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CHALLENGER GOLD LIMITED Capital/Financing Update 2021

Apr 13, 2021

64637_rns_2021-04-13_4e0eab12-2640-46ee-8431-ac212ae7f1c2.pdf

Capital/Financing Update

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ASX Release 14 April 2021

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Significant extensions to the high-grade mineralisation in multiple drill holes at Challenger's Hualilan Gold Project

Highlights

  • Step out drilling at Magnata has delivered several significant high-grade gold intersections plus broad zones of near surface mineralisation including (Refer Table 1):

  • 5.2m at 21.0 g/t AuEq[2] - 16.7 g/t Au, 128.9 g/t Ag, 6.1% Zn from 56.8m including; 3.8m at 25.8 g/t AuEq2 - 21.1 g/t Au, 147.5 g/t Ag, 6.6% Zn from 60m (GNDD-189)

  • 21.8m at 4.5 g/t AuEq[2 ] - 2.4g/t Au, 22.2 g/t Ag, 4.0% Zn from 299m including 3.6m at 16.2 g/t AuEq[2] - 9.3 g/t Au, 96.8 g/t Ag, 13.1% Zn from 302.3m ,(GNDD-203);

  • 3.1m at 10.2 g/t AuEq[2 ] - 6.1g/t Au, 52.0 g/t Ag, 8.1% Zn from 60.8m and (GNDD-195);

  • 76.0m at 1.8g/t AuEq[2] - 1.0g/t Au, 31.0g/t Ag, 0.9% Zn from 24m including; 11.3m at 9.7 g/t AuEq[2] - 6.4 g/t Au, 64.1 g/t Ag, 5.3% Zn from 60.9 including 6.0m at 15.5 g/t AuEq2 - 10.7 g/t Au, 109 g/t Ag, 7.9% Zn from 60.9 and 4.0m at 4.9 g/t AuEq2 - 0.2 g/t Au, 359 g/t Ag, 0.3% Zn from 96 (GNDD-174)

  • GNDD-203 is the deepest hole drilled on the Magnata Fault and extends mineralisation 100 metres below the previous deepest intersection with mineralisation strong and open at depth.

  • GNDD-203 also encountered a wide zone of near surface mineralisation which significantly expands the footprint of the bulk mineralisation that lies above the main high-grade zone.

  • GNDD-174 intersected 6.0m at 15.5 g/t AuEq[2] plus an unexpected broad zone of mineralisation above the high-grade zone returning 76.0m at 1.8g/t AuEq[2] from near surface.

  • GNDD-174 also extended the intrusive hosted mineralisation encountered in GNDD-157 south along strike and up-dip intersecting 40 metres of mineralisation in intrusives.

  • GNDD-189 (5.2m at 21.1 g/t AuEq[2] ) and GNDD-195 (3.1m at 10.2 g/t AuEq[2] ) both extended the high-grade mineralisation encountered in GNDD-174 down-dip.

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

“The results from the first seven holes from the current Magnata Fault drilling at our Hualilan Gold Project, together with our previous drilling confirm, the Company's view that there is a significant amount of high-grade gold mineralisation yet to be discovered due to a lack of drilling.

The growth potential at our flagship Hualilan Gold Project is becoming progressively more apparent. We are waiting on assays for another 19 completed Magnata drill holes and 15 more holes have been programmed to continue to extend and infill the mineralisation at Magnata. We look forward to the next batch of assays from our Magnata drilling which should not be far away."

Issued Capital 653.1m shares 86.6m options 120m perf shares 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]

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

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

www.challengerex.com

ASX Release 14 April 2021

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Challenger Exploration ( ASX: CEL ) (“ CEL ” the “ Company ”) is pleased to announce results from a series of drillholes at the Company's flagship Hualilan Gold project in San Juan, Argentina. The results are from the first seven holes from a series of 26 completed holes designed to test for extensions to the:

  • High-grade mineralisation in the Magnata Fault at depth and in both directions along strike;

  • The high-grade Magnata Manto both up and down-dip and along strike; and

  • The broad zones of intrusive hosted mineralisation north and south of the Magnata Fault.

Given the results, and the visual mineralisation (skarn alteration with sulphides) logged in many of the remaining 17 drill holes (assays pending), a further 15 holes have been programmed to continue to extend and infill the mineralisation at Magnata.

Prior Drill results Magnata Fault and Magnata Manto

In prior drilling the mineralisation on the Magnata Fault was relatively continuous over 300 metres of strike and 160 metres vertical extent, with mineralisation remaining open at depth and in both directions along strike.

The north-south striking limestone hosted high-grade "Manto" mineralisation which was historically noted as extending south from the Magnata Fault and dipping west had produced some narrow drill intercepts, however drilling had previously failed to locate the main part of the Magnata Manto.

Additionally, drilling intersected broad zones of intrusive hosted mineralisation in the 200 metres north and south of the Magnata fault. The mineralisation is interpreted as dipping to the west with a true width of 50 to 100 metres and covering 300 metres vertical extent from surface.

Summary of the current Magnata drill results

GNDD-203, the Company's deepest test of the Magnata Fault increased the vertical extent of the mineralisation on the Magnata Fault from 160 to 260 metres intersecting 3.6m at 16.2 g/t AuEq[2] . The confirmation that mineralisation remains strong at depth has the potential to significantly expand the high-grade mineralisation. A deeper hole below GNDD-203 is planned with a series of holes (assays pending) to test the Magnata Fault at depth over 200 metres of strike to the west of GNDD-203.

GNDD-174, GNDD-189 and GNDD-195 all intersected significant widths of high-grade mineralisation up-dip from earlier holes which had returned narrow lower grade intersections in the Magnata Manto. Drilling will now be directed up-dip with over 100 metres of up-dip vertical extent of the Magnata Manto over at least 300 metres of untested strike.

GNDD-174 extended the zone of intrusive hosted mineralisation intersected in GNDD-157 some 60 metres south along strike and 100 metres up-dip. Visible gold occurs in intrusives which outcrop updip of GNDD-174 indicating approximately 150 metres of vertical extent of mineralised intrusives.

GNDD-174 and GNDD-203 intersected broad zones of near surface mineralisation above the main high-grade zone recording 76.0m at 1.8g/t AuEq[2] from 24m, and 37m at 0.5 g/t AuEq[2] from 46m. This near surface mineralisation is extensive and should enhance development options.

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital Australian Registered Office 653.1m shares Level 1 86.6m options 1205 Hay Street 120m perf shares 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 14 April 2021

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Challenger Exploration Limited Issued Capital Australian Registered Office Directors Contact
ACN 123 591 382 653.1m 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 14 April 2021

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DISCUSSION OF RESULTS

Magnata Fault Zone

The Magnata and Sanchez Faults are two large east-west oriented sub-vertical strike strip faults. The faults can be seen in outcrop extending for tens of kilometres to the east and west of Hualilan. The Magnata Fault Zone is located at Cerro Sur approximately 1.5 kilometres south of the Sanchez Fault and separates into the M1 and M2 Magnata Faults, both of which host high-grade mineralisation.

The Magnata and Sanchez Faults were historically recognised as major controls of the mineralisation at Hualilan. The mineralising fluids were interpreted to have migrated from a source below or along strike, within the faults forming steeply dipping zones mineralisation within the Magnata and Sanchez Faults. These fluids migrating up the faults have also formed replacement Manto-style high grade lenses, oriented parallel to the limestone beds, dipping to the west adjacent to the faults.

