Challenger Exploration : Two New Copper Gold Discoveries at Colorado V Ecuador

ASX Release

6 June 2022

For personal use only

Two new gold-copper discoveries at Colorado V with 500 metre

intercepts in first two drill holes.

Highlights

• First drill holes on the CV-A and CV-BAu-soil anomalies in Colorado V both intercepted 500 metres of mineralisation from surface to the end of the hole with results including (refer Table 1):
• • 528.7m at 0.5 g/t AuEq2 - 0.3 g/t Au, 2.0 g/t Ag, 0.1 % Cu from 4.5m to eoh, including; 397.1m at 0.6 g/t AuEq2 - 0.3 g/t Au, 2.8 g/t Ag, 0.1% Cu from 4.5m including; 108.0m at 0.7 g/t AuEq2 - 0.4 g/t Au, 2.8 g/t Ag, 0.1 Cu from 6.0m and;
    130.2m at 0.7 g/t AuEq2 - 0.4 g/t Au, 3.3 g/t Ag, 0.1 Cu from 166.6m (CVDD-22-001)

  ▪ 570.0m at 0.4 g/t AuEq2 - 0.2 g/t Au, 2.0 g/t Ag, 0.1% Cu from 5.0m to eoh including; 306.0m at 0.5 g/t AuEq2 - 0.2 g/t Au, 2.3 g/t Ag, 0.1% Cu from 14.0m (CVDD-22-002)

• Confirms two Au-Cu-Ag-Mo discoveries of significant scale. Both Au-soil anomalies are 1 kilometre long and 500 metres wide and lie within a structural corridor over a 3 kilometre strike distance.
• CEL has drilled five of fifteen regionally significant Au-soil anomalies with over 500 metres of mineralisation intersected at all anomalies, confirming the potential for a major bulk gold system.
• El Guayabo drilling continues to deliver with the next two drill holes on the main discovery zone confirming at least 1 kilometre of continuous mineralisation which remains open in all directions:

• 305.7m at 0.5 g/t AuEq2 - 0.2 g/t Au, 4.6 g/t Ag, 0.2% Cu from 3.0m including;

59.8m at 0.7 g/t AuEq2	-	0.2 g/t Au, 7.1 g/t Ag, 0.3% Cu from 87.1 and;
47.3m at 0.9 g/t AuEq2	-	0.4 g/t Au, 6.7 g/t Ag, 0.3% Cu from 257.7m (GYDD-22-015)

• 265.4m at 0.5 g/t AuEq2 - 0.3 g/t Au, 2.9 g/t Ag, 0.1% Cu from 68.0m including;

107.6m at 0.9 g/t AuEq2 -	0.5 g/t Au, 5.7 g/t Ag, 0.2% Cu from 225.8m including;
31.0m at 1.1 g/t AuEq2	- 0.7 g/t Au, 6.1 g/t Ag, 0.2% Cu from 225.8 and;
39.1m at 1.1 g/t AuEq2	-	0.6 g/t Au, 8.5 g/t Ag, 0.3% Cu from 294.3 (GYDD-22-016)

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

"We have been eagerly awaiting the results from our first holes testing the CV-A and CV-B soil anomalies at Colorado V. These anomalies are just a few kilometres on strike from the 22 million ounce Cangrejos Gold Project1. The anomalies have the same geology and surface footprint as Cangrejos and have now produced the same grades.

While Hualilan in Argentina remains our primary focus we are beginning to get excited about Ecuador. We have drilled five of fifteen regional gold-soil anomalies and all five have returned significant mineralisation. Our project lies just across the tenement boundary from one of the largest undeveloped gold projects in the world and we have something I believe has the potential to become a Tier 1 gold asset over time."

1 Source : Lumina Gold (TSX : LUM) July 2020 43-101 Technical Report

Challenger Exploration Limited	Issued Capital	Australian Registered Office	Directors	Contact
ACN 123 591 382	1,004.0m shares	Level 1	Mr Kris Knauer, MD and CEO	T: [phone]
ASX: CEL	23.6m 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

6 June 2022

For personal use only

Figure 1 - Regional Au-soil anomalies and drilling results at El Guayabo and Colorado V

Challenger Exploration Limited	Issued Capital	Australian Registered Office	Directors	Contact
ACN 123 591 382	1,004.0m shares	Level 1	Mr Kris Knauer, MD and CEO	T: [phone]
ASX: CEL	23.6m 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

6 June 2022

sconcession V Colorado -Guayabo El Section Long - 2 Figure

Challenger Exploration Limited	Issued Capital	Australian Registered Office	Directors	Contact
ACN 123 591 382	1,004.0m shares	Level 1	Mr Kris Knauer, MD and CEO	T: [phone]
ASX: CEL	23.6m 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

6 June 2022

For personal use only

Challenger Exploration (ASX: CEL) ("CEL" the "Company") is pleased to announce results from drill holes GYDD-22-014 to GYDD-22-016 in the El Guayabo concession and CVDD-22-001 and CVDD-22- 002, the first two drillholes on the Colorado V concession in El Oro Province, Ecuador.

