Challenger Exploration (ASX: CEL) (“CEL” the “Company”) is pleased to announce a first Mineral Resource Estimate (MRE) which is reported according to JORC (2012) for the Company's El Guayabo Gold Copper Project, in El Oro Province, Ecuador.

Highlights

• Initial Inferred Mineral Resource Estimate (MRE) of 270 mt at 0.52 g/t AuEq¹ for 4.5 Moz AuEq¹ at CEL's 100% owned El Guayabo Project in Ecuador (refer Table 1).
  
• The 4.5 Moz¹ MRE contains a significant higher-grade core of mineralisation (refer Table 2):
  
  • 1.45 Moz at 1.0 g/t AuEq¹ (0.65 g/t AuEq cut-off) including;
    
  • 1.01 Moz at 1.2 g/t AuEq¹ (0.8 g/t AuEq cut-off) including;
    
  • 0.63 Moz at 1.5 g/t AuEq¹ (1.0 g/t AuEq cut-off).
    
• The MRE is predominantly based on drilling at the GY-A and GY-B anomalies and is constrained by drilling with mineralisation remaining open in both directions along strike and at depth.
• MRE does not include drill holes GYDD-23-039 (805.3m at 0.6 g/t AuEq) or GYDD-23-040 to 043 (assays pending) and will be updated upon the receipt of assays for these final five holes.
• Discovery Cost of approximately US$1.20² per ounce.
  
• Transforms CEL into a two-project company with gold equivalent resources of 2.8 Moz⁴ in Hualilan and 4.5 Moz¹ in Ecuador, both of which remain open.
  
• Firm commitments received to raise $10 million by way of an institutional placement, with strong support received from domestic and offshore institutional investors
• Funds from the capital raising to be primarily applied to:
  • Completion of a Pre-Feasibility Study (PFS) at CEL's Flagship Hualilan Gold Project;
    
  • Regional exploration activities and drilling at Hualilan.

¹Reported as Gold Equivalent (AuEq) values – for requirements under the JORC Code see page 2
²Discovery cost includes cost of drilling, assaying and all GA associated with the MRE

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

“I would like to congratulate our Exploration team in Ecuador for this outstanding start. An initial resource of 4.5 million ounces¹, particularly given its higher-grade core of 1.5 Moz at 1.0 g/t AuEq, is a great start and has significant value in its own right.

It is, however, only our starting point. This resource is focused on 2 of the 7 targets at El Guayabo that have produced mineralised intercepts greater than 500 metres. Mineralisation on these two targets remains open in all directions along strike and at depth with the resource limited by a lack of drilling. Additionally, the final five holes in the program are yet to be included in the estimate which will be updated when assays for these holes are received."

This 4.5 Moz gold-equivalent¹ MRE is based on 34 drill holes, for 22,572 metres, from the Company's Phase 1 and 2 diamond core drill program at its 100% owned El Guayabo concession. The final five holes in the program, including GYDD-23-039 (805.3m at 0.6 g/t AuEq including 546.7m at 0.8 g/t AuEq) and GYDD-23-040, GYDD-23-041, GYDD-23-042 and GYDD-23-043 (all assays pending) have not been included in the MRE. Accordingly, it should be regarded as an interim resource estimate which will be updated upon the receipt of assays for the final 5 holes which comprise 3,423 metres.

This initial resource drilling program, and resultant MRE, focused primarily on the GY-A and GY-B anomalies on the Company's 100% owned El Guayabo concession. Mineralisation remains open in both directions along strike and at depth at both GY-A and GY-B and there is clear potential for the MRE to grow significantly via additional drilling on these two anomalies.

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