GNDD-178

GNDD-178 was drilled as an up-dip test of GNDD-008 which returned 20.0 metres at 4.9 g.t AuEq in the Magnata Fault and 35.5 metres at 0.4 g/t Au from near surface above the Magnata fault. GNDD178 intersected 28 metres at 0.6 g/t AuEq (0.2 g/t gold, 17.5 g/t silver, 0.3% zinc) from 14 metres which extended the near surface bulk mineralisation intersected in GNDD-008. The hole then intersected 2.0 metres at 1.1 g/t AuEq (0.1 g/t gold, 81 g/t silver) and 1.85 metres at 1.5 g/t AuEq (1.1 g/t gold, 3.3 g/t silver, 0.8% zinc) and 0.85 metres at 8.9 g/t AuEq (4.9 g/t gold, 302 g/t silver, 0.4% zinc ). This successfully extended the M1 and M2 Magnata Fault mineralisation 25 metres up-dip where it remains open a further 100 metres to surface.

GNDD-203

GNDD-203 was drilled as a deep test of the Magnata Fault below GNDD-129 which had failed to intersect any significant mineralisation on the Magnata fault. An intercept of 21.8m at 4.5 g/t AuEq (2.4g/t gold, 22.2g/t silver, 4.0% zinc) from 299m including 3.6m at 16.2 g/t AuEq (9.3 g/t gold, 96.8 g/t silver, 13.1 % zinc) is a positive result. It confirmed the Company's interpretation that GNDD-129 had intersected a zone of the Magnata Fault where a lack of open space had limited the development of mineralisation. The intersection extended the deepest known mineralisation on the Magnata Fault from 160 metres below surface (4.0m at 11.3 g/t AuEq in GNDD-134) to 260 metres below surface with mineralisation remaining strong and open at depth on the Magnata Fault.

Additionally, GNDD-203 intersected a broad zone of near surface mineralisation above the Magnata Fault returining 37.0m at 0.5g/t AuEq (0.3 g/t gold, 13.9 g/t silver, 0.2% zinc) from 46m in sedimentary rocks. This intercept correlates with the 21.0 metres at 0.8 g/t AuEq from 15.0 metres recorded in GNDD-129 and expands the broad zone of lower grade mineralisation above the highgrade mineralisation in the Magnata fault. These broad zones of bulk mineralisation were not recognised historically due to assaying only being conducted where sulphides were not dominant. In addition, these broad zones of lower grade mineralisation exist across the Hualilan project and have become an exploration indicator for blind higher-grade mineralisation missed by previous explorers.

Challenger Exploration Limited Issued Capital Australian Registered Office Directors Contact ACN 123 591 382 653.1m 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

www.challengerex.com

ASX Release 14 April 2021

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Drill program to extend the Magnata Fault Mineralisation at depth.

Following the success of GNDD-203, nine drill holes have been completed (assays pending) to test the Magnata fault and surrounding area at depth below the earlier drilling done by the Company. A further nine holes are planned given the success of GNDD-203 and visual mineralisation (skarn alteration with sulphides) logged in many of the completed holes. The location of the holes which have been completed (assays pending) and planned holes is shown in Figure x below. This additional drilling Is designed to allow the company to report a resource, in accordance with the JORC Code, down to 250-300 metres below surface for the Magnata Fault mineralisation.

GNDD-174

GNDD-174 was drilled to test for extensions to the intrusive hosted mineralisation intersected in GNDD-134 and GNDD-157, approximately 60 metres further south along strike, and 100 metres updip from GNDD-157. The hole was successful intersecting 39.5 metres at 0.6 g/t AuEq (0.5 g/t gold, 2.3 g/t silver, 0.3% zinc) in intrusives from 163 metres downhole. Visible gold has been identified in intrusives which outcrop directly up-dip of GNDD-174 indicating the likelihood of approximately 150 metres vertical extent of mineralised intrusives, from surface, at the location of GNDD-174.

GNDD-174 also intersected 11.3 metres at 9.7 g/t AuEq (6.4 g/t gold, 64.1 g/t silver, 5.3% zinc) from 60.9 metres, including 6.0 metres at 15.5 g/t AuEq (10.7 g/t gold, 109.0 g/t silver, 7.9% zinc) from 60.9 metres. This intersection is the high-grade Magnata Manto which had generally only returned narrow intersections in the Company's deeper drilling such as 0.9 metres at 50.7 g/t AuEq in GNDD114 located 50 metres down dip.

Given the success in GNDD-174 (and GNDD-189 and GNDD-195 - see later in this release) drilling will now be directed up-dip from previous drilling. Over 100 metres of up-dip vertical extent of the Magnata Manto covering 300 metres of strike to Sentazon in the south remains untested. High-grade Manto mineralisation has been historically mapped at surface over much of this 300 metres strike.

Additionally, GNDD-174 intersected broad zones of near surface mineralisation above, and extending below, the main high-grade zone recording an intercept of 76.0m at 1.8g/t AuEq (1.0 g/t gold, 31.0 g/t silver, 0.9% zinc) from 24 metres. This intercept correlates with 58.4 metres at 0.7 g/t AuEq from 30 metres in GNDD-117 100 metres downdip. This continues the broad zones of lower grade mineralisation that were not recognised historically. This mineralisation has the potential to be economically significant in exploitation via open cut.

The Company anticipates that the channel sampling program at Muchilera, Magnata and Sentazon (for which assays are pending) will assist to define both the high-grade mineralisation up-dip from existing drilling and the broad zones of near surface mineralisation missed in historical sampling.

GNDD-189

GNDD-189 intercepted 5.2m at 21.0 g/t AuEq (16.7 g/t gold, 128.9 g/t silver, 6.1% zinc) from 56.8 metres including 3.8m at 25.8 g/t AuEq (21.1 g/t gold, 147.5 g/t silver, 6.6% zinc) from 60 metres. The hole extended the high-grade Magnata Manto intersected in GNDD-174 approximately 25 metres

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital 653.1m 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 14 April 2021

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Challenger Exploration Limited Issued Capital Australian Registered Office Directors Contact
ACN 123 591 382 653.1m 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
Figure 2 –Deeper drilling Magnata Fault (blue – assays pending) (yellow – planned hole)
----- End of picture text -----

www.challengerex.com

ASX Release 14 April 2021

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down-dip. The hole also intersected two zones of mineralisation in intrusives near the end of the hole (6.7m at 0.3 g/t AuEq from 174m and 6.0m at 0.4 g/t AuEq from 191m) which are interpreted as the extension of the mineralised intrusives intersected in GNDD-174 a further 50 metres down-dip.

GNDD-195

GNDD-195 continued to extend the high-grade Magnata Manto down-dip with the hole returning 3.85m at 9.4 g/t AuEq (5.3g/t gold, 48.6 g/t silver, 8.0% zinc) from 60 metres including 3.1m at 10.2 g/t AuEq (6.1g/t gold, 52.0 g/t silver, 8.1% zinc) from 60.8 metres. Additionally, the hole intersected some lower grade mineralisation above the main high-grade zone which correlates to the shallow mineralisation intersected in GNDD-174. GNDD-195 also intersected 3.7m at 0.9 g/t AuEq (0.9g/t gold, 0.8 g/t silver) from 346 metres including 0.5m at 5.2 g/t AuEq (5.2 g/t gold, 1.3 g/t silver). This deeper mineralisation may extend the mineralisation encountered below 500 metres downhole in GNDD-134.

GNDD-170A

GNDD-170A was redrilled after GNDD-170 was abandoned due to drilling problems. The hole was designed to test the western limits of the intrusive hosted mineralisation intersected in GNDD-089 (101m at 0.5 g/t AuEq) and GNDD-079 (61m at 1.2 g/t AuEq), with the hole drilled outside the western extent of these intersections. The secondary objective of GNDD-170A was the Company's most westerly test of the Magnata Fault however it is now postulated that the hole was not drilled deep enough to intersect the Magnata fault.

GNDD-170A intersected some zones of Intrusive hosted mineralisation, including 10 metres at 0.8 g/t AuEq (0.6 g/t gold, 5.2 g/t silver, 0.3% zinc) from 13 metres and 6.0 metres at 0.7 g/t AuEq (0.7 g/t gold, 0.3 g/t silver) from 174 metres, confirming the western limit of the intrusive hosted mineralisation north of the Magnata fault.

