Press Release: Hot Chili Quarterly Report - Period Ending 31 March 2026

Dow Jones
Apr 30

PERTH, Australia, April 30, 2026 /CNW/ -

Highlights

$40 Million Funding to Accelerate Growth & Development of Costa Fuego

   -- A$40 million private placement during the quarter received strong demand 
      from Australian, Canadian and overseas institutional investors, as well 
      as the Company's three largest shareholders (Glencore, Blue Spec and GS 
      Group). 
 
   -- The Company is now set to deliver strong growth and development 
      milestones for its Costa Fuego copper-gold (Cu-Au) project (Costa Fuego) 
      located in coastal Chile, including: 
 
          -- Delivery of a maiden Mineral Resource at La Verde; 
 
          -- Integration of La Verde into an expanded mine plan; 
 
          -- Completion and submission of an Environmental Impact Assessment 
             $(EIA)$; and 
 
          -- Continuation of Feasibility studies. 

Global Engineering Firm Ausenco Appointed for Feasibility Study

Major High-Grade Extensions Continue at La Verde

   -- Drilling at the Company's La Verde copper-gold (Cu-Au) porphyry discovery 
      in Chile accelerated during the quarter, with a second drill rig 
      commencing in February 
 
   -- Widest drill result to date at La Verde, confirms a major extension to 
      the deposits' rapidly growing high-grade core:DKD0039 recorded 725 m 
      grading 0.42% CuEq (0.36% Cu, 0.07 g/t Au) from 18 m depth down-hole, 
      including: 
 
          -- 22 m grading 0.71% CuEq (0.67% Cu, 0.03 g/t Au) from 42 m depth 
 
          -- 46 m grading 0.65% CuEq (0.54% Cu, 0.12 g/t Au) from 249 m depth 
 
          -- 51 m grading 0.62% CuEq (0.51% Cu, 0.10 g/t Au) from 433 m depth 
 
          -- 62 m grading 1.03% CuEq (0.90% Cu, 0.18 g/t Au) from 671 m depth 
 
   -- Assays pending for thirteen drill holes (seven diamond and six Reverse 
      Circulation (RC)). 

Higher-Grade Starter Pit Emerging

   -- Assay results underpin an emerging, shallow zone of higher-grade Cu-Au 
      mineralisation, outlining a potential higher-grade starter pit for Costa 
      Fuego 
 
   -- Thirteen significant drill intersections now delineate +0.6% CuEq zone 
      from surface to 250 m depth, demonstrating strong continuity of 
      higher-grade material. 
 
   -- Additional significant intersections recorded from surface this quarter, 
      included: DKD036 recorded 150 m grading 0.52% CuEq2 (0.37% Cu, 0.21 g/t 
      Au) from 30 m depth 
 
          -- Including 38 m grading 0.70% CuEq (0.55% Cu, 0.21 g/t Au) from 117 
             m 

DKD035 recorded 220 m grading 0.47% CuEq (0.37% Cu, 0.14 g/t Au) from 38 m depth

          -- Including 68 m grading 0.64% CuEq (0.52% Cu, 0.15 g/t Au) from 187 
             m 

Strong Cash Position of A$35.2M

SUMMARY OF OPERATIONAL ACTIVITIES

Major High-Grade Extensions Continue at La Verde

Phase two diamond drilling continued during the quarter at the Company's La Verde copper-gold (Cu-Au) porphyry discovery in Chile (La Verde). Drilling focused on continuing to expand the mineralised discovery footprint

Results were stronger than anticipated, with the depth extent doubling to 800 m from surface - significantly expanding the high-grade core laterally and up to surface.

A standout significant intersection of 725 m grading 0.42% CuEq(1) from 18 m depth has been recorded in diamond drill hole DKD039, which was collared on the western extent of La Verde's discovery footprint (Figure 1), and intersected multiple wide zones of +0.6% CuEq(1) mineralisation from near surface (Figure 2 and 3).

As the most significant result to date at La Verde, importantly, DKD039 achieved two key objectives:

   -- Further extended near-surface higher-grade mineralisation by 
      approximately 60 m to the west - recording 22 m grading 0.71% CuEq1 from 
      42 m depth within a wider intersection of 48 m grading 0.55% CuEq (0.50% 
      Cu, 0.03 g/t Au) from 18 m depth, located immediately beneath shallow 
      gravel cover, and 
 
   -- Confirmed a significant 200 m down-dip extension of La Verde's high-grade 
      core - recording 61 m grading 1.03% CuEq1 (0.90% Cu, 0.18 g/t Au, 1.81g/t 
      Ag) from 671 m in association with high Cu/Au, A+B vein abundances >5% 
      and massive and disseminated chalcopyrite (Figure 2). 

Continued expansion and integration of La Verde's high-grade core into Costa Fuego's resource base and mining inventory is a priority this year.

Higher-Grade Cu-Au Starter Pit Emerging

Diamond drilling at La Verde has continued to test the shallow up-dip potential of La Verde's high-grade core, with significant intersections returned from drill holes DKD035, DKD036, DKD037 and DKD038.

A 450 m x 400 m higher-grade, near-surface copper-gold zone has been defined by thirteen significant intersection +0.6% CuEq at La Verde (Figure 4), including most recently:

   -- DKD036 recorded 150 m grading 0.52% CuEq (0.37% Cu, 0.21 g/t Au) from 30 
      m depth 
 
          -- Including 38 m grading 0.70% CuEq (0.55% Cu, 0.21 g/t Au) from 117 
             m, and 
 
   -- DKD035 recorded 220 m grading 0.47% CuEq (0.37% Cu, 0.14 g/t Au) from 38 
      m depth 
 
          -- Including 68 m grading 0.64% CuEq (0.52% Cu, 0.15 g/t Au) from 187 
             m 

Similar to previous near-surface drill intersections, these latest significant results commence immediately beneath shallow gravel cover, indicating the potential for simple, cost-effective overburden removal in a future open pit development.

These results have the potential to contribute to a higher-grade starter pit for the Costa Fuego mine schedule, significantly reducing payback and positively impacting key financial metrics of Hot Chili's March 2025 Pre-Feasibility Study.

Confirming Bulk Tonnage Continuity

Further assay results reported during the quarter continue to confirm continuity of bulk tonnage mineralisation at La Verde, including:

   -- DKD037 recorded 184 m grading 0.42% CuEq1 (0.32% Cu, 0.12 g/t Au) from 
      105 m depth 
 
          -- including 22 m grading 0.60% CuEq (0.48% Cu, 0.15 g/t Au) from 203 
             m 
 
   -- DKD038 recorded 221 m grading 0.37% CuEq1 (0.29% Cu, 0.11 g/t Au) from 48 
      m depth 
 
          -- including 45 m grading 0.51% CuEq (0.37% Cu, 0.19 g/t Au) from 53 
             m 

Drill hole DKD037 was designed to target a gap between two higher-grade zones, with assay results now confirming expansion and continuity of mineralisation across this zone (Figure 2). The significant intersection from DKD038 also commences immediately beneath shallow gravel cover (Figure 3).

La Verde Footprint Expands Further

During the quarter the diamond drill rig also completed four diamond drill tails, extending the mineralisation footprint reached by the RC drilling in Phase 1, which ended in mineralisation.

Assay results from diamond drill tail DKP009D extended La Verde's Cu-Au mineralisation footprint along the eastern flank of the discovery in the north (Figures 1 and 3). The drill hole was a 200 m diamond tail to earlier RC drill hole DKP009 and reported 68 m grading 0.42% CuEq (0.33% Cu, 0.11 g/t Au) from 354 m depth, extending mineralisation downhole of DKP009.

Similarly, diamond drill tail DKP012D extended the mineralisation footprint along the northern flank of the discovery. The drill hole was a 284 m diamond tail to earlier RC drill hole DKP012 and reported 132 m grading 0.36% CuEq (0.26% Cu, 0.05 g/t Au) from 306 m depth extending mineralisation downhole of DKP012. Several higher-grade zones were intercepted in the tail, confirming the system is still open and mineralised to the north and will be followed up with additional drilling along the interpreted NNE-trending structural corridor (Figure 2 and 4).

DKP006D and DKP021D extended the mineralisation along the eastern flank of the discovery in the south, with DKD021D recording an additional 54 m grading 0.42% CuEq (0.34% Cu, 0.11 g/t Au) from 593 m depth, including 19 m grading 0.66% CuEq (0.51% Cu, 0.21 g/t Au) from 593 m depth.

Including the new diamond tail extensions:

   -- DKP009D now records 388 m grading 0.41% CuEq (0.32% Cu, 0.12 g/t Au) from 
      34 m 
 
   -- DKP012D now records 394 m grading 0.46% CuEq (0.35% Cu, 0.11g/t Au) from 
      44 m 
 
   -- DKP021D now records 194 m grading 0.32% CuEq (0.26% Cu, 0.06 g/t Au) from 
      284 m 
 
   -- DKP006D now records 110 m grading 0.39% CuEq (0.27% Cu, 0.15 g/t Au) from 
      76 m 

Diamond drilling has been instrumental in development of an early "4D litho-structural model" by the Company, with the interpretation of multiple intrusive phases optimising drill target design. Hot Chili geologists are applying the same targeting strategies that proved successful at the Company's nearby Cortadera Cu-Au porphyry Resource and anticipate these methods will continue to drive growth at La Verde.

 
 
(1) Copper Equivalent (CuEq) reported for the drill 
 hole intersections were calculated using the following 
 formula: CuEq% = ((Cu% × Cu price 1% per tonne 
 × Cu_recovery) + (Mo ppm × Mo price per 
 g/t × Mo_recovery) + (Au ppm × Au price 
 per g/t × Au_recovery) + (Ag ppm × Ag price 
 per g/t × Ag_recovery)) / (Cu price 1% per tonne 
 × Cu_recovery). The Metal Prices applied in the 
 calculation were: Cu=4.50 USD/lb, Au=3,150 USD/oz, 
 Mo=20 USD/lb, and Ag=30 USD/oz. The entirety of the 
 intersection is assumed as fresh. The recovery and 
 copper equivalent formula for La Verde uses Cortadera 
 as a proxy, which is considered reasonable given both 
 the similar mineralisation style and amenability testwork 
 completed thus far at La Verde -- Recoveries of 83% 
 Cu, 56% Au, 83% Mo and 37% Ag. CuEq (%) = Cu(%) + 
 0.69 x Au(g/t) + 0.00044 x Mo(ppm) + 0.0043 x Ag(g/t). 
 

Development Studies Progressing

Global engineering firm Ausenco -- with offices in Chile and Australia -- has been appointed as the lead engineering group to progress the Feasibility Study for the Costa Fuego project. The appointment follows a review of major engineering groups in Chile, with Ausenco's impressive execution of engineering, procurement, construction and ramp-up of the nearby, similar-scale, coastal project Mantoverde, a key factor in the decision.

