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Hot Chili Intersects Significant Copper-Gold Porphyry-style Mineralisation at La Verde

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Hot Chili has confirmed a significant copper-gold discovery at La Verde, located 30km south of their Costa Fuego Project in Chile. Key drilling results include a 202m intersection grading 0.6% copper and 0.3g/t gold from 70m depth. The first two drill holes of a 4,000m program have shown promising results, with DKP002 recording 308m grading 0.5% Cu and 0.3g/t Au.

La Verde's porphyry footprint measures approximately 850m by 700m, comparable to the Company's Cortadera Cuerpo 3 deposit. The program has been expanded to 6,000m with results pending for 10 more drill holes. The company maintains a strong financial position with A$25.7 million in treasury as of September 2024, and plans to release the Costa Fuego PFS and Water Supply Business Case Study PFS in Q1 2025.

Hot Chili ha confermato una significativa scoperta di rame-oro a La Verde, situata a 30 km a sud del loro progetto Costa Fuego in Cile. I principali risultati di perforazione includono un'intersezione di 202 m che ha registrato uno grado di 0,6% di rame e 0,3 g/t di oro a partire da 70 m di profondità. I primi due fori di perforazione di un programma di 4.000 m hanno mostrato risultati promettenti, con DKP002 che ha registrato 308 m con un grado di 0,5% di Cu e 0,3 g/t di Au.

Il footprint della porfiria di La Verde misura circa 850 m per 700 m, comparabile con il deposito Cortadera Cuerpo 3 dell’azienda. Il programma è stato ampliato a 6.000 m con risultati ancora in attesa per altri 10 fori di perforazione. L'azienda mantiene una posizione finanziaria solida con 25,7 milioni di dollari australiani in tesoreria a settembre 2024 e prevede di rilasciare lo studio di fattibilità del Costa Fuego e lo studio di fattibilità del caso di approvvigionamento idrico nel primo trimestre del 2025.

Hot Chili ha confirmado un importante descubrimiento de cobre-oro en La Verde, ubicado a 30 km al sur de su proyecto Costa Fuego en Chile. Los principales resultados de perforación incluyen una intersección de 202 m con una ley de 0.6% de cobre y 0.3 g/t de oro desde 70 m de profundidad. Los dos primeros pozos de un programa de 4,000 m han mostrado resultados prometedores, con DKP002 registrando 308 m con una ley de 0.5% de Cu y 0.3 g/t de Au.

La huella de pórfido de La Verde mide aproximadamente 850 m por 700 m, comparable al depósito Cortadera Cuerpo 3 de la empresa. El programa se ha ampliado a 6,000 m con resultados pendientes de otros 10 pozos de perforación. La empresa mantiene una sólida posición financiera con 25.7 millones de dólares australianos en tesorería a partir de septiembre de 2024, y planea publicar el estudio de viabilidad de Costa Fuego y el estudio de viabilidad del caso de suministro de agua en el primer trimestre de 2025.

핫 칠리는 칠레 코스타 후에고 프로젝트에서 남쪽으로 30km 떨어진 라 베르데에서 중요한 구리-금 발견을 확인했습니다. 주요 시추 결과는 70m 깊이에서 0.6% 구리 및 0.3g/t 금의 등급을 기록한 202m의 교차 지점을 포함합니다. 4,000m 프로그램의 첫 두 개의 시추 구멍은 유망한 결과를 보여주었으며, DKP002는 0.5% Cu 및 0.3g/t Au의 등급을 기록한 308m을 기록했습니다.

라 베르데의 포르피리 발자국은 약 850m x 700m로, 회사의 코르타데라 쿠에르포 3 매장지와 유사합니다. 이 프로그램은 6,000m로 확대되었으며, 추가 10개의 시추 구멍에 대한 결과는 대기 중입니다. 회사는 2024년 9월 기준으로 2,570만 호주 달러의 재무 자산을 보유하고 있으며, 2025년 1분기에 코스타 후에고의 사전 타당성 연구 및 수자원 공급 사업 사례 연구의 사전 타당성 연구를 발표할 계획입니다.