GNDD-181

Similar to GNDD-170A, GNDD-181 was designed to test the western limits of the intrusive hosted mineralisation with the hole collared from the same drill pad as GNDD-170A and drilled to have a bottom hole location 50 metres to the west of GNDD-170A. The secondary objective of GNDD-181 was a western test of the Magnata Fault and, like GNDD-170A, it is now believed that the hole was not drilled deep enough to intersect the Magnata fault.

GNDD-181 intersected two zones of intrusive hosted mineralisation, 3.6 metres at 1.4 g/t AuEq (0.7 g/t gold, 22.2 g/t silver, 1.0% zinc) from 7.7 metres and 7.4 metres at 0.5 g/t AuEq (0.5 g/t gold, 0.5 g/t silver) from 180.6 metres. These intercepts correlate with the intercepts GNDD-170A and indicate a possible east-west orientation to the high-grade shoots within the intrusives.

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital 653.1m shares 86.6m options 120m perf shares

Australian Registered Office Level 1 1205 Hay Street

West Perth WA 6005

Directors

16m perf rights

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

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

www.challengerex.com

ASX Release 14 April 2021

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

Challenger Exploration Limited Issued Capital Australian Registered Office Directors Contact
ACN 123 591 382 653.1m 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
Figure 3 – Distribution of high-grade “Manto” and intrusive-hosted mineralisation in GNDD-174, GNDD-189, and GNDD-189
----- End of picture text -----

www.challengerex.com

ASX Release 14 April 2021

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Table 1: New intercepts reported.

Drill Hole From To Interval Gold Ag Zn Au Equiv Comments
(#) (m) (m) (m) (g/t) (g/t) (%) (g/t)
GNDD-170A 13.0 23.0 10.0 0.6 5.2 0.3 0.8 0.2g/t AuEqcut
and 174.0 180.0 6.0 0.7 0.3 0.0 0.7 0.2g/t AuEqcut
GNDD-174 24.0 100.0 76.0 1.0 31.0 0.9 1.8 0.2g/t AuEqcut
inc 60.9 72.15 11.25 6.4 64.1 5.3 9.5 1.0g/t AuEqcut
inc 60.9 66.85 5.95 10.7 109.5 7.9 15.5 10g/t AuEqcut
inc 96.0 100.0 4.0 0.2 359.3 0.3 4.9 1.0g/t AuEqcut
and 163.0 202.5 39.50 0.5 2.3 0.3 0.6 0.2g/t AuEqcut
inc 167.55 171.75 4.2 1.5 15.0 2.5 2.8 1.0g/t AuEqcut
inc 199.0 201.0 2.0 1.5 0.2 0.0 1.5 1.0g/t AuEqcut
GNDD-178 14.0 42.0 28.0 0.2 17.5 0.3 0.6 0.2g/t AuEqcut
inc 20.0 22.0 2.0 0.2 118.0 0.1 1.7 1.0g/t AuEqcut
inc 39.0 40.3 1.3 0.8 4.8 3.9 2.6 1.0g/t AuEqcut
and 53.0 55.0 2.0 0.0 81.0 0.0 1.1 0.2g/t AuEqcut
and 65.15 67.0 1.85 1.1 3.3 0.8 1.5 0.2g/t AuEqcut
and 89.15 90.0 0.85 4.9 302.0 0.4 8.9 0.2g/t AuEqcut
GNDD-181 7.7 11.3 3.6 0.7 22.2 1.0 1.4 0.2g/t AuEqcut
inc 7.7 9.15 1.45 1.1 45.3 1.5 2.3 1.0g/t AuEqcut
and 180.6 188.0 7.4 0.5 0.5 0.0 0.5 0.2g/t AuEqcut
inc 180.6 181.15 0.55 1.2 0.8 0.1 1.2 1.0g/t AuEqcut
GNDD-189 58.6 63.8 5.2 16.7 128.9 6.1 21.0 0.2g/t AuEqcut
inc 60.0 63.8 3.8 21.1 147.5 6.6 25.8 10g/t AuEqcut
and 174.0 180.7 6.65 0.2 2.0 0.2 0.3 0.2g/t AuEqcut
and 191.0 197.0 6.0 0.2 2.1 0.3 0.4 0.2g/t AuEqcut
GNDD-195 29.0 31.55 2.55 1.3 1.1 0.0 1.4 0.2g/t AuEqcut
inc 30.0 31.55 1.55 1.6 1.4 0.0 1.7 1.0g/t AuEqcut
and 60.0 63.85 3.85 5.3 48.6 8.0 9.4 1.0g/t AuEqcut
inc 60.8 63.85 3.05 6.1 52.0 8.1 10.2 10/g/t AuEqcut
and 346.3 350.0 3.7 0.9 0.7 0.0 0.9 0.2g/t AuEqcut
inc 346.3 346.8 0.5 5.2 1.3 0.0 5.2 1.0g/t AuEqcut
GNDD-203 46.0 83.0 37.0 0.3 14.1 0.2 0.5 0.2g/t AuEqcut
and 168.0 168.5 0.5 0.5 37.3 0.5 1.2 0.2g/t AuEqcut
and 210.5 229.0 18.5 0.3 3.8 0.4 0.5 1.0g/t AuEqcut
inc 210.5 211.1 0.6 3.6 81.9 10.2 9.0 1.0g/t AuEqcut
and 227.0 229.0 2.0 1.4 4.3 0.1 1.5 1.0g/t AuEqcut
and 299.0 320.8 21.8 2.4 22.2 4.0 4.5 0.2g/t AuEqcut
inc 300.25 320.8 20.55 2.6 23.1 4.2 4.7 1.0g/t AuEqcut
inc 300.25 303.80 3.55 9.3 96.8 13.1 16.2 10g/t AuEqcut

See next page for information regarding AuEq's reported under the JORC Code.

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital 653.1m 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

ASX Release 14 April 2021

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2 Gold Equivalent (AuEq) values - Requirements under the JORC Code

  • Assumed commodity prices for the calculation of AuEq is Au US$1780 Oz, Ag US$24 Oz, Zn US$2,800 /t

  • Metallurgical recoveries for Au, Ag and Zn are estimated to be 89%, 84% and 79% respectively (see JORC Table 1 Section 3 Metallurgical assumptions ) based on metallurgical test work.

  • The formula used: 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)]

  • CEL confirms that it is the Company’s opinion that all the elements included in the metal equivalents calculation have a reasonable potential to be recovered and sold.

Previous announcements referred to in this release include:

27 July 2020 - CEL BUILDS ON NEW GOLD DISCOVERY AT HUALILAN WITH A SECOND SIGNIFICANT INTERSECTION 1KM ALONG STRIKE 30 oct 2020 - DRILLING CONFIRMS MAJOR INTRUSION-HOSTED GOLD SYSTEM UNDERLYING THE HIGH-GRADE MINERALISATION 23 Nov 2020 - MULTIPLE HIGH-GRADE INTERCEPTS IN EXPLORATION DRILLING AT HUALILAN

29 Jan 2021 - DRILLING CONTINUES TO EXTEND THE BOUNDARIES OF THE HIGH-GRADE MINERALISATION AT HUALILAN GOLD PROJECT 2 Feb 2021 - 131 METRES AT 2.5 G/T AUEQ2 IN NEW ZONE AT HUALILAN

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 653.1m shares 86.6m options

120m perf shares

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

Directors

Contact

16m perf rights

Challenger Exploration Limited ACN 123 591 382

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

T: +61 8 6380 9235

E: [email protected]

www.challengerex.com

ASX Release 14 April 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.

  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. Results from CEL's first drilling program 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 includes 45,000 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 sqkms 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.

Issued Capital 653.1m shares 86.6m options 120m perf shares 16m perf rights

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

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

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

ASX Release 14 April 2021

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

Foreign Resource Estimate Hualilan Project

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

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

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

Competent Person Statement – Exploration results

The information that relates to sampling techniques and data, exploration results and geological interpretation has been compiled Dr Stuart Munroe , BSc (Hons), PhD (Structural Geology), GDip (AppFin&Inv) who is a 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.

