PERTH, Australia, July 30, 2026 /PRNewswire/ --
Highlights
La Verde Emerging as Hot Chili Cornerstone Asset
- Drilling at the Company's La Verde copper-gold (Cu-Au) porphyry deposit in coastal Chile continued during the quarter, with a third drill rig commencing in May.
- La Verde is one of Chile's most significant new coastal Cu-Au porphyry discoveries and is fast-shaping as a cornerstone asset for the Company's coastal range Costa Fuego copper-gold (Cu-Au) project.
- Standout results reported during the quarter included:
- DKD044 recorded 391.1 m grading 0.51% CuEq¹ (0.42% Cu, 0.11 g/t Au) from surface, including:
- 17.8 m grading 0.68% CuEq (0.63% Cu, 0.06 g/t Au) from surface
- 40.7 m grading 0.60% CuEq (0.50% Cu, 0.12 g/t Au) from 103.3 m
- 85.4 m grading 0.61% CuEq (0.50% Cu, 0.15 g/t Au) from 160 m
- 19.7 m grading 0.70% CuEq (0.57% Cu, 0.15g/t Au) from 276.1 m
- DKP053 recorded 250 m grading 0.50% CuEq (0.39% Cu, 0.14g/t Au) from 64 m depth, including
- 36 m grading 0.72% CuEq (0.59% Cu, 0.18g/t Au) from 82 m
- DKP054 recorded 124 m grading 0.46% CuEq (0.40% Cu, 0.07g/t Au) from 42 m depth, including
- 26 m grading 0.71% CuEq (0.63% Cu, 0.10g/t Au) from 58 m
- DKP058 recorded 108 m grading 0.54% CuEq (0.45% Cu, 0.11 g/t Au) from 24 m depth, including
- 32 m grading 0.60% CuEq (0.52% Cu, 0.12 g/t Au) from 24 m
- DKD049 recorded 213 m grading 0.44% CuEq (0.38% Cu, 0.07g/t Au) from 504 m depth, including
- 57.3 m grading 0.60% CuEq (0.51% Cu, 0.10 g/t Au) from 535.8 m
- DKP028D recorded 258.9 m grading 0.42% CuEq (0.33% Cu, 0.09 g/t Au) from 358 m, including
- 27.4 m grading 0.76% CuEq (0.63% Cu, 0.16 g/t Au) from 499.5 m
- Assays pending for 21 drillholes (three DD, three DD tails and 15 RC) and second accredited laboratory now operating at full capacity - significantly improving Hot Chili's assay turnaround times
Hot Chili Secures US$15 Million Via Amendment Agreement with OR Royalties
- La Verde, a pre-resource asset, is now added to OR's royalty footprint for US$15 million in funding
- OR royalty "look-through" value has doubled, given its equivalence to a 1.12% CuEq1 NSR royalty across payable metals for a total consideration of US$30 million (following additional US$15 million amendment agreement), and Hot Chili's current market capitalisation of approximately US$230 million
- Change of Control Royalty Buyback terms aligned with ongoing strategic partnering process
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1 CuEq considers assumed commodity prices and average metallurgical recoveries from test work. See qualifying statements below.
2 US$15 million (approximately A$21.4 million)
Strong Cash Position of Approx. A$46 Million Following Closure of OR Deal
Cautionary Statement - JORC Code (2012)
The Costa Fuego Copper-Gold Project is currently at the Pre-Feasibility Study ("PFS") stage. The production targets and forecast financial information contained in this report are based on technical and economic assessments that are preliminary in nature. While the PFS incorporates Indicated and Inferred Mineral Resources, there is a lower level of geological confidence associated with Inferred Mineral Resources, and no certainty that further exploration or development will result in the conversion of Inferred Mineral Resources to Indicated or Measured categories.
The PFS is not a definitive study and is based on a number of assumptions, including commodity prices, capital and operating costs, metallurgical recoveries, permitting, and other factors, which are subject to change. The outcomes of the PFS should not be used as the basis for a final investment decision. Further work, including additional drilling, metallurgical testing, and detailed engineering, is required before the Company can make a decision to proceed to development.
Of the Mineral Resources scheduled for extraction in the PFS production plan, more than 99% are classified as Indicated, with the remaining <1% as Inferred. The Company has concluded that it has reasonable grounds for disclosing a production target which includes a small amount of Inferred Mineral Resources, as permitted under the JORC Code. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target itself will be realised. The viability of the development scenario envisaged in the PFS does not depend on the inclusion of Inferred Mineral Resources. However, it is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Measured or Indicated Mineral Resource with continued drilling.
The Mineral Resources underpinning the production target in the PFS have been prepared by a Competent Person in accordance with the requirements of the JORC 2012. For full details on the Mineral Resource estimate, please refer to the ASX announcement of 27 March 2025.
To achieve the outcomes indicated in the PFS, including reaching Definitive Feasibility Study ("DFS"), mine construction and production stages, funding in the order of US$1.27 Billion will be required, including pre-production and working capital and assumed financing charges. Investors should note that there is no certainty that Hot Chili will be able to raise that amount of funding when needed. One of the key assumptions is that the funding for the Project will be available when required and on acceptable terms. It is also possible that such funding may only be available on terms that may be dilutive to, or otherwise affect the value of, Hot Chili's existing shares. It is also possible that Hot Chili could pursue other value realisation strategies such as debt financing, a sale or partial sale of its interest in the Costa Fuego Copper Project and/or Huasco Water, sale of further royalties and/or streaming rights, sale of non-committed offtake rights, and sale of non-core assets.
