Hot Chili: La Verde Drilling Confirms Near-Surface Mineralisation

• Diamond drillhole DKP005D returned 47 metres at 0.57% copper and 0.12 g/t gold from 247.5 metres, extending eastern flank mineralisation by approximately 60 metres
• Two diamond holes (DKD035 and DKD036) intersected copper porphyry style mineralisation from surface, positioned above the gold-rich higher-grade core
• Eight diamond drillholes completed totalling 2,900 metres, with assays pending for six holes
• Results indicate mineralisation converging into a single higher-grade core from near surface
• La Verde is located 30 kilometres south of Costa Fuego's planned central processing hub

Hot Chili Limited (ASX:HCH) is a copper-gold explorer and developer operating in Chile's coastal Atacama region. The company's Costa Fuego project consists of copper-gold porphyry deposits situated 30 kilometres north of the La Verde discovery. Hot Chili holds exploration and mining concessions in the Huasco region, with projects characterised by low elevation, proximity to infrastructure, and secured water rights.

Near-Surface Higher-Grade Core and Diamond Drilling Results

Diamond drillhole DKP005D extended earlier reverse circulation drilling by 200 metres, recording 47 metres at 0.57% copper and 0.12 g/t gold from 247.5 metres depth. A second intersection of 28 metres at 0.49% copper and 0.15 g/t gold was recorded from 316 metres depth, separated by a 22-metre non-mineralised zone.

When combined with the original reverse circulation hole, DKP005 now totals 317 metres grading 0.38% copper and 0.1 g/t gold from 32 metres to 349 metres depth, including the non-mineralised interval. The extended intersection indicates lateral continuity of mineralisation along the eastern flank of the discovery.

All eight diamond drillholes completed to date have intersected copper porphyry style mineralisation. Six holes are awaiting assay results, which will provide additional data for geological interpretation and deposit understanding.

Eastern Flank Extension and Up-Dip Mineralisation

Diamond drillhole DKD035 intersected porphyry style mineralisation from surface to 278.5 metres depth. The hole is positioned up-dip from DKD032, which recorded 529 metres at 0.41% copper and 0.21 g/t gold from 41 metres depth, including 148 metres at 0.60% copper and 0.30 g/t gold from 70 metres depth.

Diamond drillhole DKD036, drilled from the same collar location as DKD035 but at a different orientation, has confirmed lateral continuity of the up-dip mineralisation. The drilling indicates that mineralisation extends towards surface across the tested area.

Managing Director Mr Christian Easterday stated:

"The convergence of mineralisation into a single higher-grade core at La Verde, extending from near surface, is a material development for Hot Chili. Addition of a higher-grade starter pit would significantly strengthen the front-end of Costa Fuego's 20-year mine schedule and be a game changer for scale and economics."

Starter Pit Evaluation and Project Integration

The near-surface mineralisation at La Verde is being evaluated for its potential as a starter pit operation. A starter pit accessing higher-grade material early in production typically generates stronger initial cash flows, which can be applied to development of other deposit areas or debt reduction.

La Verde's location 30 kilometres south of Costa Fuego's planned central processing hub allows for potential ore transport to existing infrastructure. The coastal setting provides accessibility advantages compared to high-altitude deposits in the region.

Mr Easterday noted:

"Costa Fuego is rapidly shaping as a low-risk, coastal contender to adjacent major copper developments in the Huasco Region and Vicuña District of the high Andes. Low elevation, access to near-surface higher-grades, secured rights for non-continental water supply and low capital intensity remove many of the significant challenges facing our high Andean neighbours."

Next Steps

Hot Chili has completed 2,900 metres of drilling at La Verde, with assay results pending for six diamond drillholes. The company will incorporate these results into an updated geological model to assess the extent and geometry of the mineralised system. Further evaluation will focus on the potential integration of La Verde into the Costa Fuego development plan.

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