Challenger Exploration Limited announced results from the ongoing rock saw channel sampling program at the company's Hualilan Gold project in San Juan province, Argentina. The current results are from Magnata and Muchilera at Cerro Sur, with additional results from Cerro Norte. Highlights include 96.5m at 15.4 g/t AuEq which contains a number of higher grade zones including 20.8m at 24.4 g/t AuEq and 4.2m at 34.6 g/t AuEq. This confirms the lateral continuity and high- grades in the Main Manto over a significant plunge extent. Results including 12.0m at 16.5 g/t AuEq2 and 22.5m at 12.9 g/t AuEq, including 4.2m at 44.7 g/t AuEq, and 24.9m at 3.2 g/t AuEq at Magnata and Muchilera extend the mineralisation up-dip and define a target for resource extension covering 500 metres of strike up-dip from the Company's current drilling. Several of the channels started and/or ended in mineralisation hence the mineralisation is open beyond the channels in many cases. The results continue to exceed the Company's expectations with the grades confirming that the near surface component of the historical mineralisation contains outstanding grades. Additionally, the results continue to show that broad zones of mineralisation surrounding the high-grades were missed by the selective historical sampling. This may be important in the context of potential open pit mining and an upcoming JORC Compliant Resource. Channel Sampling Program The channel sampling program has been designed to allow the inclusion of the component of the historical high-grade mineralisation which is up-dip of the Company's drilling in a resource estimate that can be reported according to JORC. This includes the majority of the mineralisation within 40 vertical metres of surface and the extensions of mineralisation up into the hills at Cerro Norte and Cerro Sur. In the historical foreign (non JORC compliant) resource estimation, this mineralisation was included based on the results of underground mapping and selective channel sampling. Importantly, this near surface component of the mineralisation generally exhibits high-grades. The sampling was done using a rock saw to cut and recover a continuous channel measuring approximately 40cm x 40cm, with sample weight averaging 4.8 kg per metre. Samples were logged, and submitted for assay with QAQC samples (blanks and standards) using the same procedure as drill core. The channel sample is analogous to a drill core sample. It is expected that the data can be incorporated into a resource estimation in the same way as drilling results. Magnata: The recent results from drill holes GNDD-174 (11.3m at 9.7 g/t AuEq), GNDD-189 (5.2m at 21.0 g/t AuEq) and GNDD-195 (3.1m at 10.2 g/t AuEq) were the first holes drilled by the Company to indicated the potential of the Magnata Manto to contain significant zones of high-grade mineralisation. The results from channel sampling in the Magnata Manto include 12.0 metres at 16.5 g/t AuEq (13.8 g/t gold, 105.3 g/t silver, 3.0 % zinc) including 3.7m at 38.9 g/t AuEq (33.2 g/t gold, 298 g/t silver, 4.2% zinc) and 22.5 metres at 12.9 g/t AuEq(9.8 g/t gold, 21.0 g/t silver, 6.5% zinc) including 4.2 metres at 44.7 g/t AuEq (34.7 g/t gold, 29.4 g/t silver, 22.1% zinc). The results confirm the strong extension to the mineralisation and high-grades up-dip from the Company drill hole GNDD-174. Sampling was also conducted in the access drive along the M1 Magnata Fault mineralisation. The results of 35.0 metres at 3.3 g/t AuEq (2.5 g/t gold, 41 g/t silver, 0.7 % zinc) including 20.5 metres at 5.5 g/t AuEq (4.2 g/t gold, 67.7 g/t silver, 1.1% zinc) have extended the M1 Magnata Fault mineralization approximately 40 metres up-dip from previous drilling. Additionally, the intersection of 44.3 metres at 0.5 g/t AuEq (0.3 g/t gold, 5.2 g/t silver, 0.2 % zinc) in the main access tunnel is consistent with the broad zones of lower grade mineralisation that lie above the main high-grade mineralisation. This broad zone of bulk mineralisation near surface is increasingly being recognised as being extensive throughout the project. Significant target for up-dip extension to the high-grade mineralization: Confirmation that the Magnata Manto mineralisation continues up-dip and its high-grade nature opens a significant target for the extension of the high-grade mineralisation at Magnata. This target extends up-dip from the company's drilling to the outcrop of the Magnata Manto in the Hualilan Hills. With the shallowest CEL drilling intersecting the Magnata Manto 50 metres below surface this up-dip potential is 100 to 150 metres vertically. It covers at least 150 metres of strike south from the Magnata Fault. Additionally, no drilling has been done to determine if the Magnata Manto potentially extends north of the Magnata Fault. Muchilera: Muchilera is located between Magnata and Sentazon and has remained lightly drilled by the company with the few holes targeting the Muchilera Manto returning thin lower grade intersections such as 1.3m at 6.5 g/t AuEq and 2.2 metres at 2.5 g/t AuEq (both in GNRC-085). The broad zone of mineralisation encountered in channel MUNV10_02 of 24.9 metres at 3.2 g/t AuEq (2.0 g/t gold, 12.1 g/t silver, 2.4 % zinc) was taken in an access tunnel along the Muchilera Manto. MUNV10_03 which intersected 3.8 metres at 7.3 g/t AuEq (3.1 g/t gold, 55.2 g/t silver, 8.0 % zinc) and MUNV10_04, 4.3 metres at 4.7 g/t AuEq (2.1 g/t gold, 109 g/t silver, 2.8 % zinc), were both taken in channels across the Muchilera Manto which has a true width of 4-8 metres. The intersections are located about 50 metres up-dip from all CEL and historical drilling and support the interpretation that the best widths and grades in Muchilera are up-dip from the current drilling. Historical mapping identifies the Muchilera Manto outcropping approximately 100 metres further up- dip in the Hualilan Hills which confirm the same target for extensions of the high-grade mineralization up-dip as is seen at Magnata . The intersection of 15.3 metres at 0.4 g/t AuEq (0.2 g/t gold, 9.0 g/t silver, 0.1 % zinc) is consistent with the broad zones of lower grade mineralisation that lies above the main high-grade mineralization and is increasingly being recognised as extensive throughout the project. Extended up-dip resource extension target - Magnata to Muchilera Historical exploration mapped the outcrop of the high-grade Magnata Manto, and its extension south into Muchilera, over approximately 500 metres of strike in the Hualilan Hills. Reconnaissance by the company has confirmed this mineralisation in outcrop in locations along this 500 metre zone. Accordingly the high grades in the Magnata and Muchilera Manto's in channel sampling up-dip from CEL drilling are significant on a larger scale at Cerro Sur. The up-dip target likely extends over 500 metres of strike from Magnata to Muchilera and south to Sentazon.