The first two drill holes at Colorado V, where the Company is farming in to earn an initial 50% interest, have confirmed significant Au-Cu-Ag-Mo discoveries in the first two regional gold in soil anomalies to be drilled by the Company. The Colorado V concession adjoins CEL's 100% owned El Guayabo concession to the south and the Cangrejos concession which hosts the 17 million ounce Cangrejos Gold Project1, to the north. The new discoveries have significant scale with both Au-soil anomalies 1 kilometre long and 500 metres wide and lying within a structural corridor with over 3 kilometre strike distance.

The next three drill holes in the 100% owned El Guayabo concession all recorded significant intercepts. Drill holes GYDD-22-015 (305.7m at 0.5 g/t AuEq) and GYDD-22-016 (265.4m at 0.5 g/t AuEq including

107.6 metres at 0.9 g/t AuEq) have confirmed that the mineralisation on the main discovery zone is continuous over 1 kilometre strike and remains open at depth and along strike.

CVDD-22-001 - First test CV-A anomaly

CVDD-22-001 was the Company's first drill hole targeting the CV-A soil anomaly at Colorado V. The CV-A anomaly is a gold, silver, and copper soil anomaly some 1 kilometre long and 500 metres wide which forms part of a greater 3 kilometre linear trending gold in soil feature at Colorado V. The CV-A anomaly, like the other fifteen regionally significant Au-Ag-Cu-soil anomalies across the Company's

35.7 km2 tenement package has a peak gold value some 50 times above background. Additionally, it is coincident with significant underlying magnetic anomalies indicative of porphyry systems.

Limited historical drilling had been undertaken outside the CV-A soil anomaly targeting vein and breccia mineralisation which is currently being exploited by small scale mining. Results included 248 metres at 0.5 g/t AuEq including 114 metres at 0.7 g/t AuEq, in drillhole ZK16-2 located on the northwest flank of the CV-A anomaly and 112 metres at 0.5 g/t AuEq within a zone of 454m at 0.3 g/t AuEq over the entire length of drillhole ZK0-4 located outside the southern boundary of the CV-A soil Anomaly. These historic results had not been followed up with drilling which directly targeted the CV- A anomaly prior to the Company's current program of which CVDD-22-001 was the first hole.

The intersection of 528.7m at 0.5 g/t AuEq (0.3 g/t gold, 2.0 g/t silver, 0.1 % copper, 13.2 ppm molybdenum) from surface until the end of the hole in the first hole to test the CV-Aanomaly confirms a significant gold discovery. The mineralisation is consistent and pervasive throughout the hole and appears to have a similar paragenetic relation to mineralisation intersected in the companies´ discovery holes 3 kilometres to the south at El Guayabo, as well as Lumina Gold's Cangrejos Project 3 kilometres to the north.

Importantly from an open pit mining perspective, hole CVDD-22-001 includes a higher-grade section near surface, with an intersection of 397.1m at 0.6 g/t AuEq (0.3 g/t gold, 2.8 g/t silver, 0.1 % copper, 14.3 ppm molybdenum) from surface including 108.0m at 0.7 g/t AuEq (0.4 g/t gold, 2.8 g/t

Challenger Exploration Limited	Issued Capital	Australian Registered Office	Directors	Contact
ACN 123 591 382	1,004.0m shares	Level 1	Mr Kris Knauer, MD and CEO	T: [phone]
ASX: CEL	23.6m 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

6 June 2022

For personal use only

Figure 3 - Cross Section showing CVDD-22-001 and current drilling at the CV-A anomaly

Challenger Exploration Limited	Issued Capital	Australian Registered Office	Directors	Contact
ACN 123 591 382	1,004.0m shares	Level 1	Mr Kris Knauer, MD and CEO	T: [phone]
ASX: CEL	23.6m 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