Hot Chili Reports Expansion of High-Grade Core at La Verde Discovery

• Diamond drillhole DKD033 intersected 495 metres grading 0.38% copper and 0.10 g/t gold from 3 metres depth, including 123 metres at 0.50% copper and 0.13 g/t gold
• DKD034 returned 426 metres grading 0.37% copper and 0.08 g/t gold from 194 metres depth, with higher-grade zones throughout
• Results indicate expansion of La Verde's high-grade core, with potential to add open-pit material to Costa Fuego's mine schedule
• Assay results pending for six diamond drillholes, including DKD035 and DKD036 which visually recorded copper porphyry style mineralisation from shallow depth
• Diamond drilling resumed 12 January 2026, targeting expansion of the high-grade core and lateral extensions

Hot Chili Limited (ASX: HCH, TSXV: HCH) is an Australian-based mining development company advancing the Costa Fuego copper-gold project in Chile's Atacama region. The company's exploration activities include the La Verde discovery, located 30 kilometres south of the planned Costa Fuego processing facility. Hot Chili is focused on advancing Costa Fuego whilst expanding its resource base through exploration programmes.

Phase Two Diamond Drilling Shows Expansion of High-Grade Copper-Gold Core

Hot Chili released assay results from Phase Two diamond drilling at La Verde. Drillhole DKD033, a twin to reverse circulation hole DKP030, intersected 495 metres grading 0.38% copper and 0.10 g/t gold from 3 metres depth. Higher-grade intervals within this intercept include 37 metres at 0.51% copper and 0.13 g/t gold from 202 metres, and 123 metres at 0.50% copper and 0.13 g/t gold from 289 metres depth.

DKD033 extended the original intercept by 102 metres downhole. The original RC hole recorded 393 metres at 0.4% copper and 0.1 g/t gold from 4 metres depth. Mineralisation continued to end-of-hole, with the final 22 metres recording 0.18% copper and 0.04 g/t gold from 521 metres depth.

Diamond drillhole DKD034 intersected 426 metres grading 0.37% copper and 0.08 g/t gold from 194 metres depth. This included 107 metres at 0.46% copper and 0.10 g/t gold from 426 metres, and 52 metres at 0.50% copper and 0.08 g/t gold from 566 metres. DKD034 also ended in mineralisation, returning 35 metres at 0.27% copper and 0.06 g/t gold from 679 metres. Hot Chili is reviewing these holes for potential re-entry.

Wide Near-Surface Copper-Gold Intercepts and Costa Fuego Mine Schedule

Hot Chili's impact modelling indicates potential to add open-pit material to the front end of Costa Fuego's 20-year mine schedule. The company states this could enhance financial metrics from its March 2025 pre-feasibility study (PFS). Current commodity prices are higher than PFS assumptions, with long-term consensus prices at US$4.51/lb for copper and US$3,137/oz for gold, representing increases of 5% and 38% respectively.

The Costa Fuego PFS shows sensitivity to copper price movements. For every US$0.10/lb increase in copper price above US$4.30/lb, project NPV(8%) increases by approximately US$100 million. La Verde's location 30 kilometres from the planned Costa Fuego processing hub allows for potential integration with minimal additional infrastructure.

Managing Director Christian Easterday stated: 

"Against a strong backdrop of record copper and gold prices, the reporting of wide, near-surface, copper-gold intercepts from a new major discovery underscores the strategic significance of La Verde to Hot Chili." 

Mr. Easterday added:

"These latest La Verde drill results further amplify Hot Chili's leverage to rising commodity prices."

Drilling Programme Recommences with Pending Assay Results

Diamond drilling at La Verde resumed on 12 January 2026 following a break over the holiday period. The programme targets expansion of the high-grade core and exploration of lateral and strike extensions. Six diamond drillholes await assay results, including DKD035 and DKD036.

DKD035 and DKD036 visually recorded wide intersections of copper porphyry style mineralisation from shallow depth, positioned above La Verde's gold-rich, high-grade core. The company notes that visual estimates cannot substitute for laboratory analyses, and assay results are required to confirm grades.

Diamond drilling has assisted in developing a litho-structural model, with interpretation of multiple intrusive phases informing drill target design. Hot Chili geologists are applying targeting strategies used at the company's Cortadera copper-gold porphyry resource.

Next Steps

Near-term activities include completion of assays from six pending diamond drillholes. The ongoing drilling programme continues to target expansion of the high-grade core and lateral extensions. Hot Chili plans to progress technical studies evaluating integration of La Verde into the Costa Fuego mine plan. The company's objective is to define a maiden mineral resource estimate for La Verde.

‍