The Company cautions that there is no certainty that the results or estimates contained in the PFS will be realised.
This Report contains forward-looking statements. Hot Chili has concluded that it has a reasonable basis for providing these forward-looking statements and believes it has a reasonable basis to expect it will be able to fund development of the Costa Fuego Copper Project. However, a number of factors could cause actual results or expectations to differ materially from the results expressed or implied in the forward-looking statements. Given the uncertainties involved, investors should not make any investment decisions based solely of the results of the PFS.
SUMMARY OF OPERATIONAL ACTIVITIES
Higher-Grade Starter Pit Firming as a Standout Feature of La Verde
The Company's ongoing focus on shallow infill and step-out drilling across the up-dip extension of La Verde's high-grade core, continued to deliver more outstanding results from Reverse Circulation (RC) drill holes DKP053, DKP054, DKP056, and DKP058 (Figure 1 and Figure 2) during the quarter.
Numerous drilling intersections returned across the up-dip portion of La Verde's high-grade core, all contain broad zones of higher-grade (+0.7% CuEq) mineralisation from shallow depths. Importantly, assay results are pending for nearby up-dip drillhole DKP052 (Figure 3), results expected soon (see announcement dated 5 May 2026).
These ongoing shallow RC drill results further expand the footprint of near-surface, higher-grade mineralisation and continue to strengthen the scale and continuity of a significant, near-surface, enrichment zone - capable of delivering a higher-grade starter pit opportunity for Costa Fuego (Figure 4).
Expansion Drilling Delivering Continued Success
Diamond (DD) drilling assay results for step-out holes DKD044, DKD049 and DKP028D also confirmed additional bulk tonnage extensions and delivered further expansion of La Verde's high-grade core (Figures 2 and 3) during the quarter.
Assay results from DKD044 returned a significant intersection of 391 m grading 0.51% CuEq (0.42% Cu, 0.11g/t Au) from surface, (Figure 1), including several higher-grade intervals, confirming broad and continuous high-grade copper-gold mineralisation on the western side of the high-grade core
DD hole DKD049 was designed as a 175 m step-out from DKD039 - which recorded the highest-grade and widest drilling intersection to date at La Verde (725 m grading 0.42% CuEq (0.36% Cu, 0.07 g/t Au from 18m depth). Results from DKD049 confirm a significant expansion of La Verde's eastern flank at depth.
DKP028D successfully extended a previous RC drillhole (which ended in mineralisation), recording a further 200m down-hole of mineralisation across La Verde's western flank.
Advancing Toward Maiden Mineral Resource and Pre-Feasibility Study (PFS) Integration
Hydrogeological, geotechnical, metallurgical, mine engineering and environmental workstreams are all advancing well toward full integration of La Verde into the Company's Costa Fuego production hub. Additional mineralogical analysis activities were also carried out during the quarter, including Terraspec data collection and drill core scanning using LithologyIQ's hyperspectral instrument.
A maiden Mineral Resource Estimate (MRE) for La Verde is expected to be released later this year followed by a revised PFS for Costa Fuego and then finally culminating in the formal submission of an Environmental Impact Assessment for Costa Fuego in Q2CY 2027.
The Company expects that La Verde's rapid integration will be transformative for Costa Fuego's financial metrics and global standing, already ranked amongst the world's top five by-scale1, independent copper developments, not controlled by a major mining company.
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1 See Slide 20, Corporate Presentation Rule Symposium -
July 2026
Additional ISO Accredited Assay Laboratory Engaged
During the quarter, delivery of assay results increased to over 10 weeks in some cases. Hot Chili took proactive measures and engaged the services of an additional ISO accredited laboratory in the region, to ensure reporting of outstanding assay results is fast tracked, and assay turnaround times are accelerated. Improved turnaround times have been noted from both laboratories since the addition of a second laboratory.
Project Development Advances
Hot Chili has established a dedicated project development team, led by experienced project director Mr David Bayona, to advance the Costa Fuego Project through its critical development phase. Under a single governance framework, the team is overseeing delivery of the Environmental Impact Assessment (EIA) and the revised Pre-Feasibility Study (PFS) programs, coordinating engineering, permitting, social performance, infrastructure, technical studies, project controls, key service providers, and third-party stakeholders.
This organisational transition marks an important step in Hot Chili's evolution from an exploration-focused company to a project development and delivery organisation, strengthening readiness for permitting, financing, detailed engineering and project execution. The integrated structure improves decision-making, maintains alignment across workstreams and enhances schedule discipline, positioning Costa Fuego for successful execution.
Environmental Impact Assessment (EIA) On-Track
The Costa Fuego Environmental Impact Assessment (EIA) continues to advance, supported by a comprehensive schedule that enables weekly and monthly monitoring of progress, critical path activities, and milestones across all environmental workstreams.
A key strategic decision adopted during the quarter was the separation of the environmental permitting process into two independent EIAs:
- EIA 1A - Huasco Water seawater intake, pumping and distribution system
- EIA 1B - Costa Fuego Development Project.
This approach provides greater clarity for regulators, establishes independent areas of influence for environmental assessment, reduces duplication of baseline and impact evaluation work, and aligns the seawater supply system with the development of the mining project.
Key workstreams advanced during the quarter included environmental baseline studies, community and stakeholder engagement, indigenous engagement program, and preparation of the formal EIA documentation.
