PERTH, Australia, Jan. 30, 2026 /PRNewswire/ -
Highlights
La Verde Diamond Drilling Rapidly Expands Gold-Rich Major Copper Discovery
- Drillhole results released during the quarter confirmed significant expansion of La Verde's high-grade core:
- DKD032 recorded 529 m grading 0.41% Cu and 0.21 g/t Au from 41m to end of hole, including 148 m grading 0.60% Cu and 0.30 g/t Au from 70 m depth
- DKD034 recorded 426 m grading 0.37% Cu and 0.08 g/t Au from 194 m depth, including 107 m grading 0.46 % Cu, 0.10 g/t Au from 426 m depth and including 52 m grading 0.50% Cu,
0.08 g/t Au from 566 m depth - DKD033, a diamond twin, recorded 495 m grading 0.38% Cu and 0.10 g/t Au from 3 m depth, including 123 m grading 0.50% Cu and 0.13 g/t Au from 289 m depth
- DKP005D, diamond tail recorded 47 m grading 0.57% Cu and 0.12 g/t Au from 247.5 m depth (original end of hole), including 28 m grading 0.49% Cu and 0.15 g/t Au from 316 m depth
- Diamond drill results expand an emerging, bulk-tonnage, high-grade core at the La Verde copper-gold (Cu-Au) porphyry discovery and confirm the convergence of the higher-grade mineralisation at depth.
- A total of 3,347 m was drilled across nine diamond drillholes during the quarter, with assays pending for six diamond drillholes, including results for drillholes targeting the up-dip potential of the high-grade core.
Higher-grade Copper-Gold Starter Pit for Costa Fuego Materialising
- Multiple wide, near-surface Cu-Au intercepts from La Verde highlight the opportunity to incorporate a high-grade starter pit to Costa Fuego, located only 30km south of the planned central processing hub at Productora.
- Impact modelling by Hot Chili indicates the potential to add significant additional open pit material to the front end of Costa Fuego's 20-year mine schedule, delivering mine life growth and materially enhancing the financial metrics of Hot Chili's March 2025 PFS.
- Regulatory approval1 was received in October, and drill pad clearing commenced in December, to expand drill coverage across La Verde and initiate first-pass drilling, to test adjacent look-alike targets with the potential for a district-scale copper porphyry cluster.
Strategic Partnering Process Advancing
- Additional parties have entered the Company's asset-level, strategic partnering processes in relation to the Costa Fuego and Huasco Water Projects (together, the Projects). 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. The Company remains actively engaged in assessing these proposals.
EIA and Development Studies Advancing
A$4.6M Cash and A$2.8M in Returns Expected (VAT and JV recoup)
- $1.8M in VAT and JV recoup received in January 2026.
______________________________
(1) Regulatory approval refers to a Sectoral Permit, which is the appropriate regulatory authorisation for a project of this scale. A full DIA (Environmental Impact Declaration) would be
processed in a next drilling stage following current regulations. Hot Chili remains fully committed to transparency and environmental responsibility in every stage of the project.
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 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
Rapid Growth of High-Grade Core Continues at La Verde
Diamond drilling (DD) continued during the quarter at La Verde with nine drillholes completed - six from surface and three diamond tails - before the Christmas break on 21 Dec 2025. Phase two drilling aimed to significantly grow the initial porphyry discovery, using DD to verify, extend and expand the mineralisation footprint identified by reverse circulation (RC) drillholes, many of which ended in mineralisation.
Results from the first four diamond drillholes had a significant impact on expansion of the porphyry footprint. Particularly at depth where higher-grade centres converge, with the depth extent now reaching 600m from surface (Figure 1 and 2), as well as identifying a high gold to copper ratio in the north-eastern high-grade core.
The first diamond drillhole, DKD032, located in the north-eastern higher-grade centre, recorded:
- 529 m grading 0.41% Cu and 0.21 g/t Au from 41m to end of hole
- including 148 m grading 0.60% Cu and 0.30 g/t Au from 70 m depth
- and including 66 m grading 0.45% Cu and 0.31 g/t Au from 295 m depth
Twin drillhole DKD032 significantly extended the discovery drill result from DKP002, which previously recorded 308 m grading 0.5% Cu and 0.3g/t Au from 46m depth to end of hole. Mineralisation extended both laterally and vertically, with end of hole recording 14 m grading 0.35% Cu and 0.12 g/t Au.
