Challenger Exploration Limited has finalized an agreement to purchase 20,000 Ha of land which contains the Hualilan Project and 5 kilometres surrounding the current MRE. The acquisition will greatly simplify the permitting process as the Company progresses towards production removing the need to reach compensation and access agreements with landowners for both mining and the provision of site infrastructure, and private contracts for the supply of water. The size of the land acquisition was designed to: cover possible extensions within 5 kilometres in all directions, provide a sufficiently large enough footprint such that all mine infrastructure including the process plant, camp, office, waste dumps and Tailings Storage Facility could be located on land owned by the Company.

Under the Land Acquisition agreement the Company will make total payments of USD 1.2 million over 2 years. The first tranche payment of USD 533,333 has been completed with two additional payments of USD 333,333 payable at the end of the first and second years of the contract.