Revised Pre-Feasibility (PFS2)
In May 2026, Hot Chili commenced workstreams toward delivery of a significant revision of its 2025 Pre-Feasibility Study (PFS), aiming to incorporate the La Verde Cu-Au discovery into the Costa Fuego development strategy. The study remains on track and is being progressed in parallel with the Environmental Impact Assessment (EIA 1B) program under a common project governance framework.
The revised study is assessing development options to improve project economics, reduce execution risk and simplify project delivery. Key areas of assessment include the integration of La Verde and the potential development of a large open-pit mining scenario at Cortadera as an alternative to the previously defined open-pit and underground block cave operation for the later years of Costa Fuego's mine plan.
Results from the study will support selection of the preferred development pathway for Costa Fuego and provide greater clarity on project scope, mining strategy, infrastructure requirements and project economics.
Huasco Water - Update on Second Maritime Licence Application
A second maritime license application (desalination license) continues to advance through regulatory approval processes. Owing to a change of government in Chile earlier this year, the application has been delayed. Hot Chili has been assured by regulatory authorities that the application remains in progress, in-line with Huasco Water's priority status with the Chilean Ministry of Finance for streamlined approval processing.
The Company expects to receive an update in relation to this application in the coming months.
Social Integration and Community Support
Hot Chili continued its Huasco Valley community support programs during the quarter. A community perception study completed in June 2026, recorded a 93% "High Positive Awareness" score, with respondents recognising the Company's positive community relationships, and potential to develop a modern and responsible mining operation with the potential to revitalise employment social benefit for the Huasco Valley region.
During recent severe weather events in July, that prompted a government-declared state of emergency, Hot Chili worked pro-actively with local communities to prepare - providing water, fuel, food and coal to neighbouring residents of Costa Fuego. Following this once-in-fifty-year rain event, the team resumed visits to reconnect with communities, providing supplies and learning first-hand what was needed for recovery.
1 See Page 25 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 drillhole 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) See Page 25 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 drillhole 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) See Page 25 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 drillhole 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) See Page 25 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 drillhole 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 2 2026
Prospect Hole ID East North RL Depth Dip Azi. Results
La MWDKP001 324,064 6,786,124 1,106 54 -90 0 No significant result
Verde returned
MWDKP002 325,511 6,785,654 1,171 90 -90 0 No significant result
returned
MWDKP003 323,167 6,787,100 1,042 60 -90 0 No significant result
returned
MWDKP006 324,410 6,786,674 1,102 48 -90 0 No significant result
returned
MWDKP005 322,883 6,785,505 1,075 60 -90 0 No significant result
returned
MWDKP004 324,566 6,785,505 1,170 72 -90 0 No significant result
returned
DKP051 324,326 6,785,713 1,170 372 -65 55
Results Pending
DKP052 324,756 6,786,024 1,188 354 -60 245
Results Pending
DKP053 324,570 6,785,969 1,174 408 -65 75 Significant result returned
Q3 2025
DKP054 324,756 6,786,024 1,188 216 -63 60 Significant result returned
Q3 2025
DKP055 324,499 6,786,032 1,165 42 -58 60
Results Pending
DKP056 324,756 6,786,024 1,188 402 -62 118 Significant result returned
Q3 2025
DKP057 324,674 6,786,108 1,182 330 -62 300
Results Pending
DKP058 324,785 6,785,775 1,134 402 -58 70 Significant result returned
Q3 2025
DKP059 324,868 6,785,715 1,140 120 -60 65
Results Pending
DKP062 324,761 6,785,616 1,136 300 -58 80
Results Pending
DKP061 324,900 6,785,600 1,147 300 -60 270
Results Pending
DKP063 324,564 6,785,708 1,134 417 -70 65
Results Pending
DKP064 324,508 6,785,669 1,157 324 -58 100
Results Pending
DKP065 324,194 6,785,745 1,152 291 -60 75
Results Pending
DKP066 324,564 6,785,708 1,134 342 -60 255
Results Pending
DKP067 324,785 6,785,775 1,134 300 -60 114
Results Pending
DKP045D 324,410 6,785,944 1,110 840.5 -60 60
Results Pending
DKD037 324,524 6,785,836 1,122 777.1 -62 70
Results Pending
DKP028D 324,763 6,785,620 1,136 866.1 -60 300 Significant result returned
Q3 2025
DKD060 324,908 6,785,762 1,139 772.7 -60 260
Results Pending
DKP048D 324,740 6,785,847 1,151 457.9 -65 80
Results Pending
DKD049 324,600 6,785,852 1,126 779.9 -60 260 Significant result returned
Q4 2025
Table 2. Significant Drilling Intersections from La Verde in Quarter 2 2026
Hole ID Coordinates Azim Dip Hole Intersection Interval Copper
Depth Eq(1) Copper Gold Silver Molyb.
