Challenger Exploration : Significant High Grade Intersection at El Guayabo Project

ASX Release

9 March 2022

For personal use only

Significant high grade intersection at Challenger's 100%

owned El Guayabo gold-copper Project in Ecuador

Highlights

• GYDD-21-008encounters a significant zone of high-gradeAu-Cu-Ag mineralisation intersecting 53.7 metres at 5.3 g/t AuEq2 within a broader zone of 257.8 metres at 1.4 g/t AuEq2 from near surface.
• Significant intersections in hole GYDD-21-008 include (Refer Table 2):
• • 257.8m at 1.4 g/t AuEq2 - 0.8 g/t Au, 7.9 g/t Ag, 0.3 % Cu from 5.3m including;

79.0m at 3.8 g/t AuEq2	- 2.4 g/t Au, 17.4 g/t Ag, 0.7 % Cu from 184.1m including;
53.7m at 5.3 g/t AuEq2	-	3.5 g/t Au, 23.9 g/t Ag, 0.9 % Cu from 209.4m including;
6.8m at 20.6 g/t AuEq2	-	16.9 g/t Au, 50.1 g/t Ag, 1.8 % Cu from 248.8m (GYDD-21-008).

• Core logging confirms correlation with several historical holes into the same Au-Cu-Ag rich intrusive breccia containing extensive sheeted veining with historical intersections including:
• • 111.7m at 1.9 g/t AuEq2 - 0.7 g/t Au, 14.6 g/t Ag, 0.6 % Cu from 10.3m (JDH-009);

• 116.2m at 1.4 g/t AuEq2 - 0.6 g/t Au, 8.9 g/t Ag, 0.4% Cu from 164.8m including

53.3m at 2.4 g/t AuEq2 - 1.2 g/t Au, 13.2 g/t Ag, 0.6% Cu from 227.8m and (JDH-006);

• 150.0m at 1.0 g/t AuEq2 - 0.4 g/t Au, 11.0 g/t Ag, 0.4% Cu from 12.0m including

40.0m at 2.0 g/t AuEq2 - 0.6 g/t Au, 25.5 g/t Ag, 0.6% Cu from 14.0m (GY-005);

• 215.0m at 0.9 g/t AuEq2 - 0.2 g/t Au, 9.6 g/t Ag, 0.4% Cu from 14.0m including

83.0m at 1.3 g/t AuEq2 - 0.2 g/t Au, 14.9 g/t Ag, 0.5 Cu from 14.0m and (GY-011).

• CEL drillholes GYDD-21-006,GYDD-21-008 and the historical drilling define a consistent body of higher-gradeAu-Cu-Ag mineralisation 100-150 metres true width, covering at least 150 metres of strike, starting at surface, and remaining open at depth and in both directions along strike.
• Adds a significant second project to accompany CEL's flagship Hualian Gold Project.

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

"Drillhole GYDD-21-008 could be a watershed for our El Guayabo gold-copper Project in Ecuador. One of the most important factors in determining the success of any bulk style deposit is the presence, or not, of a high-grade zone of starter mineralisation.

GYDD-21-008's intersection of 53.7m at 5.3 g/t within a wider zone of 257.8 metres at 1.4 g/t coupled with historical intersections such as 111.7m at 1.9 g/t and 116.2 metres at 1.4 g/t, both from near surface, and now recognised as intersecting the same continuous zone as GYDD-21-008, leave us confident we have this high-grade zone of starter mineralisation at our El Guayabo Project."

#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	979.4m shares	Level 1	Mr Kris Knauer, MD and CEO	T: [phone]
ASX: CEL	48.0m 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

For personal use only

ASX Release

9 March 2022

Concession Guayabo El data, soil in Au the over superimposed drilling pending and current, completed, and zone Gold - 1 Figure

Challenger Exploration Limited	Issued Capital	Australian Registered Office	Directors	Contact
ACN 123 591 382	979.4m shares	Level 1	Mr Kris Knauer, MD and CEO	T: [phone]
ASX: CEL	48.0m 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

9 March 2022

For personal use only

Challenger Exploration (ASX: CEL) ("CEL" the "Company") is pleased to announce results from drill hole GYDD-21-008 at its 100% owned El Guayabo Gold-Copper Project in El Oro Province, Ecuador. GYDD-21-008 delivered an exceptional wide and high-grade intercept that, coupled with a review of historical drilling, defines a continuous zone of higher-gradegold-copper-silver mineralisation that significantly upgrades the project and confirms CEL has a meaningful second project in South America.

