Challenger Exploration Limited reported first drilling results from the Company's 45,000 metre drilling program at its Hualilan Gold Project, located in San Juan Province, Argentina. The first 10,000 metres of this program was primarily dedicated to testing the thesis of an intrusion-hosted gold system underlying the historical high-grade skarn mineralisation. The potential for a significant intrusion-hosted gold system was indicated by the company's recent drill holes GNDD-025 (88 metres at 1.0 g/t AuEq and ending in mineralisation) and GNDD-032 (116 metres at 1.2 g/t AuEq). These were the only two holes to be assayed after encountering significant width of intrusive rocks. Prior to these holes, the Company had limited control on the distribution of the intrusives and their gold content, given previous explorers policy of not sampling the intrusives and generally terminating holes upon reaching them. This first 10,000 metres has effectively been blind stratigraphic drilling as it has been focussed predominantly on the 1-kilometre undrilled Gap Zone between Cerro Sur and Cerro Norte which is under cover. The Company fast tracked assays for the first six holes into the intrusives to assist with a decision on the continuation of this program. Despite the stratigraphic nature of the drilling, the results from these first 6 drill holes, and visual inspection of a further 25 holes (assays pending), have significantly exceeded the Company's expectations. They confirm not only the presence of a large intrusion-hosted gold system containing broad zones of bulk gold mineralisation, but also significant zones of high-grade mineralisation. The scale of the system is illustrated by: the identical nature of the mineralisation, alteration, and the host porphyry dacite in drill holes GNDD-079 (61 metres at 1.2 g/t AuEq), GNDD-025 (88 metres at 1.0 g/t AuEq), and GNDD-032 (116 metres at 1.1 g/t AuEq) which extend over 1 kilometre of strike. The intersection of the same high grade endoskarn mineralisation in drill holes GNDD-088 and GNDD-047 which are 1.5 kilometres apart. Drill hole GNDD-088 intersected 39.0m at 5.7 g/t AuEq2 in altered porphyry dacite including a zone of strong endoskarn alteration, returning 7.4 metres at 24.1 g/t AuEq. GNDD-047 (38.5 metres at 1.3 g/t AuEq - to eoh), also included a zone of strong endoskarn alteration grading 6.0 metres at 6.4 g/t AuEq. This opens the potential for high-grade intrusion-hosted mineralisation over at least 1.5 kilometres. The limited scout drilling into the intrusives has now intersected broad zones of plus 1 g/t gold over 1.5 kilometres of strike in 5 of 10 holes drilled by the Company encountering more than 50 metres of intrusives. The average grade of the intrusion-hosted mineralisation across the Company's drill holes is 1.1 g/t AuEq2 (0.9 g/t AuEq2 if GNDD-088 is excluded), with only one drill hole, interpreted to have intersected a late stage post mineral breccia, recording no mineralisation. This program of deeper drilling is ongoing with a further 25 holes deeper than 200 metres now completed stepping north and south into the Gap Zone and to the south at Sentazon as shown on Figure 1. Three of the five rigs will continue to define this large intrusion-hosted discovery. The other two rigs are targeting extensions to the high-grade mineralisation at Sanchez, Magnata and Sentazon. In addition to extending the mineralisation in the intrusives a further 50 metres north along strike from GNDD-025, this hole demonstrates the potential for high grade mineralisation in the intrusives and Gap Zone. Using 1 g/t AuEq bottom cut, the zone of strong endoskarn alteration returned 14.4 metres grading 14.4 g/t AuEq. GNDD-088 has been followed up by drillhole GNDD-108 (assays pending) collared to test 50 metres up-dip from GNDD-088. GNDD-108 has been logged as intersecting almost 100 metres of porphyry dacite containing pyroxene/epidote and pyrite alteration from approximately 100 metres. Albeit the tenor of the alteration logged in GNDD-108 is not as strong as the alteration logged in GNDD-088 from 224 to 263 metres. GNDD-088 will be followed up with a hole collared 100 metres to the west designed to test underneath hole GNDD-088. Importantly this high grade endoskarn zone in GNDD-088 appears to be the same pyroxene/epidote alteration that was intersected in GNDD-047 (38.5 metres at 1.3 g/t gold, 1.2 g/t silver, including 6.0 metres at 6.3 g/t gold, 3.5 g/t silver, with the hole ending in mineralisation) some 1.5 kilometres further south along strike. This demonstrates the significant scale of the system and opens the potential for the intrusives to host significant high-grade mineralisation in addition to bulk gold mineralisation over, at least the 1.5 kilometres of strike between GNDD-088 drilled at the north of the Gap Zone and GNDD-047 drilled south of Sentazon. Drill hole GNDD-079 was collared 100 metres north of drill hole GNDD-032 (116 metres at 1.2 g/t AuEq) at the southern end of the Gap Zone. The hole was one of the few holes drilled with surface control with altered porphyry dacite evident in outcrop between holes GNDD-032 and GNDD-0079. The hole confirmed the extension of the near surface intrusion-hosted mineralisation 100 metres along strike returning 61.0 metes at 1.1 g/t gold, 1.1 g/t silver, 0.1% zinc (1.2 g/t AuEq) from 21 metres. The mineralisation encountered in GNDD-079 is hosted in dacite porphyry containing iron oxide, silica, and pyrite alteration. Drill holes GNDD-079, GNDD-025 (88 metres at 1.0 g/t AuEq ending in mineralisation) and GNDD-032 all intersected the same mineralisation, alteration, and host porphyry dacite unit. These three drill holes extend over 1-kilometre of strike in the Gap Zone which was undrilled prior to the Company's current scout drilling program for which the majority of assays are pending. The dacite unit intersected in GNDD-079 is mapped in outcrop both to the north and west of GNDD-079 where the mineralisation remains open (Figure 3). GNDD-079 will be followed up with a hole collared 50 metres to the west to test down dip where it is anticipated the porphyry dacite unit and mineralisation thickens.