North East RL From To (m) (% (% Cu) (g/t (ppm (ppm
CuEq) Au) Ag) Mo)
DKD040 6785907 324632 1139 60 -59 381 4.4 91.0 86.6 0.45 0.34 0.15 2.11 7
incl 12.0 28.7 16.7 0.60 0.45 0.20 0.78 3
& incl 53.7 78.4 24.7 0.55 0.41 0.19 1.07 6
185.2 349.1 163.9 0.43 0.34 0.11 0.85 17
incl 206.0 226.0 20.0 0.60 0.43 0.23 0.96 12
& incl 285.0 322.0 37.0 0.50 0.42 0.09 0.80 15
DKP041 6785786 324561 1124 55 -70 380 92.0 316.0 224.0 0.40 0.31 0.10 0.64 24
Incl 112.0 136.0 24.0 0.60 0.49 0.15 0.65 14
& Incl 216.0 262.0 46.0 0.50 0.38 0.14 0.64 44
DKD042 6785902 324635 1140 300 -70 258.1 11.6 108.0 96.4 0.40 0.31 0.12 0.79 9
Incl 13.6 25.5 11.9 0.51 0.41 0.13 0.59 8
& Incl 56.4 72.8 16.5 0.45 0.34 0.15 0.51 9
& Incl 84.2 106.6 22.4 0.62 0.46 0.21 2.00 13
DKD044 6785738 324508 1131 70 -65 711.4 0.0 391.3 391.3 0.50 0.42 0.11 0.85 18
Incl 0.0 17.8 17.8 0.68 0.63 0.06 0.70 10
& Incl 103.3 144.0 40.7 0.60 0.50 0.12 0.86 20
& Incl 160.0 245.4 85.4 0.61 0.50 0.15 1.11 12
& Incl 276.1 295.8 19.7 0.70 0.57 0.15 1.06 33
& Incl 499.0 520.4 21.3 0.45 0.34 0.05 0.87 154
& Incl 595.0 620.8 26.0 0.46 0.39 0.08 0.68 25
DKP028D 6785617 324758 1136 300 -60 866.1 358.0 616.9 258.9 0.42 0.33 0.09 0.62 58
Incl 380.0 447.6 67.6 0.52 0.38 0.13 0.67 85
& Incl 499.5 526.9 27.4 0.76 0.63 0.16 1.00 29
& Incl 570.8 591.3 20.5 0.50 0.40 0.07 0.99 99
& Incl 628.0 674 46 0.31 0.20 0.03 0.50 203
DKP043 6785855 324610 1131 104 -56 342 8.0 214.0 206.0 0.31 0.24 0.08 0.57 37
Incl 46.0 58.0 12.0 0.42 0.32 0.14 0.35 6
& Incl 198.0 214.0 16.0 0.46 0.34 0.12 0.99 80
DKP046 6786025 324597 1153 231 -59 184 28.0 112.0 84.00 0.40 0.32 0.10 0.50 12
Incl 54 72 18.0 0.50 0.41 0.12 0.29 7
DKP047 6785888 324396 1093 70 -65 60
No Significant Intersection
DKD049 6785858 324601 1131 80 -62 779.9 78.3 104.4 26.1 0.53 0.40 0.17 1.03 22
503.6 716.6 213.0 0.44 0.38 0.07 0.72 18
Incl 535.8 593.1 57.3 0.60 0.51 0.10 1.11 28
& Incl 624.0 639.8 15.8 0.52 0.45 0.08 0.65 14
DKP050 6785739 324625 1127 75 -60 354 6.0 114.0 108.0 0.37 0.31 0.08 0.31 10
Incl 8.0 48.0 40.0 0.47 0.40 0.10 0.45 6
138.0 240.0 102.0 0.35 0.28 0.09 0.34 19
DKP053 6785969 324570 1174 75 -65 408 0.0 32.0 32.0 0.38 0.34 0.04 0.49 20
64.0 314.0 250.0 0.50 0.39 0.14 0.62 10
Incl 66.0 166.0 100.0 0.58 0.47 0.15 0.65 14
Or
Incl 82.0 118.0 36.0 0.72 0.59 0.18 0.44 13
& Incl 248.0 276.0 28.0 0.62 0.46 0.21 0.84 7
DKP054 6786024 324756 1188 60 -63 216 42.0 166.0 124.0 0.46 0.40 0.07 0.36 18
Incl 58.0 84.0 26.0 0.71 0.63 0.10 0.23 9
DKP055 6786037 324505 1165 60 -58 42 0.0 32.0 32.0 0.34 0.30 0.03 0.43 26
DKP056 6786024 324756 1188 118 -62 402 56.0 146.0 90.0 0.45 0.36 0.12 0.65 13
Incl 64.0 94.0 30.0 0.62 0.50 0.17 0.43 6
Or
Incl 64.0 80.0 16.0 0.70 0.58 0.18 0.28 7
DKP057 6786108 324674 1182 300 -62 330 56.0 106.0 50.0 0.41 0.35 0.08 0.77 10
DKP058 6785775 324785 1134 70 -58 402 24.0 132.0 108.0 0.54 0.45 0.11 0.68 12
Incl 24.0 56.0 32.0 0.60 0.51 0.10 0.63 6
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, the Company continued to engage with a range of prospective strategic partners with several new non-binding, indicative, incomplete and conditional proposals received following further in-bound interest in Hot Chili's Partnering Process.
The Company's management continued to facilitate ongoing due diligence activities, including site visits, while discussions continued in relation to existing non-binding, indicative, incomplete and conditional proposals received for potential transactions involving the projects.
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.
OR Royalty Amendment Agreement
Hot Chili has executed a binding Amended and Restated Investment Agreement (the "A&R Investment Agreement") with OR Royalties Inc. ("OR") under which OR will acquire a Net Smelter Return (NSR) royalty over the La Verde Project, part of the broader Costa Fuego copper-gold development in Chile, for a cash payment of US$15 million. The agreement expands the existing 2023 royalty arrangement between the parties and reinforces OR's support for the advancement of Costa Fuego.
The A&R Investment Agreement brings total royalty consideration under the OR royalty arrangement to US$30 million (see the Company's press releases dated 28 June 2023, and 26 July 2023) with Hot Chili to receive US$15 million ("Royalty Consideration") at closing of the transaction.