 
(1) See Page 23 of this announcement for detail on 
 the US$3.50 Cu and US$6.00 Cu conceptual open pit 
 shells (Exploration Targets). Any potential tonnage 
 and grade of the Exploration Target shown is conceptual 
 in nature. There has been insufficient exploration 
 to estimate a Mineral Resource within the target area, 
 and it is uncertain if further exploration will result 
 in the estimation of a Mineral Resource. 
 
(2) Copper Equivalent (CuEq) reported for the drill 
 hole intersections were calculated using the following 
 formula: CuEq% = ((Cu% × Cu price 1% per tonne 
 × Cu_recovery) + (Mo ppm × Mo price per 
 g/t × Mo_recovery) + (Au ppm × Au price 
 per g/t × Au_recovery) + (Ag ppm × Ag price 
 per g/t × Ag_recovery)) / (Cu price 1% per tonne 
 × Cu_recovery). The Metal Prices applied in the 
 calculation were: Cu=4.50 USD/lb, Au=3,150 USD/oz, 
 Mo=20 USD/lb, and Ag=30 USD/oz. The entirety of the 
 intersection is assumed as fresh. The recovery and 
 copper equivalent formula for La Verde uses Cortadera 
 as a proxy, which is considered reasonable given both 
 the similar mineralisation style and amenability testwork 
 completed thus far at La Verde -- Recoveries of 83% 
 Cu, 56% Au, 83% Mo and 37% Ag. CuEq (%) = Cu(%) + 
 0.69 x Au(g/t) + 0.00044 x Mo(ppm) + 0.0043 x Ag(g/t). 
 Figure 2. Cross section slice along DKD039 (+/- 75m 
 clipping) showing +0.2% copper (yellow), +0.3% copper 
 (red), +0.4% copper (magenta) mineralisation interpolants 
 and returned assay results for DKD039, DKP012D, DKD037, 
 DKP009D(1) . Returned Cu grades shown on hole traces. 
 
 
(1) Copper Equivalent (CuEq) reported for the drill 
 hole intersections were calculated using the following 
 formula: CuEq% = ((Cu% × Cu price 1% per tonne 
 × Cu_recovery) + (Mo ppm × Mo price per 
 g/t × Mo_recovery) + (Au ppm × Au price 
 per g/t × Au_recovery) + (Ag ppm × Ag price 
 per g/t × Ag_recovery)) / (Cu price 1% per tonne 
 × Cu_recovery). The Metal Prices applied in the 
 calculation were: Cu=4.50 USD/lb, Au=3,150 USD/oz, 
 Mo=20 USD/lb, and Ag=30 USD/oz. The entirety of the 
 intersection is assumed as fresh. The recovery and 
 copper equivalent formula for La Verde uses Cortadera 
 as a proxy, which is considered reasonable given both 
 the similar mineralisation style and amenability testwork 
 completed thus far at La Verde -- Recoveries of 83% 
 Cu, 56% Au, 83% Mo and 37% Ag. CuEq (%) = Cu(%) + 
 0.69 x Au(g/t) + 0.00044 x Mo(ppm) + 0.0043 x Ag(g/t). 
 
 
(1) Copper Equivalent (CuEq) reported for the drill 
 hole intersections were calculated using the following 
 formula: CuEq% = ((Cu% × Cu price 1% per tonne 
 × Cu_recovery) + (Mo ppm × Mo price per 
 g/t × Mo_recovery) + (Au ppm × Au price 
 per g/t × Au_recovery) + (Ag ppm × Ag price 
 per g/t × Ag_recovery)) / (Cu price 1% per tonne 
 × Cu_recovery). The Metal Prices applied in the 
 calculation were: Cu=4.50 USD/lb, Au=3,150 USD/oz, 
 Mo=20 USD/lb, and Ag=30 USD/oz. The entirety of the 
 intersection is assumed as fresh. The recovery and 
 copper equivalent formula for La Verde uses Cortadera 
 as a proxy, which is considered reasonable given both 
 the similar mineralisation style and amenability testwork 
 completed thus far at La Verde -- Recoveries of 83% 
 Cu, 56% Au, 83% Mo and 37% Ag. CuEq (%) = Cu(%) + 
 0.69 x Au(g/t) + 0.00044 x Mo(ppm) + 0.0043 x Ag(g/t). 
 
 
(1) Copper Equivalent (CuEq) reported for the drill 
 hole intersections were calculated using the following 
 formula: CuEq% = ((Cu% × Cu price 1% per tonne 
 × Cu_recovery) + (Mo ppm × Mo price per 
 g/t × Mo_recovery) + (Au ppm × Au price 
 per g/t × Au_recovery) + (Ag ppm × Ag price 
 per g/t × Ag_recovery)) / (Cu price 1% per tonne 
 × Cu_recovery). The Metal Prices applied in the 
 calculation were: Cu=4.50 USD/lb, Au=3,150 USD/oz, 
 Mo=20 USD/lb, and Ag=30 USD/oz. The entirety of the 
 intersection is assumed as fresh. The recovery and 
 copper equivalent formula for La Verde uses Cortadera 
 as a proxy, which is considered reasonable given both 
 the similar mineralisation style and amenability testwork 
 completed thus far at La Verde -- Recoveries of 83% 
 Cu, 56% Au, 83% Mo and 37% Ag. CuEq (%) = Cu(%) + 
 0.69 x Au(g/t) + 0.00044 x Mo(ppm) + 0.0043 x Ag(g/t). 
 

Table 1. Drill Holes Completed for La Verde in Quarter 1 2026

 
Prospect   Hole ID   North      East     RL     Depth  Azi.  Dip  Results 
                                                                   Significant 
                                                                        result 
                                                                   returned Q4 
La Verde   DKP009D   6,786,075  324,552  1,152  555.3   131  -60          2025 
                                                                   Significant 
                                                                        result 
                                                                   returned Q4 
 DKP012D             6,785,977  324,839  1,192  590.7   300  -60          2025 
                                                                   Significant 
                                                                        result 
                                                                   returned Q4 
 DKD039              6,785,723  324,420  1,150    840    54  -60          2025 
                                                                       Results 
 DKD040              6,785,901  324,629  1,139    381    60  -59       Pending 
                                                                       Results 
 DKP041              6,785,786  324,561  1,124    390    54  -70       Pending 
                                                                       Results 
 DKD042              6,785,902  324,635  1,140  258.1   299  -70       Pending 
                                                                       Results 
 DKP043              6,785,848  324,593  1,130    342   104  -56       Pending 
                                                                       Results 
 DKD044              6,785,738  324,508  1,131  711.4    71  -65       Pending 
                                                                       Results 
 DKP045D             6,785,944  324,410  1,109    306    61  -60       Pending 
                                                                       Results 
 DKP046              6,786,015  324,591  1,153    184   230  -59       Pending 
                                                                       Results 
 DKP047              6,785,882  324,380  1,090     60    70  -65       Pending 
                                                                       Results 
 DKP048D             6,785,847  324,740  1,151    300    80  -62       Pending 
                                                                       Results 
 DKD049              6,785,852  324,600  1,126  779.9    80  -62       Pending 
                                                                       Results 
 DKP050              6,785,739  324,625  1,127    354    75  -60       Pending 
 

Table 2. Significant Drilling Intersections from La Verde in Quarter 1 2026

 
Hole ID   Coordinates                Azi.  Dip  Hole   Intersection    Interval  Copper  Gold      Silver    Molyb. 
                                                Depth 
          North      East     RL                       From    To      (m)       (% Cu)  (g/t Au)  (ppm Ag)  (ppm Mo) 
DKD033    6,785,775  324,785  1,132   274  -60    543       3     498       495    0.38      0.10       0.7        27 
                                                 Incl     202     239        37    0.51      0.13       1.2        43 
                                                 Incl     289     412       123    0.50      0.13       0.7        39 
                                                    & 
                                                 Incl     521     543        22    0.18      0.04       0.3        75 
DKD034    6,785,839  324,433  1,096    99  -59    714     194     620       426    0.37      0.08       0.7        32 
                                                 Incl     426     533       107    0.46      0.10       1.0        23 
                                                 Incl     566     618        52    0.50      0.08       1.0        50 
                                                    & 
                                                 Incl     679     714        35    0.27      0.06       0.7       183 
DKD035    6,786,027  324,596  1,153    80  -60  278.5      38     258       220    0.47      0.37      0.14      0.65 
                                                 Incl     121     153        32    0.56      0.41      0.20      0.68 
                                                    & 
                                                 Incl     187     255        68    0.64      0.52      0.15      0.88 
                                                   Or 
                                                 Incl     187     207        20    0.76      0.61      0.21      1.05 
DKD036    6,786,029  324,597  1,153   130  -54  371.9      30     180       150    0.52      0.37      0.21      0.86 
                                                 Incl     117     155        38    0.70      0.55      0.21      1.31 
                                                          238     371       133    0.42      0.33      0.12      0.46 
                                                 Incl     254     289        35    0.63      0.49      0.19      0.69 
DKP006D   6,785,721  324,727   1130   110  -60  384.2      76     186       110    0.39      0.27      0.15      0.84 
                                                 Incl     124     172        48    0.54      0.38      0.22      1.09 
                                                   Or 
                                                 Incl     124     144        20    0.74      0.49      0.35      1.36 
                                                    & 
                                                 Incl     227     233         6    0.59      0.42      0.25      0.38 
                                                          254     272        18    0.49      0.40      0.13      0.41 
DKP021D   6,785,619  324,325   1178    75  -60  834.1     118     128        10    0.30      0.27      0.03      0.41 
                                                          284     478       194    0.32      0.26      0.06      0.45 
                                                 Incl     286     300        14    0.43      0.37      0.08      0.61 
                                                    & 
                                                 Incl     437     449        12    0.51      0.40      0.10      0.81 
                                                          593     647        54    0.42      0.34      0.11      0.61 
                                                 Incl     593     612        19    0.66      0.51      0.21      0.93 
                                                          757     766         9    0.43      0.30      0.15      0.47 
DKD037    6,785,842  324,527  1,122    69  -63  321.1     105     289       184    0.42      0.32      0.12      0.61 
                                                 Incl     203     281        78    0.50      0.39      0.14      0.89 
                                                   Or 
                                                 Incl     203     225        27    0.60      0.48      0.15      0.64 
DKD038    6,786,088  324,685  1,185   149  -65  306.4      48     269       221    0.37      0.29      0.11      0.48 
                                                 Incl      53      98        45    0.51      0.37      0.19      0.30 
                                                    & 
                                                 Incl     126     235       109    0.41      0.32      0.11      0.59 
                                                   Or 
                                                 Incl     175     213        38    0.50      0.40      0.13      0.77 
DKD009D   6,786,075  324,552  1,152   131  -60  555.3      34     422       388    0.41      0.32      0.12      0.67 
                                                 Incl     386     398        12    0.51      0.41      0.14      0.85 
                                                          454     499        45    0.40      0.33      0.08      0.74 
                                                 Incl     455     462         7    0.60      0.49      0.13      1.14 
DKD012D   6,785,977  324,839  1,193   300  -60  590.7      44     438       394    0.46      0.35      0.11      0.53 
                                                 Incl      62      82        20    0.61      0.46      0.21      0.25 
                                                    & 
                                                 Incl     192     202        10    0.64      0.47      0.18      0.57 
                                                    & 
                                                 Incl     228     308        80    0.56      0.46      0.12      0.81 
                                                          471     493        22    0.34      0.22      0.04      0.34 
DKD039    6,785,723  324,420  1,150    54  -60  872.4    18.0     744       725    0.42      0.36      0.07      0.68 
                                                 Incl    42.4      64        22    0.71      0.67      0.03      0.29 
                                                    & 
                                                 Incl   249.0     295        46    0.65      0.54      0.12      0.71 
                                                    & 
                                                 Incl   433.0     484        51    0.62      0.51      0.10      1.25 
                                                    & 
                                                 Incl   670.7     732        62    1.03      0.90      0.18      1.81 
                                                   Or 
                                                 Incl   693.1     713        20    1.51      1.30      0.29      2.26 
                                                        800.3     816        16    0.45      0.39      0.07      0.89 
 
