Challenger Exploration announced outstanding results from the ongoing drill program at the Hualilan Gold Project, located in San Juan Argentina, with extension and infill holes from the Verde Zone reported in this announcement. The highlight from this program was the intersection of 42.0m at 5.9 g/t AuEq in drill hole GNDD-711 which is an extension of the high-grade mineralisation north of the Verde Zone. The drilling continues to show the presence of coherent shoots of significantly higher-grade mineralisation at depth which remain open in several locations.

All results were received after the completion of the Company's maiden Hualilan Gold Project ("MRE"). The current MRE, which includes a high-grade core of 1.1 Moz at 5.6 g/t AuEq, was based on 125,700 metres drilling and will be updated in coming weeks. The Company is midway through an additional 50,000 metres of drilling which will take total CEL drill metres at Hualilan to 250,000 metres.

The Verde Zone contributes almost 1 million ounces gold equivalent to the current Hualilan MRE. The Verde Zone was a CEL discovery targeted using surface magnetics and IP (Induced Polarisation) at the Hualilan Gold Project. The discovery hole returned 125.5 metres at 1.1 g/t AuEq including 71.0 metres at 1.8 g/t AuEq (GNDD-169).

The Verde Zone covers 2.0 kilometres of strike and mineralisation remains open along strike and at depth. Mineralisation in the Verde Zone is oriented north-south, is 50 to 100 metres wide, and hosted by bedding parallel fault-fracture zones in sediments and steeply dipping fracture zones in intrusives. A lower grade halo of mineralisation extends into the overlying sedimentary rocks, which have been locally brecciated by the hydrothermal fluids during mineralisation.

The overlying mineralisation in the sedimentary rocks dips to the west at 30-50o and is up to 50 metres thick. This overlying halo of lower grade mineralisation is a useful exploration guide to vector to the deeper intrusion-hosted mineralisation. As drilling extends deeper, zones of high-grade skarn mineralisation are being intersected at both limestone-intrusive contacts and also within limestone which is analogous to the mineralisation at the main Norte and Sentazon mantos.

Northern Verde Zone: GNDD-711: GNDD-711 was collared near the northern limit of the current MRE and is the deepest hole drilled on this section. The hole was collared to test 80 metres down dip of GNDD-402 (37.9 metres at 0.3 g/t AuEq) and discovered a new high-grade shoot at depth. The hole intersected three stacked zones of mineralisation.

The deepest intersection, extending into the intrusive, of 42.0m at 5.9 g/t AuEq (5.3 g/t Au, 5.9 g/t Ag, 1.0% Zn, 0.1% lead) from 319.0m, including 1.9m at 124.9 g/t AuEq (113.0 g/t Au, 117.0 g/t Ag, 21.2% Zn, 1.7% lead) is the first indication of a potential new zone of high-grade mineralisation in the northern Verde Zone and will be followed up with a hole to test an additional 80 metres downdip. The two shallower zones of mineralisation were more typical of the northern Verde Zone with intersections of 9.9m at 0.6 g/t AuEq (0.4 g/t Au, 0.9 g/t Ag, 0.4% Zn, 0.2% lead) from 270.6m, including 1.5m at 2.0 g/t AuEq (1.5 g/t Au, 2.2 g/t Ag, 0.7% Zn, 0.6% lead) and 8.5m at 0.5 g/t AuEq (0.3 g/t Au, 0.4 g/t Ag, 0.2% Zn, 0.1% lead) from 295.0m including 1.5m at 2.0 g/t AuEq (1.5 g/t Au, 2.2 g/t Ag, 0.7% Zn, 0.6% lead). GNDD-660: GNDD-660 was drilled on the same section as GNDD-711 250 metres up-dip.

The intersection of 42.8m at 1.4 g/t AuEq (1.2 g/t Au, 3.3 g/t Ag, 0.4% Zn, 0.2% lead) from 71.5m, including 5.3m at 6.3 g/t AuEq (5.4 g/t Au, 6.0 g/t Ag, 1.7% Zn, 0.1% lead) and several other 2-3 metres wide zones grading from 1.1 to 2.1 g/t AuEq was approximately double the grade predicted by the current MRE block model. Additionally, the hole intersected two deeper zones of mineralisation including an intersection of 0.5m at 23.0 g/t AuEq (12.9 g/t Au, 62.1 g/t Ag, 18.4% Zn, 3.9% lead) from 127.9m. GNDD-691: GNDD-691 was drilled as an infill hole between GNDD-711 and GNDD-690 and intersected three zones of mineralisation in the Verde Zone with the deepest intersection of 30.0m at 0.9 g/t AuEq (0.8 g/t Au, 1.2 g/t Ag, 0.1% Zn) from 263.0m located below the current MRE.

This intercept will extend the MRE by approximately 30 metres at this location. GNDD-667: GNDD-667 was collared approximately 120 metres south of the northern limit of the current Verde Zone MRE, and is an infill hole between GNDD-183 (55.5 metres at 1.2 g/t AuEq) and GNDD-123 (30 metres at 0.3 g/t). The intersection 43.0m at 1.8 g/t AuEq (1.4 g/t gold, 3.1 g/t silver, 0.7% zinc, 0.3% lead) from 32.0m, including 27.0m at 2.6 g/t AuEq (2.0 g/t gold, 4.2 g/t silver, 1.0% zinc, 0.3% lead) is approximately double the grade in the current MRE block model and will extend the higher-grade mineralisation up-dip to near surface.

Additionally, the hole intersected 2.9m at 9.7 g/t AuEq (0.7 g/t gold, 639 g/t silver, 2.4% zinc, 1.0% lead) from 97.5m. This deeper intersection extends a deeper high grade zone intersected in GNDD183 up-dip by approximately 20 metres. GNDD-693: GNDD-693 was collared as an infill hole approximately 200 metres south of the northern limit of the current Verde Zone MRE.

It also identified a previously unknown deeper high-grade zone in the Verde Zone, which is believed to be steeply dipping, open at depth, and analogous to the high-grade deeper mineralisation at Sentazon 1.8 kilometres to the south. (over the page) shows the intersections of 9.1m at 5.7 g/t AuEq (4.6 g/t gold, 9.2 g/t silver, 2.2% zinc) from 378.0m including 0.6m at 53.5 g/t AuEq (44.0 g/t gold, 67.8 g/t silver, 18.7% zinc, 0.1% lead) and a deeper intersection of 1.8 metres at 4.9 g/t AuEq (4.6 g/t gold, 2.9 g/t silver, 0.5% zinc) from 400.9 metres are a below the current MRE boundary and will require follow up drilling. Additionally, GNDD-693 is an example of an infill hole exceeding the MRE block model.

The intersection of 22.2 metres at 1.0 g/t AuEq (0.9 g/t gold, 2.3 g/t silver, 0.3% zinc) from 231.2m including 1.9 metres at 7.8 g/t AuEq (6.1 g/t gold, 22.9 g/t silver, 3.0% zinc, 0.1% lead) is above the existing MRE block model at this location. GNDD-654: GNDD-654 was collared as an infill hole in the northern Verde Zone. The intersection of 11.0 metres at 1.7 g/t AuEq (1.5 g/t gold, 2.6 g/t silver, 0.3% zinc) from 378.0m including 6.0 metres at 2.7 g/t AuEq (2.4 g/t gold, 4.4 g/t silver, 0.5% zinc) represents a new zone of mineralisation at depth.