Hot Chili a confirmé une importante découverte de cuivre-or à La Verde, située à 30 km au sud de son projet Costa Fuego au Chili. Les principaux résultats de forage comprennent une intersection de 202 m avec une teneur de 0,6 % de cuivre et de 0,3 g/t d'or à partir de 70 m de profondeur. Les deux premiers puits d'un programme de 4 000 m ont montré des résultats prometteurs, le DKP002 enregistrant 308 m avec une teneur de 0,5 % de Cu et de 0,3 g/t d'Au.

L'emprise porphyrique de La Verde mesure environ 850 m sur 700 m, comparable au dépôt Cortadera Cuerpo 3 de l'entreprise. Le programme a été étendu à 6 000 m, et les résultats de 10 autres puits de forage sont encore en attente. L'entreprise maintient une position financière solide avec 25,7 millions AUD en trésorerie en septembre 2024 et prévoit de publier l'étude de faisabilité de Costa Fuego et l'étude de faisabilité du cas d'approvisionnement en eau au premier trimestre 2025.

Hot Chili hat eine bedeutende Kupfer-Gold-Entdeckung bei La Verde bestätigt, das 30 km südlich ihres Costa Fuego Projekts in Chile liegt. Zu den wichtigsten Bohrergebnissen gehört eine 202 m umfassende Intersektion mit einem Gehalt von 0,6% Kupfer und 0,3 g/t Gold aus 70 m Tiefe. Die ersten beiden Bohrlöcher eines Programms von 4.000 m haben vielversprechende Ergebnisse gezeigt, wobei DKP002 308 m mit einem Gehalt von 0,5% Cu und 0,3 g/t Au verzeichnete.

Der Porphyr-Fußabdruck von La Verde misst etwa 850 m mal 700 m und ist vergleichbar mit dem Cortadera Cuerpo 3 depósitos des Unternehmens. Das Programm wurde auf 6.000 m ausgeweitet, während die Ergebnisse von 10 weiteren Bohrlöchern ausstehen. Das Unternehmen hält eine starke finanzielle Position mit 25,7 Millionen AUD in der Staatskasse im September 2024 und plant, im ersten Quartal 2025 die Machbarkeitsstudie für Costa Fuego und die Machbarkeitsstudie zum Wasserversorgungswirtschaftsfall zu veröffentlichen.

Positive
  • Significant copper-gold discovery with high-grade intersections (202m @ 0.6% Cu, 0.3g/t Au)
  • Large porphyry footprint comparable to established Cortadera deposit
  • Strong treasury position of A$25.7 million
  • Mineralization remains open in all directions
  • Drill program expanded from 4,000m to 6,000m due to promising results
Negative
  • None.

202m grading 0.6% Copper, 0.3g/t Gold from 70m depth

Hot Chili geologist reviewing drill chips from drill hole DKP002 at La Verde (CNW Group/Hot Chili Limited)

Highlights

  • First drill hole (DKP001) at La Verde intersects intercepts 174m grading 0.4% copper (Cu), 0.1g/t gold (Au) from 36m depth
  • Second drill hole (DKP002), located 120m southeast of DKP001, recorded 308m grading 0.5% Cu and 0.3g/t Au from 46m depth to end of hole
    • including 202m grading 0.6% Cu, 0.3g/t Au from 70m depth
    • which includes 100m grading 0.7% Cu, 0.3g/t Au from 118m depth
  • Results for 10 more drill holes pending and drill program expanded to 6,000m
  • La Verde's porphyry footprint, measures approximately 850m by 700m; comparable to Hot Chili's higher-grade Cortadera Cuerpo 3 copper-gold porphyry, located 30km north
  • Costa Fuego Copper-Gold Project Pre-feasibility Study (PFS) and Huasco Water PFS advancing towards release in Q1, 2025
  • Treasury of approximately A$25.7 million as of 30 September 2024

PERTH, Australia, Dec. 18, 2024 /PRNewswire/ - Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) ("Hot Chili" or the "Company") is pleased to confirm a significant copper-gold discovery, located approximately 30km south of the Company's Costa Fuego Copper-Gold Project's ("Costa Fuego" or "the Project") planned central processing hub in the coastal range of the Atacama region, Chile.