Issued Capital 653.1m 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

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

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

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 JORC Code explanation Commentary
Sampling techniques - Nature and quality of sampling (eg cut channels, random For historic exploration data, there is little information provided by previous explorers to detail sampling
chips, or specific specialised industry standard techniques. Drill core was cut with a diamond saw longitudinally and one half submitted for assay. Assay
measurement tools appropriate to the minerals under was generally done for Au. In some drill campaigns, Ag and Zn were also analysed. There is limited
investigation, such as down hole gamma sondes, or multielement data available. No information is available for RC drill techniques and sampling.
handheld XRF instruments, etc). These examples should For CEL drilling, diamond core (HQ3) was cut longitudinally on site using a diamond saw. Samples lengths
not be taken as limiting the broad meaning of sampling. are from 0.5m to 2.0m in length (average 1m), taken according to lithology, alteration, and mineralization
- Include reference to measures taken to ensure sample contacts.
- representivity and the appropriate calibration of any
measurement tools or systems used.
Aspects of the determination of mineralisation that are
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.
Material to the Public Report. CEL channel samples are cut into underground or surface outcrop using a hand-held diamond edged
- In cases where ‘industry standard’ work has been done cutting tool. Parallel saw cuts 3-5cm apart are cut 2-4cm deep into the rock which allows for the
this would be relatively simple (eg ‘reverse circulation extraction of a representative sample using and hammer and chisel. The sample is collected onto a
drilling was used to obtain 1 m samples from which 3 kg plastic mat and collected into a sample bag.
was pulverised to produce a 30 g charge for fire assay’). In
Core and channel samples were crushed to approximately 85% passing 2mm. A 500g or a 1 kg sub-
other cases, more explanation may be required, such as sample was taken and pulverized to 85% passing 75µm. A 50g charge was analysed for Au by fire assay
where there is coarse gold that has inherent sampling with AA determination. Where the fire assay grade is > 10 g/t gold, a 50g charge was analysed for Au by
problems. Unusual commodities or mineralisation types Fire assay with gravimetric determination.
(eg submarine nodules) may warrant disclosure of
detailed information. 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 or channel samples.
Drilling techniques - Drill type (eg core, reverse circulation, open-hole hammer,
Collar details for diamond core drilling (DD) and reverse circulation (RC) historic drilling campaigns is
rotary air blast, auger, Bangka, sonic, etc) and details (eg provided below from archival data cross checked with drill logs and available plans and sections where
core diameter, triple or standard tube, depth of diamond available. Collars shown below are in WGS84, zone 19s which is the standard projection used by CEL for
tails, face-sampling bit or other type, whether core is the Project. Collar locations have been check surveyed using differential GPS (DGPS) by CEL to verify if
oriented and if so, by what method, etc). the site coincides with a marked collar or tagged drill site. In most cases the drill collars coincide with

Challenger Exploration Limited Issued Capital Australian Registered Office ACN 123 591 382 653.1m 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
Commentary
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
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

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

653.1m 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

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
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

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

653.1m 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 Commentary
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
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

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

653.1m 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
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
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

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

653.1m 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
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
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 was 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 GNDD205 are surveyed using DGPS. Collar location from
GNDD206 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

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

653.1m 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
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
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

Challenger Exploration Limited Issued Capital ACN 123 591 382 653.1m shares ASX: CEL 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
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
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 -55 095 428.0
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 -57 115 311.0
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 504801.654 6601066.131 1822.596 -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

Challenger Exploration Limited Issued Capital ACN 123 591 382 653.1m shares ASX: CEL 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
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
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 504438.745 6599613.089 1792.511 -55 115 300.0
GNDD108 504893.480 6601156.138 1824.948 -60 115 200.0
GNDD109 504788.659 6601026.581 1822.675 -60 115 209.0
GNDD112 504893.408 6601198.421 1825.402 -60 115 188.0
GNDD113 504704.700 6601067.100 1826.300 -60 115 230.0
GNDD113A 504705.888 6601065.628 1825.877 -60 115 461
GNDD114 504430.719 6600110.231 1807.080 -50 115 116.0
GNDD115 504860.469 6601289.558 1826.422 -60 115 251.0
GNDD116 504441.894 6599558.746 1790.917 -65 115 269.0
GNDD117 504428.815 6600110.985 1807.008 -60 115 120.0
GNDD118 505085.614 6601107.067 1811.275 -60 295 300.0
GNDD119 504827.094 6601535.651 1835.088 -66 115 115.0
GNDD120 504411.171 6600099.998 1806.316 -60 110 164.0
GNDD121 504863.473 6601140.462 1821.954 -57 115 181.0
GNDD122 504659.288 6600648.314 1819.643 -60 115 250.0
GNDD123 504823.784 6601510.706 1833.612 -63 130 130.0
GNDD124 504410.706 6600099.603 1806.296 -70 115 160.0

Challenger Exploration Limited Issued Capital ACN 123 591 382 653.1m shares ASX: CEL 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
GNDD125 505135.977 6601131.034 1809.281 -60 295 300.0
GNDD126 504716.358 6601149.031 1827.257 -60 115 196.0
GNDD127 504889.851 6601503.430 1834.161 -55 115 300.0
GNDD128 504715.660 6601106.719 1826.595 -60 115 230.0
GNDD129 504637.632 6600284.287 1805.395 -55 185 291.0
GNDD130 504838.247 6601093.352 1821.556 -60 115 227.0
GNDD131 504650.672 6600737.758 1821.134 -60 115 280.0
GNDD132 504819.319 6601357.930 1829.373 -55 115 300.0
GNDD133 504869.366 6601639.665 1835.213 -60 170 182.0
GNDD134 504639.057 6600284.444 1805.499 -55 154 290.0
GNDD135 504845.188 6601547.554 1834.906 -64 350 135.0
GNDD136 504837.721 6601445.719 1830.128 -55 115 310.0
GNDD137 504647.268 6600701.174 1820.549 -60 115 370.0
GNDD138 504883.975 6601540.420 1835.042 -65 350 237.0
GNDD139 504755.726 6601084.848 1824.694 -60 115 200.0
GNDD140 504991.396 6601549.750 1835.464 -60 60 230.0
GNDD141 504779.587 6601255.947 1828.225 -70 115 270.0
GNDD142 504433.887 6599629.407 1792.717 -62 115 360.0
GNDD143 504902.285 6601209.174 1826.545 -20 115 120.0
GNDD144 504961.182 6601524.651 1835.687 -70 40 410.0
GNDD145 504557.511 6600224.447 1818.092 -64 170 200.0
GNDD146 504772.849 6601212.611 1827.389 -70 115 350.0
GNDD147 504959.171 6601525.259 1835.597 -60 355 240.0
GNDD148 504845.962 6601442.396 1831.403 -24 115 85.5
GNDD149 504847.402 6601441.816 1832.186 -5 115 88.1
GNDD150 504848.651 6601525.476 1834.636 -65 350 251.0
GNDD151 504673.689 6601219.059 1830.640 -60 115 430.0
GNDD152 504901.725 6601465.446 1834.787 -15 115 165.0
GNDD153 504690.458 6600986.257 1824.840 -70 115 326.0
GNDD154 504891.810 6601503.838 1834.134 -65 350 212.0