 
 
Notes to Table 1: Significant intercepts for La Verde 
 are reported above a nominal cut-off grade of 0.20% 
 Cu. Reported intersections may include internal dilution 
 (intervals below 0.20% Cu), including zones exceeding 
 30 m downhole width, where the overall weighted average 
 grade of the intersection remains above the cut-off 
 grade. Significant intersections are separated where 
 zones of internal dilution result in discrete intervals 
 that do not meet the reporting criteria. The selection 
 of a 0.20% Cu cut-off grade is aligned with a marginal 
 economic cut-off for bulk tonnage polymetallic copper 
 deposits of comparable grade in Chile and globally. 
 Significant intersection widths (interval) have been 
 rounded to the nearest metre. 
 
 (1) Copper Equivalent (CuEq) reported for the drill 
  hole intersections were calculated using the following 
  formula: CuEq% = ((Cu% × Cu price 1% per tonne 
  × Cu_recovery) + (Mo ppm × Mo price per 
  g/t × Mo_recovery) + (Au ppm × Au price 
  per g/t × Au_recovery) + (Ag ppm × Ag price 
  per g/t × Ag_recovery)) / (Cu price 1% per tonne 
  × Cu_recovery). The Metal Prices applied in the 
  calculation were: Cu=4.50 USD/lb, Au=3,150 USD/oz, 
  Mo=20 USD/lb, and Ag=30 USD/oz. The entirety of the 
  intersection is assumed as fresh. The recovery and 
  copper equivalent formula for La Verde uses Cortadera 
  as a proxy, which is considered reasonable given both 
  the similar mineralisation style and amenability testwork 
  completed thus far at La Verde -- Recoveries of 83% 
  Cu, 56% Au, 83% Mo and 37% Ag. CuEq (%) = Cu(%) + 
  0.69 x Au(g/t) + 0.00044 x Mo(ppm) + 0.0043 x Ag(g/t). 
 

SUMMARY OF CORPORATE ACTIVITIES

Strategic Partnering Process Update

Hot Chili continues to advance its asset-level strategic Partnering Process, aimed at introducing one or more qualified partners with the financial, technical and operational capability to assist in funding and delivery of the projects.

During the quarter, engagement levels remained strong, with additional parties entering the Partnering Process, with several advancing through due diligence, including site visits. The Company has received further non-binding, indicative, incomplete and conditional proposals in relation to potential transactions for the Projects and remains actively engaged in assessing these alongside existing proposals.

The Partnering Process may result in a range of transactions for the Projects. Investors are cautioned that there is no certainty the Partnering Process will result in a transaction or binding agreement.

BMO Capital Markets continues to act as financial adviser in connection with the Partnering Process.

The Company will continue to update the market in accordance with its continuous disclosure obligations.

Successful Closing of A$40 Million Funding

In February 2026, the Company closed a A$40 million (before costs) private placement to institutional, professional and other investors. The placement is intended to support Costa Fuego's position as one of the few globally significant copper projects not controlled by major mining companies, with the potential to contribute substantially to new copper supply this decade.

Hot Chili issued a total of 24,242,425 shares made up of 13,209,698 ordinary fully paid shares at A$1.65 on the ASX and 11,032,727 ordinary fully paid shares at CAD$1.56 on the TSXV. Additionally, 1,212,121 broker options were issued at an exercise price of A$2.145 with an expiry date of 12 August 2028 to complete the capital raising transaction.

Proceeds will be used to accelerate drilling across the La Verde Cu-Au discovery to establish a maiden mineral resource and further define the potential size, scale and grade of a higher-grade starter pit for the Costa Fuego Project, development of the Company's Huasco Water Project, commencement of the Costa Fuego Feasibility Study, completion and submission of the Costa Fuego EIA, ongoing exploration, strategic funding activities and for general working capital purposes.

Cash Position

As of 31 March 2026, the Company had cash of A$35.2 million and no debt.

The operating expenditure for quarter ended 31 March 2026 included payments for staff costs of A$0.7 million and administration and corporate costs of A$1.7 million.

The investing expenditure for quarter ended 31 March 2026 included payments for tenements of A$2.3 million, including payments for US$1.0 million for the Dominoceros Purchase Option Agreement and US$0.3 million AMSA Purchase Option and payments for exploration and evaluation of A$3.1 million relating to activities across the La Verde copper-gold porphyry discovery, value engineering works and EIA submission activities.

Capital Structure

The following summarises the Company's securities on issue:

   -- 177,561,814 ordinary fully paid shares 
 
   -- 1,914,000 options at AUD $1.50 expiring 24 July 2026 
 
   -- 1,212,121 options at AUD $2.145 expiring 12 August 2028 
 
   -- 1,176,563 service and performance rights 

Additional ASX Disclosure Information

ASX Listing Rule 5.3.2: There was no substantive mining production and development activities during the quarter.

ASX Listing Rule 5.3.3 - Schedule of Mineral Tenements as of 31 March 2026.

The schedule of Mineral Tenements and changes in interests is appended at the end of this activities report.

ASX Listing Rule 5.3.4: Reporting under a use of funds statement in a Prospectus does not apply to the Company currently.

ASX Listing Rule 5.3.5: Payments to related parties of the Company and their associates during the quarter per Section 6.1 of the Appendix 5B totalled $234,000. This is comprised of directors' salaries and superannuation of $234,000.

Health, Safety, Environment and Quality

Field operations during the quarter included geological reconnaissance activities, diamond drilling, field mapping, and sampling exercises across the Company's Costa Fuego project landholdings, focused on La Verde. Activities on new tenements are run at the Productora or Cortadera operations centers and their safety statistics are included under the figures for all projects.

There was a single Lost Time Injury (LTI) during the quarter, where accidental contact with a damaged core tray injured a worker's hand.

Hot Chili's sustainability framework ensures an emphasis on business processes that target long-term economic, environmental and social value. The Company is dedicated to continual monitoring and improvement of health, safety and the environmental systems. There is no greater importance than ensuring the safety of our people and their families.

Table 3. HSEQ Quarter 1 2026 Performance and Statistics

 
Deposit         Domeyko              Productora           All Projects 
Timeframe       Q1 2026  Cum.(2)     Q1 2026  Cum.(2)     Q1 2026  Cum.(2) 
                         2024                 2024                 2024 
LTI events            1           0        0           0        1            2 
NLTI events           0           0        0           0        0            1 
Days lost             4           0        0           0        4           88 
LTIFR index          50          13        0           0        0           13 
ISR index           201          54        0           0        0          579 
IFR Index            50          13        0          84        0           20 
Thousands of 
 man-hours         19.9          74      4.2          48     25.4          152 
Incidents on 
 materials and 
 assets               0           0        0           0        0            0 
Environmental 
 incidents            0           0        0           0        0            0 
Headcount(1)         52          23       17          19       74           37 
 
 
 
Notes: HSEQ is the acronym for Health, Safety, Environment 
 and Quality. LTIFR per million-manhours. Safety performance 
 is reported on a monthly basis to the National Mine 
 Safety Authority on a standard E-100 form; (1) Average 
 monthly headcount (2) Cumulative statistics since 
 April, 2024. 
 

Tenement Changes During the Quarter

During the Quarter, the following mining exploration concessions have expired upon reaching their expiration date (March 30): Solar 1, Solar 3, Solar 5, Solar 7, Solar 9 Soledad 2 and Soledad 4.

In addition, the following exploitation concessions in process of being granted have been abandoned, as they do not hold priority rights over the overlapping area: Suerte 1/7, Suerte II 1/15, Domeyko I 1/12 and Domeyko II 1/40.

The Company's existing tenements are detailed in the table below.

