Hot Chili Reports Broader Copper-Gold Mineralisation at La Verde Ahead of Further Assay Results

• Diamond drill hole DKD049 returned a visual intersection of approximately 180 metres of copper-rich mineralisation, representing a 175-metre step-out beyond previously mapped boundaries on La Verde's eastern flank; assay results are expected in late May 2026.
• Confirmed assay results from DKD040 returned 86.6 metres at 0.45% CuEq from 4.4 metres depth, including a higher-grade interval of 16.7 metres at 0.60% CuEq from 12 metres.
• A second interval from DKD040 returned 163.9 metres at 0.43% CuEq from 185.2 metres depth, including 20 metres at 0.60% CuEq from 206 metres.
• Three RC drill holes targeting the planned starter pit area (DKP052, DKP053, DKP054) each intersected near-surface mineralisation, recording downhole widths of 205 metres, 256 metres, and 129 metres respectively; assay results are expected in June 2026.
• Fourteen drill holes totalling eight diamond and six RC holes are currently awaiting laboratory assay results, with a third drill rig expected on site within the coming week.

Hot Chili Limited (ASX: HCH | TSXV: HCH | OTCQX: HHLKF) is an Australian-based copper-gold developer advancing Costa Fuego, a copper-gold project situated along the coastal Atacama range in Chile. The company holds a portfolio of copper-gold discoveries in this region, with a planned central processing hub forming the core of the Costa Fuego development. La Verde is a copper-gold porphyry discovery located approximately 30 kilometres south of that hub and has been the subject of an active drilling programme since its initial discovery. A porphyry copper-gold deposit is a large, bulk-tonnage style of mineral system that typically hosts copper and gold distributed across a wide rock volume, making it suited to open-pit extraction methods.

Latest Diamond and RC Drilling Results Expanding La Verde High-Grade Core

Diamond drill hole DKD049 was completed as a 175-metre step-out from previously interpreted mineralisation boundaries, targeting the eastern flank of La Verde at depth. Visual inspection of the drill core confirmed approximately 180 metres of chalcopyrite-rich, porphyry-style copper mineralisation, extending the known footprint of the deposit's high-grade core to the east. Chalcopyrite is the primary copper-bearing mineral in porphyry systems and its presence over this width is consistent with the style of mineralisation encountered across La Verde. Assay results are expected in late May 2026.

Confirmed assay results from drill hole DKD040, drilled north-east through an area previously assessed as lower grade based on earlier RC drilling, returned results above prior estimates. The hole intersected 86.6 metres at 0.45% CuEq (0.34% Cu, 0.15 g/t Au) from 4.4 metres depth and 163.9 metres at 0.43% CuEq (0.34% Cu, 0.11 g/t Au) from 185.2 metres. CuEq, or copper equivalent, is an industry measure that converts the combined value of all metals in an intersection, including copper, gold, silver, and molybdenum, into a single percentage for comparison purposes. Both intervals confirmed that earlier first-pass RC drilling on a sub-optimal orientation had underestimated the grade in this part of the deposit.

When read alongside DKD039, which returned the widest and highest-grade intersection recorded at La Verde to date, the results from DKD040 and the visual observations from DKD049 have collectively extended the higher-grade core to the east at depth. The company states that diamond drilling is now focused on testing further up-dip continuity along this eastern flank.

Higher-Grade Starter Pit Development and Near-Surface Continuity

RC drilling has commenced on the up-dip extensions of La Verde's high-grade core, with the first three holes (DKP052, DKP053, and DKP054) drilled in the centre of the planned higher-grade starter pit area, beneath an existing historical waste dump. All three holes recorded wide visual intersections of strong porphyry-style mineralisation from near-surface. The company notes that the +0.4% CuEq footprint remains open in all directions based on these results.

Core logging identified consistent copper oxide and limonite minerals within and immediately beneath the waste dump, which the company states likely extends the higher-grade, gold-enriched core towards surface. The three holes also extended the lateral boundary of chalcopyrite-rich mineralisation beyond previous interpretations. These are visual observations only; laboratory assay results to confirm grade are expected in June 2026.

A starter pit refers to an initial, smaller-scale open-pit mining area that targets the highest-grade, most accessible portion of a deposit before broader operations commence. Building near-surface grade continuity in this zone is a stated focus of the current RC programme, and the widths recorded across all three holes add to the body of data supporting this objective.

Ongoing Drilling Campaign and Pending Assay Results

Hot Chili is currently operating two drill rigs at La Verde, with a third expected to begin within the coming week. Assay results are outstanding for 14 holes in total: eight diamond core holes and six RC holes. The company states it expects to report further results progressively as they are received from the laboratory.

The pending assay programme spans several parts of the deposit simultaneously, covering the eastern flank extensions tested by diamond drilling, the near-surface starter pit zone targeted by RC drilling, and areas of the central high-grade core. Results from these holes will either confirm or revise the visual mineral estimates reported in this release, which the company notes are not a substitute for laboratory analysis.

Diamond drilling continues to target up-dip continuity on the eastern flank of the high-grade core, while RC drilling remains focused on the near-surface starter pit zone. The addition of a third rig will increase the rate at which new drill holes can be completed across both programmes.

Conclusion

Hot Chili's La Verde drilling programme has to date extended the deposit's high-grade core along its eastern flank, improved near-surface grade continuity in the planned starter pit area, and produced confirmed assay results that exceed earlier estimates in a previously interpreted lower-grade zone. Near-term milestones include laboratory assay results from DKD049 in late May 2026, results from the three RC starter pit holes in June 2026, and the commencement of a third drill rig within the coming week. Further drill results from the 14 outstanding holes will be reported as received.

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