Hot Chili Reports La Verde Drill Results Extending High-Grade Core and Near-Surface Copper-Gold Zone

• DKD039 intersected 725 metres grading 0.42% copper equivalent (CuEq) from 18 metres depth, the widest drill intercept recorded at La Verde to date.
• A high-grade zone of 62 metres grading 1.03% CuEq from 671 metres depth extends La Verde's high-grade core approximately 200 metres deeper than previously defined.
• Near-surface higher-grade mineralisation has been expanded 60 metres further to the west, with two additional infill holes confirming continuity at shallow depth.
• Two drill rigs are currently operating on site, with a third rig planned for mobilisation in May 2026.
• Assay results from 11 drill holes (four diamond, seven RC) remain pending.

CuEq, or Copper Equivalent, expresses the combined value of all metals in a drill intercept (copper, gold, silver, and molybdenum in this case) as a single copper grade percentage.

Hot Chili Limited (ASX/TSXV: HCH | OTCQX: HHLKF) is an Australian-based copper-gold developer advancing its 100%-owned Costa Fuego project in Chile's coastal Atacama region. Costa Fuego comprises a cluster of large porphyry-style copper-gold deposits, and a Pre-feasibility Study for the project was completed in March 2025. The La Verde discovery sits 30 kilometres south of the planned central processing hub and is the subject of an ongoing accelerated drilling programme.

DKD039 Delivers La Verde's Widest Ever Intercept at 725 Metres of 0.42% CuEq Including a Record High-Grade Hit of 62 Metres of 1.03% CuEq Extending the Core 200 Metres Down-Dip

Drill hole DKD039 was collared at the western edge of La Verde's known footprint and completed to a depth of 872 metres using the diamond core method, which retrieves solid rock samples for precise grade and mineralogy analysis. The hole intersected continuous copper-gold mineralisation across most of its length, returning a 725-metre wide zone grading 0.42% CuEq from 18 metres depth, the widest significant intercept recorded at La Verde.

Within that broader zone, the hole returned four higher-grade sub-intervals. The deepest, at 62 metres grading 1.03% CuEq from 671 metres depth, represents both the widest and the deepest high-grade result at La Verde to date. A 20-metre sub-interval within that zone graded 1.51% CuEq, including 1.30% copper and 0.29 grams per tonne gold. The company states that these results confirm a 200-metre down-dip extension of La Verde's high-grade core.

Managing Director Christian Easterday commented: "Drill hole DKD039 recorded 725 m grading 0.42% CuEq from 18 m depth, the widest significant drill intersection so far at La Verde. Most importantly, it has confirmed a major 200 m down-dip extension to the high-grade core of the deposit, recording 62 m grading 1.03% CuEq from 671 m depth, also the widest high-grade intersection recorded to date." Two additional infill holes, DKD037 and DKD038, returned 184 metres of 0.42% CuEq and 221 metres of 0.37% CuEq respectively, confirming the continuity of bulk-tonnage mineralisation across the deposit.

Near-Surface Higher-Grade Mineralisation Expanded 60 Metres to the West Strengthening the Case for a Shallow Starter Pit

DKD039 returned 22 metres grading 0.71% CuEq from 42 metres depth, within a broader zone of 48 metres at 0.55% CuEq from 18 metres. This result sits directly beneath shallow gravel cover and extends the near-surface higher-grade zone approximately 60 metres to the west of previously defined mineralisation. Infill hole DKD038 also commences immediately beneath the same shallow gravel layer, suggesting that a large portion of the potential starter pit area would require only surface-level overburden removal prior to mining.

Diamond drill tail DKP009D extended La Verde's copper-gold footprint along the eastern flank, returning 388 metres grading 0.41% CuEq from 34 metres depth after combining with the original RC hole. Similarly, DKP012D extended the northern flank with a combined 394 metres of 0.46% CuEq from 44 metres, with several higher-grade intervals within the tail section indicating that the system remains open to the north along an interpreted structural corridor.

The company notes that multiple drilled sections of La Verde's developing starter pit footprint begin at shallow depths beneath thin gravel cover, consistent with a deposit profile that may require straightforward, low-cost surface stripping. Hot Chili has indicated it is actively drilling to define the extent of this near-surface zone as a priority alongside deeper resource expansion.

Drilling Programme Accelerating with a Third Rig Planned for May to Fast-Track Costa Fuego Resource Growth

Hot Chili is currently operating two drill rigs at La Verde: a diamond core rig on double shifts and a Reverse Circulation (RC) rig on a single shift. RC drilling retrieves rock chips using compressed air and is suited for shallower, faster holes. Running both methods concurrently allows the company to test near-surface and deeper targets simultaneously. Eleven holes are complete with assays pending, and the company has indicated further updates will be provided as results are received.

A third drill rig is planned for mobilisation in May 2026. The addition is intended to increase the rate of resource definition at La Verde and advance the integration of the discovery into Costa Fuego's overall resource base. The company has stated its objective is to incorporate La Verde into the broader Costa Fuego mining inventory during 2026.

Managing Director Christian Easterday outlined the near-term programme: 

"With two drill rigs now in operation and a third planned, the Company is focused on accelerating its definition of a potential higher-grade starter pit for Costa Fuego, as well as continued expansion and integration of La Verde's high-grade core into Costa Fuego's resource base and mining inventory this year."

Conclusion

The results from DKD039 and the accompanying drill programme represent the most extensive drilling update at La Verde to date. Near-term milestones include assay results from 11 pending holes, the deployment of a third drill rig in May 2026, and further updates on the definition of both the near-surface starter pit zone and the depth extension of the high-grade core. Results from remaining holes will determine whether the current resource footprint continues to expand along the deposit's interpreted structural trends.

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