This zone of higher-grade mineralisation is hosted in intrusive breccia containing extensive sheeted veining. The mineralisation is exposed at surface and has been intersected to 275 metres below surface in drilling. It has a true width of 100 to 150 metres, dips steeply to the northwest, extends over at least 150 metres of strike, and remains open in both directions along strike and at depth. It forms a continuous body of higher-grade mineralisation with copper-gold and silver-gold ratios significantly higher than the surrounding mineralisation intersected in earlier CEL drill holes.

The Company's first six drill holes all intersected significant mineralisation including GYDD-21-001 (784.3m at 0.4 g/t AuEq including 188.5m at 0.6 g/t AuEq) and GYDD-21-006 (309.8m at 0.7 g/t AuEq). They define a continuous zone of intrusion-hosted gold mineralisation with lesser copper-silver- molybdenum 300 metres wide extending over 500 metres of strike to a maximum depth of 550 metres below surface. This coincides with a one kilometre trend of elevated gold in soil geochemistry. This larger zone of gold mineralisation remains open along strike and at depth as does the higher-grade zone of intrusive breccia hosted copper-silver rich gold mineralisation intersected in GYDD-21-008.

CEL has two drill rigs on site with a depth capacity of 1,200 metres using NQ core rods. The final two drill holes in the current round of drilling at the El Guayabo concession, GYDD-22-015 and GYDD-22- 016, have been completed. Both rigs have been mobilised to the adjoining Colorado V concession with the first two Colorado V drillholes completed and CVDD-22-003 and CVDD-22-004 in progress. At the completion of the Colorado V drill program, expected to be 24 holes totalling 15,400 metres, the Company has five holes planned to follow up the current discovery in the El Guayabo concession.

GYDD-21-008

GYDD-21-008 was drilled from the same collar as GYDD-21-005 which intersected 581.7 metres at 0.3 g/t AuEq including 88.4 metres at 0.8 g/t AuEq. GYDD-21-008 was drilled to the south, in the reverse orientation to GYDD-21-005. Intrusive breccia, containing sheeted veining and oxide copper mineralisation was mapped in surface outcrop over the 150 metres south of the GYDD-21-005 drill pad. Accordingly, GYDD-21-008 was designed to target the main part of the copper-silver-gold rich breccia hosted mineralisation intersected in GYDD-21-006 (Figure 3).

GYDD-21-008 successfully intersected the higher-grade mineralisation, intersecting 257.8 metres at

1.4 g/t AuEq (0.8 g/t gold, 7.9 g/t silver, 0.3 % copper) from 5.3m. The copper-silverrich gold mineralisation was hosted in the same intrusive breccia containing sheeted veining as was intersected in GYDD-21-006.The intersection in GYDD-21-008contained a consistent higher grade core coinciding with the highest density of sheeted veining and sulphides logged. This higher grade core returned an intersection of 79.0 metres at 3.8 g/t AuEq (2.4 g/t gold, 17.5 g/t silver, 0.7 % copper) including

Challenger Exploration Limited	Issued Capital	Australian Registered Office	Directors	Contact
ACN 123 591 382	979.4m shares	Level 1	Mr Kris Knauer, MD and CEO	T: [phone]
ASX: CEL	48.0m 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

9 March 2022

For personal use only

Figure 2 - Cross Section Showing GYDD-21-005,GYDD-21-008 and the main zone of mineralisation

Challenger Exploration Limited	Issued Capital	Australian Registered Office	Directors	Contact
ACN 123 591 382	979.4m shares	Level 1	Mr Kris Knauer, MD and CEO	T: [phone]
ASX: CEL	48.0m 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

9 March 2022

For personal use only

53.7 metres at 5.3 g/t AuEq (3.5 g/t gold, 23.9 g/t silver, 0.9 % copper). The highest grade section of the intercept, 6.8 metres at 20.6 g/t AuEq ( 16.9 g/t gold, 50.1 g/t silver, 1.8 % copper), occurred at the lower contact between the intrusive breccia and country rocks.

