Challenger Exploration announced an upgraded Mineral Resource Estimate (MRE) which is reported according to JORC (2012) for the Company's Hualilan Gold Project, in San Juan Argentina. This upgraded 2023 MRE is a significant increase in both total ounces and the high-grade component of the MRE. Total ounces have increased from 2.1 million ounces gold equivalent to 2.8 million ounces gold equivalent as shown in Table 1. The Company is most pleased with the significant increase in the high-grade component of MRE.

This significant increase in the grade, and the quality of the updated 2023 MRE is evident when the higher grade 2.1 Moz AuEq in 2023 MRE is compared to the 2022 MRE. Upgrading a significant portion of the Mineral Resource to Indicated Category is a crucial part of progressing the Scoping Study. The 2023 MRE was based on an additional 92,000 metres of diamond core drilling of which approximately 50% (45,000 metres) comprised infill drilling.

This change in strategy to significantly increase the amount of infill drilling was successful with 81% (1.9 million ounces AuEq of the current 2.3 million ounces AuEq) of the in-pit component of the MRE now in Indicated Category. A total of 67% of the 2.8 Moz upgraded MRE is in the Indicated category compared to 38% of the 2022 MRE. This will provide the Company the option to move seamlessly from Scoping Study to a Prefeasibility Study (PFS).

The high retention of metal as the cut-off grade is lifted for the upgraded MRE is illustrated in the grade tonnage relationship for the overall MRE. Key highlights showing Resource Estimate at higher grade cut-offs are: 2.6 Moz at 1.8 g/t AuEq - 44.53Mt at 1.4 g/t Au, 6.2 g/t Ag, 0.6% Zn, 0.07% Pb (0.45 g/t AuEq cut-off) 2.4 Moz at 2.2 g/t AuEq - 33.5Mt at 1.8 g/t Au, 7.1 g/t Ag, 0.7% Zn, 0.08% Pb (0.6 g/t AuEq cut-off, 2.1 Moz at 3.1 g/t AuEq - 21.1Mt at 2.5 g/t Au, 8.7 g/t Ag, 1.0% Zn, 0.10%Pb (1.0 g/t AuEq cut-off), 1.8 Moz at 4.1 g/t AuEq - 13.6Mt at 3.4 g/t Au, 10.9 g/t Ag, 1.3% Zn, 0.12% Pb (1.5 g/t AuEq cut-off), 1.6 Moz at 5.0 g/t AuEq - 9.9Mt at 4.3 g/t Au, 13.1 g/t Ag, 1.6% Zn, 0.13% Pb (2.0 g/t AuEq cut-off), 1.3 Moz at 6.3 g/t AuEq - 6.4Mt at 5.9 g/t Au, 16.5 g/t Ag, 2.0% Zn, 0.15% Pb (3.0 g/t AuEq cut-off) This grade tonnage distribution provides the Hualilan Gold project with significant flexibility to respond to a changing gold price or costs. It also provides the opportunity to evaluate a staged startup using a higher grade material.

(MRE block model in Long Section showing grade distribution) there are distinct near surface higher-grade zones of mineralisation in several locations. These zones of high- grade near surface mineralisation occur at Sentazon, Muchilera, Magnata Manto The Magnata Fault Zone, the main Norte Manto and the Sanchez Fault Zone. The Hualilan (local indigenous name for "land of gold") Gold Project is located in San Juan province Argentina.

All of the upgraded 2023 MRE is located on Mina's or Mining Licenses while the overall Hualilan Gold Project consists of a district scale 600 square kilometres of tenements . This is held via a combination of - 235 square kilometres granted to the Company containing the upgraded 2023 MRE; and strike extensions 5 kilometres north and south; and - 329 square kilometres pending formal grant to the Company which has been registered to CEL in the Mining Cadastre of San Juan. Access to the project is excellent with a double lane sealed highway covering the 120 kilometres from San Juan City, the regional capital and major mining hub, to within 400 metres from the project.

San Juan City has several drilling, geophysical, and mining services companies, assay laboratories, a base of skilled mining workers contractors, and direct rail access to Rosario Port 650 kilometres away which has bulk materials handling facilities. The project is at 1200 metres elevation and both drilling and field exploration can proceed all year round. Geology of Hualilan Gold Project The Project is the site of extensive zinc skarn mineralisation with a gold overprint which makes it a somewhat unique style of mineralisation.

Commonly zinc skarns occur in continental settings associated convergent tectonic plate margins as is the case at Hualilan, located in the pre-cordillera of the western South American convergent plate margin. Zinc skarns commonly contain high grade zinc, lead, and silver although zinc is usually dominant. Mineralisation and skarn alteration at Hualilan occurs in all three main rock types.

1. Limestone (San Juan Formation of Ordovician age) contains high grade mineralisation (manto style) controlled by bedding parallel faults, cross faults, and contacts with other rock types. 2. Shale and sandstone (of Silurian age) contains lower grade replacement style skarn mineralisation which preferentially occurs parallel to bedding with 30m of the Limestone contact. 3. Dacitic intrusions (of Mid-Miocene age) contain stockwork fracture and locally breccias which host lower grade skarn mineralisation.