Hot Chili expects to receive the additional US$15 million (approximately A$21.4 million) upon completion of the agreement in coming days. Importantly, an updated change of control buy-back right was negotiated to ensure strategic flexibility to accommodate and not negatively impact the Company's ongoing Strategic Partnering Process.
Highlights include:
- US$15 million in additional non-dilutive funding brings total OR royalty consideration to US$30 million, with proceeds directed toward La Verde and broader Costa Fuego advancement.
- La Verde added to OR's royalty footprint, a pre-resource asset, representing a significant endorsement by one of North America's most technically rigorous royalty companies.
- Doubling of "look-through" value given the OR royalty is equivalent to a 1.12% CuEq1 NSR royalty across payable metals for a total consideration of US$30 million, and Hot Chili's current market capitalisation of approximately US$280 million.
- Updated Change of Control Buyback prior to the fourth anniversary of the original royalty closing. The OR NSR can be reduced to 0.5% NSR royalty on copper and 2.5% NSR royalty on gold.
Combined with Hot Chili's A$40 million equity raising completed in February 2026, the expected receipt of US$15 million (approximately A$21.4 million) further strengthens the Company's funding position as it advances Costa Fuego toward development. See announcement dated 7th July 2026 for full details of material terms to the OR A&R Investment Agreement.
_________________________________
1 CuEq considers assumed commodity prices and average metallurgical recoveries from test work.
See qualifying statements below.
Cash Position
As of 30 June 2026, the Company had cash of A$25 million and no debt.
The operating expenditure for quarter ended 30 June 2026 included payments for staff costs of A$0.8 million and administration and corporate costs of A$1.6 million.
The investing expenditure for quarter ended 30 June 2026 included payments for tenements of A$0.2 million, and payments for exploration and evaluation of A$7.3 million relating to drilling (three drill rigs in operation) and development study activities across the La Verde copper-gold porphyry discovery, value engineering workstreams and EIA submission activities.
Capital Structure
The following summarises the Company's securities on issue:
- 202,863,198 ordinary fully paid shares
- 1,212,121 options at AUD $2.145 expiring 12 August 2028
- 452,802 service rights
- 4,735,415 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 30 June 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 and reverse circulation drilling, sampling exercises baselines and site investigations for EIA and PFS2, across the Company's Costa Fuego project landholdings, focused on La Verde and Productora. 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.
Two Lost Time Injuries (LTIs) were recorded during the quarter. The first involved entrapment of the little finger on a worker's left hand during drilling activities, resulting in a finger fracture. The second involved a same level fall, resulting in a contusion to a worker's left 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 2 2026 Performance and Statistics
Deposit Domeyko Productora All Projects
Timeframe Q2 2026 Cum.(2) Q2 2026 Cum.(2) Q2 2026 Cum.(2)
2024 2024 2024
LTI events 1 1 1 1 2 4
NLTI events 3 1 1 1 4 5
Days lost 13 17 4 4 17 128
LTIFR index 30 19 171 19 49 21
ISR index 388 158 684 75 421 665
IFR Index 120 46 0 37 0 47
Thousands of man-hours 33.5 108 5.8 53 40.4 192
Incidents on materials and assets 2 2 0 0 2 2
Environmental incidents 0 0 0 0 0 0
Headcount(1) 82 29 14 19 98 62
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: "Solar 2", "Solar 4", "Solar 6", "Solar 8", "Solar 10", "Soledad 1" and "Soledad 3".
Furthermore, Sociedad Minera La Frontera SpA ("La Frontera") has claimed 1 mining exploitation concession called "WH 1 1/20", which is in process to be constituted. During the same period, La Frontera acquired from Antofagasta Minerals S.A., pursuant to purchase and sale agreements, the following mining exploitation concessions: "Arboleda 7 1/25" and "Navarro 1 41/60".
In addition, the following mining exploitation concessions, which are currently in the process of being granted, have been incorporated into the Domeyko Project: "Porfiada Sur 1 1/60", "Porfiada Sur 2 1/60", "Porfiada Sur 3 1/40", and "Porfiada Sur 4 1/60".
Finally, Sociedad Minera El Aguila SpA ("El Aguila") has claimed 1 mining exploitation concession called "HWZC 1 1/20", which is in process to be constituted.
Figure 6 below outlines the HCH tenement holdings, including any significant changes between quarters.
The Company's existing tenements are detailed in the tables below.