Assay results for the first two drill holes of a 4,000m drill programme being undertaken across the recently secured La Verde porphyry copper-gold target have returned a wide drilling intersection of 202m grading 0.6% Cu, 0.3g/t Au from 70m depth within a broader intersection of 308m grading 0.5% Cu and 0.3g/t Au from 46m depth to end of hole.

La Verde is part of Hot Chili's recent consolidation of the Domeyko landholding where the Company earlier executed the La Verde Option Agreement (see announcement dated 11th November 2024), which for the first time consolidated and provided access to drill test a large potential porphyry copper target footprint.

The historical La Verde open pit mine was previously exploited by private interests for shallow porphyry copper-style oxide mineralisation with limited drill testing outside the central lease or to depth.

A total of twelve RC drill holes for approximately 3,150m are complete with results returned for the first two Reverse Circulation (RC) holes of the first-pass drill programme. The first two drill holes (DKP001 and DKP002) were designed to (1) validate historic drilling intercepts, and (2) test the interpreted northern extension of the porphyry from the previously exploited open pit, respectively.

Drill hole DKP001 was successful in validating the most notable copper intercept from historic exploration drill results, returning a broad significant intersection containing multiple higher-grade zones:

DKP001 returned 174m grading 0.4% Cu, 0.1g/t Au from 36m depth

    • including 10m grading 0.6% Cu, 0.1g/t Au from 72m, and
    • including 26m grading 0.5% Cu, 0.1g/t Au from 96m, and
    • including 22m grading 0.6% Cu, 0.2g/t Au from 144m

Drill hole DKP002 was located approximately 120m southeast of DKP001, with assay results returning a drill intersection, that exceeded the Company's expectations and suggests potential for a higher- grade copper-gold zone within the La Verde porphyry:

A total of 308m grading 0.5% Cu, 0.3 g/t Au from 46m depth

    • including 202m grading 0.6% Cu, 0.3 g/t Au from 70m depth,
    • which includes 100m grading 0.7% Cu, 0.3 g/t Au from 118m depth

These consistent higher-grade results confirm the extension of the porphyry system almost 400m to the north-east of the open pit, a significant step out considering the existing pit measures approximately 200m x 400m. The higher-grade mineralisation is also located immediately beneath a gravel cover sequence which obscures the ultimate extent of the porphyry system. Oxide mineralisation is associated with copper clays and chalcocite up to approximately 80m vertical depth from surface with the primary sulphide mineralisation associated with chalcopyrite and pyrite.

Mineralisation appears to be open in all directions and where the system remains under cover.

Assay results are pending for ten RC drill holes, for which visual logging confirmed porphyry-style mineralisation associated with A- and B-type porphyry veining. Preliminary geological modelling indicates a +1% A + B vein footprint of ~850 m by ~700 m (refer to Figure 3a), based on detailed surface mapping and downhole logging.

The La Verde footprint is comparable to the +1% A + B vein footprint at Cuerpo 3 (1,000m by 750m) at the Company's Cortadera porphyry copper-gold deposit, located 30km to the north (refer to Figure 3b). Cuerpo 3 is the largest of Cortadera's three porphyries, a cornerstone to Costa Fuego's Indicated mineral resource base of 798Mt grading 0.45% CuEq for 3.6Mt Cu and 3.0Moz Au1 and Inferred2 mineral resource of 203Mt grading 0.31% CuEq for 0.5Mt Cu and 0.4Moz Au.

The Company is particularly pleased with the high gold to copper ratio returned in drill hole DKP002 with additional results pending.

Hot Chili has expanded the first-pass RC drill programme with an additional 2,000m planned, now expected to be complete in late January 2025.

Hot Chili has a strong balance sheet with A$25.7 million in cash (as of 30 September 2024) and continues to advance two key development milestones planned for release in the first quarter of 2025 – Costa Fuego PFS and Water Supply Business Case Study PFS.

