Challenger Exploration : High Grade Gold Mineralisation Extended at Hualilan

Drilling significantly extends the high-grade gold mineralisation in multiple locations at CEL's Hualilan Gold Project

Highlights

ASX Release

30 March 2022

• ▪ Ongoing drilling at the Company's flagship Hualilan Gold Project has materially extended the high-grade mineralisation in multiple zones with results including (refer Table 1):

  • ▪ 27.0m at 8.9 g/t AuEq2 - 5.5 g/t Au, 45.4 g/t Ag, 6.5% Zn from 236.9m including 3.9m at 11.4 g/t AuEq2 - 9.7 g/t Au, 27.2 g/t Ag, 3.3% Zn from 236.9m and 16.8m at 11.7 g/t AuEq2 - 6.6 g/t Au, 66.6 g/t Ag, 9.7% Zn from 247.0m including 2.0m at 30.0 g/t AuEq2 - 22.6 g/t Au, 170 g/t Ag,12.8% Zn from 247.0 and (GNDD-491);

  • ▪ 38.2m at 5.1 g/t AuEq2

    0.9m at 180 g/t AuEq2

  • ▪ 4.0m at 17.1 g/t AuEq2

    1.1m at 44.9 g/t AuEq2

  • ▪ 3.0m at 8.1 g/t AuEq2

    4.0m at 7.6 g/t AuEq2

    4.3m at 4.0 g/t AuEq2

    1.1m at 14.4 g/t AuEq2

  • - 5.0 g/t Au, 3.6 g/t Ag, 0.2% Zn from 63.8m including

  • - 177 g/t Au, 68.7 g/t Ag, 4.1% Zn from 99.8m (GNDD-523);

  • - 16.9 g/t Au, 10.7 g/t Ag, 0.1% Zn from 240.0m and

  • - 44.5 g/t Au, 23.0 g/t Ag, 0.3% Zn from 530.7 (GNDD-416B).

  • - 7.6 g/t Au, 14.8 g/t Ag, 0.6% Zn from 300.0m and

  • - 3.3 g/t Au, 36.3 g/t Ag, 8.9% Zn from 326.8m and

  • - 3.3 g/t Au, 37.3 g/t Ag, 0.6% Zn from 510.8m including

  • - 11.9 g/t Au, 129 g/t Ag, 2.1% Zn from 512.0m (GNDD-302e);

• ▪ GNDD-491 intersection of 27.0m at 8.9 g/t AuEq, opens an exciting new high-grade target below previous shallow drilling, being the first deeper hole on the western Magnata Fault.

• ▪ GNDD-302(ext) extended the Main Manto and Footwall Zones at Sentazon 250 metres down dip with several follow up holes confirming significant new high-grade extensions at depth.

• ▪ Results extends the Sanchez Fault and Norte Manto and confirm a significant halo around the high-grade with results including 63.0m at 1.1 g/t AuEq incl 4.0m at 7.2 g/t AuEq (GNDD-443).

• ▪ Drilling with the portable rig continues to intersect high-grade mineralisation up-dip in the Hualilan Hills

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

"The results from Hualilan continue to impress with this series of results unlocking several exciting new high-grade targets. The first deeper hole on the eastern end of the Magnata Fault intersected 27 metres at 8.9 g/t, opening up a new high-grade target below previous shallow drilling.

Deeper drilling at Sentazon has returned outstanding results extending the high-grade mineralisation more than 200 metres down dip in multiple locations. Additionally, several deeper holes, for which assays are pending, are logged as containing zones of massive sulphides within skarn alteration. This is typical of other high-grade intercepts at Hualilan and we expect assays to confirm a significant new zone of high-grade mineralisation down-dip at Sentazon."

Challenger Exploration Limited	Issued Capital	Australian Registered Office	Directors	Contact
ACN 123 591 382	998.2m shares	Level 1	Mr Kris Knauer, MD and CEO	T: [phone]
ASX: CEL	29.3m 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

30 March 2022

Challenger Exploration (ASX: CEL) ("CEL" the "Company") is pleased to announce the results from recent drilling targeting extensions to the high-grade mineralisation at the Company's flagship Hualilan Gold Project, in San Juan Argentina. A total of 48 of the 58 drill holes (83%) reported significant gold mineralisation demonstrating the Company's ongoing success in extending the high-grade gold mineralisation at Hualilan.