Table 4. Current Tenement Holdings in Chile as of 30th June 2026
Cortadera Project Tenements
Cortadera Project
N° License ID HCH % Held HCH % Earning Area (ha) Agreement
Details
1
ALCENIA 1/10 100% SMEA SpA 50
2 AMALIA 942 A 1/6 100% Frontera SpA 53
3
ATACAMITA 1/82 100% Frontera SpA 82
4 CORROTEO 1 1/260 100% Frontera SpA 260
5 CORROTEO 5 1/261 100% Frontera SpA 261
6 CORTADERA 1 1/200 100% Frontera SpA 200
7
CORTADERA 1/40 100% Frontera SpA 374
8 CORTADERA 2 1/200 100% Frontera SpA 200
9
CORTADERA 41 100% Frontera SpA 1
10
CORTADERA 42 100% Frontera SpA 1
11
LAS CANAS 1/15 100% Frontera SpA 146
12
LAS CANAS 16 100% Frontera SpA 1
13 LAS CANAS ESTE 2003 1/30 100% Frontera SpA 300
14 MAGDALENITA 1/20 100% Frontera SpA 100
15 PAULINA 10 B 1/16 100% Frontera SpA 136
16 PAULINA 11 B 1/30 100% Frontera SpA 249
17 PAULINA 12 B 1/30 100% Frontera SpA 294
18 PAULINA 13 B 1/30 100% Frontera SpA 264
19 PAULINA 14 B 1/30 100% Frontera SpA 265
20 PAULINA 15 B 1/30 100% Frontera SpA 200
21 PAULINA 22 A 1/30 100% Frontera SpA 300
22 PAULINA 24 1/24 100% Frontera SpA 183
23 PAULINA 25 A 1/19 100% Frontera SpA 156
24 PAULINA 26 A 1/30 100% Frontera SpA 294
25 PAULINA 27A 1/30 100% Frontera SpA 300
26 PURISIMA 1/8 (1/2 Y 5/6) 100% Frontera SpA 20 NSR 1.5%
27
CF 1 100% Frontera SpA 300
28
CF 2 100% Frontera SpA 300
29
CF 3 100% Frontera SpA 300
30
CF 4 100% Frontera SpA 300
31
CF 5 100% Frontera SpA 200
32
CF 6 100% Frontera SpA 200
33
CF 7 100% Frontera SpA 100
34
CF 8 100% Frontera SpA 200
35
CF 9 100% Frontera SpA 100
36
CF 10 100% Frontera SpA 200
37
CF 11 100% Frontera SpA 200
38 CHAPULIN COLORADO 1/3 100% Frontera SpA 3
39
CHILIS 1 100% Frontera SpA 200
40
CHILIS 3 100% Frontera SpA 100
41
CHILIS 4 100% Frontera SpA 200
42
CHILIS 5 100% Frontera SpA 200
43
CHILIS 6 100% Frontera SpA 200
44
CHILIS 7 100% Frontera SpA 200
45
CHILIS 8 100% Frontera SpA 200
46
CHILIS 9 100% Frontera SpA 300
47
CHILIS 10 1/38 100% Frontera SpA 190
48
CHILIS 11 100% Frontera SpA 200
49
CHILIS 12 1/60 100% Frontera SpA 300
50
CHILIS 13 100% Frontera SpA 300
51
CHILIS 14 100% Frontera SpA 300
52
CHILIS 15 100% Frontera SpA 300
53
CHILIS 16 100% Frontera SpA 300
54
CHILIS 17 100% Frontera SpA 300
55
CHILIS 18 100% Frontera SpA 300
56
CORTADERA 1 100% Frontera SpA 200
57
CORTADERA 2 100% Frontera SpA 200
58
CORTADERA 3 100% Frontera SpA 200
59
CORTADERA 4 100% Frontera SpA 200
60
CORTADERA 5 100% Frontera SpA 200
61 CORTADERA 6 1/60 100% Frontera SpA 265
62 CORTADERA 7 1/20 100% Frontera SpA 93
63
CRISTINA 1/40 100% SMEA SpA 40
64
DIABLITO 1/5 100% SMEA SpA 25
65 DONA FELIPA 1/10 100% Frontera SpA 50
66
DORO 1 100% Frontera SpA 200
67
DORO 2 100% Frontera SpA 200
68
DORO 3 100% Frontera SpA 300
69 FALLA MAIPO 2 1/10 100% Frontera SpA 99
70 FALLA MAIPO 3 1/8 100% Frontera SpA 72
71 FALLA MAIPO 4 1/26 100% Frontera 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
76
PORFIADA B 100% Frontera SpA 200
77
PORFIADA D 100% Frontera SpA 300
78
PORFIADA G 100% Frontera SpA 200
79
PORFIADA I 100% Frontera SpA 300
80
PORFIADA II 100% Frontera SpA 300
81
PORFIADA III 100% Frontera SpA 300
82
PORFIADA IV 100% Frontera SpA 300
83
PORFIADA V 100% Frontera SpA 200
84
PORFIADA VI 100% Frontera SpA 100
85
PORFIADA X 100% Frontera SpA 200
86
SAN ANTONIO 1 100% Frontera SpA 200
87
SAN ANTONIO 2 100% Frontera SpA 200
88
SAN ANTONIO 3 100% Frontera SpA 300
89
SAN ANTONIO 4 100% Frontera SpA 300
90
SAN ANTONIO 5 100% Frontera SpA 300
91
MARINA 1/10 100% Frontera SpA 100
92
CATITA V 1/9 100% Frontera SpA 9
93
CHILIS 19 100% Frontera SpA 300
94
PAULINA 100% Frontera SpA 100
95 ARBOLEDA 7 1/25 100% Frontera SpA 234
96 NAVARRO 1 41/60 100% Frontera SpA 81
97
WH 1 1/20 100% Frontera SpA 100
TOTAL 19.377 23162
Note. Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited
Productora Project Tenements
Productora Project
N° License ID HCH % Held HCH % Area
Earning (ha) Agreement 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
6 AURO HUASCO 1A
1/8 80% SMEA SpA 35
7 CABRITO-
CABRITO 1/9 80% SMEA SpA 50
8 CACHIYUYITO 1
1/20 80% SMEA SpA 100
9 CACHIYUYITO 2
1/60 80% SMEA SpA 300
10 CACHIYUYITO 3
1/60 80% SMEA SpA 300
11 CARMEN I, 1/50 80% SMEA SpA 222
12 CARMEN II, 1/60 80% SMEA SpA 274