This is consistent with drill hole GYDD-21-006, which returned an intercept of 202.1m at 0.8 g/t AuEq within the zone of intrusive breccia containing sheeted veining. In GYDD-21-006 the highest grades were located at the upper (33.0m at 1.3 g/t AuEq) and lower (53.6m at 1.5 g/t AuEq) contacts of the intrusive breccia and the country rock. This is also evident in the historical drill holes which are now interpreted to have intersected this same zone of copper-silver rich gold mineralisation hosted in intrusive breccia containing extensive sheeted veining.

Historical Drilling Results

A review of historical drilling along this main 500 metre long geochemical trend which the Company's initial drilling has been focussed (Figure 3) indicates that seven historical holes have intersected the same zone of copper-silver rich gold mineralisation hosted in intrusive breccia with extensive sheeted veining that was intersected in GYDD-21-008. The historical results are listed in Table 1.

Drill Hole	From	To	Interval	Au	Ag	Cu	AuEq	Comments	Gram
(#)	(m)	(m)	(m)	(g/t)	(g/t)	(%)	(g/t)		Metres
JDH-006	18.0	89.6	71.6	0.23	2.0	0.10	0.4	0.1 g/t AuEq	30.3
and	164.8	281.0	116.2	0.60	8.9	0.40	1.4	0.1 g/t AuEq	160.9
inc	227.8	281.1	53.3	1.20	13.2	0.62	2.4	1.0 g/t AuEq	128.3
JDH-007	39.7	84.5	44.8	0.30	1.4	0.04	0.4	0.1 g/t AuEq	16.9
JDH-008	104.7	136.7	32.0	0.15	3.6	0.13	0.4	0.1 g/t AuEq	13.1
and	249.1	316.2	67.1	0.20	5.7	0.21	0.6	0.1 g/t AuEq	41.9
inc	291.8	316.2	24.4	0.45	9.2	0.34	1.1	1.0 g/t AuEq	27.7
JDH-009	10.3	122.0	111.7	0.70	14.6	0.58	1.9	0.1 g/t AuEq	207.6
and	201.4	205.4	4.0	11.40	9.7	0.01	11.5	1.0 g/t AuEq	46.1
and	255.1	256.7*	1.5	0.70	1.5	0.02	0.8	end of hole	1.1
GY-005	12.0	162.0	150.0	0.35	11.0	0.30	1.0	0.1 g/t AuEq	149.2
inc	14.0	54.0	40.0	0.63	25.5	0.60	2.0	1.0 g/t AuEq cut	78.2
and	180.0	194.0	14.0	0.20	6.1	0.22	0.6	0.1 g/t AuEq	9.0
GY-008	16.0	271.0	255.0	0.14	6.5	0.24	0.6	0.1 g/t AuEq	159.4
inc	235.0	271.0	36.0	0.35	11.5	0.50	1.3	1.0 g/t AuEq cut	48.1
GY-011	14.0	229.0	215.0	0.17	9.6	0.36	0.9	0.1 g/t AuEq	192.6
inc	14.0	97.0	83.0	0.22	14.9	0.50	1.2	1.0 g/t AuEq	103.5
inc	202.0	229.0	27.0	0.38	15.2	0.80	1.9	1.0 g/t AuEq	51.8

Table 1: Historical intersections interpreted as copper rich intrusive breccia hosted mineralisation

2 Gold Equivalent - See below 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	979.4m shares	Level 1	Mr Kris Knauer, MD and CEO	T: [phone]
ASX: CEL	48.0m 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