The results continued to exceed the Company's expectations and open several significant targets to expand the high-grade mineralisation at Hualilan. Highlights from the current drilling include:

• ▪ The intersection of 27.0 metres at 8.9 g/t AuEq including 3.9 metres at 11.4 g/t AuEq and 16.8 metres at 11.7 g/t AuEq in GNDD-491. This is the first deeper test at the current western limit of Magnata Fault drilling. GNDD-491 opens a new high-grade target below earlier shallow drilling that remains open at depth and to the west.

• ▪ GNDD-348 (extension), the most westerly hole drilled on the Magnata Fault, intersected 53.7 metres at 0.5 g/t AuEq including 0.9 metres at 6.6 g/t AuEq. This hole extended the Magnata Fault mineralisation 75 metres west along strike from GNDD-491 at a shallow level. Drilling is planned below GNDD-348e to intersect the Magnata Fault at the same depth as GNDD-491.

• ▪ GNDD-523 which intersected 38.2 meters at 5.1 g/t AuEq including 0.9 metres at 180 g/t AuEq. This correlates with the intersections of 63.3 metres at 9.8 g/t AuEq (GNDD-378), and 11.5m at 6.5 g/t AuEq and 40.0m at 6.1 g/t AuEq (GNDD-142). This extends the thick high-grade zone of mineralisation found where the structures that control the main Sentazon Manto and the underlying Footwall Zone intersect a further 25 metres north along strike.

• ▪ Holes including GNDD-443 (63.0m at 1.1 g/t AuEq including 4.0m at 7.2 g/t AuEq) and GNDD-140 (44.0 metres at 1.0 g/t AuEq including 10.0m at 3.2 g/t AuEq) confirm the presence of a significant halo of lower grade mineralisation surrounding the higher-grade mineralisation along the Sanchez Fault and main Manto at Cerro Norte. In the context of open pit mining this broad lower-grade mineralisation is likely to be economically significant.

• ▪ GNDD-302(extension) which extended both the Sentazon Manto (3.0 metres at 8.1 g/t AuEq and 4.0 metres at 7.6 g/t AuEq) and the Sentazon Footwall Zone (4.3 metres at 4.0 g/t AuEq including 1.1 metres at 14.4 g/t AuEq) 250 metres downdip. Several follow up holes both north and south along strike (all assays pending) have intersected significant widths of massive sulphides in strong garnet-silica-pyroxene (skarn) alteration1 at depth opening a large scale high-grade target below Sentazon.

• ▪ GNDD-463 (7.5 metres at 4.4 g/t AuEq) extended the Magnata Fault mineralisation 30 metres below drill hole GNDD-318 which intersected weak mineralisation confirming the Magnata fault mineralisation remains open at depth at this location and can extend below holes which did not encounter significant mineralisation.

• ▪ GNDD-524 (7.1 metres at 8.7 g/t AuEq) and GNDD-522 (9.8 metres at 3.6 g/t AuEq including 5.3 metres at 6.4 g/t AuEq) extended the Magnata Manto mineralisation intersected in GNDD-174 (6.0 metres at 15.5 g/t) 50 metres up-dip to near surface.

#1 This alteration style and mineral assemblage is consistent with other mineralised intervals where high-grade gold results were received

Challenger Exploration Limited	Issued Capital	Australian Registered Office	Directors	Contact
ACN 123 591 382	998.2m shares	Level 1	Mr Kris Knauer, MD and CEO	T: [phone]
ASX: CEL	29.3m 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

30 March 2022

DISCUSSION

SENTAZON

Sentazon is the southernmost mineralisation defined historically and was described historically as;

"Manto-style" high grade lenses, oriented parallel to the limestone beds, caused by the replacement of the limestone beds with massive sulphides. The Sentazon Manto is one of three en-echelon manto zones at Cerro Sur, over a combined strike interval of 330 metres, the others being the Muchilera and Magnata Manto's both to the north. Mineralisation dips 40 to 70 degrees west and is open at depth."

Sentazon continues to be the largest surprise at the Hualilan Gold project. It was historically lightly drilled as it was considered to be complex and of limited in extent. Drilling by the Company has demonstrated Sentazon will provide a significant contribution to the high-grade gold endowment at Hualilan. Prior to the current round of drilling mineralisation had been intersected over 150 metres of strike and 300 metres of dip at Sentazon with the discovery a second extensive zone of high-grade mineralisation 50 metres below the main Sentazon Manto, the Footwall Zone.

