Hot Chili Closes A$40 Million Placement as Costa Fuego's La Verde Discovery Continues to Grow

• Hot Chili completed a A$40 million private placement in February 2026, drawing demand from Australian, Canadian and international institutional investors, as well as its three largest shareholders, Glencore, Blue Spec and GS Group.
• Global engineering firm Ausenco, which delivered the nearby Mantoverde copper project in Chile, has been appointed as lead engineer for the Costa Fuego Feasibility Study.
• The widest drill result to date at La Verde returned 725 metres grading 0.42% copper equivalent from 18 metres below surface, with the high-grade core now confirmed to extend to 800 metres depth.
• Thirteen drill results grading above 0.6% copper equivalent, all starting within 250 metres of surface, are defining a potential higher-grade starter pit for the Costa Fuego mine schedule.
• The Company closed the quarter with A$35.2 million in cash and no debt.

Hot Chili Limited (ASX/TSXV: HCH; OTCQX: HHLKF) is an Australian-based copper-gold development company focused on its Costa Fuego project, located in the Atacama region along the coast of Chile. The project encompasses multiple copper-gold deposits and is currently at Pre-Feasibility Study stage. Costa Fuego is described by the Company as one of the few large-scale copper projects globally that remains outside the control of major mining companies, with the potential to contribute to new copper supply this decade. The La Verde copper-gold discovery, which is subject to active drilling and a pending maiden mineral resource estimate, forms part of the broader Costa Fuego project.

A$40 Million Placement and Ausenco Feasibility Study Appointment

In February 2026, Hot Chili closed a A$40 million placement at A$1.65 per share on the ASX and CAD$1.56 per share on the TSXV, issuing approximately 24.2 million new shares in total. The raise drew demand from institutional investors across Australia, Canada and overseas, and was supported by the Company's three largest shareholders, Glencore, Blue Spec and GS Group.

Proceeds are intended to fund several workstreams across the Costa Fuego project. These include accelerating drilling at La Verde to deliver a maiden mineral resource estimate, progressing the Feasibility Study, completing and lodging the Environmental Impact Assessment (EIA), advancing the Huasco Water Project, and funding ongoing exploration, strategic activities and general working capital.

On the engineering side, Hot Chili appointed Ausenco as lead engineer for the Costa Fuego Feasibility Study. Ausenco was selected following a review of major engineering groups with a presence in Chile. The Company cited Ausenco's involvement in the engineering, procurement, construction and ramp-up of the Mantoverde copper project, a comparably scaled coastal operation located near Costa Fuego, as a key factor in the appointment.

Major High-Grade Extensions at La Verde Copper-Gold Discovery

Drilling at La Verde continued through the March 2026 quarter, with a second drill rig mobilised in February. The standout result came from drill hole DKD039, which returned 725 metres grading 0.42% copper equivalent (a measure combining copper, gold and other metals into a single grade figure) from 18 metres below surface, the widest single intersection recorded at La Verde to date. The hole extended near-surface high-grade mineralisation approximately 60 metres further to the west and confirmed a 200-metre down-dip extension of the high-grade core, with 62 metres grading 1.03% copper equivalent recorded at 671 metres depth.

The confirmed depth of the deposit has now doubled to 800 metres from surface, with the high-grade core expanded both laterally and at depth. Additional results returned during the quarter from drill holes DKD035 and DKD036 recorded 220 metres grading 0.47% copper equivalent from 38 metres and 150 metres grading 0.52% copper equivalent from 30 metres respectively, both commencing immediately beneath shallow gravel cover. Thirteen intersections grading above 0.6% copper equivalent now define a 450-metre by 400-metre zone within 250 metres of the surface.

The Company also reported results from four diamond drill tails that extended La Verde's mineralisation footprint along the eastern and northern flanks of the discovery. Drill hole DKP012D, a 284-metre tail beneath an earlier Reverse Circulation hole, returned 394 metres grading 0.46% copper equivalent from 44 metres, with several higher-grade zones intersected and the system confirmed open to the north along an interpreted structural corridor. Thirteen drill holes across the La Verde programme had assay results pending at the end of the quarter.

La Verde Discovery Expansion and Development Progress

The near-surface intersections recorded this quarter are consistent with previous results commencing immediately beneath shallow gravel cover. The Company notes these results have the potential to contribute to a higher-grade starter pit for the Costa Fuego mine schedule and to positively impact key financial metrics from the March 2025 Pre-Feasibility Study. Further drilling is underway to assess continuity and extent of this zone.

Results from the quarter also continued to confirm bulk-tonnage mineralisation continuity across La Verde. Drill hole DKD037 returned 184 metres grading 0.42% copper equivalent from 105 metres, and DKD038 returned 221 metres grading 0.37% copper equivalent from 48 metres. The Company noted DKD037 was designed to test a gap between two higher-grade zones, with results confirming mineralisation across that interval.

In parallel with drilling, the Company is progressing the EIA required for project permitting in Chile, with submission of the EIA listed as one of the key milestones to be delivered using the proceeds of the February placement. The Feasibility Study, under Ausenco's leadership, is also underway. Both workstreams are being advanced concurrently alongside resource estimation work at La Verde.

Conclusion

Hot Chili's near-term milestones include the delivery of a maiden mineral resource estimate for La Verde, integration of that resource into an expanded Costa Fuego mine plan, submission of the EIA, and continuation of the Feasibility Study. The Company's strategic partnering process, through which it is seeking a qualified partner to assist with project funding and delivery, remained active during the quarter with additional parties entering due diligence and site visits completed. As of 31 March 2026, Hot Chili held A$35.2 million in cash with no debt, representing an estimated 6.4 quarters of funding based on current expenditure levels.

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