Table 4. Current Tenement Holdings in Chile as of March 31(th) 2026

Cortadera Project Tenements

 
Cortadera Project 
Ndeg  License ID       HCH % Held       HCH % Earning  Area    Agreement 
                                                        (ha)   Details 
1     ALCENIA 1/10     100% SMEA SpA                   50 
      AMALIA 942 A     100% Frontera 
2     1/6              SpA                             53 
                       100% Frontera 
3     ATACAMITA 1/82   SpA                             82 
      CORROTEO 1       100% Frontera 
4     1/260            SpA                             260 
      CORROTEO 5       100% Frontera 
5     1/261            SpA                             261 
      CORTADERA 1      100% Frontera 
6     1/200            SpA                             200 
                       100% Frontera 
7     CORTADERA 1/40   SpA                             374 
      CORTADERA 2      100% Frontera 
8     1/200            SpA                             200 
                       100% Frontera 
9     CORTADERA 41     SpA                             1 
                       100% Frontera 
10    CORTADERA 42     SpA                             1 
                       100% Frontera 
11    LAS CANAS 1/15   SpA                             146 
                       100% Frontera 
12    LAS CANAS 16     SpA                             1 
      LAS CANAS ESTE   100% Frontera 
13    2003 1/30        SpA                             300 
      MAGDALENITA      100% Frontera 
14    1/20             SpA                             100 
      PAULINA 10 B     100% Frontera 
15    1/16             SpA                             136 
      PAULINA 11 B     100% Frontera 
16    1/30             SpA                             249 
      PAULINA 12 B     100% Frontera 
17    1/30             SpA                             294 
      PAULINA 13 B     100% Frontera 
18    1/30             SpA                             264 
      PAULINA 14 B     100% Frontera 
19    1/30             SpA                             265 
      PAULINA 15 B     100% Frontera 
20    1/30             SpA                             200 
      PAULINA 22 A     100% Frontera 
21    1/30             SpA                             300 
                       100% Frontera 
22    PAULINA 24 1/24  SpA                             183 
      PAULINA 25 A     100% Frontera 
23    1/19             SpA                             156 
      PAULINA 26 A     100% Frontera 
24    1/30             SpA                             294 
      PAULINA 27A      100% Frontera 
25    1/30             SpA                             300 
      PURISIMA 1/8     100% Frontera 
26    (1/2 Y 5/6)      SpA                             20      NSR 1.5% 
                       100% Frontera 
27    CF 1             SpA                             300 
                       100% Frontera 
28    CF 2             SpA                             300 
                       100% Frontera 
29    CF 3             SpA                             300 
                       100% Frontera 
30    CF 4             SpA                             300 
                       100% Frontera 
31    CF 5             SpA                             200 
                       100% Frontera 
32    CF 6             SpA                             200 
                       100% Frontera 
33    CF 7             SpA                             100 
                       100% Frontera 
34    CF 8             SpA                             200 
                       100% Frontera 
35    CF 9             SpA                             100 
                       100% Frontera 
36    CF 10            SpA                             200 
                       100% Frontera 
37    CF 11            SpA                             200 
      CHAPULIN         100% Frontera 
38    COLORADO 1/3     SpA                             3 
                       100% Frontera 
39    CHILIS 1         SpA                             200 
                       100% Frontera 
40    CHILIS 3         SpA                             100 
                       100% Frontera 
41    CHILIS 4         SpA                             200 
                       100% Frontera 
42    CHILIS 5         SpA                             200 
                       100% Frontera 
43    CHILIS 6         SpA                             200 
                       100% Frontera 
44    CHILIS 7         SpA                             200 
                       100% Frontera 
45    CHILIS 8         SpA                             200 
                       100% Frontera 
46    CHILIS 9         SpA                             300 
                       100% Frontera 
47    CHILIS 10 1/38   SpA                             190 
                       100% Frontera 
48    CHILIS 11        SpA                             200 
                       100% Frontera 
49    CHILIS 12 1/60   SpA                             300 
                       100% Frontera 
50    CHILIS 13        SpA                             300 
                       100% Frontera 
51    CHILIS 14        SpA                             300 
                       100% Frontera 
52    CHILIS 15        SpA                             300 
                       100% Frontera 
53    CHILIS 16        SpA                             300 
                       100% Frontera 
54    CHILIS 17        SpA                             300 
                       100% Frontera 
55    CHILIS 18        SpA                             300 
                       100% Frontera 
56    CORTADERA 1      SpA                             200 
                       100% Frontera 
57    CORTADERA 2      SpA                             200 
                       100% Frontera 
58    CORTADERA 3      SpA                             200 
                       100% Frontera 
59    CORTADERA 4      SpA                             200 
                       100% Frontera 
60    CORTADERA 5      SpA                             200 
      CORTADERA 6      100% Frontera 
61    1/60             SpA                             265 
      CORTADERA 7      100% Frontera 
62    1/20             SpA                             93 
63    CRISTINA 1/40    100% SMEA SpA                   40 
64    DIABLITO 1/5     100% SMEA SpA                   25 
      DONA FELIPA      100% Frontera 
65    1/10             SpA                             50 
                       100% Frontera 
66    DORO 1           SpA                             200 
                       100% Frontera 
67    DORO 2           SpA                             200 
                       100% Frontera 
68    DORO 3           SpA                             300 
      FALLA MAIPO 2    100% Frontera 
69    1/10             SpA                             99 
      FALLA MAIPO 3    100% Frontera 
70    1/8              SpA                             72 
      FALLA MAIPO 4    100% Frontera 
71    1/26             SpA                             26 
72    MINORI 1         100% SMEA SpA                   300 
73    MINORI 2         100% SMEA SpA                   300 
74    MINORI 3         100% SMEA SpA                   300 
75    MINORI 4         100% SMEA SpA                   300 
                       100% Frontera 
76    PORFIADA B       SpA                             200 
                       100% Frontera 
77    PORFIADA D       SpA                             300 
                       100% Frontera 
78    PORFIADA G       SpA                             200 
                       100% Frontera 
79    PORFIADA I       SpA                             300 
                       100% Frontera 
80    PORFIADA II      SpA                             300 
                       100% Frontera 
81    PORFIADA III     SpA                             300 
                       100% Frontera 
82    PORFIADA IV      SpA                             300 
                       100% Frontera 
83    PORFIADA V       SpA                             200 
                       100% Frontera 
84    PORFIADA VI      SpA                             100 
                       100% Frontera 
85    PORFIADA X       SpA                             200 
                       100% Frontera 
86    SAN ANTONIO 1    SpA                             200 
                       100% Frontera 
87    SAN ANTONIO 2    SpA                             200 
                       100% Frontera 
88    SAN ANTONIO 3    SpA                             300 
                       100% Frontera 
89    SAN ANTONIO 4    SpA                             300 
                       100% Frontera 
90    SAN ANTONIO 5    SpA                             300 
                       100% Frontera 
92    SOLAR 2          SpA                             300 
                       100% Frontera 
94    SOLAR 4          SpA                             300 
                       100% Frontera 
96    SOLAR 6          SpA                             300 
                       100% Frontera 
98    SOLAR 8          SpA                             300 
                       100% Frontera 
100   SOLAR 10         SpA                             300 
                       100% Frontera 
101   SOLEDAD 1        SpA                             300 
                       100% Frontera 
103   SOLEDAD 3        SpA                             300 
                       100% Frontera 
105   MARINA 1/10      SpA                             100 
                       100% Frontera 
106   CATITA V 1/9     SpA                             9 
                       100% Frontera 
107   CHILIS 19        SpA                             300 
                       100% Frontera 
108   PAULINA          SpA                             100 
      TOTAL                                            21.062 
 
 
 
  Note. Frontera SpA is a 100% owned subsidiary company 
   of Hot Chili Limited 
 

Productora Project Tenements

 
Productora Project 
Ndeg  License ID       HCH % Held      HCH % Earning  Area    Agreement 
                                                       (ha)   Details 
1     ALGA 7 A 1/32    80% SMEA SpA                   89 
2     ALGA VI 4        100% SMEA SpA                  2 
3     ALGA VI 5/24     80% SMEA SpA                   66 
4     ARENA 1 1/6      80% SMEA SpA                   40 
5     ARENA 2 1/17     80% SMEA SpA                   113 
      AURO HUASCO 1A 
6     1/8              80% SMEA SpA                   35 
      CABRITO-CABRITO 
7     1/9              80% SMEA SpA                   50 
      CACHIYUYITO 1 
8     1/20             80% SMEA SpA                   100 
      CACHIYUYITO 2 
9     1/60             80% SMEA SpA                   300 
      CACHIYUYITO 3 
10    1/60             80% SMEA SpA                   300 
11    CARMEN I, 1/50   80% SMEA SpA                   222 
12    CARMEN II, 1/60  80% SMEA SpA                   274 
                       100% Frontera 
13    CF 12            SpA                            100 
                       100% Frontera 
14    CF 13            SpA                            200 
                       100% Frontera 
15    CF 14            SpA                            300 
16    CHICA            80% SMEA SpA                   1 
17    CHOAPA 1/10      80% SMEA SpA                   50 
18    CUENCA A 1/51    80% SMEA SpA                   255 
19    CUENCA B 1/28    80% SMEA SpA                   139 
20    CUENCA C 1/51    80% SMEA SpA                   255 
21    CUENCA D         80% SMEA SpA                   3 
22    CUENCA E         80% SMEA SpA                   1 
      ELEONOR RIGBY    100% Frontera 
23    1/10             SpA                            100 
24    ELQUI 1/14       80% SMEA SpA                   61 
25    ESPERANZA 1/5    80% SMEA SpA                   11 
26    FRAN 1 1/60      80% SMEA SpA                   220 
27    FRAN 12 1/40     80% SMEA SpA                   200 
28    FRAN 13 1/40     80% SMEA SpA                   200 
29    FRAN 14 1/40     80% SMEA SpA                   200 
30    FRAN 15 1/60     80% SMEA SpA                   300 
31    FRAN 18, 1/60    80% SMEA SpA                   273 
32    FRAN 2 1/20      80% SMEA SpA                   100 
33    FRAN 21, 1/46    80% SMEA SpA                   226 
34    FRAN 3 1/20      80% SMEA SpA                   100 
35    FRAN 4 1/20      80% SMEA SpA                   100 
36    FRAN 5 1/20      80% SMEA SpA                   100 
37    FRAN 6 1/26      80% SMEA SpA                   130 
38    FRAN 7 1/37      80% SMEA SpA                   176 
39    FRAN 8 1/30      80% SMEA SpA                   120 
40    JULI 10, 1/60    80% SMEA SpA                   300 
41    JULI 11, 1/60    80% SMEA SpA                   300 
42    JULI 12, 1/42    80% SMEA SpA                   210 
43    JULI 13, 1/20    80% SMEA SpA                   100 
44    JULI 14, 1/50    80% SMEA SpA                   250 
45    JULI 15, 1/55    80% SMEA SpA                   275 
46    JULI 16 1/60     80% SMEA SpA                   300 
47    JULI 17 1/20     80% SMEA SpA                   100 
48    JULI 19          80% SMEA SpA                   300 
49    JULI 20          80% SMEA SpA                   300 
50    JULI 21 1/60     80% SMEA SpA                   300 
51    JULI 22          80% SMEA SpA                   300 
52    JULI 23 1/60     80% SMEA SpA                   300 
53    JULI 24 1/60     80% SMEA SpA                   300 
54    JULI 25          80% SMEA SpA                   300 
55    JULI 27 B, 1/10  80% SMEA SpA                   48 
56    JULI 27, 1/30    80% SMEA SpA                   146 
57    JULI 28, 1/60    80% SMEA SpA                   300 
58    JULI 9, 1/60     80% SMEA SpA                   300 
      JULIETA 10, 
59    1/60             80% SMEA SpA                   300 
60    JULIETA 11       80% SMEA SpA                   300 
61    JULIETA 12       80% SMEA SpA                   300 
62    JULIETA 13 1/60  80% SMEA SpA                   298 
63    JULIETA 14 1/60  80% SMEA SpA                   269 
64    JULIETA 15 1/40  80% SMEA SpA                   200 
65    JULIETA 16       80% SMEA SpA                   200 
66    JULIETA 17       80% SMEA SpA                   200 
67    JULIETA 18 1/40  80% SMEA SpA                   200 
68    JULIETA 5        80% SMEA SpA                   200 
69    JULIETA 6        80% SMEA SpA                   200 
70    JULIETA 7        80% SMEA SpA                   100 
71    JULIETA 8        80% SMEA SpA                   100 
72    JULIETA 9        80% SMEA SpA                   100 
73    JULITA 1/4       80% SMEA SpA                   4 
74    LEONA 2A 1/4     80% SMEA SpA                   10 
75    LIMARI 1/15      80% SMEA SpA                   66 
76    LOA 1/6          80% SMEA SpA                   30 
77    MAIPO 1/10       80% SMEA SpA                   50 
78    MONTOSA 1/4      80% SMEA SpA                   35      NSR 3% 
      ORO INDIO 1A 
79    1/20             80% SMEA SpA                   82 
                       100% Frontera 
80    PEGGY SUE 1/10   SpA                            100 
81    PRODUCTORA 1/16  80% SMEA SpA                   75 
84    TOLTEN 1/14      80% SMEA SpA                   70 
85    URANIO 1/70      0 %                            350     25-year Lease 
                                                              Agreement 
                                                              US$250,000 per 
                                                              year 
                                                              (average for the 
                                                              25 year term); 
                                                              plus 2% NSR all 
                                                              but 
                                                              gold; 4% NSR 
                                                              gold; 5% NSR 
                                                              non-metallic 
86    ZAPA 1 1/10      80% SMEA SpA                   100 
87    ZAPA 1/6         80% SMEA SpA                   6       GSR 1% 
88    ZAPA 3 1/23      80% SMEA SpA                   92 
89    ZAPA 5A 1/16     80% SMEA SpA                   80 
90    ZAPA 7 1/24      80% SMEA SpA                   120 
91    SIERRA SOLIS 1   100% SMEA SpA                  200 
92    SIERRA SOLIS 2   100% SMEA SpA                  300 
93    SIERRA SOLIS 3   100% SMEA SpA                  300 
94    SIERRA SOLIS 4   100% SMEA SpA                  200 
95    SIERRA SOLIS 5   100% SMEA SpA                  300 
96    SIERRA SOLIS 6   100% SMEA SpA                  300 
97    SIERRA SOLIS 7   100% SMEA SpA                  300 
98    SIERRA SOLIS 8   100% SMEA SpA                  300 
99    ZAPALLO 1        100% SMEA SpA                  100 
100   ZAPALLO 2        100% SMEA SpA                  200 
101   ZAPALLO 3        100% SMEA SpA                  200 
      TOTAL                                           17.178 
 