The current round of Sentazon drilling has increased this dip extent to over 450 metres with the Sentazon mineralisation remaining open along strike, at depth, and up-dip into the Hualilan Hills.

GNDD-302e

GNDD-302(extension) intersected 3.0 metres at 8.1 g/t AuEq (7.6 g/t gold, 14.8 g/t silver, 0.6% zinc) from 300.0m and 4.0 metres at 7.6 g/t AuEq (3.3 g/t gold, 36.3 g/t silver, 8.9% zinc) from 326.8m. This correlates to a zone of high-grade mineralisation often seen at the shale-limestone boundary and the main Sentazon Manto below the contact. The zone at the shale-limestone boundary is thicker than usually encountered. Below this, the hole intersected 15.6 metres at 1.0 g/t AuEq (0.7 g/t gold, 12.2 g/t silver, 0.5% zinc) from 467.0m including 1.7 metres at 6.4 g/t AuEq (4.1 g/t gold, 68.4 g/t silver, 3.1% zinc). With a second zone of 4.3 metres at 4.0 g/t AuEq (3.3 g/t gold, 37.3 g/t silver, 0.6% zinc) from 510.8m including 1.1 metres at 14.4 g/t AuEq (11.9 g/t gold, 129 g/t silver, 2.1% zinc).

GNDD-302e is one of the more significant holes drilled at the Hualilan Gold Project as it opens a new high-grade fairway at depth. The hole was drilled to test 200 metres down dip of GNDD-299 which intersected 9.9 metres at 6.2 g/t AuEq in the Sentazon Manto. The hole not only extended the Sentazon Manto it also intersected several zones of deeper high-grade mineralisation which are interpreted as part of the Footwall Zone intersected at depth in GNDD-362 and GNDD-414 As Figure 1 shows GNDD-302e potentially extends the main Manto and underlying Footwall Zone mineralisation significantly deeper than previous intersections at Sentazon. The only hole on this section of drilling that extended deep enough to intersect the Footwall Zone GNDD-209, intersected 2.0 metres at 1.3 g/t AuEq. Additionally, GNDD-302e extended the Footwall Zone mineralisation at depth 120 metres north along strike from its current limit and opens up a new prospective area.

Infill drilling is planned to join the mineralisation between holes in addition to a series of holes up-dip of GNDD-302e to extend the mineralisation to GNDD-299 and the Company will also extend some of the shallower holes to test the underlying Footwall Zone.

Challenger Exploration Limited	Issued Capital	Australian Registered Office	Directors	Contact
ACN 123 591 382	998.2m shares	Level 1	Mr Kris Knauer, MD and CEO	T: [phone]
ASX: CEL	29.3m 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

30 March 2022

Challenger Exploration Limited	Issued Capital	Australian Registered Office	Directors	Contact
ACN 123 591 382	998.2m shares	Level 1	Mr Kris Knauer, MD and CEO	T: [phone]
ASX: CEL	29.3m 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

30 March 2022

Recent deeper drilling at Sentazon (all holes assays pending)

GNDD-527 and GNDD-555 (both assays pending) were collared 40 metres south and north along strike from GNDD-302e following the completion of core logging. Both holes are logged as intersecting several zones of massive sulphides in skarn alteration over a similar downhole interval as GNDD-302e. GNDD-527 and GNDD-555 indicate that this new target at depth at Sentazon covers at least 80 metres strike and remains open in both directions along strike.

Photo's 1 and 2 show two of the four zones logged as intersecting massive sulphide in skarn alteration in GNDD-527 with Photos 3 and 5 showing mineralisation in GNDD-555. Importantly, GNDD-527 tested 80 metres downdip of GNDD-428 (reported in this release), which failed to intersect the Sentazon Manto. The intersection in GNDD-527 is encouraging, as it confirms a significant new downdip target at Sentazon in an area that was previously interpreted as closing off at depth.

Photo 1 - GNDD-527 : Massive sulphides and skarn alteration logged (338.3-341.3m)

Photo 2 - GNDD-527 : Massive sulphides and skarn alteration logged (491.6-496.8m) showing

Challenger Exploration Limited	Issued Capital	Australian Registered Office	Directors	Contact
ACN 123 591 382	998.2m shares	Level 1	Mr Kris Knauer, MD and CEO	T: [phone]
ASX: CEL	29.3m 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