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CHALLENGER LIMITED Director's Dealing 2011

Sep 5, 2011

64641_rns_2011-09-05_b5514907-35cb-458f-a6bd-72c7d19824a0.pdf

Director's Dealing

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Appendix 3Y Change of Director’s Interest Notice

Rule 3.19A.2

Appendix 3Y

Change of Director’s Interest Notice

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 30/09/01 Amended 01/01/11

Name of entity Challenger Limited ABN 85 106842371

We (the entity) give ASX the following information under listing rule 3.19A.2 and as agent for the director for the purposes of section 205G of the Corporations Act.

the Corporations Act.
Name of Director Dominic Stevens
Date of last notice 4 March 2011

Part 1 - Change of director’s relevant interests in securities In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust

Note: In the case of a company, interests which come within paragraph (i) of the definition of “notifiable interest of a director” should be disclosed in this part.

disclosed in this part.
Direct or indirect interest Direct and Indirect
Nature of indirect interest(including registered holder)Note:Providedetailsofthecircumstances giving rise to therelevant interest. 200,000 shares are held by thetrustee of EmandomSuperannuation Fund.
Date of change 6 September 2011
No. of securities held prior to**change ** 1,067,555 ordinary shares5,800,000 options
Class Options and Ordinary Shares
Number acquired 5,800,000sharesacquiredonexercise of options
Number disposed 5,800,000 options exercised
  • See chapter 19 for defined terms.

01/01/2011 Appendix 3Y Page 1

Appendix 3Y Change of Director’s Interest Notice

Value/ConsiderationNote: If consideration is non-cash,providedetailsandestimatedvaluation $13,640,000 paid for exercise ofoptions
No.ofsecuritiesheldafterchange 6,867,555 ordinary shares
Nature of changeExample:on-markettrade,off-market trade, exercise of options,issue of securities under dividendreinvestment plan, participation inbuy-back Exercise of options pursuant toChallenger Performance Plan Rules

Part 2 – Change of director’s interests in contracts

Note: In the case of a company, interests which come within paragraph (ii) of the definition of “notifiable interest of a director” should be disclosed in this part.

Detail of contract Performance RightsAs previously disclosed, Mr Stevens holds1,303,290 performance rights under theChallenger Performance Plan.Funding ArrangementsIn order to fund the payment of the optionexercise price and to enable continuingownership of 5,800,000 ordinary shares inChallenger Limited, Mr Stevens has enteredinto a loan agreement and a related collaragreementwithanInvestmentBank(FundingArrangements).Thesearrangementssecuretheloanwhilstproviding Mr Stevens with ongoing economicexposure, within a range of prices, to5,800,000 ordinary shares in ChallengerLimited.The information below in this Part 2 relatesto the Funding Arrangements.
Nature of interest Funding Arrangements which include a collarwith reference to 5,800,000 ordinary sharesinChallengerLimited,subjecttoadjustments pursuant to that contract.
  • See chapter 19 for defined terms.

Appendix 3Y Page 2

01/01/2011

Appendix 3Y Change of Director’s Interest Notice

Nameofregisteredholder(if issued securities) Mr Stevens
Date of change 30 August 2011
No.andclassofsecuritiestowhichinterest related prior tochangeNote:Detailsareonlyrequired for a contract inrelation to which the interesthas changed Nil
Interest acquired Interest under the Funding Arrangements inrespect of 5,800,000 ordinary shares inChallenger Limited.
Interest disposed n/a
Value/ConsiderationNote:Ifconsiderationisnon-cash,providedetailsand an estimated valuation Market based interest payable under theFunding Arrangements.
Interest after change Interest under the Funding Arrangements inrespect of 5,800,000 ordinary shares inChallenger Limited.

Part 3 –[+] Closed period

Were the interests in the securities orcontracts detailed above traded during a+closedperiodwherepriorwrittenclearance was required? no
Ifso,waspriorwrittenclearanceprovided to allow the trade to proceedduring this period? n/a
If prior written clearance was provided,on what date was thisprovided? n/a
  • See chapter 19 for defined terms.

01/01/2011 Appendix 3Y Page 3