The Company looks forward to providing further updates as additional drill results are returned and exploration drilling activities progress at La Verde.

This announcement is authorised by the Board of Directors for release to ASX and TSXV.

For more information please contact:

Christian Easterday

Managing Director – Hot Chili

Tel:              +61 8 9315 9009

Email: admin@hotchili.net.au

Carol Marinkovich

Company Secretary – Hot Chili

Tel:              +61 8 9315 9009

Email: admin@hotchili.net.au

Graham Farrell

Investor & Public Relations

Email: graham@hotchili.net.au

or visit Hot Chili's website at www.hotchili.net.au

1

Copper equivalent. See page 10 for the basis for CuEq calculations.

2

Inferred mineral resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorised as Mineral Reserves. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Measured or Indicated Mineral Resource with continued exploration. See page 10 for details of the mineral resource estimate.

Figure 1. Location of La Verde in relation to Costa Fuego, coastal range Chile (CNW Group/Hot Chili Limited)

Table 1. Significant Drilling Intersections from La Verde

Hole ID

Coordinates


 

Dip

Hole Depth

Intersection

Interval

Copper

Gold

Silver

Molybdenum

North

East

RL

From

To

(m)

(% Cu)

(g/t Au)

(ppm Ag)

  (ppm Mo)

DKP0001

6786079

324546

1153

89

-59

390

28

390

362

0.3

0.1

0.5

33

Mineralised to end of hole at 390m depth



Or

36

210

174

0.4

0.1

0.6

24







Incl

40

82

42

0.4

0.1

0.5

10







Or Incl

72

82

10

0.6

0.1

0.3

10







And incl

96

122

26

0.5

0.1

0.9

20







And incl

144

166

22

0.6

0.2

0.7

49







And incl

248

272

24

0.4

0.1

1.0

54

DKP0002

6785967

324835

1202

270

-60

354

46

354

308

0.5

0.3

0.6

11

Mineralised to end of hole at 354m depth



Incl

70

272

202

0.6

0.3

0.6

14







Incl

76

90

14

0.8

0.4

0.3

6







And incl

118

218

100

0.7

0.3

0.8

15







And incl

178

198

20

0.8

0.4

1.0

11







Or Incl

186

190

4

0.9

0.5

1.0

11

DKP0003

6785963

324836

1202

117

-59

282

Results Pending

DKP0004

6785831

324421

1123

90

-60

120

Results Pending

DKP0005

6785792

324552

1167

91

-60

248

Results Pending

DKP0006

6785717

324722

1178

110

-60

200

Results Pending

DKP0007

6785846

324746

1148

270

-60

204

Results Pending

DKP0008

6785854

324745

1145

5

-60

324

Results Pending

DKP0009

6786068

324546

1151

131

-60

354

Results Pending

DKP0010

6786097

324436

1160

209

-60

276

Results Pending

DKP0011

6786097

324436

1160

91

-60

326

Results Pending

DKP0012

6785967

324835

1202

299

-60

72

Currently drilling, results pending

Notes to Table 1: Significant intercepts for La Verde are calculated above a nominal cut-off grade of 0.2% Cu. Where appropriate, significant intersections may contain up to 30m down-hole distance of internal dilution (less than 0.2% Cu). Significant intersections are separated where internal dilution is greater than 30m down-hole distance. The selection of 0.2% Cu for significant intersection cut-off grade is aligned with marginal economic cut-off grade for bulk tonnage polymetallic copper deposits of similar grade in Chile and elsewhere in the world.