Challenger Exploration Limited Issued Capital ACN 123 591 382 653.1m shares ASX: CEL 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
GNDD155 504779.116 6601123.548 1823.862 -60 115 420.0
GNDD156 504842.752 6601402.888 1830.505 -37 115 59.0
GNDD157 504638.216 6600284.907 1805.408 -55 170 527.0
GNDD158 504807.600 6601535.300 1837.000 -60 350 170.0
GNDD159 504910.382 6601145.345 1825.562 -40 115 202.0
GNDD160 504980.539 6601546.905 1835.243 -55 350 170.0
GNDD161 504664.113 6600816.520 1822.385 -60 115 251.00
GNDD162 504723.843 6601279.506 1830.376 -60 115 180.00
GNDD163 504749.611 6601575.347 1837.394 -60 115 180.00
GNDD164 504672.435 6601526.078 1836.853 -60 115 311.00
GNDD165 504488.377 6599862.768 1803.486 -10 115 253.80
GNDD166 504557.654 6600330.511 1817.438 -60 115 327.00
GNDD167 504727.540 6600880.315 1820.767 -60 115 251.00
GNDD168 504559.923 6600382.723 1816.844 -60 115 314.00
GNDD169 504683.848 6601565.336 1837.928 -60 115 416.00
GNDD170 504663.000 6600335.000 1822.900 -60 170 123.50
GNDD170A 504664.576 6600335.390 1826.501 -60 170 380.00
GNDD171 504674.659 6600904.137 1823.445 -70 115 350.00
GNDD172 504487.566 6599863.343 1802.727 -45 115 119.70
GNDD173 504697.019 6601339.596 1833.656 -60 115 191.00
GNDD174 504474.118 6600097.716 1807.933 -11 115 329.50
GNDD175 504653.221 6601093.209 1828.285 -60 115 353.00
GNDD176 504733.851 6600655.255 1817.503 -60 115 350.00
GNDD177 504759.610 6601481.663 1834.257 -60 115 160.00
GNDD178 504625.984 6600185.259 1824.078 -60 185 145.20
GNDD179 504406.541 6600185.242 1809.531 -55 170 192.10
GNDD180 504678.044 6600779.784 1821.026 -60 115 341.00
GNDD181 504669.174 6600332.942 1809.056 -60 160 401.00
GNDD182 504669.526 6601127.040 1828.630 -60 115 332.00
GNDD183 504775.514 6601523.887 1835.124 -65 115 146.00

Challenger Exploration Limited Issued Capital ACN 123 591 382 653.1m shares ASX: CEL 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
GNDD184 504670.292 6601174.696 1829.453 -60 115 321.50
GNDD185 504730.718 6601405.556 1832.739 -60 115 180.00
GNDD186 504735.990 6600742.990 1818.290 -60 115 209.00
GNDD187 504621.493 6601546.173 1839.975 -67 115 320.00
GNDD188 504658.832 6601043.631 1826.939 -60 115 277.00
GNDD189 504473.828 6600097.778 1807.415 -29 115 320.00
GNDD190 504894.932 6601473.630 1833.192 -65 350 269.00
GNDD191 504602.016 6601426.850 1837.553 -70 115 260.00
GNDD192 504617.912 6600575.207 1820.347 -60 115 260.00
GNDD193 504686.491 6601425.894 1834.934 -60 115 293.00
GNDD194 504670.153 6600333.303 1808.999 -60 140 300.00
GNDD195 504473.117 6600098.042 1807.172 -44 115 370.00
GNDD196 504633.370 6600393.771 1822.260 -60 115 296.00
GNDD197 504860.921 6601483.879 1831.591 -68 350 72.00
GNDD198 504787.448 6601250.012 1827.763 -60 115 161.00
GNDD199 504812.268 6601468.783 1832.487 -56 350 266.00
GNDD200 504966.362 6601074.292 1816.847 -60 295 280.00
GNDD201 504310.496 6599798.094 1798.387 -65 115 170.00
GNDD202 504524.999 6600443.375 1816.607 -60 115 320.00
GNDD203 504597.900 6600292.924 1820.443 -60 170 361.50
GNDD204 504858.596 6601037.331 1820.096 -60 295 190.10
GNDD205 504368.667 6599653.253 1792.808 -60 115 320.00
GNDD206 504502.0 6600107.0 1814.0 -45 90 315.60
GNDD207 504527.0 6600355.5 1814.9 -60 115 365.00
GNDD208 504921.1 6601010.3 1817.6 -60 295 299.00
GNDD209 504455.1 6599660.8 1793.6 -60 115 212.00
GNDD210 504463.8 6600031.9 1804.7 -55 115 404.00
GNDD211 504920.6 6601054.7 1819.1 -60 295 260.00
GNDD212 504559.7 6600171.9 1821.2 -50 170 90.00
GNDD213 504463.1 6599944.0 1802.1 -55 115 401.00

Challenger Exploration Limited Issued Capital ACN 123 591 382 653.1m shares ASX: CEL 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
GNDD214 504478.0 6599646.0 1794.5 -25 115 185.30
GNDD215 504842.6 6601001.4 1821.1 -60 295 215.50
GNDD216 504574.9 6600730.4 1823.3 -60 115 260.00
GNDD217 504525.6 6600193.0 1816.1 -60 170 140.00
GNDD218 504746.0 6601003.7 1821.7 -60 295 250.00
GNDD219 504559.7 6600171.9 1821.2 -67 170 125.00
GNDD220 504505.1 6600762.9 1826.7 -60 115 269.00
GNDD221 504559.7 6600171.9 1821.2 -75 170 165.00
GNDD222 504741.6 6600961.6 1822.1 -60 295 251.00
GNDD223 504521.6 6600215.8 1814.9 -60 170 200.00
GNDD224 504451.8 6600478.9 1818.6 -60 115 338.00
GNDD225 504525.3 6601150.7 1833.8 -60 115 299.00
GNDD226 504650.0 6601710.4 1847.2 -60 115 281.00
GNDD227 504521.6 6600215.8 1814.9 -66 170 266.00
GNDD228 504776.1 6601210.3 1827.9 -61 115 330.00
GNDD229 504634.1 6601320.7 1835.8 -60 115 255.00
GNDD230 504659.3 6601617.0 1843.8 -60 115 284.00
GNDD231 504922.0 6602641.0 1819.0 -60 110 240.00
GNDD232 504313.3 6599837.1 1802.0 -65 115 179.30
GNDD233 504672.4 6601526.1 1836.9 -50 115 236.00
GNDD234 504823.1 6601276.7 1828.9 -60 115 116.00
GNDD235 504378.9 6599939.1 1803.5 -65 115 140.00
GNDD236 504598.6 6601381.4 1838.8 -60 115 260.00
GNDD237 504630.4 6601587.2 1841.8 -60 115 450.00
GNDD238 504913.0 6602615.0 1810.0 -60 110 250.00
GNDD239 504478.0 6599646.0 1794.5 -50 115 91.00
GNDD240 504478.7 6600228.5 1813.4 -55 170 200.00
GNDD241 504491.0 6599568.0 1794.2 -45 115 146.50
GNDD242 504580.0 6601301.8 1837.8 -60 115 340.20
GNDD243 504445.0 6600219.0 1811.7 -60 170 161.00

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

653.1m 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
GNDD244 504842.0 6602585.0 1810.0 -60 110 281.00
GNDD245 504683.8 6601565.3 1837.9 -50 115 306.00
GNDD246 504308.8 6599839.4 1802.3 -72 115 212.00
GNDD247 504467.0 6599500.0 1797.0 -35 115 180.00
GNDD248 504667.4 6601481.7 1838.8 -60 115 320.00
GNDD249 504566.9 6601219.1 1833.3 -60 115 280.00
GNDD250 504333.6 6599872.1 1802.5 -60 115 197.00
GNDD251 504476.0 6599539.0 1795.2 -45 115 170.50
GNDD252 504835.6 6600917.8 1817.0 -60 295 308.00
GNDD253 504463.9 6599612.6 1792.3 -60 115 277.90
GNDD254 504621.5 6601546.2 1840.0 -60 115 413.00
GNDD255 504617.7 6601151.8 1831.3 -60 115 229.00
GNDD256 504440.0 6599480.0 1788.5 -40 115 200.00
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

Challenger Exploration Limited Issued Capital ACN 123 591 382 653.1m shares ASX: CEL 86.6m options 120m perf shares 16m perf rights

