Challenger Exploration : Drilling Confirms Significant Scale at El Guayabo Project

ASX Release

22 April 2022

Drilling confirms significant scale over multiple zones at CEL's 100% owned El Guayabo Au-Cu Project in Ecuador

Highlights

• ▪ Next six holes all intercept over 300 metres of mineralisation, confirming a major Au-Cu-Ag discovery spanning multiple zones. Results include (refer Table 1):

  • ▪ 307.9m at 0.6 g/t AuEq2 - 0.5 g/t Au, 2.4 g/t Ag, 0.05 % Cu from 3.0m, including;

    102.9m at 1.2 g/t AuEq2 - 1.1 g/t Au, 2.7 g/t Ag, 0.04% Cu from 156.1m including;

    57.0m at 1.8 g/t AuEq2 - 1.7 g/t Au, 3.6 g/t Ag, 0.03% Cu from 156.1m (GYDD-21-011)

  • ▪ 328.3m at 0.4 g/t AuEq2 - 0.2 g/t Au, 2.2 g/t Ag, 0.1% Cu from 189.2 to eoh including; 91.0m at 0.6 g/t AuEq2 - 0.4 g/t Au, 1.7 g/t Ag, 0.1% Cu from 341.0m and;

    130.9m at 0.4 g/t AuEq2 - 0.2 g/t Au, 4.2 g/t Ag, 0.1% Cu from 33.6m including;

    62.2m at 0.5 g/t AuEq2 - 0.3 g/t Au, 5.2 g/t Ag, 0.1% Cu from 33.6 (GYDD-21-013)

  • ▪ 809.9m at 0.3 g/t AuEq2 - 0.2 g/t Au, 1.1 g/t Ag, 0.1% Cu from 70.2m including;

    217.1m at 0.5 g/t AuEq2 - 0.3 g/t Au, 1.6 g/t Ag, 0.1% Cu from 318.7m including;

    68.2m at 0.7 g/t AuEq2 - 0.4 g/t Au, 2.2 g/t Ag, 0.15% Cu from 468.1m and;

    38.7m at 0.7 g/t AuEq2 - 0.5 g/t Au, 1.8 g/t Ag, 0.1% Cu from 319.7m (GYDD-21-010)

  • ▪ 692.7m at 0.3 g/t AuEq2 - 0.2 g/t Au, 2.0 g/t Ag, 0.1% Cu from surface to eoh including;

    220.5m at 0.6 g/t AuEq2 - 0.3 g/t Au, 4.3 g/t Ag, 0.1 Cu from 220.5m including;

    20.7m at 1.0 g/t AuEq2 - 0.3 g/t Au, 16.5 g/t Ag, 0.3 Cu from 282.2 and;

    80.5m at 0.9 g/t AuEq2 - 0.5 g/t Au, 1.3 g/t Ag, 0.2 Cu from 359.0 (GYDD-21-009)

• ▪ Four holes ended in mineralisation, including GYDD-21-011 (307.9m at 0.6 g/t AuEq from surface) stopped at 310m due to drilling problems 300 metres above the main target.

• ▪ GYDD-21-010 extends the main discovery zone 400 metres to 1000 metres of strike and GYDD-21-011 indicates the mineralisation is 1000 metres wide at the centre of this main discovery zone.

• ▪ GYDD-21-009 and GYDD-21-013 tested two new gold in soil anomalies, undrilled by CEL and the discovery of strong mineralisation significantly expands the scale of the discovery.

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

"These results confirm we have made a major discovery, that will significantly exceed our early expectations. We have extended the main discovery zone to over 1km of strike and in the central part of this zone, the mineralisation is 1 kilometre wide and remains open in all directions.

Drilling on the first two, of fifteen, targets away from the discovery zone intersected significant mineralisation. Intercepts of 700 metres of gold-copper-silver mineralisation, at the first anomaly and 300 metres in the second, show we have a major system with multiple centers of mineralisation."

2 See Table 2 for information regarding AuEq's reported under the JORC Code.

Challenger Exploration Limited	Issued Capital	Australian Registered Office	Directors	Contact
ACN 123 591 382	998.8m shares	Level 1	Mr Kris Knauer, MD and CEO	T: [phone]
ASX: CEL	28.8m options	1205 Hay Street	Mr Scott Funston, Finance Director	E:[e-mail]
120m perf shares	West Perth WA 6005	Mr Fletcher Quinn, Chairman
16m perf rights	Mr Sergio Rotondo, Exec. Director

www.challengerex.com

ASX Release

22 April 2022

Challenger Exploration (ASX: CEL) ("CEL" the "Company") is pleased to announce results from drill holes GYDD-21-007 to GYDD-21-013, the next six drill holes at its 100% owned El Guayabo Gold-Copper Project in El Oro Province, Ecuador. The results follow the first seven drillholes which all recorded significant intersections including 257.8m at 1.4 g/t AuEq including 53.7m at 5.3 g/t AuEq (GYDD-21-008) and 309.8m at 0.7 g/t AuEq including 202.1 metres at 0.8 g/t AuEq (GYDD-21-006).

