Mr. Christian Easterday reports

REGULATORY GREEN LIGHT PAVES WAY FOR LA VERDE CU-AU DISCOVERY EXPANSION DRILLING

Hot Chili Ltd. has received regulatory approval to expand drill coverage across the La Verde copper-gold (Cu-Au) discovery, located approximately 30 kilometres south of the company's Costa Fuego Cu-Au project planned central processing hub at low elevation in the coastal range of the Atacama region, Chile.

The approval follows the commencement of phase two diamond drilling (single drill rig, double shift) from existing drill platforms at La Verde on Sept. 22, 2025.

Diamond drilling is currently testing depth extensions to higher-grade centres within the current plus 0.2 per cent Cu discovery footprint, which measures 1,000 metres by 750 m and extends up to 400 m vertical depth (refer announcement dated May 19, 2025).

Two diamond drill holes of an 11-hole program are already complete. Both diamond drill holes have visually recorded wide intersections of porphyry-style copper mineralization and assay results are pending. Results will be announced to Australian Securities Exchange on receipt of assays in coming weeks.

Note: Visual estimates of mineral abundance should never be considered a proxy or substitute for laboratory analyses where concentrations or grades are the factor of principal economic interest. Visual estimates also potentially provide no information regarding impurities or deleterious physical properties relevant to valuations.

This recent regulatory approval allows Hot Chili to continue expanding the La Verde discovery, providing access to test:

1. Further lateral and along-strike extensions to the La Verde discovery footprint;
2. Potential for La Verde to be part of a district-scale copper porphyry cluster, with three nearby lookalike targets set for first-pass drilling.

Drill platform clearing is planned to start ahead of the arrival of a second drill rig (reverse circulation) to accelerate phase 2 drilling at La Verde.

Phase one drill results have already demonstrated significant potential for resource growth and additional front-end open pit mine life, materially enhancing the economics of Hot Chili's March, 2025, prefeasibility study for Costa Fuego.

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

This announcement is authorized by the board of directors for release to ASX and TSX Venture Exchange.

Qualified person -- National Instrument 43-101

The technical information in this announcement has been reviewed and approved by Christian Easterday, MAIG, Hot Chili's managing director and a qualified person within the meaning of NI 43-101.

We seek Safe Harbor.