13 CF 12 100% Frontera SpA 100
14 CF 13 100% Frontera SpA 200
15 CF 14 100% Frontera 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
23 ELEONOR RIGBY
1/10 100% Frontera 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
59 JULIETA 10,
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%
79 ORO INDIO 1A
1/20 80% SMEA SpA 82
80 PEGGY SUE 1/10 100% Frontera 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
102 HWZC 1 1/14 100% SMEA SpA 98
TOTAL 17.276
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
N° License ID HCH % Held HCH % Earning Area
(ha) Agreement Details
1 ANTONIO 1 1/56 100% Frontera SpA 280 100% HCH Domeyko Purchase Option
Agreement
US$320,000 (already satisfied)
US$200,000 payable by April 19th 2027
US$3.480,000 payable by April 19th 2028
NSR 1%
2 ANTONIO 1/40 100% Frontera SpA 200
3 ANTONIO 10 1/21 100% Frontera SpA 63
4 ANTONIO 19 1/30 100% Frontera SpA 128
5 ANTONIO 21 1/20 100% Frontera SpA 60
6 ANTONIO 36 1/15 100% Frontera SpA 74
7 ANTONIO 5 1/40 100% Frontera SpA 200
8 ANTONIO 9 1/40 100% Frontera SpA 193
9 CAZURRO 1 100% Frontera SpA 200
10 CAZURRO 2 100% Frontera SpA 200
11 CAZURRO 3 100% Frontera SpA 300
12 CAZURRO 4 100% Frontera SpA 300
13 CAZURRO 5 100% Frontera SpA 100
14 CAZURRO 6 100% Frontera SpA 200
15 CAZURRO 7 100% Frontera SpA 200
16 CAZURRO 8 100% Frontera SpA 200
17 CERRO MOLY 1 100% Frontera SpA 300
18 CERRO MOLY 2 100% Frontera SpA 300
19 CERRO MOLY 3 100% Frontera SpA 300
20 CERRO MOLY 4 100% Frontera SpA 300
21 CAZURRO 3 1/60 100% Frontera SpA 300
22 CAZURRO 4 1/60 100% Frontera SpA 300
23 CAZURRO 7 1/40 100% Frontera SpA 200
24 EMILIO 1 1/8 100% Frontera SpA 38
25 EMILIO 3 1/9 100% Frontera SpA 45
26 INES 1/40 100% Frontera SpA 200
27 LORENA 1/2 100% Frontera SpA 2
28 MERCEDITA 1/7 100% Frontera SpA 22
29 PRIMO 1 1/6 100% Frontera SpA 36
30 SANTIAGUITO 5
1/24 100% Frontera SpA 114
31 DOMINOCEROS 100% Frontera SpA 20 100% HCH Dominoceros Purchase Option
1/20 (1/4) 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
32 CF SUR 1 100% Frontera SpA 300
33 CF SUR 2 100% Frontera SpA 300
34 CF SUR 3 100% Frontera SpA 300
35 CF SUR 4 100% Frontera SpA 300
36 CF SUR 5 100% Frontera SpA 200
37 CF SUR 6 100% Frontera SpA 300
38 CF SUR 7 100% Frontera SpA 300
39 CF SUR 8 100% Frontera SpA 300
40 CF SUR 9 100% Frontera SpA 200
41 CF SUR 10 100% Frontera SpA 200
42 CF SUR 11 100% Frontera SpA 300
43 CF SUR 12 100% Frontera SpA 300
44 CF SUR 13 100% Frontera SpA 300
45 CF SUR 14 100% Frontera SpA 300
46 CF SUR 15 100% Frontera SpA 200
47 CF SUR 16 100% Frontera SpA 300
48 CF SUR 17 100% Frontera SpA 300
49 CF SUR 18 100% Frontera SpA 300
50 CF SUR 19 100% Frontera SpA 300
51 CF SUR 20 100% Frontera SpA 300
52 CF SUR 21 100% Frontera SpA 300
53 CF SUR 22 100% Frontera SpA 300
54 CF SUR 23 100% Frontera SpA 200
55 CF SUR 24 100% Frontera SpA 200
56 CF SUR 25 100% Frontera SpA 300
57 CF SUR 26 100% Frontera SpA 300
58 CF SUR 27 100% Frontera SpA 300
59 CF SUR 28 100% Frontera SpA 200
60 CF SUR 29 100% Frontera SpA 300
61 CF SUR 30 100% Frontera SpA 200
62 CF SUR 31 100% Frontera SpA 300
63 CF SUR 32 100% Frontera SpA 300
64 CF SUR 33 100% Frontera SpA 300
65 CF SUR 34 100% Frontera SpA 300
66 CF SUR 35 100% Frontera SpA 300
67 CF SUR 36 100% Frontera SpA 200
68 CF SUR 37 100% Frontera SpA 200
69 KRETA 1/4 100% Frontera SpA 16 The mining concession is included in
SanAntonio
Purchase Option Agreement
70 MARI 1 100% Frontera SpA 300
71 MARI 1/12 100% Frontera SpA 64 The mining concession is included in San
Antonio Purchase Option Agreement
72 MARI 6 100% Frontera SpA 300
73 MARI 8 100% Frontera SpA 300
74 PAJONALES 100% Frontera SpA 300
75 PORFIADA SUR 1
1/60 100% Frontera SpA 300
76 PORFIADA SUR 2
1/60 100% Frontera SpA 300
77 PORFIADA SUR 3
1/40 100% Frontera SpA 200
78 PORFIADA SUR 4
1/60 100% Frontera SpA 300
TOTAL 17.855
Note. Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited.
El Fuego Project Tenements
San Antonio Project
N° License ID HCH % HCH % Earning Area
Held (ha)
Agreement Details
1 MERCEDES 1/3 100% Frontera SpA 50 100% HCH San Antonio Purchase Option Agreement
USD 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 USD
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.)
