Challenger Exploration : Major Au-Cu-Ag Mineralised System Confirmed at El Guayabo

ASX Release

23 February 2022

For personal use only

Ongoing drilling at the El Guaybo Project in Ecuador confirms

the discovery of a major Au-Cu-Ag mineralised system

Highlights

• Most recent four holes in El Guayabo drill program in Ecuador all intersect significant Au-Cu-Ag-Mo mineralisation from near surface with three holes intersecting over 300 metres of mineralisation
• Significant intersections include (Refer Table 1):
• • 309.8m at 0.7 g/t AuEq2 - 0.2 g/t Au, 6.2 g/t Ag, 0.2 % Cu from 3.3m including

202.1m at 0.8 g/t AuEq2 - 0.3 g/t Au, 6.5 g/t Ag, 0.3 % Cu from 74.4m including;

33.0m at 1.3 g/t AuEq2	- 0.3 g/t Au, 15.2 g/t Ag, 0.5 % Cu from 74.4m and
53.6m at 1.5 g/t AuEq2	- 0.7 g/t Au, 8.8 g/t Ag, 0.4 % Cu from 231.9m (GYDD-21-006);
▪ 511.7m at 0.3 g/t AuEq2		0.3 g/t Au, 0.9 g/t Ag, 0.03% Cu from 16.1m including
88.4m at 0.8 g/t AuEq2	-	0.6 g/t Au, 1.8 g/t Ag, 0.1% Cu from 389.8m and
30.4m at 1.5 g/t AuEq2	-	1.4 g/t Au, 0.9 g/t Ag, 0.03 Cu from 567.3m and (GYDD-21-005);

• 338.7m at 0.3 g/t AuEq2 - 0.2 g/t Au, 1.0 g/t Ag, 0.03% Cu from 37.1m and

33.0m at 0.3 g/t AuEq2 - 0.2 g/t Au, 0.5 g/t Ag, 0.1% Cu from 613.5m (GYDD-21-004);

• 119.2m at 0.5 g/t AuEq2 - 0.4 g/t Au, 0.8 g/t Ag, 0.02% Cu from 71.9m including

26.2m at 1.1 g/t AuEq2 - 1.1 g/t Au, 0.9 g/t Ag, 0.02 Cu from 76.4m and (GYDD-21-003)

• Drilling has defined a zone of Au-Cu-Ag-Mo mineralisation covering 500 metres strike and 300 metres wide from near surface which is open in both directions along strike and at depth.
• GYDD-21-006,the only hole optimally sited due to access issues, intercepted 200 metres of higher- grade Cu-Au-Ag mineralisation hosted in intrusive breccia with sheeted veining.
• GYDD-21-008,(assays pending) designed to extend this higher-grade zone of sheeted vein hosted mineralisation in GYDD-21-006 has intercepted similar mineralisation containing more sulphides

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

"Drillhole GYDD-21-006 is the first hole to give us a look at the type of mineralisation we might expect at El Guayabo. The three earlier holes were all drilled from the center of the soil anomaly out due to the topography and we felt they drilled above the main zone of higher-grade mineralisation.

We drilled hole 6 at a different azimuth to target what we now feel is a steep zone of mineralisation and this returned instant rewards. In addition, logging indicates GYDD-21-008, drilled to follow up GYDD-21-006, has intercepted similar mineralisation to GYDD-21-006 with a higher content of sulphides. We have rushed assays for GYDD-21-008 with results anticipated in 2-3 weeks."

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

23 February 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

23 February 2022

For personal use only

Challenger Exploration (ASX: CEL) ("CEL" the "Company") is pleased to announce results from the Company's next four drillholes from the El Guayabo Gold-Copper Project in El Oro Province, Ecuador. The results build on the results from the first two drill holes and confirm the discovery of a significant intrusion hosted gold-copper-silver-molybdenum system with all holes encountering wide zones of mineralisation associated with intrusives and intrusive breccias.

The first six holes have intersected what is interpreted as a continuous zone of intrusion-hosted mineralisation 300 metres wide extending over 500 metres of strike to a maximum depth of 550 metres below surface. The mineralisation remains open in both directions along strike and at depth.

The Company has two drill rigs on site with a depth capacity of 1,200 metres using NQ core rods. The Company is currently completing GYDD-22-015 and GYDD-21-016 at its 100% owned El Guayabo tenement. These holes were added to the program to follow up the mineralisation intersected in GYDD-21-006 and GYDD-21-008 (assays pending). GYDD-22-008 is logged as intersecting a 134 metre interval of the same style of intrusive breccia containing extensive sheeted veining as was intersected in GYDD-21-006 with a higher sulphide content than was logged in GYDD-21-006.