The other drilling result released was from DKP005D, a 200 m diamond tail extension, recorded an additional:
- 47 m grading 0.57% Cu and 0.12 g/t Au from 247.5 m depth (original end of hole), and
- 28 m grading 0.49% Cu and 0.15 g/t Au from 316 m depth
DKP005D is located in the central higher-grade mineralisation centre, the tail extension of RC drillhole DKP005, and resulted in extension of the eastern flank of the discovery by approximately 60 m. Including the new diamond tail extension, DKP005 now records 317 m grading 0.38% Cu and 0.1 g/t Au from 32 m to 349 m depth including the non-mineralised dyke (previously DKP005 recorded 200 m grading 0.4% Cu and 0.1 g/t Au from 48 m to end-of-hole).
Diamond drillhole DKD033 (twin drillhole to DKP030) was the third result released (Figure 3) and extended the original RC drillhole, recording:
- 495 m grading 0.38% Cu and 0.10 g/t Au from 3 m depth
- including 37 m grading 0.51% Cu and 0.13g/t Au from 202 m
- and including 123 m grading 0.50% Cu and 0.13g/t Au from 289 m
This represents a 102 m downhole extension to the original intercept, which recorded 393 m grading 0.4% Cu and 0.1 g/t Au from 4 m depth. Mineralisation was also recorded to end-of-hole, with the last 22 m recording 0.18% Cu and 0.04 g/t Au from 521 m depth.
The fourth result, diamond drillhole DKD034, also located in the central high-grade centre (Figure 3), returned an intersection of:
- 426 m grading 0.37% Cu and 0.08g/t Au from 194 m depth
- including 107 m grading 0.46% Cu and 0.10g/t Au from 426 m
- and including 52 m grading 0.50% Cu and 0.08g/t Au from 566 m
Drillhole DKD034 also ended in mineralisation, returning 35 m grading 0.27% Cu and 0.06 g/t Au from 679 m.
The Company is reviewing these results and will consider potential re-entry of DKD033 and DKD034 in the future.
In addition, relogging and interpretation of multiple intrusive phases, derived from the diamond drilling campaign, have optimized drill target design and supported the development of an early 4D litho-structural model.
Higher-grade Copper-Gold Starter Pit for Costa Fuego Materialising
Diamond drillholes completed from surface, aiming to test the potential for the higher-grade gold-rich copper mineralisation intersected by DKD032 to extend up to near surface, were also completed during the quarter (DKD035 and DKD036). Results are expected soon and the location of both drillholes in the northeastern high-grade centre, could have a material impact on the La Verde deposit.
Diamond drilling has been instrumental in development of an early "4D litho-structural model" 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.
Impact modelling by Hot Chili indicates the potential to add significant additional open pit material to the front end of Costa Fuego's 20-year mine schedule, delivering mine life growth and materially enhancing the financial metrics of Hot Chili's March 2025 PFS.
Costa Fuego is significantly leveraged to both copper and gold price, both of which are materially higher than assumptions used in the Company's PFS. Long-term consensus prices for both commodities sit at US$4.51/lb Cu and US$3,137/oz Au1, 5% and 38% higher, respectively. The addition of La Verde adds further leverage and scale.
Clearing of drill pad locations commenced at La Verde in December, in preparation for the expanded exploration drill program, which received regulatory approval in October.
Costa Fuego Project Optimisation Continues
Value Engineering development studies continued during the quarter, advancing several workstreams with global consulting company Ausenco, with focus on optimisation of the Company's PFS, prior to inclusion in a planned Feasibility Study (FS).
The Company's Environmental Impact Assessment (EIA) also continued to advance during the quarter, on track for submission at the end of 2026.
____________________________________
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.
(1) See Page 22 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.