2 PORFIADA A
1/33 100% Frontera SpA 160
3 PORFIADA C
1/60 100% Frontera SpA 300
4 PORFIADA E
1/20 100% Frontera SpA 100
5 PORFIADA F
1/50 100% Frontera SpA 240
6 PORFIADA IX
1/60 100% Frontera SpA 300
7 PORFIADA VII
1/60 100% Frontera SpA 270
8 PORFIADA
VIII 1/60 100% Frontera SpA 300
9 PRIMA 1 100% Frontera SpA 1
10 PRIMA 2 100% Frontera SpA 2
11 ROMERO 1/31 100% Frontera SpA 31
12 SAN ANTONIO
1/5 100% Frontera SpA 25
13 SAN JUAN SUR
1/5 100% Frontera SpA 10
14 SAN JUAN SUR
6/23 100% Frontera SpA 90
15 SANTIAGO Z
1/30 100% Frontera SpA 300
16 SANTIAGO 1/4
Y 20 100% Frontera SpA 75
17 SANTIAGO
15/19 100% Frontera SpA 25
18 SANTIAGO
21/36 100% Frontera SpA 76
19 SANTIAGO
37/43 100% Frontera SpA 26
20 SANTIAGO A,
1/26 100% Frontera SpA 244
21 SANTIAGO B,
1/20 100% Frontera SpA 200
22 SANTIAGO C,
1/30 100% Frontera SpA 300
23 SANTIAGO D,
1/30 100% Frontera SpA 300
24 SANTIAGO E,
1/30 100% Frontera SpA 300
TOTAL 3.725
Note. Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited.
Cordillera Project
N° License ID HCH % HCH % Earning Area
Held (ha) Agreement Details
1 ALBORADA III 1/35 100% Frontera SpA 162 100% HCH Purchase Option Agreement
USD 100,000 already paid
US$100,000 payable by November 14th
2026
US$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
3 ALBORADA VII 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
9 MINA HERREROS III
1/6 100% Frontera SpA 18
10 MINA HERREROS IV
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
This report contains certain statements that are "forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of applicable Australian securities legislation (collectively, the "forward-looking statements"). Forward-looking statements reflect the Company's current expectations, forecasts, and projections with respect to future events, many of which are beyond the Company's control, and are based on certain assumptions. No assurance can be given that these expectations, forecasts, or projections will prove to be correct, and such forward-looking statements included in this announcement should not be unduly relied upon. Forward-looking information is by its nature prospective and requires the Company to make certain assumptions and is subject to inherent risks and uncertainties. All statements other than statements of historical fact are forward-looking statements. The use of any of the words "capable", "estimate", "expansion", "expectations", "likely", "may", "plan", "potential", "project", "reinforce", "large-scale", "could", "should", "will", "would", variants of these words and similar expressions are intended to identify forward-looking statements.
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
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
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 30 June2026
Consolidated statement of cash flows Current Year to
quarter date
$A'000 (12 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 (755) (2,987)
(d) administration and corporate costs (1,609) (5,898)
1.3
Dividends received (see note 3)
1.4
Interest received 177 336
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 activities (2,187) (8,549)
2.
Cash flows from investing activities
2.1
Payments to acquire or for:
(a) entities
(b) tenements (215) (4,234)
(c) property, plant and equipment (130) (198)
(d) exploration & evaluation (7,276) (18,819)
(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
2.6 Net cash from /(used in) investing activities (7,621) (21,959)
3.
Cash flows from financing activities
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 equity securities or
convertible debt securities (100) (3,772)
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 activities (100) 50,417
4. Net increase /(decrease) in cash and cash equivalents for the
period
4.1
Cash and cash equivalents at beginning of period 35,220 5,189
4.2 Net cash from /(used in) operating activities (item 1.9 above) (2,187) (8,549)
4.3 Net cash from /(used in) investing activities (item 2.6 above) (7,621) (21,959)
4.4 Net cash from /(used in) financing activities (item 3.10 above) (100) 50,417
4.5
Effect of movement in exchange rates on cash held (364) (150)
4.6 Cash and cash equivalents at end of period 24,948 24,948
5. Reconciliation of cash and cash equivalents Current Previous
quarter quarter
at the end of the quarter (as shown in the consolidated statement
of cash flows) to the related items in the accounts $A'000 $A'000
5.1
Bank balances 8,841 5,428
5.2
Call deposits 16,107 29,792
5.3
Bank overdrafts
5.4
Other (provide details)
5.5 Cash and cash equivalents at end of quarter (should equal item 4.6
above) 24,948 35,220
6. Payments to related parties of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to related parties and 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
amount at at quarter
quarter end end
Note: the term "facility' includes all forms of financing
arrangements available to the entity. Add notes as necessary
for an understanding of the sources of finance available to
the entity. $A'000 $A'000
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
8.1
Net cash from / (used in) operating activities (item 1.9) (2,187)
8.2 (Payments for exploration & evaluation classified as investing activities) (item
2.1(d)) (7,276)
8.3
Total relevant outgoings (item 8.1 + item 8.2) (9,463)
8.4
Cash and cash equivalents at quarter end (item 4.6) 24,948
8.5
Unused finance facilities available at quarter end (item 7.5)
8.6
Total available funding (item 8.4 + item 8.5) 24,948
8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) 2.64
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
- This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
- This statement gives a true and fair view of the matters disclosed.
Date: 30 July 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