Figure 2. Plan view map of the La Verde porphyry system showing the significant intercepts of DKP001 and DKP002 compared to historic drill collars, open pit extent (white), in pit geological mapping, +<percent>1%</percent> A+B vein footprint from mapping and drillholes (blue) and logged copper mineralisation footprint from historic logging (yellow). (CNW Group/Hot Chili Limited)

Figure 3a (Left) Plan view map of La Verde showing the +<percent>1%</percent> A+B vein footprint from mapping and drillholes (blue) and strong copper mineralisation footprint (light pink) relative to the copper mineralisation footprint from historic logging (yellow) with the recently acquired ground magnetic survey reduced to the pole (RTP).
Figure 3b (Right) Plan view map of Cuerpo 3 at Cortadera showing the +<percent>1%</percent> A+B vein footprint (from drillholes) relative to the +<percent>0.1%</percent> copper (yellow), +<percent>0.4%</percent> copper (light pink) and +<percent>0.6%</percent> copper (dark pink) interpolants with the ground magnetics survey reduced to the pole (RTP). Black arrows and distances indicate the length and width of +<percent>1%</percent> A+B vein footprints. (CNW Group/Hot Chili Limited)

Mineral Resource Statement - Costa Fuego Combined Mineral Resource (Effective Date 26th February 2024) (CNW Group/Hot Chili Limited)

Qualifying Statements

Qualified Person – NI 43-101

The technical information in this news release has been reviewed and approved by Mr. Christian Easterday, MAIG, Hot Chili's Managing Director and a qualified person within the meaning of NI43-101.

Competent Person – JORC

The information in this announcement that relates to Exploration Results for the La Verde project is based upon information compiled by Mr Christian Easterday, the Managing Director and a full-time employee of Hot Chili Limited, who is a Member of the Australasian Institute of Geoscientists (AIG). Mr Easterday has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity which he is undertaking to qualify as a 'Competent Person' as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (JORC Code). Mr Easterday consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

Disclaimer

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this Report.

Forward Looking Statements

This announcement contains certain statements that are "forward-looking information" within the meaning of Canadian securities legislation and Australian securities legislation (each, a "forward-looking statement"). Forward-looking statements reflect the Company's current expectations, forecasts, and projections with respect to future events, many of which are beyond the Company's control, and are based on certain assumptions. No assurance can be given that these expectations, forecasts, or projections will prove to be correct, and such forward-looking statements included in this report should not be unduly relied upon. Forward-looking information is by its nature prospective and requires the Company to make certain assumptions and is subject to inherent risks and uncertainties. All statements other than statements of historical fact are forward-looking statements. The use of any of the words "could", "estimate", "expect", "expectations", "interpreted", "may", "plan", "planned", "potential", "project", "should", "will", "would" and similar expressions are intended to identify forward-looking statements.

The forward-looking statements within this announcement are based on information currently available and what management believes are reasonable assumptions. Forward-looking statements speak only as of the date of this report.

In this announcement, forward-looking statements relate, among other things, to: prospects, projections and success of the Company and its projects; the ability of the Company to expand mineral resources beyond current mineral resource estimates, including at La Verde; the results and impacts of planned drilling to extend mineral resources and to identify new deposits, including at La Verde; the metallurgical recoveries of any oxide and/or sulphide mineral resources defined at La Verde; the economics of any mineral resources defined at La Verde; the Company's ability to convert exploration potential into mineral resources, such as at La Verde; the Company's ability to explore effectively and execute drilling operations in a timely manner, including at La Verde; the Company's ability to fulfill obligations and exercise the La Verde and Domeyko Option Agreements; the Company's ability to convert mineral resources currently defined and those that may be defined through additional drilling to mineral reserves; the timing and outcomes of current and future planned economic studies including the planned PFS for the Costa Fuego copper-gold project; the potential to develop a water business in the Huasco valley and the future economics thereof; the timing and results of the PFS level Water Supply Business Case Study; the timing and outcomes of regulatory processes required to obtain permits for the development and operation of the Costa Fuego Project, including the EIA, as well as for the Huasco Water business and any mineral resources that may be defined at La Verde; whether or not the Company will make a development decision for the Costa Fuego Project and/or Huasco Water and the timing thereof; and estimates of planned exploration costs and the results thereof.

