Mr. Christian Easterday reports

HOT CHILI COMMENCES PORT NEGOTIATION

Hot Chili Ltd. has commenced negotiations for the final critical infrastructure item required for the development of the company's Costa Fuego copper development hub in Chile.

The company has executed a letter of intent with Puerto Las Losas SA (PLL) to negotiate a port access and port services agreement for PLL's facilities located at Huasco, approximately 50 kilometres west of Costa Fuego's proposed processing plant.

Under the terms of the letter of intent, PLL will finance a study for port services using the existing Puerto Las Losas dock for the shipment of copper concentrates and other materials related to the future construction and operation of Costa Fuego.

PLL have undertaken to present Hot Chili with a binding offer for port services, within the next 12 weeks or less.

Should a binding port services agreement be executed, PLL have committed to commence any required upgrade at Las Losas, and both parties will work together on a best endeavours basis to start operations during the last quarter of 2025.

Hot Chili's country manager and chief legal counsel Jose Ignacio Silva stated:

"Securing port services will be a major step forward for Costa Fuego. Leveraging off existing port infrastructure will materially reduce Costa Fuego's environmental footprint during construction and operations. As no new port or areas will be required for construction or subject to environmental permitting, we expect a positive impact to our construction capital requirements and overall permitting/construction timelines."

Hot Chili's managing director Christian Easterday stated:

"Costa Fuego continues to benefit from its low-altitude location and proximity to existing transport, power and port infrastructure, resulting in low capital intensity. Our letter of intent with PLL demonstrates our continued commitment to advancing Costa Fuego within an ESG [environmental, social and governance] framework that reduces the overall environmental impact and uses Chilean goods, services and businesses where possible."

The company looks forward to providing further updates from its various workstreams including drilling results (three rigs in operation), development studies and corporate actions in the lead up to a planned major resource upgrade for Costa Fuego later this quarter.

Refer to Australian Stock Exchange announcement "Costa Fuego Becomes a Leading Global Copper Project" (Oct. 12, 2020) for JORC table 1 information related to the Cortadera JORC-compliant mineral resource estimate by Wood and the Productora restated JORC-compliant mineral resource estimate by AMC Consultants.

Qualifying statements

The mineral resource summary for the Costa Fuego project is presented in the attached tables. Productora mineral resource summary -- reported by classification (open pit, using 0.25-per-cent-plus-copper-equivalent cut-off grade), Oct. 28, 2021.

Reported at or above 0.25 per cent CuEq. Figures in the attached table are rounded, reported to appropriate significant figures, and reported in accordance with CIM and NI-101. Metal rounded to nearest thousand or, if less, to the nearest hundred.

Exploration information in this announcement is based upon work compiled by Mr. Easterday, the managing director and a full-time employee of Hot Chili, who is a member of the Australasian Institute of Geoscientists (AIG). Mr. Easterday has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a competent person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC code). Mr. Easterday consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

Competent person's statement -- Productora mineral resources

The information in this announcement that relates to the Productora project mineral resources is based on information compiled by N. Ingvar Kirchner. Mr. Kirchner is employed by AMC Consultants. AMC has been engaged on a fee-for-service basis to provide independent technical advice and final audit for the Productora project mineral resource estimates. Mr. Kirchner is a fellow of the Australasian Institute of Mining and Metallurgy (AusIMM) and is a member of the Australian Institute of Geoscientists (AIG). Mr. Kirchner has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken to qualify as a competent person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC code 2012). Mr. Kirchner consents to the inclusion in this report of the matters based on the source information in the form and context in which it appears.

Competent person's statement -- Cortadera and Costa Fuego mineral resources

The information in this report that relates to mineral resources for the Cortadera and combined Costa Fuego project is based on information compiled by Elizabeth Haren, a competent person who is a member and chartered professional of the Australasian Institute of Mining and Metallurgy and a member of the Australian Institute of Geoscientists. Ms. Haren is employed as an associate principal geologist of Wood, which was engaged by Hot Chili. Ms. Haren has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken to qualify as a competent person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Ms. Haren consents to the inclusion in the report of the matters based on her information in the form and context in which it appears. For further information on the Costa Fuego project, refer to the technical report titled "Resource Report for the Costa Fuego Technical Report," dated Dec. 13, 2021, which is available for review under Hot Chili's profile on SEDAR.

About Hot Chili Ltd.

Hot Chili is a mineral exploration company with assets in Chile. The company's flagship project, Costa Fuego, is the consolidation into a hub of the Cortadera porphyry copper-gold discovery and the Productora copper-gold deposit.

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