Hot Chili Extends High-Grade Copper-Gold Zone at La Verde Discovery

• DKP063 returned 398m grading 0.45% copper equivalent (CuEq) from surface, including 62m at 0.91% CuEq from 20m depth.
• Within that zone, narrower intervals of 12m and 34m each returned 1.00% CuEq.
• An updated result from DKD060 extends confirmed mineralisation to 765m down-hole depth, close to the total hole depth of 772.7m.
• New intersections at DKP075 and DKP064 returned comparable grades from shallow depths at other locations across the deposit.
• A maiden Mineral Resource Estimate is targeted for later in 2026, ahead of a revised Costa Fuego Pre-Feasibility Study and an Environmental Impact Assessment submission in Q2 2027.

Hot Chili Limited (ASX:HCH) (TSXV:HCH) (OTCQX:HHLKF) is an Australia-based copper and gold company advancing the Costa Fuego project in Chile's coastal Atacama region. La Verde, the site of this latest drilling, is located 30km south of Costa Fuego's planned central processing hub and is being assessed for integration into the project. Hot Chili's exploration reporting is overseen by Managing Director Christian Easterday, who serves as the qualified person for the company's technical disclosures.

DKP063 Confirms Scale and Continuity of High-Grade Enrichment Zone

DKP063 intersected 398m grading 0.45% CuEq from surface. Within that interval, a higher-grade zone of 62m at 0.91% CuEq was recorded from a depth of 20m, including narrower sections of 12m and 34m that each returned 1.00% CuEq.

Copper equivalent, or CuEq, combines the value of copper, gold, and other metals present in a sample into a single grade figure, allowing different intercepts to be compared on a like-for-like basis.

Results from DKP075 and DKP064, drilled at other locations across the deposit, returned comparable grades from shallow depths, at 132m grading 0.57% CuEq and 126m grading 0.45% CuEq respectively. 

Managing Director Christian Easterday said:

"DKP063 is among the strongest near-surface intersections we have drilled at La Verde so far, with comparable grades are now appearing across the deposit, we have confidence in the scale of a potential high-grade starter pit for Costa Fuego. With assays from 22 holes still to come, our focus is on converting this drilling into a maiden Mineral Resource and, from there, integrating this into an enhanced and upscaled Costa Fuego Prefeasibility study."

DKD060 Update Demonstrates Vertical Extent of La Verde System

DKD060, a deeper diamond drillhole, had previously returned 472m grading 0.41% CuEq from 49m depth. Updated assays add a further intersection of 123.1m grading 0.30% CuEq from 642.1m, extending confirmed mineralisation to 765.2m down-hole, close to the hole's total depth of 772.7m.

Within this deeper interval, a narrower zone of 2.3m grading 4.56% copper was recorded from 655.5m, hosted within chalcopyrite-rich veining. Chalcopyrite is the main copper-bearing mineral found in this style of deposit.

The extension of assay-confirmed mineralisation beyond 750m down-hole indicates the La Verde system continues to depths well below the near-surface zones highlighted in other holes from this drilling round.

Maiden MRE Targeted Later in 2026 Ahead of Revised Costa Fuego PFS and Q2 2027 EIA Submission

Hot Chili is working toward a maiden Mineral Resource Estimate for La Verde, targeted for completion later in 2026. This will be the company's first classified estimate of the tonnage and grade contained within the deposit.

Following the maiden estimate, Hot Chili plans to incorporate La Verde into a revised Pre-Feasibility Study for Costa Fuego. This is expected to precede formal submission of the Costa Fuego Environmental Impact Assessment (EIA) in the second quarter of 2027. An EIA is a regulatory requirement in Chile that assesses a project's environmental impact and is required before large-scale development can proceed.

Assays remain outstanding from 22 further drillholes, comprising two diamond holes, one diamond hole tail, and 19 reverse circulation holes, with results expected as turnaround times improve across the two accredited laboratories used by the company.

Milestones and Next Steps

Hot Chili's stated milestones include the maiden Mineral Resource Estimate for La Verde, targeted for later in 2026, followed by a revised Costa Fuego Pre-Feasibility Study incorporating the discovery. Formal submission of the Costa Fuego Environmental Impact Assessment is planned for the second quarter of 2027. Assay results from 22 pending drillholes are expected in the interim.

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