 
 
  Note. SMEA SpA is subsidiary company - 80% owned by 
   Hot Chili Limited, 20% owned by CMP (Compañía 
   Minera del Pacífico) 
  Note. Frontera SpA is a 100% owned subsidiary company 
   of Hot Chili Limited. 
 

Domeyko Project Tenements

 
Domeyko Project 
Ndeg  License ID   HCH % Held     HCH % Earning  Area      Agreement Details 
                                                 (ha) 
1     ANTONIO 1                   100% Frontera  280       100% HCH Domeyko 
      1/56                        SpA                      Purchase Option 
                                                           Agreement 
                                                           US$170,000 (already 
                                                           satisfied) 
                                                           US$150,000 payable 
                                                           by April 19th 2026 
                                                           US$200,000 payable 
                                                           by April 19th 2027 
                                                           US$3.480,000 
                                                           payable by April 
                                                           19th 2028 
                                                           NSR 1% 
      ANTONIO                     100% Frontera 
2     1/40                        SpA            200 
      ANTONIO 10                  100% Frontera 
3     1/21                        SpA            63 
      ANTONIO 19                  100% Frontera 
4     1/30                        SpA            128 
      ANTONIO 21                  100% Frontera 
5     1/20                        SpA            60 
      ANTONIO 36                  100% Frontera 
6     1/15                        SpA            74 
      ANTONIO 5                   100% Frontera 
7     1/40                        SpA            200 
      ANTONIO 9                   100% Frontera 
8     1/40                        SpA            193 
                                  100% Frontera 
9     CAZURRO 1                   SpA            200 
                                  100% Frontera 
10    CAZURRO 2                   SpA            200 
                                  100% Frontera 
11    CAZURRO 3                   SpA            300 
                                  100% Frontera 
12    CAZURRO 4                   SpA            300 
                                  100% Frontera 
13    CAZURRO 5                   SpA            100 
                                  100% Frontera 
14    CAZURRO 6                   SpA            200 
                                  100% Frontera 
15    CAZURRO 7                   SpA            200 
                                  100% Frontera 
16    CAZURRO 8                   SpA            200 
      CERRO MOLY                  100% Frontera 
17    1                           SpA            300 
      CERRO MOLY                  100% Frontera 
18    2                           SpA            300 
      CERRO MOLY                  100% Frontera 
19    3                           SpA            300 
      CERRO MOLY                  100% Frontera 
20    4                           SpA            300 
      CAZURRO 3                   100% Frontera 
21    1/60                        SpA            300 
      CAZURRO 4                   100% Frontera 
22    1/60                        SpA            300 
      CAZURRO 7                   100% Frontera 
23    1/40                        SpA            200 
      EMILIO 1                    100% Frontera 
24    1/8                         SpA            38 
      EMILIO 3                    100% Frontera 
25    1/9                         SpA            45 
                                  100% Frontera 
26    INES 1/40                   SpA            200 
                                  100% Frontera 
27    LORENA 1/2                  SpA            2 
      MERCEDITA                   100% Frontera 
28    1/7                         SpA            22 
                                  100% Frontera 
29    PRIMO 1 1/6                 SpA            36 
      SANTIAGUITO                 100% Frontera 
30    5 1/24                      SpA            114 
31    DOMINOCEROS                 100% Frontera  20        100% HCH 
      1/20 (1/4)                  SpA                      Dominoceros 
                                                           Purchase Option 
                                                           Agreement 
                                                           US$1,000,000 
                                                           (already satisfied) 
 
                                                           US$1,000,000 
                                                           payable by October 
                                                           25th 2026 
                                                           US$6,890,000 
                                                           payable by October 
                                                           25th 2027 
                   100% Frontera 
32    CF SUR 1     SpA                           300 
                   100% Frontera 
33    CF SUR 2     SpA                           300 
                   100% Frontera 
34    CF SUR 3     SpA                           300 
                   100% Frontera 
35    CF SUR 4     SpA                           300 
                   100% Frontera 
36    CF SUR 5     SpA                           200 
                   100% Frontera 
37    CF SUR 6     SpA                           300 
                   100% Frontera 
38    CF SUR 7     SpA                           300 
                   100% Frontera 
39    CF SUR 8     SpA                           300 
                   100% Frontera 
40    CF SUR 9     SpA                           200 
                   100% Frontera 
41    CF SUR 10    SpA                           200 
                   100% Frontera 
42    CF SUR 11    SpA                           300 
                   100% Frontera 
43    CF SUR 12    SpA                           300 
                   100% Frontera 
44    CF SUR 13    SpA                           300 
                   100% Frontera 
45    CF SUR 14    SpA                           300 
                   100% Frontera 
46    CF SUR 15    SpA                           200 
                   100% Frontera 
47    CF SUR 16    SpA                           300 
                   100% Frontera 
48    CF SUR 17    SpA                           300 
                   100% Frontera 
49    CF SUR 18    SpA                           300 
                   100% Frontera 
50    CF SUR 19    SpA                           300 
                   100% Frontera 
51    CF SUR 20    SpA                           300 
                   100% Frontera 
52    CF SUR 21    SpA                           300 
                   100% Frontera 
53    CF SUR 22    SpA                           300 
                   100% Frontera 
54    CF SUR 23    SpA                           200 
                   100% Frontera 
55    CF SUR 24    SpA                           200 
                   100% Frontera 
56    CF SUR 25    SpA                           300 
                   100% Frontera 
57    CF SUR 26    SpA                           300 
                   100% Frontera 
58    CF SUR 27    SpA                           300 
                   100% Frontera 
59    CF SUR 28    SpA                           200 
                   100% Frontera 
60    CF SUR 29    SpA                           300 
                   100% Frontera 
61    CF SUR 30    SpA                           200 
                   100% Frontera 
62    CF SUR 31    SpA                           300 
                   100% Frontera 
63    CF SUR 32    SpA                           300 
                   100% Frontera 
64    CF SUR 33    SpA                           300 
                   100% Frontera 
65    CF SUR 34    SpA                           300 
                   100% Frontera 
66    CF SUR 35    SpA                           300 
                   100% Frontera 
67    CF SUR 36    SpA                           200 
                   100% Frontera 
68    CF SUR 37    SpA                           200 
71    KRETA 1/4    100% Frontera                 16        The mining 
                   SpA                                     concession is 
                                                           included in San 
                                                           Antonio Purchase 
                                                           Option Agreement 
                   100% Frontera 
72    MARI 1       SpA                           300 
73    MARI 1/12    100% Frontera                 64        The mining 
                   SpA                                     concession is 
                                                           included in San 
                                                           Antonio Purchase 
                                                           Option Agreement 
                   100% Frontera 
74    MARI 6       SpA                           300 
                   100% Frontera 
75    MARI 8       SpA                           300 
                   100% Frontera 
76    PAJONALES    SpA                           300 
      TOTAL                                      16.755 
 
 
 
  Note. Frontera SpA is a 100% owned subsidiary company 
   of Hot Chili Limited. 
 

El Fuego Project Tenements

 
San Antonio Project 
Ndeg  License ID      HCH % Held  HCH % Earning   Area   Agreement Details 
                                                   (ha) 
1     MERCEDES 1/3                100% Frontera   50     100% HCH San Antonio 
                                  SpA                    Purchase Option 
                                                         AgreementUS$2,400,000 
                                                         already 
                                                         paid.US$2,000,000 
                                                         payable by September 
                                                         30th 2026 
                                                         to exercise the El 
                                                         Fuego Option.(2 
                                                         additional and 
                                                         conditional payments 
                                                         of 
                                                         US$2,000,000, each 
                                                         one, to be paid by 
                                                         December 
                                                         31, 2030 under 
                                                         certain conditions 
                                                         detailed at title 
                                                         "Tenement Changes 
                                                         During the Quarter" 
                                                         of this 
                                                         quarterly report.) 
      PORFIADA A                  100% Frontera 
2     1/33                        SpA             160 
      PORFIADA C                  100% Frontera 
3     1/60                        SpA             300 
      PORFIADA E                  100% Frontera 
4     1/20                        SpA             100 
      PORFIADA F                  100% Frontera 
5     1/50                        SpA             240 
      PORFIADA IX                 100% Frontera 
6     1/60                        SpA             300 
      PORFIADA VII                100% Frontera 
7     1/60                        SpA             270 
      PORFIADA VIII               100% Frontera 
8     1/60                        SpA             300 
                                  100% Frontera 
9     PRIMA 1                     SpA             1 
                                  100% Frontera 
10    PRIMA 2                     SpA             2 
                                  100% Frontera 
11    ROMERO 1/31                 SpA             31 
      SAN ANTONIO                 100% Frontera 
12    1/5                         SpA             25 
      SAN JUAN SUR                100% Frontera 
13    1/5                         SpA             10 
      SAN JUAN SUR                100% Frontera 
14    6/23                        SpA             90 
      SANTIAGO Z                  100% Frontera 
15    1/30                        SpA             300 
      SANTIAGO 1/4 Y              100% Frontera 
16    20                          SpA             75 
                                  100% Frontera 
17    SANTIAGO 15/19              SpA             25 
                                  100% Frontera 
18    SANTIAGO 21/36              SpA             76 
                                  100% Frontera 
19    SANTIAGO 37/43              SpA             26 
      SANTIAGO A,                 100% Frontera 
20    1/26                        SpA             244 
      SANTIAGO B,                 100% Frontera 
21    1/20                        SpA             200 
      SANTIAGO C,                 100% Frontera 
22    1/30                        SpA             300 
      SANTIAGO D,                 100% Frontera 
23    1/30                        SpA             300 
      SANTIAGO E,                 100% Frontera 
24    1/30                        SpA             300 
      TOTAL                                       3.725 
 
 
 
  Note. Frontera SpA is a 100% owned subsidiary company 
   of Hot Chili Limited. 
 