Highlights

All six holes reported in this release intercepted at least 300 metres of mineralisation, with two holes intercepting over 600 metres of mineralisation and four of the six holes ending in mineralisation. The results include wide ore grade intercepts from drilling testing the first two of fifteen additional Au soil anomalies, separate from the initial discovery zone in CEL's 100% owned El Guayabo concession.

The drill results and distribution of the mineralisation corelate well with the underlying Au in soil anomalies. The soil anomalies are interpreted as defining the surface outcrop of mineralised intrusive breccia bodies which are sub-vertical, at least 300 metres wide and oriented parallel to the main regional north-east structural control.

Highlights include, drillhole GYDD-21-011 which was designed as test 300 metres downdip of GYDD-21-001 (784.3m at 0.4 g/t AuEq including 380.5m at 0.5 g/t AuEq) on the main discovery zone. This hole intersected 307.9m at 0.6 g/t AuEq from surface, including 102.9 metres at 1.2 g/t AuEq some 300 metres above the prognosed target. It confirms that, in this location, the main discovery zone has a true width of 1000 metres (Figure 1). Drillhole GYDD-21-010 (809.9m at 0.3 g/t AuEq including 217.1m at 0.5 g/t AuEq) extends the main discovery zone by 400 metres to 1 kilometre of strike.

Highlights from the Company's initial drilling, targeting the first two of the fifteen separate Au soil anomalies, away from the initial discovery trend included:

• ▪ 692.7m at 0.3 g/t AuEq, including 220.5m at 0.6 g/t AuEq (GYDD-21-009) testing the 800 metre x 200 metre GY-B Au soil anomaly; and

• ▪ 328.3m at 0.4 g/t AuEq to the end of the hole, including 91.0m at 0.6 g/t AuEq plus 130.9m at 0.4 g/t AuEq including 62.2m at 0.5 g/t AuEq (GYDD-21-013) testing the 800 metre x 400 metre GY-C Au soil anomaly.

The results from the next six holes at CEL's 100% owned El Guayabo Project confirm the discovery of a significant intrusion hosted gold-copper-silver-molybdenum system with multiple centers of mineralisation, all of which have returned ore grade intercepts. The mineralisation has a similar scale and tenor to the Tier 1 Cangrejos Gold project located 5 kilometres along strike to north-east.

Mineralisation remains open in all directions with results for a further three holes at El Guayabo pending. An initial 18 hole drill program is underway, on CEL's adjoining Colorado V concession with results for the initial two holes pending. Given the exciting results returned to date, the Company intends to undertake a follow up drill program at El Guayabo immediately upon the completion of the current Colorado V drill program.

Challenger Exploration Limited	Issued Capital	Australian Registered Office	Directors	Contact
ACN 123 591 382	998.8m shares	Level 1	Mr Kris Knauer, MD and CEO	T: [phone]
ASX: CEL	28.8m options	1205 Hay Street	Mr Scott Funston, Finance Director	E:[e-mail]
120m perf shares	West Perth WA 6005	Mr Fletcher Quinn, Chairman
16m perf rights	Mr Sergio Rotondo, Exec. Director

www.challengerex.com

ASX Release

22 April 2022

Figure 1 - Cross Section Showing GYDD-21-001, GYDD-21-011 and the main zone of mineralisation

Challenger Exploration Limited	Issued Capital	Australian Registered Office	Directors	Contact
ACN 123 591 382	998.8m shares	Level 1	Mr Kris Knauer, MD and CEO	T: [phone]
ASX: CEL	28.8m options	1205 Hay Street	Mr Scott Funston, Finance Director	E:[e-mail]
120m perf shares	West Perth WA 6005	Mr Fletcher Quinn, Chairman
16m perf rights	Mr Sergio Rotondo, Exec. Director

www.challengerex.com

ASX Release

22 April 2022

GYDD-21-011 - Main Discovery Zone, GY-A Soil Anomaly

GYDD-21-011 was drilled approximately 300 metres southeast of the Company's first El Guayabo drillhole GYDD-21-001 which intersected 784.3 metres at 0.4 g/t AuEq from near surface to the end of the hole including a higher grade core of 380.5 metres at 0.5 g/t AuEq from 167.5m including 188.5 metres at 0.6 g/t AuEq. GYDD-21-011 was designed to test for extensions to the mineralisation intersected in GYDD-21-001 some 300 metres down-dip. This main discovery zone coincides with the GY-A Au soil anomaly that covers 1.2 kilometres strike (Figure 2).

