A never-say-die approach to racing turned out to be the difference between winning and losing for Chaparro in the Grand Annual Steeplechase at Warrnambool on Thursday.

In a desperate and memorable end to a race that provides a test of character for horse and jockey like few others in Australia, Chaparro came back from the brink of defeat to beat Palmero.

After jumping 33 fences, Chaparro had four lengths to make up in the straight but he lifted late to deny Tuesday's Brierly Steeplechase winner Palmero a rich Warrnambool jumps double.

Trainer Patrick Payne could only marvel at Chaparro's brave finish to win by three quarters of a length despite a history of wind issues that have threatened to end his career.

"I think he only works on 80 per cent capacity but he just kept coming," Payne said.

"He still makes a bit of a turbulence noise but he's got such a good engine."

Chaparro, an $8 chance, raced well off the speed for jockey Richard Cully while New Zealand visitor Rangitara set a strong gallop with Palmero trailing him the first lap and a half.

Palmero went to the lead as the field made the sharp right turn after completing the Tozer Road double for the second time but Chaparro began to improve from the 1000 metres.

A $3.30 second favourite, Palmero jumped the last in front but was unable to withstand Chaparro's finish.

The Grand Annual win capped a terrific homecoming for Cully, who left Australia for Ireland as a 15-year-old before moving to Victoria a year ago after spending six years in New Zealand.

"It is by far my biggest win and Warrnambool is a great place to get it," Cully said.

Palmero's jockey Steven Pateman praised his mount's courage despite conceding 5kg to the winner.

"It was such a brave effort but the weight pull the winner had was just too much," Pateman said.

On-course punters backed Chaparro's stablemate Lord Of The Song from $3.10 to start favourite at $2.60 but the Great Eastern Steeplechase winner never looked a serious winning chance, finishing 18 lengths from the winner in third place.

Jockey Brad McLean said Lord Of The Song made mistakes at three fences, ending his chances of finishing closer.