 
Cordillera Project 
Ndeg  License ID        HCH % Held  HCH % Earning      Area   Agreement 
                                                        (ha)  Details 
1     ALBORADA III                  100% Frontera SpA  162    100% HCH 
      1/35                                                    Purchase Option 
                                                              Agreement 
                                                              USD 100,000 
                                                              already paid 
                                                              US$100,000 
                                                              payable by 
                                                              November 14th 
                                                              2026US$100,000 
                                                              payable by 
                                                              November 14th 
                                                              2027 
                                                              US$3,700,000 
                                                              payable by 
                                                              November 14th 
                                                              2028 
                                                              NSR 1% for 
                                                              underground 
                                                              mining and 1,5% 
                                                              for open-pit 
                                                              mining 
2     ALBORADA IV 1/20              100% Frontera SpA  54 
      ALBORADA VII 
3     1/25                          100% Frontera SpA  95 
4     CAT IX 1/30                   100% Frontera SpA  150 
5     CATITA IX 1/20                100% Frontera SpA  100 
6     CATITA XII 1/13               100% Frontera SpA  61 
7     CORDILLERA 1/5                100% Frontera SpA  20 
8     HERREROS 1/14                 100% Frontera SpA  28 
      MINA HERREROS 
9     III 1/6                       100% Frontera SpA  18 
      MINA HERREROS IV 
10    1/10                          100% Frontera SpA  23 
11    PORSIACA 1/20                 100% Frontera SpA  20 
12    QUEBRADA 1/10                 100% Frontera SpA  28 
13    VETA 1/17                     100% Frontera SpA  17 
      TOTAL                                            776 
 
 
 
  Note. Frontera SpA is a 100% owned subsidiary company 
   of Hot Chili Limited. 
 

Qualifying Statements

The scientific and technical information relating to the Company's Costa Fuego project in this report has been derived from or is based on the Costa Fuego Copper project pre-feasibility study (the "Costa Fuego PFS" or 2025 PFS), which has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 -- Standards of Disclosure for Mineral Projects ("NI 43-101") and Joint Ore Reserves Committee of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (the "JORC Code") and reviewed and approved by the "Qualified Persons" as defined under NI 43-101 and "Competent Persons" as defined under the JORC Code, as set out below. The 2025 PFS was compiled by the Qualified Persons and Competent Persons listed below based on information available up to the effective date of the PFS. Additional details of responsibilities are provided at page 48 of presentation "Costa Fuego Preliminary Feasibility Study March 2025" released on March 27, 2025.

Conceptual Open Pit Shells

Conceptual open pit shells represent Exploration Targets as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (JORC Code). They are based on completed exploration activities reported in the announcement released 19 May 2025 ('Hot Chili Announces Latest Drill Results for La Verde, Doubling Porphyry Discovery Footprint').

The conceptual open pit shells were generated using copper (Cu) prices of US$3.50/lb Cu and US$6.00/lb Cu on a series of nested Cu grade shells. Other input parameters informing the conceptual open-pit shells (pit slope angles, mining cost, processing cost, etc.) were derived from values reported in the March 2025 Costa Fuego Pre-feasibility Study and are considered appropriate for the style of mineralisation encountered at the La Verde Cu-Au porphyry discovery.

Any potential quantity and grade of the Exploration Target shown is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource within the target area, and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

Further exploration activities are detailed in this announcement and include (but may not necessarily be limited to) a program of diamond drill holes aiming to extend the mineralised footprint at La Verde. Drilling commenced on 22 September 2025, with the length of the program dependent on a number of considerations including (but not limited to) the results of the exploration activities and regulatory applications and approvals.

PFS Technical Report

For readers to fully understand the information in this report, they should read the PFS Technical Report available on SEDAR+ (www.sedarplus.ca) and at www.hotchili.net.au in its entirety titled "Costa Fuego Project, Chile, Preliminary Feasibility Study NI 43-101 Technical Report" dated May 9 2025 with an effective date of March 27 2025, including all qualifications, assumptions, limitations and exclusions. The PFS Technical Report is intended to be read as a whole, and sections should not be read or relied upon out of context. The technical information in this report is subject to the assumptions and qualifications to be contained in the PFS Technical Report. The PFS Technical Report replaces and supersedes the technical report titled "Costa Fuego Copper Project -- NI 43-101 Technical Report Mineral Resource Estimate Update" dated April 8, 2024, with an effective date of February 26, 2024 (the "2024 PEA").

Qualified Persons -- NI 43-101

The PFS was compiled by Wood Australia Pty Ltd with contributions from a team of independent "Qualified Persons" within the meaning of NI 43 -101. The scientific and technical information contained in this report pertaining to Costa Fuego has been reviewed and verified by the following independent qualified persons within the meaning of NI 43-101:

   -- Ms Elizabeth Haren (FAUSIMM $(CP)$ & MAIG) of Haren Consulting -- Mineral 
      Resource Estimate 
 
   -- Mr Dean David (FAUSIMM (CP)) of Wood Pty Ltd -- Metallurgy 
 
   -- Mr Piers Wendlandt (PE) of Wood Pty Ltd -- Market Studies and Contracts, 
      Economic Analysis 
 
   -- Mr David Cuello (MAUSIMM) of GMT Servicios de Ingeniería -- 
      Geotechnical 
 
   -- Mr Jeffrey Stevens (Pr. Eng, MSAIMM) of Wood Pty Ltd -- Infrastructure 
      and Capital Cost 
 
   -- Mr Luis Bernal (Comisión Minera $(PC)$ Registered Member) of Process 
      Mineral Consulting -- Leaching 
 
   -- Mr Anton von Wielligh (FAUSIMM) of ABGM Consulting Pty Ltd -- Mine 
      Planning and Scheduling 
 
   -- Mr Edmundo LaPorte (PE, PEng, CPEng, SME Registered Member) of High River 
      Services - Environmental 

The above independent Qualified Persons have verified the information disclosed herein, including the sampling, preparation, security, and analytical procedures underlying such information.

Competent Persons -- JORC

The information in this report that relates to Mineral Resources, Exploration Results, and Ore Reserves for the Costa Fuego Project is based on information compiled by:

   -- Ms Elizabeth Haren (FAUSIMM (CP) & MAIG) who is a full-time employee of 
      Haren Consulting -- Mineral Resource Estimate 
 
   -- Mr Dean David (FAUSIMM (CP)) who is a full-time employee of Wood Pty Ltd 
      -- Metallurgy 
 
   -- Mr Piers Wendlandt (PE) who is a full-time employee of Wood Pty Ltd -- 
      Market Studies and Contracts, Economic Analysis 
 
   -- Mr David Cuello (MAUSIMM) who is a full-time employee of GMT Servicios de 
      Ingeniería -- Geotechnical 
 
   -- Mr Jeffrey Stevens (Pr. Eng, MSAIMM) who is a full-time employee of Wood 
      Pty Ltd -- Infrastructure and Capital Cost 
 
   -- Mr Luis Bernal (Comisión Minera (PC) Registered Member) who is a 
      full-time employee of Process Mineral Consulting -- Leaching 
 
   -- Mr Anton von Wielligh (FAUSIMM) who is a full-time employee of ABGM 
      Consulting Pty Ltd -- Mine Planning and Scheduling 
 
   -- Mr Edmundo LaPorte (PE, PEng, CPEng, SME Registered Member) who is a 
      full-time employee of High River Services -- Environmental 
 
   -- Mr Christian Easterday (MAIG), who is the Managing Director and is a 
      full-time employee of Hot Chili Limited -- Exploration Results 

Ms Haren, Mr David, Mr Wendlandt, Mr Cuello, Mr Stevens, Mr Bernal, Mr LaPorte, Mr Easterday, and Mr von Wielligh each have sufficient experience, which is relevant to the style of mineralisation and types of deposits under consideration and to the activities undertaken, to qualify as a Competent Person as defined in the JORC Code and as Qualified Persons under NI43-101.

Disclaimer

This report has been prepared by management of Hot Chili Limited ("Hot Chili" or the "Company") and does not represent a recommendation to buy or sell securities of the Company. Investors should always consult their investment advisors prior to making any investment decisions. This report does not purport to be complete or contain all of the information that may be material to the current or future business, operations, financial condition or prospects of the Company and Hot Chili makes no representation or warranty, express or implied, as to the accuracy or completeness of the information contained in this report. Certain information contained herein is based on, or derived from, information obtained from independent third-party sources, publicly available reports and other trade and industry sources. Hot Chili believes that such information is accurate and that the sources from which it has been obtained are reliable; however, Hot Chili has not independently verified such information and does not assume any responsibility for the accuracy or completeness of such information. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Cautionary Note for U.S. Investors Concerning Mineral Resources

NI 43-101 is a rule of the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning material mineral projects. Technical disclosure contained in this report has been prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Classification System. These standards differ from the requirements of the U.S. Securities and Exchange Commission ("SEC") and technical information contained in this report may not be comparable to similar information disclosed by domestic United States companies subject to the SEC's reporting and disclosure requirements.

All amounts in this report are in U.S. dollars unless otherwise noted.

Forward Looking Statements

Statements in this report that are not historical facts are "forward-looking information" or "forward-looking statements" within the meaning of Canadian securities legislation and Australian securities legislation (each, a "forward-looking statement"). The use of any of the words, "estimate", "expect", "may", "might", "opportunity", "plan", "potential", "project", "proposed", "should", "will", "would" and similar expressions are intended to identify forward-looking statements. Statements concerning mineral resource and mineral reserve estimates may also be deemed to constitute forward-looking statements to the extent that they involve estimates of the mineralisation that may be encountered if the Costa Fuego Project is developed.

