Hot Chili Limited Secures Further US$15 Million in Non-Dilutive Funding from OR Royalties

• Hot Chili Limited has signed a binding agreement with OR Royalties Inc. for US$15 million in additional funding, secured against a new royalty over the La Verde project.
• The agreement lifts total royalty consideration from OR Royalties to US$30 million, following the original 2023 arrangement covering the Costa Fuego project.
• La Verde does not yet have a formal resource estimate and has been added to the existing royalty footprint on a pre-resource basis.
• Updated terms include revised buyback conditions and give OR Royalties a right of first offer on any future royalty or streaming arrangement by Hot Chili.
• Closing is expected in July 2026, following Hot Chili's A$40 million equity raise completed in February this year.

Hot Chili Limited (ASX:HCH) is an Australia-based copper and gold company developing the Costa Fuego project in Chile's Atacama region. The company's activities include exploration and project development at Costa Fuego, along with the nearby La Verde discovery and an associated water infrastructure business.

US$15 Million Non-Dilutive Royalty Funding from OR Royalties Bringing Total Consideration to US$30 Million

Hot Chili has executed a binding Amended and Restated Investment Agreement with OR Royalties Inc., formerly Osisko Gold Royalties Ltd. Under the agreement, Hot Chili will grant OR a Net Smelter Return royalty over its La Verde project, part of the wider Costa Fuego copper-gold project in Chile, for a cash payment of US$15 million. Closing is subject to customary conditions and is expected in July 2026.

A Net Smelter Return royalty entitles the holder to a percentage of future revenue once production begins, rather than a loan or a purchase of company shares. The funding is non-dilutive, meaning Hot Chili receives the payment without issuing new shares. The original 2023 agreement raised US$15 million against a royalty on Costa Fuego of 1.0% of payable copper and 3.0% of payable gold; this transaction brings total consideration under the arrangement to US$30 million.

The agreement follows a A$40 million equity raise completed in February 2026. National Bank Financial Inc. acted as Hot Chili's financial adviser on the transaction, with Bennett Jones LLP serving as Canadian legal counsel.

La Verde Added to Costa Fuego NSR Royalty Footprint as Pre-Resource Asset

La Verde is a copper-gold discovery located near Costa Fuego, where Hot Chili currently has three drill rigs in operation. The project is at a pre-resource stage, meaning it does not yet have a formally defined Mineral Resource Estimate.

On a look-through basis, the combined OR royalty is equivalent to a 1.12% copper-equivalent Net Smelter Return royalty across payable metals for total consideration of US$30 million, against Hot Chili's current market capitalisation of approximately US$280 million.

Hot Chili Limited Managing Director Christian Easterday said:

"When OR first invested in Costa Fuego in 2023, they were backing Hot Chili with a published PEA and a 725 Mt Indicated resource base. This time, they are committing another US$15 million to a pre-resource deposit, which speaks directly to the scale of what we see at La Verde and the potential impact it has for our future Costa Fuego copper-gold production hub."

He added:

"This transaction achieves two things simultaneously: it funds the advancement of La Verde without share dilution; and it gives the market a credible third-party datapoint on the value of an asset that has yet to be formally quantified. We look forward to rewarding OR's confidence with results."

Revised Pre-Feasibility Study and Maiden La Verde MRE Targeted Ahead

The original 2023 OR royalty agreement was underpinned by a 725 million tonne Indicated Mineral Resource for Costa Fuego, effective March 2022, which supported a Preliminary Economic Assessment published in June 2023.

Hot Chili has since updated this to a 798 million tonne Indicated Mineral Resource, effective February 2024, which formed the basis of a Preliminary Feasibility Study completed in March 2025 and filed with SEDAR+ in May 2025. The 2023 assessment has been superseded by this later study.

Hot Chili is targeting a maiden Mineral Resource Estimate for La Verde and a revised Pre-Feasibility Study for Costa Fuego. Three drill rigs are currently active at La Verde in support of this work.

Milestones and Next Steps

Closing of the A&R Investment Agreement is expected in July 2026, subject to customary conditions. Hot Chili will continue drilling at La Verde with three rigs in operation, working towards a maiden Mineral Resource Estimate for the project and a revised Pre-Feasibility Study for Costa Fuego. The agreement also includes updated change of control buyback terms and a right of first offer for OR Royalties on any future royalty or streaming transactions by Hot Chili.

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