Table 1. Drill Holes Completed for La Verde in Quarter 4, 2025
Prospect Hole ID North East RL Depth Azimuth Dip Results
La DKP032 6785975 324839 1192 570 270 -60 Significant result returned
Verde Q4 2025
DKP005D 6785789 324564 1124 441 91 -60 Significant result returned
Q4 2025
DKD033 6785775 324785 1132 543 274 -60 Significant result returned
Q1 2026
DKD034 6785837 324433 1096 714 99 -59 Significant result returned
Q1 2026
DKP006D 6785721 324727 1130 384 110 -60
Results Pending
DKP021D 6785619 324325 1178 834 75 -60
Results Pending
DKD035 6786027 324596 1153 279 80 -60
Results Pending
DKD036 6786029 324597 1153 372 130 -54
Results Pending
DKD037 6785842 324527 1122 321 69 -63
Results Pending
DKD038 6786088 324685 1185 306 149 -65
Results Pending
Table 2. Significant Drilling Intersections from La Verde in Quarter 4, 2025
Hole ID Coordinates Azim. Dip Hole Depth Intersection Interval Copper Gold Silver Molybdenum
North East RL From To (m) (% Cu) (g/t
Au) (ppm Ag) (ppm Mo)
DKP0032 6,785,967 324,835 1,202 270 -60 569.9 41 569.9 528.9 0.41 0.21 0.85 13
And incl 70 218 148 0.60 0.30 0.84 13
And incl 295 361 66 0.45 0.31 0.96 10
And incl (to
EOH) 556 569.9 13.9 0.35 0.12 0.79 13
DKP005 6,785,789 324,564 1,124 90 -60 441.2 32 349 317 0.38 0.10 0.9 23
(incl. new DD tail results from DKP005D)
Incl 68 102 34 0.50 0.16 1.2 10
And incl 236 294 58 0.55 0.12 1.1 39
And incl 316 344 28 0.49 0.15 1.0 19
And 412 421 9 0.32 0.06 0.4 92
DKD033 6,785,775 324,785 1132 274 -60 543 3 498 495 0.38 0.10 0.69 27
Or Incl 3 543 540 0.36 0.09 0.66 30
Incl 202 239 37 0.51 0.13 1.19 43
And incl 289 412 123 0.50 0.13 0.67 39
521 543 22 0.18 0.04 0.31 75
DKD034 6,785,837 324,433 1096 99 -59 713.9 16 39 23 0.30 0.06 1.11 20
194 620 426 0.37 0.08 0.71 32
Incl 426 533 107 0.46 0.10 0.97 23
And Incl 566 618 52 0.50 0.08 0.99 50
679 713.9 34.9 0.27 0.06 0.68 183
SUMMARY OF CORPORATE ACTIVITIES
Strategic Partnering Process Advancing
Following completion of the Pre-feasibility Studies (PFS) for Costa Fuego and Huasco Water, Hot Chili initiated an asset-level strategic Partnering Process to introduce one or more qualified partners with the financial, technical and operational capability to assist in funding and delivering each project.
The Partnering Process continues to progress. During the quarter, additional parties have entered 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. The Company remains actively engaged in assessing these 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 has been appointed as financial adviser in connection with the Partnering Process.
The Company will continue to update the market in accordance with its continuous disclosure obligations.
Cash Position
As of 31 December 2025, the Company had cash of A$4.6 million and no debt. The Company has approximately A$2.8 million in funds from VAT repayments and joint venture recoup from its partner CMP, with $1.8m of these funds being received in January 2026. The remaining $1m funds are expected to be received over the coming months.
The operating expenditure for quarter ended 31 December 2025 included payments for staff costs of A$0.6 million and administration and corporate costs of A$1.3 million.
The investing expenditure for quarter ended 31 December 2025 included payments for tenements of A$1.1 million relating to option payment for La Verde and payments for exploration and evaluation of A$6.1 million relating to exploration 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
- 3,685,079 service and performance rights
Annual General Meeting
On Thursday, 27 November 2025 the Company's AGM was held with all resolutions passed.
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 December 2025.
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 $188,000. This is comprised of directors' salaries and superannuation of $180,000.
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 were no Lost Time Injuries (LTI) during the quarter.
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 4 2025 Performance and Statistics
Deposit Productora Cortadera All Projects
Timeframe Q4 2025 Cum.(2) Q4 2025 Cum.(2) Q4 2025 Cum.(2)
2019 2019 2019
LTI events 0 0 0 6 0 8
NLTI events 0 4 0 6 0 11
Days lost 0 0 0 152 0 263
LTIFR index 0 0 0 20 0 17
ISR index 0 0 0 495 0 543
IFR Index 0 37 0 39 0 39
Thousands of man-hours 4.9 109 1.8 307 25.1 484
Incidents on materials and assets 0 1 0 0 0 1
Environmental incidents 0 0 0 0 0 0
Headcount(1) 13 12 9 29 64 48
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 2019.
Tenement Changes During the Quarter
During the Quarter, Sociedad Minera La Frontera SpA ("La Frontera") has claimed 3 mining exploration concessions ("Pajonales" "Chilis 19" and "Paulina") which are in process to be constituted. In addition, it acquired two mining concessions in judicial auction, which are indicated below: "Marina 1/10" and "Catita V 1/9". In addition, the four Minori concessions were substituted due to irregularities in their registration. Sociedad Minera El Aguila SpA ("El Aguila") has claimed three mining exploration concessions ("Zapallo 1" "Zapallo 2" and "Zapallo 3") which are in process to be constituted.
The Company's existing tenements are detailed in the table below.
