Hot Chili Limited Extends La Verde Mineralisation With Diamond Drilling

• Twin diamond drillhole DKD032 returned 529 metres grading 0.41% copper and 0.21 g/t gold from 41 metres to end of hole, including 148 metres at 0.60% copper and 0.30 g/t gold from 70 metres depth.
• Drilling extended mineralisation 221 metres beyond the original reverse circulation hole, with the final sample recording 0.53% copper and 0.20 g/t gold before mechanical issues halted operations.
• All six diamond drillholes completed have intersected porphyry-style copper mineralisation, extending the system's vertical reach to approximately 600 metres depth.
• Modelling indicates potential for additional open-pit material at the front end of Costa Fuego's planned 20-year mine schedule.
• Five additional drillholes have assays pending, with results expected in coming weeks.

Hot Chili Limited (ASX:HCH, TSXV:HCH) is an Australian mineral exploration and development company developing the Costa Fuego Copper-Gold Project in Chile's Atacama region. The company holds exploration and development tenure covering over 700 square kilometres in coastal Chile. The La Verde discovery is located approximately 30 kilometres south of Costa Fuego's planned central processing hub. A Pre-feasibility Study for Costa Fuego was completed in March 2025.

Diamond Drilling Results Confirming Extension

Twin drillhole DKD032 intersected 529 metres of continuous copper-gold mineralisation grading 0.41% copper and 0.21 g/t gold from 41 metres depth to end of hole at 570 metres. This compares to the original discovery hole DKP002, which recorded 308 metres grading 0.5% copper and 0.3 g/t gold from 46 metres depth to end of hole.

The intersection includes two higher-grade zones: 148 metres at 0.60% copper and 0.30 g/t gold from 70 metres depth, and 66 metres at 0.45% copper and 0.31 g/t gold from 295 metres depth. The final 14-metre sample at the bottom of the hole graded 0.35% copper and 0.12 g/t gold.

Managing Director Christian Easterday stated:

"First diamond drillhole DKD032 records 529 m grading 0.41% Cu and 0.21 g/t Au from 41m to end of hole."

The company plans to re-enter DKD032 after completing the current drilling programme to test depth extensions, as mineralisation remains open.

Lateral and Vertical Extension of Mineralisation

The Phase Two diamond drilling programme commenced on 22 September 2025 with one rig operating on double shifts. Six drillholes have been completed to date, all intersecting copper mineralisation beyond previous reverse circulation drill limits. The drilling has extended the system to approximately 1,000 metres by 750 metres in plan view and 600 metres vertically.

Three completed drillholes were designed as diamond twins of earlier reverse circulation holes, continuing deeper into fresh rock. The remaining three were drilled as diamond tails, extending previous holes that had terminated in mineralisation. Results have identified a northeastern higher-grade mineralisation centre with elevated gold-to-copper ratios.

The drilling indicates convergence of higher-grade copper-gold zones at depth. Long-section modelling shows the northeastern mineralisation centre extends both laterally and vertically beyond initial projections based on reverse circulation drilling alone.

Processing Hub Integration Potential

La Verde is situated 30 kilometres south of Hot Chili's planned Costa Fuego central processing hub. The March 2025 Pre-feasibility Study outlined a 20-year mine life for Costa Fuego based on existing mineral resources.

Hot Chili has generated conceptual open-pit shells at copper prices of US$3.50 per pound and US$6.00 per pound to evaluate potential mineable material at La Verde under different economic scenarios. The company's modelling examines the potential for incorporating La Verde material into Costa Fuego's mine schedule.

The proximity to planned infrastructure includes road access, port facilities, and water supply associated with the Costa Fuego development. Geological characteristics at La Verde show similarities to Costa Fuego deposits in terms of mineralisation style and alteration patterns.

Next Steps and Milestones

Hot Chili is awaiting assay results from five remaining diamond drillholes, expected within coming weeks. Laboratory turnaround times have been extended due to seasonal sample volumes across Chile. All five pending holes intersected porphyry-style copper mineralisation.

Following receipt of all assay results, the company plans to re-enter drillhole DKD032 to test depth potential where drilling was halted due to mechanical issues. The company is evaluating timing and design for potential Phase Three drilling to support resource definition work.

Further exploration activities aim to extend the mineralised footprint at La Verde. The length and scope of future programmes will depend on assay results, regulatory approvals, and integration assessments with the Costa Fuego development plan.

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