Challenger Exploration announced results from the Company's Hualilan Gold Project in San Juan, Argentina. The results are from a series of exploration drill holes designed to test new targets and geological concepts and extend mineralization well beyond the existing boundaries. These exploration focused drill holes returned significant intercepts opening several new and material targets for drilling including: A possible third high-grade east-west fault 400 metres north of the Sanchez Fault in GNDD-394 (5.0m at 8.7g/t AuEq including 3.0m at 14.3 g/t AuEq); A new high-grade target on a second magnetic trend west of the current Hualilan mineralisation in GNDD-326 (2.0m at 7.5 g/t AuEq); An extension of the high-grade Verde Zone mineralisation 400 metres south of the existing mineralisation in GNDD-450 (97.8m at 2.2 g/t AuEq including 16.8m at 9.7 g/t AuEq); High-grade mineralisation which remains open at the eastern limit of the Sanchez Fault drilling in GNDD-441 and GNDD-434 (67.6m at 2.6 g/t AuEq including 5.4m at 28.7 g/t AuEq); A new zone of high-grade mineralisation over 1000 metres downhole below the Verde Zone with GNDD-308e ending in 4.0m at 5.8 g/t AuEq.

Eastern Extension of the Sanchez Fault - GNDD-425, GNDD-434, GNDD-441: GNDD-434 was drilled with the portable rig and is the deepest and most westerly hole on the Sanchez Fault for which results have been received. The hole was collared approximately 100 metres up into the Hualilan Hills at the eastern limit of the current drill access road. The closet hole to GNDD-434 is CEL's fourth drill hole GNDD-004 collared 120 metres to the east.

It should be noted, GNDD-004 was designed to test under the Dona Justa Open Pit and wasn't drilled to intersect the Sanchez Fault. GNDD-434 extended the Sanchez Fault mineralisation almost 200 metres to the east intersecting 5.4 metres at 28.7 g/t AuEq (28.6 g/t gold, 11.1 g/t silver) from 24.4m including 2.4 metres at 60.2 g/t AuEq (60.0 g/t gold, 20.4 g/t silver). This intersection was located directly above a 3-metre void with the void interpreted as old workings, given the proximity of the hole to surface and the access tunnels noted in the vicinity of the collar location.

Historical mining generally, did not take ore grading less than 10 g/t, hence it is anticipated that the true width of the high-grade section of the Sanchez Fault mineralisation is almost 9 metres at this location. Additionally, the hole intersected a much broader zone of mineralisation around this high-grade zone, with GNDD-434 intersecting 67.6 metres at 2.6 g/t AuEq (2.5 g/t gold, 2.6 g/t silver) from 24.4m. This lower grade halo is typical of the Sanchez Fault Zone mineralisation to date with drillholes such as GNRC-068 collared 200 metres east along the Sanchez Fault intersecting 69.0 metres at 4.7 g/t AuEq, including 27.0 metres at 11.2 g/t AuEq.

GNDD-441 and GNDD-425 were drilled from the same pad as GNDD-434, at shallower dips of 45 degrees (GNDD-441) and 60 degrees (GNDD-425), to test the Sanchez Fault near surface at this location. GNDD-441 successfully confirmed the Sanchez Fault continues to be mineralised from near surface at this eastern extension with the hole intersecting 11.9 metres at 3.7 g/t AuEq (3.2 g/t gold, 9.3 g/t silver, 0.8% zinc) from 15.1m including 1.2 metres at 14.1 g/t AuEq (13.3 g/t gold, 45.3 g/t silver, 0.6% zinc). GNDD-425 intersected 50.4 metres at 0.4 g/t AuEq (0.3 g/t gold, 3.7 g/t silver, 0.1% zinc) from 19.8m including 5.0 metres at 1.3 g/t AuEq (1.2 g/t gold, 6.3 g/t silver).

GNDD-425, GNDD-434 and GNDD-441 (Figures 1 and 5) confirm that the high-grade mineralisation on the Sanchez Fault remains open at the current eastern limit of drilling, which is controlled by drill rig access. Additionally, grades appear to be improving at depth. The Sanchez Fault mineralisation has been historically mapped another 200 metres to the east in outcrop over the Hualilan Hills.

Drilling is planned to target the Sanchez Fault from the eastern side of the Hualilan Hills. Extension of Verde Zone south of the Magnata Fault (GNDD-450, GNDD-432): GNDD-450 and GNDD-432 were drilled as a downdip test of GNDD-311 (22.0 metres at 0.5 g/t AuEq and 21.0 metres at 0.3 g/t AuEq) which had intersected lower grade mineralisation in sediments. This low-grade mineralisation in GNDD-311 was interpreted as being analogous to the lower grade sediment hosted halo mineralisation seen above the Verde Zone.

Drillholes GNDD-311, GNDD432, and GNDD-450 form a fence of drill holes located on the projected extension of the Verde Zone approximately 400 metres south of the existing Verde Zone mineralisation on the southern side of the Magnata Fault Zone. GNDD-432 was collared to test 100 metres downdip of GNDD-311 and intersected two main zones of mineralisation. The upper zone, hosted in intrusives, returned and intersection of 48 metres at 0.5 g/t AuEq (0.4 g/t gold, 7.9g/t silver, 0.1% zinc) from 50.0m, including 3.4 metres at 3.0 g/t AuEq (2.7 g/t gold, 15.0 g/t silver, 0.2% zinc).

The lower intersection of 37.4 metres at 0.8 g/t AuEq (0.7 g/t gold, 6.2g/t silver, 0.1% zinc) from 246.0m, including 1.3 metres at 7.0 g/t AuEq (6.7 g/t gold, 7.4 g/t silver, 0.3% zinc) was predominantly hosted in sediments. This zone is interpreted as being low-grade halo mineralisation in sediments seen above the higher-grade intrusion hosted mineralisation, albeit better developed than the mineralisation in GNDD-311 up-dip, as it is closer to the intrusion-hosted mineralisation. GNDD-450 was collared to test another 100 metres below GNDD-432, and successfully intersected a significant and wide zone of Verde style intrusion-hosted mineralisation.

The hole intersected 97.8 metres at 2.2 g/t AuEq (1.7 g/t gold, 11.9g/t silver, 0.9% zinc) from 313.5m including 16.8 metres at 9.7 g/t AuEq (7.1 g/t gold, 50.7 g/t silver, 4.4% zinc) from 376.2m including 4.8 metres at 30.0 g/t AuEq (21.6 g/t gold, 9.3 g/t silver, 0.2% zinc) from 376.2m. As can be seen in Figure 2 (cross section) this possible extension of the Verde Zone is open and mineralisation appears to be getting stronger at depth.