Table 4. Current Tenement Holdings in Chile as of 31 December 2025
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
SOLAR 1 100% Frontera SpA 300
92
SOLAR 2 100% Frontera SpA 300
93
SOLAR 3 100% Frontera SpA 300
94
SOLAR 4 100% Frontera SpA 300
95
SOLAR 5 100% Frontera SpA 300
96
SOLAR 6 100% Frontera SpA 300
97
SOLAR 7 100% Frontera SpA 300
98
SOLAR 8 100% Frontera SpA 300
99
SOLAR 9 100% Frontera SpA 300
100
SOLAR 10 100% Frontera SpA 300
101
SOLEDAD 1 100% Frontera SpA 300
102
SOLEDAD 2 100% Frontera SpA 300
103
SOLEDAD 3 100% Frontera SpA 300
104
SOLEDAD 4 100% Frontera SpA 300
105
MARINA 1/10 100% Frontera SpA 100
106
CATITA V 1/9 100% Frontera SpA 9
107
CHILIS 19 100% Frontera SpA 300
108
PAULINA 100% Frontera SpA 100
TOTAL 23.162
Note. Frontera SpA is a 100% owned subsidiary company of Hot
Chili Limited
Productora Project Tenements
Productora Project
N° License ID HCH % Held HCH % Earning Area (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
82 SUERTE 1/7 100% SMEA SpA 21
83 SUERTE II 1/15 100% SMEA SpA 15
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 17.214
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
Agreement Details
(ha)
1 ANTONIO 1 1/56 100% Frontera SpA 280
100% HCH Domeyko 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%
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 1/20 (1/4) 100% Frontera SpA 20
100% HCH Dominoceros Purchase Option Agreement
US$320,000 (already satisfied)
US$680,000 (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 DOMEYKO I 1/12 100% Frontera SpA 60
70 DOMEYKO II 1/40 100% Frontera SpA 200
71
KRETA 1/4 100% Frontera SpA 16
The mining concession is included in SanAntonio
Purchase Option Agreement
72
MARI 1 100% Frontera SpA 300
73
MARI 1/12 100% Frontera SpA 64 The mining concession is included in San Antonio Purchase
Option Agreement
74
MARI 6 100% Frontera SpA 300
75
MARI 8 100% Frontera SpA 300
76
PAJONALES 100% Frontera SpA 300
TOTAL 17.015
Note. Frontera SpA is a 100% owned subsidiary company of Hot
Chili Limited.
El Fuego Project Tenements
San Antonio Project
N° License ID HCH % Held HCH % Earning Area
(ha)
Agreement Details
1 MERCEDES 1/3 100% Frontera
SpA 50
100% HCH San Antonio Purchase Option Agreement
USD 1,400,000 already paid.
US$1,000,000 payable February 8th 2026 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 100% Frontera
1/60 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 % Held HCH % Earning Area (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 drillholes 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 9 May 2025 with an effective date of 27 March 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 8 April 2024, with an effective date of 26 February 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 Liited) 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 December 2025
Consolidated statement of cash flows Current Year to
quarter date
$A'000 (3 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 (628) (1,223)
(d) administration and corporate costs (1,329) (2,827)
1.3
Dividends received (see note 3)
1.4
Interest received 60 97
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 (1,897) (3,953)
2.
Cash flows from investing activities
2.1
Payments to acquire or for:
(a) entities
(b) tenements (1,102) (1,646)
(c) property, plant and equipment (41) (41)
(d) exploration & evaluation (6,105) (8,474)
(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)
2.6 Net cash from /(used in) investing activities (7,248) (10,161)
3.
Cash flows from financing activities
14,189
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 (65) (608)
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 (65) 13,581
4. Net increase /(decrease) in cash and cash equivalents for the
period
4.1
Cash and cash equivalents at beginning of period 13,814 5,189
4.2 Net cash from /(used in) operating activities (item 1.9 above) (1,897) (3,953)
4.3 Net cash from /(used in) investing activities (item 2.6 above) (7,248) (10,161)
4.4 Net cash from /(used in) financing activities (item 3.10 above) (65) 13,581
4.5
Effect of movement in exchange rates on cash held 20 (32)
4.6
Cash and cash equivalents at end of period 4,624 4,624
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 124 6,814
5.2
Call deposits 4,500 7,000
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) 4,624 13,814
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 1 188
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 at quarter Amount drawn at quarter
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. end end
$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) (1,897)
8.2
(Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) (6,105)
8.3
Total relevant outgoings (item 8.1 + item 8.2) (8,002)
8.4
Cash and cash equivalents at quarter end (item 4.6) 4,624
8.5
Unused finance facilities available at quarter end (item 7.5)
8.6
Total available funding (item 8.4 + item 8.5) 4,624
8.7
Estimated quarters of funding available (item 8.6 divided by item 8.3) 0.58
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?
The Company expects to continue drilling activities at La Verde during the next quarter.
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?
The Company has received $1.8m in VAT and JV recoup in January 2026, with the remaining $1m expected to be received over the coming months. The Company continues to advance potential strategic funding
discussions with asset level investment opportunities for Costa Fuego and Huasco Water and will assess all funding options.
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?
Any future drilling will be targeted and cost effective and funded by working capital.
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 January
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
