Challenger Acquisitions : Final Results

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, WITHIN, INTO OR IN THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN.

For immediate release 28 April 2017

("Challenger" or the "Company")

Challenger Acquisitions Limited (LSE: CHAL), is pleased to announce its final results for the period ended 31 December 2016.

2016 was a difficult year for Challenger due to delays in funding the Jakarta project, the first project in the pipeline of Giant Observation Wheels ("GOW"). This resulted in a structural shift in our Company. In early 2017 we concluded a transaction which the Board determined would be most prudent for the short and long-term growth prospects of Challenger - to divest our ownership interest in Starneth. This extinguishes all of our cash obligations to Starneth whilst still maintaining our relationship with Starneth and therefore the pipeline to ensure that we might benefit from the development of future projects.

Despite a difficult year, there were a number of positive elements during 2016 including the appointment, in January, of two senior non-executive directors with broad experience in the public market space. In addition, there were several construction updates on the New York Wheel during the year, with approximately half of the US$590 million project spent to 31 December 2016 and all of the below ground work completed. The project, which is 50% larger than the iconic London Eye, is actively progressing and the opening is scheduled in 2018 with an estimated 3.5 million visitors expected annually.

Continued delays in the commencement of work on the Jakarta wheel, specifically due to the prolonged bank financing process, and slow progress with other projects in the pipeline placed significant strain on the Company's finances. The inability of Starneth to close any GOW projects in 2016 had multiple impacts. An extension agreement with the Starneth vendors had to be negotiated and concluded in the third quarter, funding options were severely limited in the third and fourth quarters, and on-going conversions of convertible notes were executed at decreasing share prices. Consequently, in order to protect shareholder value, negotiations commenced in the fourth quarter to sell the Starneth business back to the original majority vendor.

During the year the Directors made a critical decision to dispose of Starneth and eliminate the monthly cash obligations and associated vendor payments. This transaction was completed on 30 January 2017, resulting in the extinguishment of all cash obligations on Challenger, potential consideration to Challenger of up to US$6 million contingent on closing future GOW projects and the signing of an on-going cooperation agreement between Challenger and Starneth. In line with this readjustment of the Company, three directors retired from the Board and one new director was added. Additionally, cost control measures were implemented in order to preserve cash resources and one of the convertible notes was extended to March 2018 with management continuing to make progress with the remaining note holders.

We still believe in the strategy of generating long term returns from equity stakes in attractions globally, especially with our equity interest in the New York Wheel. Challenger is the only publicly listed company with an equity stake (US$3million) in this project. However, we are now considering other opportunities in the attractions and related sectors to create shareholder value. With this in mind we are working to identify additional acquisition opportunities and we look forward to updating the market on these matters in due course.

In the meantime, on behalf of the Challenger Board we would like to take this opportunity to thank our shareholders, note holders and all stakeholders for their patience and support during what has been a challenging year and we look forward to providing more news during this transitional year for your company.

Mark Gustafson

Chief Executive Officer 28 April 2017

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

Challenger (LSE: CHAL) has a US$3 million equity interest in the US$590 million New York Wheel Project and is currently focusing on appraising additional opportunities in the attractions sector.

Challenger was formed in November 2014 to undertake one or more acquisitions in the entertainment and leisure sectors with a particular focus on the attractions sector.

The Company was admitted to the Official List by way of a Standard Listing and commenced trading on the London Stock Exchange's main market for listed securities on 19 February 2015. The US$3 million investment in the New York Wheel was announced on 26 May 2015 along with an agreement to purchase a select group of Starneth companies, which resulted in the suspension of trading in the Company's shares. The acquisition of the Starneth companies was closed on 15 July 2015. The Company's shares were readmitted for trading on 8 December 2015. There were no Giant Observation Wheel contracts closed by Starneth in 2016. The sale of the Starneth group of companies was announced on 30 January 2017.

The Company has been financed by equity raised from the IPO and the issue of multiple convertible notes in 2015 (£3 million) and in 2016 (£2.8 million). The convertible notes have provided timely access to funding and we expect them to remain a feature of the Company's funding structure going forward.

On 26 May 2015 Challenger announced its participation as an equity investor in the US$590 million New York Wheel Project which is currently under construction and is targeted to open in 2018. Challenger has invested US$3 million in New York Wheel Investor LLC, the company set up to fund the equity component for the New York Wheel Project.

The New York Wheel Project ("NYW Project") is a large entertainment complex currently being built on the New York Harbour, which will feature a 630-foot Giant Observation Wheel, a 68,000 square foot terminal and retail building, a 950 space parking garage and a 5,000-person capacity green roof for events.

Approximately US$300 million has been spent on the NYW Project to 31 December 2016, with major developments so far including:

• The foundation for the GOW pad is now complete (8,000 cubic yards of concrete

  and 1,800 tons of structural steel). The four leg pedestals (totalling 90 tonnes apiece) have been fabricated.

• The majority of the parking garage is now operational (825 of the 950 spaces). It

  is operating under a Temporary Certificate of Occupancy whilst the Mechanical Electrical Plumbing work is being completed.

• A 465ft crane has arrived at the Brooklyn prep site to start the erection process

  for some of the main components for the GOW.

• The terminal building is structurally complete with most MEP including escalators installed. The curtain wall is scheduled to begin installation in May.

• The legs for the wheel have arrived in the South Brooklyn Marine Terminal. Each of the four legs weighs 550 tonnes, measuring 18 feet wide and 275 feet tall.

• Manufacturing continues on the other major components such as the rim, cables, spindle, drive towers, capsules, electrical and control cabinets, etc. All elements are 75% or more completed.

Construction commenced in May 2015 with the grand opening scheduled in 2018 with an estimated 3.5 million annual visitors expected. The GOW, which will be 50% larger than the London Eye, will provide passengers with a panoramic view of major landmark sites, including the New York Harbour, the Statue of Liberty, the Verrazano Bridge, Staten Island and the Lower Manhattan skyline.

For more information see www.newyorkwheel.com, which includes a live webcam of the construction site.

The sale of Starneth, announced on 30 January 2017, provides for three key elements: contingent consideration for Challenger, an on-going cooperation agreement for Challenger to provide potential funding options for the developers of select Giant Observation Wheel projects, and the extinguishing of all cash obligations owing by Challenger relating to Starneth. The new owner is a company controlled by the former CEO of Starneth.

Upon closing of at least two major development projects by Starneth over the next two years, including the Giant Observation Wheel project in Jakarta, Challenger will receive up to US$6 million in fees less a payment of â'¬1.25 million related to the cash payment that Challenger was due to pay to the former Starneth vendors from the original acquisition. One common equity unit of New York Wheel LLC will continue to be pledged to the former Starneth vendors until this payment of â'¬1.25 million has been completed. Following the sale of Starneth, Challenger will retain its equity stake in the New York Wheel LLC, with a minimum of two equity units and up to three equity units depending on the closure of at least one project by Starneth in the next two years.

The cash fees of up to US$6 million that Challenger would receive are based on two fee agreements signed with the new owners of Starneth and are calculated based on the incoming cash receipts from the developers for these projects. The cash payment of

â'¬1.25 million from Challenger is completely contingent on these projects commencing

and paid only once Challenger starts receiving these cash fees.