Extension Agreement with Starneth Vendors

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For Immediate Release

23 Aug 2016

Challenger Acquisitions Limited

("Challenger" or the "Company")

Extension Agreement with Starneth Vendors

Challenger Acquisitions Limited (LSE: CHAL), a leader in the Giant Observation Wheel industry, announces that it has reached agreement with the three vendors of Starneth regarding the second cash installment payment ("the Payment") that was due on 15 July 2016 (see RNS dated 16 July 2015).

The Payment of €1.25 million that was due on 15 July 2016 will now be paid on the earlier of the financial closing of the Jakarta project or 50% of the balance on 15 January 2017 and the remaining 50% of the balance on 15 April 2017. The Payment accrues interest of 5% from 16 July 2016 and is secured by one common equity unit of New York Wheel Investor LLC held by Challenger until the entire cash payment has been made.

Mark Gustafson, the Company's Chief Executive Officer said: "We wish to thank the three Starneth vendors for their flexibility on this matter. We believe the revised terms provide a more appropriate alignment of stakeholders in Challenger."

This announcement contains inside information.

**ENDS**

For more information visit www.challengeracquisitions.com or enquire to:

Notes to Editors:

Challenger (LSE: CHAL) is focused on the design, engineering, project management and investment in select giant observation wheels. By combining its world-class team of technical engineering and project management skills with proven international financial expertise, the Company is ideally positioned to become a leader in the giant observation wheel sector.

The Company, which also has a US$3 million equity interest in the US$590 million New York Wheel Project, is currently focusing on appraising approximately 25 opportunities in its project pipeline where it believes that it can utilise its expertise. With a team that has worked on four of the largest giant observation wheels constructed over the last 16 years, including the iconic London Eye, the Company is building on its unique position to deliver projects and generate shareholder value.