Section 200 (GYDD-21-003 and GYDD-21-004)

Drillholes GYDD-21-003 and GYDD-21-004 were collared approximately 200 metres west along strike from the Company's first drill hole GYDD-21-001 which intersected 784.3 metres at 0.4 g/t AuEq from near surface including a higher grade core of 188.5 metres at 0.6 g/t AuEq.

Due to the steep topography to the south of the collar location limiting access the drill pad was located within the underlying gold in soil anomaly with GYDD-21-003 and GYDD-21-004 drilled from the same drill pad in opposite directions. While both holes intersected significant mineralisation (over 200 metres of mineralisation in both holes) the main zone of mineralisation is now believed to be 200 to

300 metres in width and dipping steeply. Accordingly both GYDD-21-003 and GYDD-21-004 are now interpreted as having drilled from within the zone of mineralisation through a near surface leached zone and then out of the mineralisation as shown in Cross Section (Figure 2).

GYDD-21-003

GYDD-21-003intersected 119.2 metres at 0.5 g/t AuEq (0.4 g/t Au, 0.8 g/t Ag, 0.02% Cu, 2.2 ppm Mo) from 71.8m. Below the 71 metre leached zone mineralisation is hosted in intrusives, intrusive breccia and metamorphic country rocks that have been brecciated by the intrusion. The mineralisation included a higher grade zone of 77.2 metres at 0.6 g/t AuEq (0.5 g/t Au, 0.5 g/t Ag, 0.01 % Cu, 1.1 ppm Mo) from 76.4m including 26.2 metres at 1.1 g/t AuEq (1.1 g/t Au, 0.9 g/t Ag, 0.02 % Cu, 1.7 ppm Mo).

GYDD-21-003intersected three additional zones of mineralisation below the main zone including 15.0 metres at 0.4 g/t AuEq (0.3 g/t Au, 0.4 g/t Ag, 0.02 % Cu, 5.0 ppm Mo) from 356.5m and 21.4 metres at 0.3 g/t AuEq (0.1 g/t Au, 2.6 g/t Ag, 0.08 % Cu, 57.7 ppm Mo) from 675.8m, and 61.0 metres at 0.2 g/t AuEq (0.1 g/t Au, 0.9 g/t Ag, 0.05 % Cu, 24.5 ppm Mo) from 662.2m until the end of the hole.

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

23 February 2022

Concession Guayabo El geology, interpreted and 004,-21-GYDD003,-21-GYDD showing Section Cross- 2 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

23 February 2022

For personal use only

GYDD-21-004

GYDD-21-004intersected 338.7 metres at 0.3 g/t AuEq (0.2 g/t Au, 1.0 g/t Ag, 0.03% Cu, 6.5 ppm Mo) from 37.1m including 27.0 metres at 0.6 g/t AuEq (0.5 g/t Au, 1.8 g/t Ag, 0.05 % Cu, 7.3 ppm Mo) from

348.8m. GYDD-21-004 intersected an additional zone of mineralisation below the main zone including

33.0 metres at 0.3g/t AuEq (0.2 g/t Au, 0.6 g/t Ag, 0.05 % Cu, 18.7 ppm Mo). Similarly to GYDD-21-003 the mineralisation is hosted in intrusives/intrusive breccia and below the zone of surface leaching and the mineralisation is consistent and pervasive.

Section 300 (GYDD-21-005)

Drillhole GYDD-21-005 was collared approximately 300 metres west along strike from GYDD-21-003 and GYDD-21-004. The hole was drilled in the same orientation as GYDD-21-004. Like GYDD-21-003 and GYDD-21-004 the collar position was affected by access issues due to the topography with the hole collared within the underlying gold in soil anomaly and drilled out.

GYDD-21-005intersected 581.7 metres at 0.3 g/t AuEq (0.3 g/t Au, 0.9 g/t Ag, 0.04% Cu, 2.4 ppm Mo) from 16.1m including 88.4 metres at 0.8 g/t AuEq (0.6 g/t Au, 1.8 g/t Ag, 0.09% Cu, 1.5 ppm Mo) from 389.8m, and 30.4 metres at 1.5 g/t AuEq (1.4 g/t Au, 0.9 g/t Ag, 0.03 % Cu, 5.1 ppm Mo) from 567.3m hosted in intrusives extending the zone of mineralisation 300 metres west along strike.

Photo showing GYDD-22-016 in progress highlighting topography limiting drill rig access

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