• Final permit awarded to commence drill and blast operations for toll milling at Hualilan
• Toll milling agreement secures processing of 450,000t of Hualilan material over 3 years
• Toll milling PFS demonstrates outstanding economics, including EBITDA of US$142.8M and post-tax free cash flow of US$91.8M

Challenger Gold Limited (ASX:CEL) has announced that its Argentinian subsidiary, Golden Mining S.A., has been awarded a permit for blasting for Toll Milling. The permit, Registration Number 98000817, was awarded by the Ministry of National Security Argentina and approves the blasting project at Hualilan presented by Orica Argentina on behalf of the Company. This permit is the final permit required to allow the Company to commence drill and blast operations for Toll Milling at Hualilan. The Company has executed a binding Agreement with Casposo Argentina Mining Limited, the operator of the Casposo Plant located in San Juan Argentina. This Toll Milling Agreement secures processing of a minimum of 450,000t of near surface Hualilan mineralised material over 3 years. The Casposo Plant has historically produced over 323,000 ounces of gold and 13.2 million ounces of silver. The primary objective of the Toll Milling strategy is to capitalise on the current high gold price (above US$3,300/oz) to generate early cash flow, which will be allocated towards the construction of the larger standalone Hualilan Gold project. The Company recently released a PFS for Toll Milling demonstrating outstanding economics, including EBITDA of US$142.8M and post-tax free cash flow of US$91.8M at today's spot prices.

The Toll Milling PFS demonstrates robust margins, with EBITDA of US$142.8M and post-tax NPV5 of US$82.2M at current spot prices of ~US$3,300/oz Au and US$33/oz Ag. The three-year toll-milling plan is expected to generate cumulative post-tax-free cash flow of US$91.8M.