Hot Chili Quarterly Update - Q2 2025

• Phase-one reverse circulation drilling at La Verde completed with 31 holes totalling 9,630 metres
• Drilling results show copper-gold mineralisation extending over 1km in length and up to 750m in width from near surface
• Stuart Mathews appointed Non-Executive Chair and Alberto Cerda appointed Project Director
• Costa Fuego and Huasco Water projects registered for priority status with Chilean Ministry of Economy
• Cash position of A$5.2 million with A$2.0 million expected from government VAT reimbursements

Hot Chili Limited (ASX:HCH) is an Australian copper-gold exploration and development company with projects in Chile's Atacama region. The company's Costa Fuego Copper-Gold Project has completed pre-feasibility studies, whilst the La Verde discovery is under exploration 30km south of Costa Fuego.

The company holds exploration and development assets across multiple Chilean prospects through subsidiary companies Sociedad Minera La Frontera SpA and joint venture company Sociedad Minera El Águila SpA, with operations conducted from bases at Productora and Cortadera.

Phase-One Drilling Results at La Verde

Hot Chili completed phase-one reverse circulation drilling at La Verde on 8 April 2025. The programme consisted of 31 RC drillholes for 9,630 metres. Results reported during the quarter included intersections of copper-gold mineralisation across the prospect area.

Notable drill intersections included 389 metres grading 0.4% copper and 0.1 g/t gold from 4 metres depth to end-of-hole in drillhole DKP030, including 46 metres at 0.6% copper and 0.2 g/t gold from 238 metres and 34 metres at 0.6% copper and 0.2 g/t gold from 322 metres. Additional intersections included 286 metres grading 0.3% copper and 0.1 g/t gold from 4 metres depth in drillhole DKP027, including 154 metres at 0.4% copper and 0.1 g/t gold from 44 metres.

Over half of the drillholes ended in mineralisation at the depth limit of the RC drilling equipment. The company stated the discovery remains open laterally and at depth. Three higher-grade centres were defined across the drilling area.

The company has submitted regulatory applications for phase-two drilling access and is conducting baseline studies for a second Environmental Impact Assessment to integrate La Verde into Costa Fuego's mine plan. Phase-two drilling will use diamond drilling methods to extend drilling at depth.

Corporate Developments and Government Recognition

Hot Chili announced the appointment of Stuart Mathews as Non-Executive Chair on 7 May 2025. Mathews has 32 years of international mining experience including senior executive roles at Gold Fields where he oversaw operations delivering over one million ounces of gold annually and led development of five mining projects from exploration to production.

Alberto Cerda was appointed Project Director. Cerda is a Chilean mining engineer with more than 40 years of experience in senior roles at BHP, Barrick, and Glencore. He has directed large-scale projects in Chile and abroad, most recently leading the Norte Abierto joint venture for Newmont and Barrick.

On 30 April 2025, the Costa Fuego Copper-Gold Project and Huasco Water Project were registered with the Chilean Ministry of Economy's Office for Sustainable Project Management. The registration grants priority status as strategic investments, allowing access to streamlined administrative processes and coordinated oversight for permitting and approvals.

The company filed an independent NI 43-101 technical report for Costa Fuego on SEDAR+. The report, dated 9 May 2025, supports the previously announced pre-feasibility study results and confirms no material differences from information released on 27 March 2025.

Financial Position and Strategic Partnering

As of 30 June 2025, Hot Chili held cash of A$5.2 million with no debt. The company expects A$2.0 million in government VAT reimbursements over the coming quarter. Operating expenditure for the quarter was A$4.7 million, including A$3.3 million for exploration and evaluation activities.

Exploration expenditure included A$1.6 million for completion of Costa Fuego and Huasco Water pre-feasibility studies and initial optimisation activities, plus A$1.7 million for exploration activities across La Verde and southern landholdings. The company received A$2.7 million from joint venture partner CMP as expenditure recoup.

Hot Chili has initiated strategic partnering processes for Costa Fuego and Huasco Water projects and appointed BMO Capital Markets as financial adviser. The company stated it is assessing several non-binding, indicative proposals but noted there is no certainty the process will result in a transaction or binding agreement.

The company's securities on issue include 153,375,654 ordinary shares, 1,914,000 options at A$1.50 expiring 24 July 2026, 1,587,875 service rights, and 2,321,742 performance rights.

Summary and Next Steps

Hot Chili's quarterly report covers completion of phase-one drilling at La Verde, appointment of new leadership, and progress on strategic partnering discussions. The La Verde discovery covers mineralisation extending over 1km in length and up to 750m in width, with over half of drillholes ending in mineralisation.

The company has submitted applications for phase-two drilling access at La Verde whilst continuing baseline environmental studies. Strategic partnering discussions continue for Costa Fuego and Huasco Water projects, with BMO Capital Markets serving as financial adviser. Hot Chili maintains a cash position of A$5.2 million with additional VAT reimbursements expected from the Chilean government.

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