Australian Registered Office Level 1 1205 Hay Street

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Directors

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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
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
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 recovery - 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
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
fracturingin the rock. Apositive correlation between recoveryand RQD has been observed. The

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

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Contact

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

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Criteria
JORC Code explanation
Commentary
fracturing is generally post mineral and not directly associated with the mineralisation.
Logging
-
Whether core and chip samples have been geologically
and geotechnically logged to a level of detail to support
appropriate Mineral Resource estimation mining studies
and metallurgical studies.
-
Whether logging is qualitative or quantitative in nature.
Core (or costean channel etc) photography.
-
The total length and percentage of the relevant
intersections logged.
Detailed logs are available for most of the historical drilling. Some logs have not been recovered. No
core photographs from the historic drilling have been found. No drill core has survived due to poor
storage and neglect. No RC sample chips have been found.
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)
497
0.982
0.200
0.209
0.009
0.008
4.095
5.321
Ag (ppm)
497
0.668
0.87
0.72
0.21
0.19
21.14
10.56
Cd (ppm)
497
0.988
3.42
3.04
0.20
0.18
537.29
413.68
Cu (ppm)
497
0.283
22.07
15.46
3.40
3.30
2.1E+04
6.6E+03
Fe (%)
497
0.978
1.418
1.392
1.500
1.490
2.7
2.5
Pb (ppm)
497
0.989
127.8
126.1
15.0
14.4
9.7E+05
1.3E+06
S (%)
497
0.988
0.351
0.343
0.080
0.080
1.136
1.027
Zn (ppm)
497
0.992
583
518
85
85
1.3.E+07
9.6.E+06
n=count
RSQ = R squared
The correlation for Cu ispoor because of 1pair,where Cu results varysignificantly. Removingthis outlier

Challenger Exploration Limited Issued Capital ACN 123 591 382 653.1m shares ASX: CEL 86.6m options 120m perf shares

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Criteria
JORC Code explanation
Commentary
provides at RSQ for Cu of 0.964
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 653.1m shares 86.6m options 120m perf shares

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Contact

T: +61 8 6380 9235

E: [email protected]

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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.
12 duplicate channel samples have been collected. The data is not yet statistically significant to allow a
discussion of the significance of the results.
Quality of assay data
-
The nature quality and appropriateness of the assaying The MSA laboratory used for sample preparation in San Juan has been inspected by Stuart Munroe
and laboratory tests and laboratory procedures used and whether the
technique is considered partial or total.
(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.
- For geophysical tools spectrometers handheld XRF 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) and precision 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.
13 blank samples have been submitted with the channel samples where final results been received. The
blank sample results are consistent with the blank results submitted with the drill core samples and no
unexpected results have been returned.

Challenger Exploration Limited

ACN 123 591 382

ASX: CEL

Issued Capital

653.1m 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

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Criteria JORC Code explanation planation lanation Commentary
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Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital 653.1m 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

==> picture [740 x 425] 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
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.
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Challenger Exploration Limited ACN 123 591 382

ASX: CEL

Issued Capital

653.1m 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

==> picture [740 x 405] intentionally omitted <==

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

Criteria JORC Code explanation planation lanation Commentary
For drill holes from GNDD011 and unsampled intervals from the 2019 drilling, nine 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 summary of the standard deviations from the expected values for CRM’s used is
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.
11 standards (CRM) have been submitted with the channel samples. The results are consistent with CRM
submitted with drill core samples.
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----- Start of picture text -----

Criteria JORC Code explanation planation lanation Commentary
For drill holes from GNDD011 and unsampled intervals from the 2019 drilling, nine 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 summary of the standard deviations from the expected values for CRM’s used is
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.
11 standards (CRM) have been submitted with the channel samples. The results are consistent with CRM
submitted with drill core samples.
----- End of picture text -----

Challenger Exploration Limited ACN 123 591 382

ASX: CEL

Issued Capital

653.1m 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

==> picture [740 x 414] intentionally omitted <==

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

Criteria JORC Code explanation planation lanation Commentary
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Criteria JORC Code explanation planation lanation Commentary
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Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital 653.1m 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

==> picture [740 x 422] intentionally omitted <==

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

Criteria JORC Code explanation planation lanation Commentary
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----- Start of picture text -----

Criteria JORC Code explanation planation lanation Commentary
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Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital 653.1m 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
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 (ICP ppm)
68.5
68.8
12.4
12.8
162.4
159.3
0.9988
As (ICP ppm))
76.0
79.5
45.8
47.6
88.1
90.6
0.9983
Fe (ICP %)
4.96
4.91
2.12
2.19
6.87
6.72
0.9994
REE(ICPppm)
55.1
56.2
28.7
31.6
98.2
97.6
0.9954
Cd values >1000 are set at 1000.
REE is the sum off Ce, La, Sc, Y. CE > 500 is set at 500. Below detection is set at zero
CEL have sought to twin some of the historic drill holes to check the results of previous exploration. A full

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

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Contact

T: +61 8 6380 9235

www.challengerex.com

Criteria JORC Code explanation JORC Code explanation Commentary
analysis of the twin holes has yet to be completed. The holes are:
GNDD003 – DDH34 and 04HD08
GNRC110 – DDH53
GNDD144 – 05HD39
GNRC107 – GNDD008/008A
GNDD206 – DDH54
Final sample assay analyses are received by digital file in PDF and CSV format. The original files are
backed-up and the data copied into a drill hole database for geological modelling.
Assay results summarised in the context of this report have been rounded appropriately to 2 significant
figures. No assay data have been otherwise adjusted.
Location of data - Accuracy and quality of surveys used to locate drill holes Following completion of drilling collars are surveyed using a differential GPS (DGPS) relative into the
points (collar and down-hole surveys) trenches mine workings Argentinian SGM survey. The locations have been surveyed in POSGAR 2007 zone 2 and converted to
and other locations used in Mineral Resource estimation. WGS84 UTM zone 19s.
- Specification of the grid system used.
- Quality and adequacy of topographic control. Following completion of the channel sampling, the location of the channel samples taken underground is
surveyed from a survey mark at the entrance to the underground which is located using differential GPS.
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 - Data spacing for reporting of Exploration Results. No regular drill hole spacing has been applied across the Project, although a nominal 40m x 40m drill
distribution - Whether the data spacing and distribution is sufficient to spacing is being applied to infill and extension drilling where appropriate. The current drilling is designed
establish the degree of geological and grade continuity to check previous exploration, extend mineralisation along strike, and provide some information to
appropriate for the Mineral Resource and Ore Reserve establish controls on mineralization and exploration potential. No Mineral Resource Estimate to JORC
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.

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Contact

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Criteria JORC Code explanation JORC Code explanation Commentary
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 653.1m shares 86.6m options 120m perf shares

Australian Registered Office Level 1 1205 Hay Street

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Directors

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Mr Scott Funston, Finance Director

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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 653.1m 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




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

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Australian Registered Office Level 1 1205 Hay Street

Issued Capital

653.1m shares Level 1 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 has been used with up to 2m of internal diltion or a cut-off grade of 0.2 g/t Au equivalent and up to
tabulation of the following information for all 4m of internal diltion has been allowed. No metallurcial or recovery factors have been used. Drill collar location

Challenger Exploration Limited Issued Capital Australian Registered Office Directors Contact ACN 123 591 382 653.1m 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

www.challengerex.com

Criteria JORC Code explanation JORC Code explanation Commentary
Material drill holes: is provided in the previous section.
-
-
-
easting and northing of the drill hole collar
elevation or RL (Reduced Level – elevation above sea
level in metres) of the drill hole collar
dip and azimuth of the hole
Hole_id
AG16
MG10
DDH36
From(m)
38.6
108.0
24.7
Interval(m)
1.2
3.0
9.3
Au(g/t)
0.1
1.3
1.6
Ag (g/t)
28.6
No assay
46.3
Zn(%)
1.7
No assay
1.2
- down hole length and interception depth DDH53 17.3 1.4 1.0 1.7 0.00
- hole length. DDH53 24.0 8.9 3.7 239.5 0.03
- If the exclusion of this information is justified on the DDH53 35.7 3.9 3.9 87.8 0.06
basis that the information is not Material and this DDH53 41.0 3.0 2.6 7.6 0.20
exclusion does not detract from the understanding of DDH54 20.0 1.1 1.2 0.7 0.00
the report the Competent Person should clearly DDH54 31.1 8.3 3.9 32.1 0.80
explain why this is the case. 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
03HD03 55.0 2.4 2.5 25.6 2.3