In this report, forward-looking statements relate, among other things, to: the potential of the La Verde discovery; regulatory applications and approvals; and the Company's future exploration and other business plans.

Forward-looking statements involve known and unknown risks, uncertainties, and other factors, which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. A number of factors could cause actual results to differ materially from a conclusion, forecast or projection contained in the forward-looking statements in this announcement, including, but not limited to, the following material factors: the ability of drilling and other exploration activities to accurately predict mineralisation; operational risks; risks related to the cost estimates of exploration; sovereign risks associated with the Company's operations in Chile; changes in estimates of mineral resources or mineral reserves of properties where the Company holds interests; recruiting qualified personnel and retaining key personnel; future financial needs and availability of adequate financing; fluctuations in mineral prices; market volatility; exchange rate fluctuations; ability to exploit successful discoveries; the production at or performance of properties where the Company holds interests; ability to retain title to mining concessions; environmental risks; financial failure or default of joint venture partners, contractors or service providers; competition risks; economic and market conditions; and other risks and uncertainties described elsewhere in this announcement and elsewhere in the Company's public disclosure record.

Although the forward-looking statements contained in this report are based upon assumptions which the Company believes to be reasonable, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this announcement, the Company has made assumptions regarding: future commodity prices and demand; availability of skilled labour; timing and amount of capital expenditures; future currency exchange and interest rates; the impact of increasing competition; general conditions in economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; future tax rates; future operating costs; availability of future sources of funding; ability to obtain financing; and assumptions underlying estimates related to adjusted funds from operations. The Company has included the above summary of assumptions and risks related to forward-looking information provided in this announcement to provide investors with a more complete perspective on the Company's future operations, and such information may not be appropriate for other purposes. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by,

these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom.

For additional information with respect to these and other factors and assumptions underlying the forward-looking statements made herein, please refer to the public disclosure record of the Company, including the Company's most recent Annual Report, which is available on SEDAR+ (www.sedarplus.ca) under the Company's issuer profile. New factors emerge from time to time, and it is not possible for management to predict all those factors or to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement.

The forward-looking statements contained in this announcement are expressly qualified by the foregoing cautionary statements and are made as of the date of this announcement. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking statement to reflect events or circumstances after the date of this announcement or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise. Investors should read this entire announcement and consult their own professional advisors to ascertain and assess the income tax and legal risks and other aspects of an investment in the Company.

Mineral Resource Statement

Costa Fuego Combined Mineral Resource (Effective Date 26 February 2024)

 
1 Mineral Resources are reported on a 100% Basis - 
 combining Mineral Resource Estimates for the Cortadera, 
 Productora, Alice and San Antonio deposits. All figures 
 are rounded, reported to appropriate significant figures 
 and reported in accordance with the Joint Ore Reserves 
 Committee Code (2012) and NI 43-101. Mineral Resource 
 estimation practices are in accordance with CIM Estimation 
 of Mineral Resource and Mineral Reserve Best Practice 
 Guidelines (29 November 2019) and reported in accordance 
 CIM Definition Standards for Mineral Resources and 
 Mineral Reserves (10 May 2014) that are incorporated 
 by reference into NI 43-101. 
 
2 Mineral Resources are inclusive of the Mineral Reserve 
 
3 The Productora deposit is 100% owned by Chilean 
 incorporated company Sociedad Minera El Aguila SpA 
 (SMEA). SMEA is a joint venture (JV) company -- 80% 
 owned by Sociedad Minera El Corazón SpA (a 100% 
 subsidiary of Hot Chili), and 20% owned by Compañía 
 Minera del Pacífico S.A $(CMP)$. 
 
4 The Cortadera deposit is controlled by a Chilean 
 incorporated company Sociedad Minera La Frontera SpA 
 (Frontera). Frontera is a subsidiary company -- 100% 
 owned by Sociedad Minera El Corazón SpA, which 
 is a 100% subsidiary of Hot Chili. 
 
5 The San Antonio deposit is controlled through Frontera 
 (100% owned by Sociedad Minera El Corazón SpA, 
 which is a 100% subsidiary of Hot Chili Limited) and 
 Frontera is party to an Option Agreement pursuant 
 to which it can earn a 100% interest in the property. 
 
6 The Mineral Resource Estimates (MRE) in the tables 
 above form coherent bodies of mineralisation that 
 are considered amenable to a combination of open pit 
 and underground extraction methods based on the following 
 parameters: Base Case Metal Prices: Copper US$ 3.00/lb, 
 Gold US$ 1,700/oz, Molybdenum US$ 14/lb, and Silver 
 US$20/oz. 
 
7 All MRE were assessed for Reasonable Prospects of 
 Eventual Economic Extraction (RPEEE) using both Open 
 Pit and Block Cave Extraction mining methods at Cortadera 
 and Open Pit mining methods at the Productora, Alice 
 and San Antonio deposits. 
 
8 Metallurgical recovery averages for each deposit 
 consider Indicated + Inferred material and are weighted 
 to combine sulphide flotation and oxide leaching performance. 
 Process recoveries: Cortadera -- Weighted recoveries 
 of 82% Cu, 55% Au, 81% Mo and 36% Ag. CuEq(%) = Cu(%) 
 + 0.55 x Au(g/t) + 0.00046 x Mo(ppm) + 0.0043 x Ag(g/t). 
 San Antonio - Weighted recoveries of 85% Cu, 66% Au, 
 80% Mo and 63% Ag. CuEq(%) = Cu(%) + 0.64 x Au(g/t) 
 + 0.00044 x Mo(ppm) + 0.0072 x Ag(g/t) Alice - Weighted 
 recoveries of 81% Cu, 47% Au, 52% Mo and 37% Ag. CuEq(%) 
 = Cu(%) + 0.48 x Au(g/t) + 0.00030 x Mo(ppm) + 0.0044 
 x Ag(g/t). Productora -- Weighted recoveries of 84% 
 Cu, 47% Au, 48% Mo and 18% Ag. CuEq(%) = Cu(%) + 0.46 
 x Au(g/t) + 0.00026 x Mo(ppm) + 0.0021 x Ag(g/t). 
 Costa Fuego -- Recoveries of 83% Cu, 53% Au, 71% Mo 
 and 26% Ag. CuEq(%) = Cu(%) + 0.53 x Au(g/t) + 0.00040 
 x Mo(ppm) + 0.0030 x Ag(g/t) 
 
9 Copper Equivalent (CuEq) grades are calculated based 
 on the formula: CuEq% = ((Cu% × Cu price 1% per 
 tonne × Cu_recovery) + (Mo ppm × Mo price 
 per g/t × Mo_recovery) + (Au ppm × Au price 
 per g/t × Au_recovery) + (Ag ppm × Ag price 
 per g/t × Ag_recovery)) / (Cu price 1% per tonne 
 × Cu recovery). The base case cut-off grade for 
 Mineral Resources considered amenable to open pit 
 extraction methods at the Cortadera, Productora, Alice 
 and San Antonio deposits is 0.20% CuEq, while the 
 cut-off grade for Mineral Resources considered amenable 
 to underground extraction methods at the Cortadera 
 deposit is 0.27% CuEq. It is the Company's opinion 
 that all the elements included in the CuEq calculation 
 have a reasonable potential to be recovered and sold. 
 
10 Mineral Resources are not Mineral Reserves and 
 do not have demonstrated economic viability. The MRE 
 include Inferred Mineral Resources that are considered 
 too speculative geologically to have economic considerations 
 applied to them that would enable them to be categorised 
 as Mineral Reserves. It is reasonably expected that 
 the majority of Inferred mineral resources could be 
 upgraded to Measured or Indicated Mineral Resources 
 with continued exploration. 
 
11 The effective date of the MRE is 26 February 2024. 
 The MRE was previously reported in the 2024 PEA. Hot 
 Chili Limited confirms it is not aware of any new 
 information or data that materially affects the information 
 included in the 2024 PEA and all material assumptions 
 and technical parameters stated for the MRE in the 
 2024 PEA continue to apply and have not materially 
 changed. 
 
12 Hot Chili Limited is not aware of political, environmental, 
 or other risks that could materially affect the potential 
 development of the Mineral Resources other than as 
 disclosed in the 2025 PFS. A detailed list of Costa 
 Fuego Project risks is included in Chapter 25 of the 
 2025 PFS Technical Report titled "Costa Fuego Copper 
 Project NI43-101 Technical Report Preliminary Feasibility 
 Study" and dated 9 May 2025 (effective 27 March 2025), 
 is available on SEDAR+ (www.sedarplus.ca) and the 
 Company's website (www.hotchili.net.au). 
 

Ore Reserve Statement

Costa Fuego Combined Ore Reserve (Effective Date 27 March 2025)

 
1 Mineral Reserves are reported on a 100% Basis - 
 combining Mineral Reserve estimates for the Cortadera, 
 Productora, Alice and San Antonio deposits, and have 
 an effective date of 27 March 2025. 
 
2 An Ore Reserve (declared in accordance with JORC 
 Code 2012) was previously reported at Productora, 
 a component of Costa Fuego, on 2nd March 2016 on the 
 ASX. The Company was not subject to the requirements 
 of NI 43-101 at that time. 
 
3 Mineral Reserve estimation practices are in accordance 
 with CIM Estimation of Mineral Resource and Mineral 
 Reserve Best Practice Guidelines (29 November 2019) 
 and reported in accordance CIM Definition Standards 
 for Mineral Resources and Mineral Reserves (10 May 
 2014) that are incorporated by reference into NI 43-101. 
 Mineral Reserve estimates are in accordance with the 
 JORC Code. References to "Mineral Reserves" mean "Ore 
 Reserves" as defined in the JORC Code and references 
 to "Proven Mineral Reserves" mean "Proved Ore Reserves" 
 as defined in the JORC Code. 
 
4 The Mineral Reserve reported above was not additive 
 to the Mineral Resource. The Mineral Reserve is based 
 on the 26 February 2024 Mineral Resource. 
 
5 Tonnages and grades are rounded to two significant 
 figures. All figures are rounded, reported to appropriate 
 significant figures and reported in accordance with 
 the Joint Ore Reserves Committee Code (2012) and NI 
 43-101. As each number is rounded individually, the 
 table may show apparent inconsistencies between the 
 sum of rounded components and the corresponding rounded 
 total. 
 
6 Mineral Reserves are reported using long-term metal 
 prices of US$4.30/lb Cu, US$2,280/oz Au, US$27/oz 
 Ag, US$20/lb Mo. 
 
7 The Mineral Reserve tonnages and grades are estimated 
 and reported as delivered to plant (the point where 
 material is delivered to the processing facility) 
 and is therefore inclusive of ore loss and dilution. 
 
