CHALLENGER LIMITED — Transaction in Own Shares 2010

Nov 22, 2010

Appendix 3C Announcement of buy-back

Rule 3.8A

Appendix 3C

Announcement of buy-back ( except minimum holding buy-back)

Information and documents given to ASX become ASX’s property and may be made public. Introduced 1/9/99. Origin: Appendix 7B. Amended 13/3/2000, 30/9/2001.

Name of entity		ABN
Challenger Financial Services GroupLimited		85 106 842 371

We (the entity) give ASX the following information.

Information about buy-back

1	Type of buy-back		On market buy back
2	+Class of shares which is the subject		Ordinary
	ofthebuy-back	(eg,
	ordinary/preference)
3	Voting rights_(eg, one for one)_		One for one
4	Fully paid/partly paid_(and if partly_		Fully paid
	paid, details of how much has	been
	paid and how much is outstanding)
5	Number of shares in the+class on		506,753,359 ordinary shares
	issue
6	Whether shareholder approval is		Shareholders approved the buy back at the AGM
	required for buy-back		held 18 November 2010
7	Reason for buy-back		Part of on-going capital management initiatives

• See chapter 19 for defined terms. 30/9/2001

Appendix 3C Page 1

Appendix 3C Announcement of buy-back

8 Any other information material to a Nil shareholder’s decision whether to accept the offer (eg, details of any proposed takeover bid)

On-market buy-back

• 9 Name of broker who will act on the UBS AG, Australia Branch company’s behalf Deutsche Securities Australia Limited

10 Deleted 30/9/2001.

11 If the company intends to buy back 50,265,323 a maximum number of shares - that number Note: This requires a figure to be included, not a percentage.

12 If the company intends to buy back From 24 November 2010 to 17 November 2011 shares within a period of time - that period of time; if the company intends that the buy-back be of unlimited duration - that intention 13 If the company intends to buy back Nil shares if conditions are met - those conditions

Employee share scheme buy-back

• 14 Number of shares proposed to be N/A bought back

• 15 Price to be offered for shares N/A

• See chapter 19 for defined terms.

Appendix 3C Page 2

30/9/2001

Appendix 3C Announcement of buy-back

Selective buy-back

• 16 Name of person or description of N/A class of person whose shares are proposed to be bought back

• 17 Number of shares proposed to be N/A bought back

• 18 Price to be offered for shares N/A

Equal access scheme

• 19 Percentage of shares proposed to be N/A bought back

• 20 Total number of shares proposed to N/A be bought back if all offers are accepted

• 21 Price to be offered for shares N/A 22 +Record date for participation in N/A offer Cross reference: Appendix 7A, clause 9.

Compliance statement

1. The company is in compliance with all Corporations Act requirements relevant to this buy-back.

2. There is no information that the listing rules require to be disclosed that has not already been disclosed, or is not contained in, or attached to, this form.

Sign here:

==> picture [162 x 37] intentionally omitted <==

............................................................ Date: 23 November 2010 Company Secretary

Print name:

Suzie Koeppenkastrop....................................

• See chapter 19 for defined terms.

Appendix 3C Page 3

30/9/2001