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

653.1m 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
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
05HD42 115.0 3.0 29.0 103.1 0.20

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

653.1m 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
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
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)

Challenger Exploration Limited Issued Capital ACN 123 591 382 653.1m shares ASX: CEL 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
0.60
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 2020-21:
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
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

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

653.1m shares 86.6m options 120m perf shares 16m perf rights

Australian Registered Office Level 1

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]

www.challengerex.com

Criteria JORC Code explanation Commentary
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
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

Challenger Exploration Limited ACN 123 591 382

ASX: CEL

Issued Capital

653.1m shares 86.6m options

120m perf shares

Australian Registered Office Level 1

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 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
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

Challenger Exploration Limited

ACN 123 591 382 ASX: CEL

Issued Capital

653.1m shares 86.6m options 120m perf shares 16m perf rights

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]

www.challengerex.com

Criteria JORC Code explanation Commentary
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
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

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

653.1m 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 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
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
GNDD088A 45.05 23.45 0.07 0.23 0.53 0.31 0.00 0.01 2

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

653.1m shares 86.6m options 120m perf shares 16m perf rights

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]

www.challengerex.com

Criteria JORC Code explanation Commentary
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
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

Challenger Exploration Limited Issued Capital ACN 123 591 382 653.1m shares ASX: CEL 86.6m options 120m perf shares 16m perf rights

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]

www.challengerex.com

Criteria JORC Code explanation Commentary
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
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

Challenger Exploration Limited

ACN 123 591 382

ASX: CEL

Issued Capital

653.1m 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 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
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

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

653.1m shares 86.6m options 120m perf shares 16m perf rights

Australian Registered Office Level 1 1205 Hay Street

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]

www.challengerex.com

Criteria JORC Code explanation Commentary
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
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

Challenger Exploration Limited Issued Capital ACN 123 591 382 653.1m shares ASX: CEL 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 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
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

Challenger Exploration Limited Issued Capital ACN 123 591 382 653.1m shares ASX: CEL 86.6m options

Issued Capital

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 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
GNDD163 93.00 45.00 0.38 1.7 0.26 0.51 0.01 0.08 2
inc 101.00 3.00 1.3 7.9 0.51 1.6 0.01 0.19
inc 125.20 1.65 1.7 3.7 0.88 2.2 0.02 0.13
GNDD164 136.00 22.00 0.38 0.8 0.14 0.45 0.00 0.03 2
inc 141.50 0.50 1.1 1.1 0.29 1.2 0.00 0.03
inc 150.00 1.60 1.4 1.2 0.06 1.4 0.00 0.02
and 171.00 10.00 0.48 0.23 0.01 0.48 0.00 0.00 2
inc 171.00 2.00 1.1 0.23 0.01 1.1 0.00 0.00
and 239.00 37.00 0.75 2.1 0.46 1.0 0.02 0.00 2
inc 239.00 4.45 4.9 14.9 3.4 6.5 0.14 0.01
GNDD169 120.00 60.80 0.78 0.74 0.15 0.86 0.01 0.01 2
inc 152.00 28.80 1.5 1.22 0.31 1.70 0.01 0.02

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

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Criteria JORC Code explanation Commentary
inc 152.00 1.50 1.8 3.8 0.91 2.3 0.02 0.02
inc 176.00 4.80 8.4 5.3 1.5 9.2 0.05 0.09
inc 180.05 0.75 52.5 33.2 9.6 57.1 0.32 0.60
and 208.00 125.50 1.1 3.6 0.09 1.1 0.00 0.03 2
inc 208.00 71.00 1.7 6.0 0.15 1.8 0.01 0.05 2
inc 228.80 29.00 3.7 12.5 0.26 4.0 0.02 0.11
inc 302.50 9.00 0.92 0.46 0.02 0.94 0.00 0.00 2
inc 307.70 1.30 4.7 0.80 0.01 4.7 0.00 0.00
inc 321.00 12.50 0.26 0.92 0.02 0.28 0.00 0.00 2
GNDD170A 13.00 10.00 0.57 5.2 0.29 0.76 0.01 0.07
and 174.00 6.00 0.67 0.28 0.02 0.68 0.00 0.00
GNDD174 24.00 76.00 1.0 31.0 0.91 1.8 0.04 0.13 2
inc 60.90 11.25 6.4 64.1 5.3 9.5 0.23 0.58
inc 60.90 5.95 10.7 109 7.9 15.5 0.38 0.95 1
inc 96.00 4.00 0.20 359 0.26 4.9 0.02 0.22
and 163.00 39.50 0.47 2.3 0.31 0.63 0.02 0.02 2
inc 167.55 4.20 1.5 15.0 2.5 2.8 0.11 0.02
inc 199.00 2.00 1.5 0.17 0.01 1.5 0.00 0.00
GNDD178 14.00 28.00 0.22 17.5 0.26 0.56 0.01 0.04 2
inc 20.00 2.00 0.20 118 0.11 1.7 0.01 0.11
inc 39.00 1.30 0.80 4.8 3.9 2.6 0.04 0.04
and 53.00 2.00 0.05 81.0 0.04 1.1 0.00 0.03
and 65.15 1.85 1.1 3.3 0.81 1.5 0.01 0.12
and 89.15 0.85 4.9 302 0.40 8.9 0.11 0.67
GNDD181 7.70 3.60 0.66 22.2 1.0 1.4 0.03 0.19 2
inc 7.70 1.45 1.1 45.3 1.5 2.3 0.07 0.36
and 180.60 7.40 0.46 0.54 0.03 0.48 0.00 0.00 2
inc 180.60 0.55 1.2 0.83 0.07 1.2 0.00 0.00
GNDD182 92.00 34.00 0.28 1.1 0.09 0.33 0.00 0.01 2
inc 92.00 19.00 0.37 1.0 0.07 0.41 0.00 0.01 2
inc 96.00 2.00 2.0 1.9 0.01 2.0 0.01 0.01
and 148.70 4.30 31.8 96.5 8.1 36.6 0.55 5.3
inc 148.70 3.45 39.6 118 10.0 45.4 0.68 6.5 1
GNDD189 58.60 5.20 16.7 129 6.1 21.0 0.23 1.05
inc 60.00 3.80 21.1 148 6.6 25.8 0.21 0.06 1
and 174.00 6.65 0.15 2.0 0.22 0.27 0.01 0.00 2
and 191.00 6.00 0.21 2.1 0.30 0.37 0.02 0.24 2