8 The Productora deposit is 100% owned by Chilean 
 incorporated company Sociedad Minera El Aguila SpA 
 (SMEA). SMEA is a joint venture (JV) company -- 80% 
 owned by Sociedad Minera El Corazón SpA (a 100% 
 subsidiary of Hot Chili), and 20% owned by Compañía 
 Minera del Pacífico S.A (CMP). 
 
9 The Cortadera deposit is controlled by a Chilean 
 incorporated company Sociedad Minera La Frontera SpA 
 (Frontera). Frontera is a subsidiary company -- 100% 
 owned by Sociedad Minera El Corazón SpA, which 
 is a 100% subsidiary of Hot Chili. 
 
10 The San Antonio deposit is controlled through Frontera 
 (100% owned by Sociedad Minera El Corazón SpA, 
 which is a 100% subsidiary of Hot Chili) and Frontera 
 is party to an Option Agreement pursuant to which 
 it can earn a 100% interest in the property. 
 
11 The Mineral Reserve Estimate as of 27 March 2025 
 for Costa Fuego was prepared by Anton von Wielligh, 
 Fellow with the AUSIMM (FAUSIMM). Mr. von Wielligh 
 fulfils the requirements to be a "Qualified Person" 
 within the meaning of NI 43-101 and is the Competent 
 Person under JORC for the Mineral Reserve. 
 
12 Hot Chili Limited is not aware of political, environmental, 
 or other risks that could materially affect the potential 
 development of the Mineral Reserves other than as 
 disclosed in the 2025 PFS. A detailed list of Costa 
 Fuego Project risks is included in Chapter 25 of the 
 2025 PFS Technical Report titled "Costa Fuego Copper 
 Project NI43-101 Technical Report Preliminary Feasibility 
 Study" and dated 9 May 2025 (effective 27 March 2025), 
 is available on SEDAR+ (www.sedarplus.ca) and the 
 Company's website (www.hotchili.net.au). 
 

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

 
Name of entity 
Hot Chili Limited 
ABN               Quarter ended ("current quarter") 
91 130 955 725    31 March 2026 
 
 
Consolidated statement of cash flows             Current quarter  Year to date 
                                                  $A'000           (9 months) 
                                                                   $A'000 
1.    Cash flows from operating activities       -                - 
1.1   Receipts from customers 
1.2   Payments for                               -                - 
      (a) exploration & evaluation 
      (a) development                            -                - 
      (b) production                             -                - 
      (c) staff costs                            (745)            (1,968) 
      (d) administration and corporate costs     (1,726)          (4,553) 
1.3   Dividends received (see note 3)            -                - 
1.4   Interest received                          62               159 
1.5   Interest and other costs of finance paid   -                - 
1.6   Income taxes paid                          -                - 
1.7   Government grants and tax incentives       -                - 
1.8   Other (provide details if material)        -                - 
1.9   Net cash from / (used in) operating        (2,409)          (6,362) 
      activities 
 
2.    Cash flows from investing activities       -                - 
2.1   Payments to acquire or for: 
      (a) entities 
      (b) tenements                              (2,373)          (4,019) 
      (c) property, plant and equipment          (27)             (68) 
      (d) exploration & evaluation               (3,069)          (11,543) 
      (e) investments                            -                - 
      (f) other non-current assets               -                - 
2.2   Proceeds from the disposal of:             -                - 
      (a) entities 
      (b) tenements                              -                - 
      (c) property, plant and equipment          -                - 
      (d) investments                            -                - 
      (e) other non-current assets               -                - 
2.3   Cash flows from loans to other entities    -                - 
2.4   Dividends received (see note 3)            -                - 
2.5   Other (CMP recoup)                         1,292            1,292 
2.6   Net cash from / (used in) investing        (4,177)          (14,338) 
      activities 
 
3.    Cash flows from financing activities       40,000           54,189 
3.1   Proceeds from issues of equity securities 
      (excluding 
      convertible debt securities) 
3.2   Proceeds from issue of convertible debt    -                - 
      securities 
3.3   Proceeds from exercise of options          -                - 
3.4   Transaction costs related to issues of     (3,064)          (3,672) 
      equity securities 
      or convertible debt securities 
3.5   Proceeds from borrowings                   -                - 
3.6   Repayment of borrowings                    -                - 
3.7   Transaction costs related to loans and     -                - 
      borrowings 
3.8   Dividends paid                             -                - 
3.9   Other (provide details if material)        -                - 
3.10  Net cash from / (used in) financing        36,936           50,517 
      activities 
 
4.    Net increase / (decrease) in cash and 
      cash equivalents 
      for the period 
4.1   Cash and cash equivalents at beginning of  4,624            5,189 
      period 
4.2   Net cash from / (used in) operating        (2,409)          (6,362) 
      activities (item 
      1.9 above) 
4.3   Net cash from / (used in) investing        (4,177)          (14,338) 
      activities (item 
      2.6 above) 
4.4   Net cash from / (used in) financing        36,936           50,517 
      activities (item 
      3.10 above) 
4.5   Effect of movement in exchange rates on    246              214 
      cash held 
4.6   Cash and cash equivalents at end of        35,220           35,220 
      period 
 
 
5.   Reconciliation of cash and cash         Current quarter  Previous quarter 
     equivalents                              $A'000           $A'000 
     at the end of the quarter (as shown in 
     the consolidated 
     statement of cash flows) to the 
     related items in the 
     accounts 
5.1  Bank balances                           5,428            124 
5.2  Call deposits                           29,792           4,500 
5.3  Bank overdrafts                         -                - 
5.4  Other (provide details)                 -                - 
     Cash and cash equivalents at end of 
     quarter (should 
5.5  equal item 4.6 above)                   35,220           4,624 
 
 
6.    Payments to related parties of the entity and their   Current quarter 
       associates                                            $A'000 
      Aggregate amount of payments to related parties and 
6.1    their associates included in item 1                              234 
6.2   Aggregate amount of payments to related parties and   - 
       their associates included in item 2 
Note: if any amounts are shown in items 6.1 or 6.2, 
 your quarterly activity report must include a description 
 of, and an explanation for, such payments. 
 
 
7.   Financing facilities                  Total facility      Amount drawn at 
     Note: the term "facility' includes     amount at quarter   quarter end 
     all forms of financing                 end                 $A'000 
     arrangements available to the          $A'000 
     entity.Add notes as necessary for an 
     understanding of the 
     sources of finance available to the 
     entity. 
7.1  Loan facilities                       -                   - 
7.2  Credit standby arrangements           -                   - 
7.3  Other (please specify)                -                   - 
7.4  Total financing facilities            -                   - 
 
7.5  Unused financing facilities available at quarter end      - 
7.6  Include in the box below a description of each facility 
      above, including the lender, interest rate, maturity 
      date and whether it is secured or unsecured. If any 
      additional financing facilities have been entered 
      into or are proposed to be entered into after quarter 
      end, include a note providing details of those facilities 
      as well. 
 
 
 
8.    Estimated cash available for future operating activities   $A'000 
      Net cash from / (used in) operating activities (item 
8.1    1.9)                                                      (2,409) 
8.2   (Payments for exploration & evaluation classified          (3,069) 
       as investing activities) (item 2.1(d)) 
8.3   Total relevant outgoings (item 8.1 + item 8.2)             (5,478) 
8.4   Cash and cash equivalents at quarter end (item 4.6)        35,220 
8.5   Unused finance facilities available at quarter end         - 
       (item 7.5) 
8.6   Total available funding (item 8.4 + item 8.5)              35,220 
 
8.7   Estimated quarters of funding available (item 8.6          6.43 
       divided by item 8.3) 
 Note: if the entity has reported positive relevant 
  outgoings (ie a net cash inflow) in item 8.3, answer 
  item 8.7 as "N/A". Otherwise, a figure for the estimated 
  quarters of funding available must be included in 
  item 8.7. 
8.8   If item 8.7 is less than 2 quarters, please provide 
       answers to the following questions: 
 8.8.1 Does the entity expect that it will continue 
  to have the current level of net operating cash flows 
  for the time being and, if not, why not? 
 N/A 
 8.8.2 Has the entity taken any steps, or does it propose 
  to take any steps, to raise further cash to fund its 
  operations and, if so, what are those steps and how 
  likely does it believe that they will be successful? 
 N/A 
 8.8.3 Does the entity expect to be able to continue 
  its operations and to meet its business objectives 
  and, if so, on what basis? 
            N/A 
 Note: where item 8.7 is less than 2 quarters, all 
  of questions 8.8.1, 8.8.2 and 8.8.3 above must be 
  answered. 
 

Compliance statement

   1. This statement has been prepared in accordance with accounting standards 
      and policies which comply with Listing Rule 19.11A. 
 
   2. This statement gives a true and fair view of the matters disclosed. 
 
Date:           30 April 2026 
 
Authorised by:  By the Board 
                (Name of body or officer authorising release -- see 
                 note 4) 
 

Notes

 
1.  This quarterly cash flow report and the accompanying 
     activity report provide a basis for informing the 
     market about the entity's activities for the past 
     quarter, how they have been financed and the effect 
     this has had on its cash position. An entity that 
     wishes to disclose additional information over and 
     above the minimum required under the Listing Rules 
     is encouraged to do so. 
 
2.  If this quarterly cash flow report has been prepared 
     in accordance with Australian Accounting Standards, 
     the definitions in, and provisions of, AASB 6: Exploration 
     for and Evaluation of Mineral Resources and AASB 107: 
     Statement of Cash Flows apply to this report. If this 
     quarterly cash flow report has been prepared in accordance 
     with other accounting standards agreed by ASX pursuant 
     to Listing Rule 19.11A, the corresponding equivalent 
     standards apply to this report. 
 
3.  Dividends received may be classified either as cash 
     flows from operating activities or cash flows from 
     investing activities, depending on the accounting 
     policy of the entity. 
 
4.  If this report has been authorised for release to 
     the market by your board of directors, you can insert 
     here: "By the board". If it has been authorised for 
     release to the market by a committee of your board 
     of directors, you can insert here: "By the [name of 
     board committee -- eg Audit and Risk Committee]". 
     If it has been authorised for release to the market 
     by a disclosure committee, you can insert here: "By 
     the Disclosure Committee". 
 
5.  If this report has been authorised for release to 
     the market by your board of directors and you wish 
     to hold yourself out as complying with recommendation 
     4.2 of the ASX Corporate Governance Council's Corporate 
     Governance Principles and Recommendations, the board 
     should have received a declaration from its CEO and 
     CFO that, in their opinion, the financial records 
     of the entity have been properly maintained, that 
     this report complies with the appropriate accounting 
     standards and gives a true and fair view of the cash 
     flows of the entity, and that their opinion has been 
     formed on the basis of a sound system of risk management 
     and internal control which is operating effectively. 
 

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SOURCE Hot Chili Limited

Copyright CNW Group 2026 
 

(END) Dow Jones Newswires

April 30, 2026 07:00 ET (11:00 GMT)

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