibility.

Issued Capital Australian Registered Office 658.2m shares Level 1 86.6m options 1205 Hay Street 120m perf shares West Perth WA 6005

Challenger Exploration Limited Issued Capital ACN 123 591 382 658.2m shares ASX: CEL

Directors

Contact

Mr Kris Knauer, MD and CEO T: +61 8 6380 9235 Mr Scott Funston, Finance Director E: [email protected] Mr Fletcher Quinn , Chairman

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Criteria JORC Code explanation JORC Code explanation Commentary
processing operation. While at this stage the determination of potential
environmental impacts particularly for a greenfields project may not
always be well advanced the status of early consideration of these
potential environmental impacts should be reported. Where these
aspects have not been considered this should be reported with an
explanation of the environmental assumptions made.
Bulk density - Whether assumed or determined. If assumed the basis for the Densities of 2.7 t/m3 were used for mineralised veins and 2.6 t/m3 for wall rock.
assumptions. If determined the method used whether wet or dry the
frequency of the measurements the nature size and representativeness No data of how densities were determined is available.
of the samples.
- The bulk density for bulk material must have been measured by The bulk densities used in the evaluation process are viewed as appropriate at this stage of the
methods that adequately account for void spaces (vugs porosity etc) Project.
moisture and differences between rock and alteration zones within the
deposit. CEL is collecting specific gravity measurements from drill core recovered in 2019 and 2020 drilling
- Discuss assumptions for bulk density estimates used in the evaluation programs, which it is expected will be able to be used to estimate the block and bulk densities in
process of the different materials. future resource estimates.
For RC drilling, the weights of material recovered from the drill hole is able to be used as a measure
of the bulk density.
Classification - The basis for the classification of the Mineral Resources into varying The Mineral Resource Estimate has both Indicated and Inferred Mineral Resource classifications
confidence categories. under the National Instrument 43-101 code and is considered foreign. These classifications are
- Whether appropriate account has been taken of all relevant factors (ie considered appropriate given the confidence that can be gained from the existing data and results
relative confidence in tonnage/grade estimations reliability of input from drilling.
data confidence in continuity of geology and metal values quality
quantity and distribution of the data). The reliability of input data for the 2003 and 2006 resources is acceptable as is the confidence in
- Whether the result appropriately reflects the Competent Person’s view continuity of geology and metal values quality quantity and distribution of the data. Appropriate
of the deposit. account has been taken of all relevant factors with the exception of studies into the appropriateness
of the application of a top cut.
The reported 2006 NI43-101 (non-JORC Code compliant Measured and Indicated) estimate for the
Hualilan Project is measured resource of 164294 tonnes averaging 12.6 grams per tonne gold and
52.1 g/t silver and 2.5% zinc plus an indicated resource of 51022 tonnes averaging 12.4 grams per
tonne gold and 36.2 g/t silver and 2.6% zinc plus an inferred resource of 213952 tonnes grading 11.7
grams per tonne gold and 46.6 g/t silver and 2.3% zinc. (Source La Mancha resources Toronto Stock
Exchange Release April 7 2007 - Interim Financials) – See Table 1.

Challenger Exploration Limited ACN 123 591 382

ASX: CEL

Issued Capital

658.2m shares 86.6m 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

T: +61 8 6380 9235

E: [email protected]

16m perf rights

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Criteria
JORC Code explanation		 Commentary
The 2006 estimate did not include the east-west mineralised Magnata Vein despite the known
mineralisation in the Magnata Vein being drilled on a 25 x 50-metre spacing. The 2003 NI43-101
(non-JORC Code compliant) estimate attributed approximately half of its measured and indicated
tonnage to the Magnata Vein. The 2006 estimate also included arbitrary tonnage reduction factors of
25% for indicated category 50% for inferred category and 75% for potential category.
The 2006 estimate also included a significant tonnage of Potential Category Resources which have
not been reported.
The reported 2003 NI43-101 (non-JORC Code compliant) estimate for the Hualilan project is a
measured resource of 299578 tonnes averaging 14.2 grams per tonne gold plus an indicated resource
of 145001 tonnes averaging 14.6 grams per tonne gold plus an inferred resource of 976539 tonnes
grading 13.4 grams per tonne gold representing some 647809 ounces gold. (Source La Mancha
resources Toronto Stock Exchange Release May 14 2003 - Independent Report on Gold Resource
Estimate) – See Table 1.
The 2003 Mineral Resource classification and results appropriately reflect the Competent Person’s
view of the deposit and the current level of risk associated with the project to date.
Historic 2003 NI43-101 (non-JORC Code compliant):
CATEGORY
TONNES
Au(g/t)
Ag (g/t)
Zn%
Measured
299578
14.2
Indicated
145001
14.6
Inferred
976539
13.4
Historic 2006 NI43-101 (non-JORC Code compliant)
CATEGORY
TONNES
Au(g/t)
Ag (g/t)
Zn%
Measured
164294
12.5
52.1
2.5
Indicated
51022
12.4
36.2
2.6
Inferred
213952
11.7
46.6
2.3

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

658.2m shares 86.6m 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

T: +61 8 6380 9235

E: [email protected]

16m perf rights

www.challengerex.com

Criteria JORC Code explanation JORC Code explanation Commentary
Audits or reviews - The results of any audits or reviews of Mineral Resource estimates. The historic resource estimate has not been audited.
The earlier (1996 and 2000) Mineral Resource Estimates were audited and re-stated in a 2003
resource report. This independent report was done to NI-43-101 standard and the results of this
report were released to the TSX. This report concluded that “Detailed resource calculations made by
three differentgroups are seen to be realistic.
Discussion of - Where appropriate a statement of the relative accuracy and confidence
There is sufficient confidence in the data quality drilling methods and analytical results that they can
relative accuracy/ level in the Mineral Resource estimate using an approach or procedure be relied upon. The available geology and assay data correlate well. The approach or procedure are
confidence deemed appropriate by the Competent Person. For example the deemed appropriate given the confidence limits. The main two factors which could affect relative
application of statistical or geostatistical procedures to quantify the accuracy is grade continuity and top cut.
relative accuracy of the resource within stated confidence limits or if
such an approach is not deemed appropriate a qualitative discussion of Grade continuity is variable in nature in this style of deposit and has not been demonstrated to date
the factors that could affect the relative accuracy and confidence of the and closer spaced drilling is required to improve the understanding of the grade continuity in both
estimate. strike and dip directions. It is noted that the results from the twinning of three holes by La Mancha
- The statement should specify whether it relates to global or local are encouraging in terms of grade repeatability.
estimates and if local state the relevant tonnages which should be
relevant to technical and economic evaluation. Documentation should The deposit contains very high grades and there is a potential need for the use of a top cut. It is
include assumptions made and the procedures used. noted that an arbitrary grade reduction factor of 10% has already been applied to the resource as
- These statements of relative accuracy and confidence of the estimate reported.
should be compared with production data where available.
Noproduction data is available for comparison

Issued Capital

658.2m shares 86.6m 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

T: +61 8 6380 9235

E: [email protected]

16m perf rights

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

www.challengerex.com

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