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

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Criteria
JORC Code explanation
Commentary
GNDD195
29.00
2.55
1.3
1.1
0.02
1.4
0.00
0.01
2
inc
30.00
1.55
1.6
1.4
0.02
1.7
0.00
0.01
and
60.00
3.85
5.3
48.6
8.0
9.4
0.14
0.15
inc
60.80
3.05
6.1
52.0
8.1
10.2
0.13
0.13
1
and
346.30
3.70
0.89
0.75
0.04
0.92
0.02
0.00
2
inc
346.30
0.50
5.2
1.3
0.01
5.2
0.08
0.00
GNDD203
210.50
0.60
3.6
81.9
10.2
9.0
0.38
3.93
and
227.00
2.00
1.4
4.3
0.12
1.5
0.01
0.04
and
299.00
21.80
2.4
22.2
4.0
4.5
0.06
0.45
2
inc
300.25
20.55
2.6
23.1
4.2
4.7
0.07
0.48
inc
300.25
3.55
9.3
96.8
13.1
16.2
0.31
2.0
2
Holes specifically drilled for metallurgical test sample material:
GMDD039
18.00
8.00
0.15
1.9
0.60
0.43
0.01
0.07
2
and
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
and
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
and
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
Channel Sample Results:
Channel_id
from
(m)
interval
(m)
Au
(g/t)
Ag
(g/t)
Zn (%)
AuEq
(g/t)
Cu (%)
Pb (%)
Note
RNNV10_01
NSI
RNNV10_02
0.0
2.0
8.8
62.9
1.2
10.1
0.04
0.28
1
RNNV10_03
0.0
5.0
20.5
53.1
7.5
24.5
0.37
0.32
inc
1.0
4.0
25.6
60.5
8.3
30.0
0.37
0.40
1
RNNV10_04
0.0
71.0
9.2
22.5
3.0
10.8
0.09
0.31
2
inc
0.0
26.0
21.2
28.4
7.2
24.7
0.14
0.10
inc
5.0
6.0
89.3
88.5
3.4
91.9
0.20
0.11
1
inc
24.0
1.0
0.78
4.5
22.4
10.6
0.02
0.12
1

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

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Contact

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www.challengerex.com

Criteria
JORC Code explanation
Commentary
inc
54.0
17.0
5.9
45.2
1.5
7.1
0.17
1.1
inc
55.0
1.0
21.4
37.5
1.5
22.5
0.40
0.47
1
inc
62.0
2.0
12.1
256
5.8
17.8
0.72
4.3
1
inc
68.0
2.0
17.5
53.8
2.4
19.2
0.17
1.9
1
and
173.0
4.0
0.05
2.5
2.9
1.4
0.06
0.03
2
inc
175.0
2.0
0.08
3.2
5.4
2.4
0.11
0.06
and
190.0
33.0
0.74
20.6
2.6
2.1
0.14
0.10
2
inc
191.0
29.0
0.83
22.7
2.9
2.4
0.16
0.12
inc
192.0
1.0
0.36
291
26.2
15.4
2.5
1.5
1
inc
215.0
1.0
14.8
27.6
1.0
15.6
0.04
0.95
1
and
241.0
1.0
0.85
14.6
0.48
1.2
0.02
0.41
and
291.0
6.0
0.27
5.8
0.69
0.64
0.02
0.17
2
inc
295.0
1.0
0.60
7.9
1.8
1.5
0.06
0.28
and
341.0
4.0
1.2
1.5
0.10
1.2
0.01
0.04
2
inc
343.0
2.0
1.7
2.5
0.11
1.8
0.01
0.05
RNNV10_05
0.0
2.0
0.12
9.1
0.16
0.30
0.00
0.03
2
RNNV10_06
0.0
10.0
1.4
90.9
7.2
5.7
0.83
0.23
2
inc
0.0
9.0
1.5
99.6
8.0
6.2
0.81
0.26
inc
7.0
1.0
0.05
36.5
30.0
13.5
0.17
0.18
1
RNNV10_07
0.0
4.0
0.16
4.4
1.1
0.68
0.06
0.05
2
inc
3.0
1.0
0.33
14.8
3.2
1.9
0.21
0.17
RNNV10_08
1.0
3.0
20.9
92.4
3.9
23.8
0.14
2.7
2
inc
1.0
2.0
31.2
136.
9
5.6
35.4
0.21
4.04
1
RNNV10_09
NSI
RNNV10_10
0.0
2.0
0.20
3.3
0.31
0.38
0.00
0.04
2
(1) cut off 10 g/t Au equivalent
(2) cut off 0.2 g/t Au equivalent
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
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. Usingdata from the test results,and for thepurposes of the AuEq

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

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Criteria JORC Code explanation JORC Code explanation Commentary
aggregations should be shown in detail. calculation gold recovery is estimated at 89%, silver at 84% and zinc at 79%. Accordingly, the formula used is
- The assumptions used for any reporting of metal 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)].
equivalent values should be clearly stated. 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 - These relationships are particularly important in the The mineralisation is moderately or steeply dipping and strikes NNE and ENE. For some drill holes, there is
between reporting of Exploration Results. insufficient information to confidently establish the true width of the mineralized intersections at this stage of
mineralisation - If the geometry of the mineralisation with respect to the exploration program.
widths and
intercept lengths
- the drill hole angle is known its nature should be
reported.
If it is not known and only the down hole lengths are
Apparent widths may be thicker in the case where bedding-parallel mineralisation may intersect ENE-striking
cross faults and veins.
reported there should be a clear statement to this Representative cross section interpretations have been provided with release of significant intersections to allow
effect (eg ‘down hole length true width not known’). estimation of true widths from individual drill intercepts.
Diagrams - Appropriate maps and sections (with scales) and Representative maps and sections are provided in the body of report.
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.
Balanced reporting
-
Where comprehensive reporting of all Exploration All available data have been reported.
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 substantive - Other exploration data if meaningful and material Geological context and observations about the controls on mineralisation where these have been made are
exploration data should be reported including (but not limited to): provided in the body of the report.
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.

Challenger Exploration Limited Issued Capital ACN 123 591 382 653.1m shares ASX: CEL 86.6m options 120m perf shares

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Contact

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Criteria JORC Code explanation JORC Code explanation Commentary Commentary Commentary
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 Issued Capital ACN 123 591 382 653.1m shares ASX: CEL 86.6m options 120m perf shares

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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 integrity -
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
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 Issued Capital ACN 123 591 382 653.1m shares ASX: CEL 86.6m options 120m perf shares

Australian Registered Office Level 1 1205 Hay Street

West Perth WA 6005

Directors

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Mr Scott Funston, Finance Director

Mr Fletcher Quinn , Chairman

Contact

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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 individual blocs representing weighted averages of sampled underground and/or areas of diamond
extrapolation from data points. If a computer assisted estimation 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 123 591 382 653.1m 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 parameters - 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
miningcost 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 (cyanidation) and CIMM Labs (flotation) in Chile on 4 samples which all contain primary
potential metallurgical methods but the assumptions regarding 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 floatation 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 Issued Capital ACN 123 591 382 653.1m shares ASX: CEL 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 floatation of tailings were also completed. Applying a joint
process Knelson concentrator and floatation 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 floatation 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
floatation techniques to provide a series of gravity and floatation concentrates. Key results are:
- Combined gravity and floatation 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 pre-feasibility.
consider thepotential environmental impacts of the mining and

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

653.1m 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
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, which it is expected will be able to be
- Discuss assumptions for bulk density estimates used in the evaluation used to estimate the block and bulk densities in future resource estimates.
process of the different materials. 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.
The 2006 estimate did not include the east-west mineralised Magnata Vein despite the known
mineralisation in the Magnata Vein beingdrilled on a 25 x 50-metre spacing. The 2003 NI43-101

ASX: CEL

Issued Capital

653.1m shares 86.6m options 120m perf shares

Australian Registered Office

Directors

Level 1

Mr Kris Knauer, MD and CEO

Mr Scott Funston, Finance Director

1205 Hay Street

West Perth WA 6005 Mr Fletcher Quinn , Chairman

Contact

T: +61 8 6380 9235

E: [email protected]

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Criteria
JORC Code explanation
Commentary
(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
299,578
14.2
Indicated
145,001
14.6
Inferred
976,539
13.4
Historic 2006 NI43-101 (non-JORC Code compliant)
CATEGORY
TONNES
Au(g/t)
Ag (g/t)
Zn%
Measured
164,294
12.5
52.1
2.5
Indicated
51,022
12.4
36.2
2.6
Inferred
213,952
11.7
46.6
2.3
Audits or reviews
-
The results of any audits or reviews of Mineral Resource estimates.
The historic resource estimate has not been audited.

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

653.1m 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
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

Challenger Exploration Limited ACN 123 591 382 ASX: CEL

Issued Capital

653.1m 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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