GYDD-21-011 intersected 307.9m at 0.6 g/t AuEq (0.5 g/t gold, 2.4 g/t silver, 0.05 % copper, 13.6 ppm molybdenum) from 3.0m, including 102.9m at 1.2 g/t AuEq (1.1 g/t gold, 2.7 g/t silver, 0.04% copper, 19.1 ppm molybdenum) from 156.1m including a higher grade zone of 57.0m at 1.8 g/t AuEq (1.7 g/t gold, 3.6 g/t silver, 0.03% copper, 9.0 ppm molybdenum). The hole was abandoned at 310 metres, after the core barrel became stuck 300 metres above the projected main target zone.

The mineralisation from surface until where the hole was lost, is interpreted as an extension of the main discovery zone of mineralisation intersected in GYDD-21-001. This main discovery zone starts at surface, is sub-vertical, remains open at a depth of 500 metres, and was previously interpreted as having a true width of 300 metres. The results of GYDD-21-011 indicate that this main zone is significantly larger, and it has a true width of approximately 1000 metres in this location. Historical hole GY-03, located between GYDD-21-001 and GYDD-21-011 which intersected 220.8 metres at 0.4 g/t AuEq and channel sampling in the Adriano Adit behind GYDD-21-011, which returned 136.0 metres at 0.5 g/t AuEq, demonstrate that mineralisation is continuous and pervasive across the 1000 metre true width.

Two follow up holes are planned to be drilled from a pad 200 metres along the section from GYDD-21-001, to extend the mineralisation up-dip of GYDD-21-001 and to extend the mineralisation below GYDD-21-011.

GYDD-21-010 - Main Discovery Zone, GY-A Soil Anomaly

GYDD-21-010 was drilled to test a chargeability anomaly approximately 300 metres in diameter starting from surface and open at depth defined by the Company's 16 km2 3D MT (Magneto Telluric) survey. The chargeability anomaly coincides with the western strike extension of the GY-A Au soil anomaly (Figure 2).

GYDD-21-010 intersected 809.9m at 0.3 g/t AuEq (0.2 g/t gold, 1.1 g/t silver, 0.1% copper, 11.9 ppm molybdenum) from 70.2m, including 217.1m at 0.5 g/t AuEq (0.3 g/t gold, 1.6 g/t silver, 0.1% copper, 19.9 ppm molybdenum) from 318.7m including, two higher grade zones of 68.2m at 0.7 g/t AuEq (0.4 g/t gold, 2.2 g/t silver, 0.15% copper, 31.8 ppm molybdenum) and 38.7m at 0.7 g/t AuEq (0.5 g/t gold, 1.8 g/t silver, 0.1% copper, 8.4 ppm molybdenum). The hole ended in mineralisation.

The hole deviated by approximately 10 degrees during drilling, and accordingly, may not have intercepted the centre of the MT chargeability target. Re-inversion of the MT data is in progress to better define the bounds of this chargeability anomaly prior to any follow up drilling.

Challenger Exploration Limited	Issued Capital	Australian Registered Office	Directors	Contact
ACN 123 591 382	998.8m shares	Level 1	Mr Kris Knauer, MD and CEO	T: [phone]
ASX: CEL	28.8m options	1205 Hay Street	Mr Scott Funston, Finance Director	E:[e-mail]
120m perf shares	West Perth WA 6005	Mr Fletcher Quinn, Chairman
16m perf rights	Mr Sergio Rotondo, Exec. Director

www.challengerex.com

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ASX Release

22 April 2022

Challenger Exploration Limited	Issued Capital	Australian Registered Office	Directors	Contact
ACN 123 591 382	998.8m shares	Level 1	Mr Kris Knauer, MD and CEO	T: [phone]
ASX: CEL	28.8m options	1205 Hay Street	Mr Scott Funston, Finance Director	E:[e-mail]
120m perf shares	West Perth WA 6005	Mr Fletcher Quinn, Chairman
16m perf rights	Mr Sergio Rotondo, Exec. Director

www.challengerex.com