Hot Chili Secures Regulatory Approval to Expand La Verde Discovery Drilling

• Regulatory approval received to expand drill coverage across the La Verde copper-gold discovery, located 30 kilometres south of the Costa Fuego planned processing hub
• Phase two diamond drilling commenced 22 September 2025, with two of eleven holes completed and assay results pending
• Discovery footprint measures 1,000 metres by 750 metres, extending to 400 metres vertical depth
• Approval enables testing of lateral extensions and three nearby look-alike targets
• Second drill rig scheduled to arrive to accelerate the phase two programme

Hot Chili Limited (ASX: HCH) is a copper-gold developer operating in Chile's Atacama region. The company's Costa Fuego Copper-Gold Project is located in the low-elevation coastal range and includes the Cortadera, Productora, and San Antonio deposits. The company completed a pre-feasibility study for Costa Fuego in March 2025.

Regulatory Approval Receipt for La Verde Discovery Expansion

Hot Chili has obtained a sectoral permit to expand drilling operations at the La Verde copper-gold discovery. The permit is the appropriate regulatory authorisation for a project at this exploration stage. According to the company, a full Environmental Impact Declaration would be processed in a subsequent drilling stage following current regulations.

The approval allows Hot Chili to test further lateral and along-strike extensions to the La Verde discovery footprint, as well as potential district-scale copper porphyry cluster targets. Drill platform clearing is scheduled to commence ahead of the arrival of a second reverse circulation drill rig.

Phase one drill results have demonstrated potential for resource growth and additional front-end open pit mine life, which may enhance the economics outlined in the March 2025 Costa Fuego pre-feasibility study. The regulatory clearance removes a key administrative requirement for continuing the exploration programme.

Phase Two Diamond Drilling Programme Progress and Objectives

Phase two drilling commenced on 22 September 2025 using a single diamond drill rig operating on double shifts from existing drill platforms. Two of eleven planned diamond drill holes have been completed. Both holes recorded visual observations of wide intersections of porphyry-style copper mineralisation, though visual estimates are not substitutes for laboratory analyses. Assay results are expected in the coming weeks.

The programme is testing depth extensions to higher-grade centres within the current discovery footprint. The footprint currently measures 1,000 metres by 750 metres and extends up to 400 metres vertical depth.

Managing Director Christian Easterday stated,

"La Verde is shaping to be a significant growth engine, and the Company looks forward to providing further updates on the results from drilling activities."

Platform clearing has begun for a second drill rig arrival. The reverse circulation equipment will accelerate testing of the expanded target areas identified through the regulatory approval process. The drilling focuses on areas where phase one results indicated continuity of mineralisation.

District-Scale Porphyry Cluster Potential and Look-Alike Targets

The regulatory approval provides access to three look-alike targets identified near La Verde. These targets were identified through geophysical and geochemical surveys showing similar characteristics to the existing discovery. The company's exploration work has identified a regional magnetic destruction footprint extending beyond current La Verde boundaries.

Hot Chili has used ground magnetic surveys combined with three-dimensional geochemical probability models from Fathom Geophysics to identify drill targets. Local magnetic low features and weakly magnetic anomalies have been mapped in relation to the known copper mineralisation at La Verde. The look-alike targets represent first-pass drilling opportunities.

The company has generated conceptual open pit shells at copper prices of US$3.50 per pound and US$6.00 per pound based on completed phase one exploration. These represent exploration targets, and the company notes that any potential tonnage and grade is conceptual in nature. There has been insufficient exploration to estimate a mineral resource within the target areas, and it is uncertain if further exploration will result in a mineral resource estimation.

Looking Ahead

Assay results from the two completed phase two drill holes are expected within the coming weeks. The arrival of a second drill rig will enable expanded testing of both depth extensions at the current discovery and the three look-alike targets. The company will continue drilling activities through the remainder of 2025, with results to be released as assays are received.

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