Forward-looking statements involve known and unknown risks, uncertainties, and other factors, which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. A number of factors could cause actual results to differ materially from a conclusion, forecast or projection contained in the forward-looking statements in this announcement, including, but not limited to, the following material factors: operational risks; risks related to the cost estimates of exploration; sovereign risks associated with the Company's operations in Chile; changes in estimates of mineral resources of properties where the Company holds interests; recruiting qualified personnel and retaining key personnel; future financial needs and availability of adequate financing; fluctuations in mineral prices; market volatility; exchange rate fluctuations; ability to exploit successful discoveries; the production at or performance of properties where the Company holds interests; ability to retain title to mining concessions; environmental risks; financial failure or default of joint venture partners, contractors or service providers; competition risks; economic and market conditions; and other risks and uncertainties described elsewhere in this announcement and elsewhere in the Company's public disclosure record.

Although the forward-looking statements contained in this announcement are based upon assumptions which the Company believes to be reasonable, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this announcement, the Company has made assumptions regarding: future commodity prices and demand; availability of skilled labour; timing and amount of capital expenditures; future currency exchange and interest rates; the impact of increasing competition; general conditions in economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; future tax rates; future operating costs; availability of future sources of funding; ability to obtain financing; and assumptions underlying estimates related to adjusted funds from operations. The Company has included the above summary of assumptions and risks related to forward-looking information provided in this announcement to provide investors with a more complete perspective on the Company's future operations, and such information may not be appropriate for other purposes. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom.

For additional information with respect to these and other factors and assumptions underlying the forward- looking statements made herein, please refer to the public disclosure record of the Company, including the Company's most recent Annual Report, which is available on SEDAR+ (www.sedarplus.ca) under the Company's issuer profile. New factors emerge from time to time, and it is not possible for management to predict all those factors or to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement.

The forward-looking statements contained in this announcement are expressly qualified by the foregoing cautionary statements and are made as of the date of this announcement. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking statement to reflect events or circumstances after the date of this announcement or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise. Investors should read this entire announcement and consult their own professional advisors to ascertain and assess the income tax and legal risks and other aspects of an investment in the Company.

Mineral Resource Statement
Costa Fuego Combined Mineral Resource (Effective Date 26th February 2024)

1  Mineral Resources are reported on a 100% Basis - combining Mineral Resource estimates for the Cortadera, Productora, Alice and San Antonio deposits. All figures are rounded, reported to appropriate significant figures and reported in accordance with the Joint Ore Reserves Committee Code (2012) and NI 43-101. Mineral Resource estimation practices are in accordance with CIM Estimation of Mineral Resource and Mineral Reserve Best Practice Guidelines (November 29, 2019) and reported in accordance CIM Definition Standards for Mineral Resources and Mineral Reserves (May 10, 2014) that are incorporated by reference into NI 43-101.

2  The Productora deposit is 100% owned by Chilean incorporated company Sociedad Minera El Aguila SpA (SMEA). SMEA is a joint venture (JV) company – 80% owned by Sociedad Minera El Corazón SpA (a 100% subsidiary of Hot Chili Limited), and 20% owned by Compañía Minera del Pacífico S.A (CMP).

3  The Cortadera deposit is controlled by a Chilean incorporated company Sociedad Minera La Frontera SpA (Frontera). Frontera is a subsidiary company – 100% owned by Sociedad Minera El Corazón SpA, which is a 100% subsidiary of Hot Chili Limited.

4  The San Antonio deposit is controlled through Frontera (100% owned by Sociedad Minera El Corazón SpA, which is a 100% subsidiary of Hot Chili Limited) and Frontera has an Option Agreement to earn a 100% interest.

5  The Mineral Resource Estimates (MRE) in the tables above form coherent bodies of mineralisation that are considered amenable to a combination of open pit and underground extraction methods based on the following parameters: Base Case Metal Prices: Copper US$ 3.00/lb, Gold US$ 1,700/oz, Molybdenum US$ 14/lb, and Silver US$20/oz.

6  All MRE were assessed for Reasonable Prospects of Eventual Economic Extraction (RPEEE) using both Open Pit and Block Cave Extraction mining methods at Cortadera and Open Pit mining methods at the Productora, Alice and San Antonio deposits.

7  Metallurgical recovery averages for each deposit consider Indicated + Inferred material and are weighted to combine sulphide flotation and oxide leaching performance. Process recoveries: Cortadera – Weighted recoveries of 82% Cu, 55% Au, 81% Mo and 36% Ag. CuEq(%) = Cu(%) + 0.55 x Au(g/t) + 0.00046 x Mo(ppm) + 0.0043 x Ag(g/t)

San Antonio - Weighted recoveries of 85% Cu, 66% Au, 80% Mo and 63% Ag. CuEq(%) = Cu(%) + 0.64 x Au(g/t) + 0.00044 x Mo(ppm) + 0.0072 x Ag(g/t) Alice - Weighted recoveries of 81% Cu, 47% Au, 52% Mo and 37% Ag. CuEq(%) = Cu(%) + 0.48 x Au(g/t) + 0.00030 x Mo(ppm) + 0.0044 x Ag(g/t) Productora – Weighted recoveries of 84% Cu, 47% Au, 48% Mo and 18% Ag. CuEq(%) = Cu(%) + 0.46 x Au(g/t) + 0.00026 x Mo(ppm) + 0.0021 x Ag(g/t) Costa Fuego – Recoveries of 83% Cu, 53% Au, 71% Mo and 26% Ag. CuEq(%) = Cu(%) + 0.53 x Au(g/t) + 0.00040 x Mo(ppm) + 0.0030 x Ag(g/t)

8  Copper Equivalent (CuEq) grades are calculated based on the formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery) + (Mo ppm × Mo price per g/t × Mo_recovery) + (Au ppm

× Au price per g/t × Au_recovery) + (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne × Cu recovery). The base case cut-off grade for Mineral Resources considered amenable to open pit extraction methods at the Cortadera, Productora, Alice and San Antonio deposits is 0.20% CuEq, while the cut-off grade for Mineral Resources considered amenable to underground extraction methods at the Cortadera deposit is 0.27% CuEq. It is the Company's opinion that all the elements included in the CuEq calculation have a reasonable potential to be recovered and sold.

9  Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. The MRE include Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorised as Mineral Reserves. It is reasonably expected that the majority of Inferred mineral resources could be upgraded to Measured or Indicated Mineral Resources with continued exploration.

10  The effective date of the MRE is February 26th, 2024. The MRE were previously reported in Hot Chili's ASX announcement released February 26th, 2024 "Hot Chili Indicated Resource at Costa Fuego Copper-Gold Project Increases to 798 Mt" (Resource Announcement). Hot Chili confirms it is not aware of any new information or data that materially affects the information included in the Resource Announcement and all material assumptions and technical parameters stated for the MRE in the Resource Announcement continue to apply and have not materially changed.

11      Hot Chili Limited is not aware of political, environmental, or other risks that could materially affect the potential development of the Mineral Resources other than as disclosed in this Report. A detailed list of Costa Fuego Project risks is included in Chapter 25.12 of the Technical Report "Costa Fuego Copper Project – NI 43-101 Technical Report Mineral Resource Estimate Update" dated April 8th, 2024.

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SOURCE Hot Chili Limited

FAQ

What are the main drilling results from Hot Chili's La Verde discovery (HHLKF)?

The main drilling results include a 202m intersection grading 0.6% copper and 0.3g/t gold from 70m depth, within a broader 308m intersection grading 0.5% Cu and 0.3g/t Au from 46m depth.

How large is the La Verde porphyry footprint compared to Cortadera?

La Verde's porphyry footprint measures approximately 850m by 700m, which is comparable to Hot Chili's Cortadera Cuerpo 3 deposit (1,000m by 750m).

When will Hot Chili (HHLKF) release its Costa Fuego PFS?

Hot Chili plans to release the Costa Fuego Pre-feasibility Study (PFS) in the first quarter of 2025.

What is Hot Chili's (HHLKF) current treasury position as of September 2024?

Hot Chili has A$25.7 million in cash as of September 30, 2024.

How many drill holes are pending results at La Verde for HHLKF?

Results are pending for 10 more drill holes, with the program being expanded to 6,000m.

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