Mr. Christian Easterday reports

ASX PAUSE IN TRADING

The Australian Securities Exchange yesterday established a temporary pause in trading of Hot Chili Ltd.'s securities, pending a response to an ASX price and volume query.

The temporary trading pause was lifted with the announcement of the company's response, which was released to the ASX together with the initial letter of query received.

In its response, the company noted that it was not aware of any other explanation for the recent trading in the company's securities.

A copy of the ASX announcement is available on SEDAR and at the company's website.

About Hot Chili Ltd.

Hot Chili aims to build shareholder value through the acquisition, exploration and development of high-quality copper assets in a low-elevation and accessible region of northern Chile. With substantial mineral resources already defined, the company's Costa Fuego copper hub is well positioned to benefit from the looming structural shortfall in copper production due to its size, quality and low-economic-hurdle location with an indicated resource of 2.8 million tonnes copper, 2.6 million ounces gold and 67,000 tonnes molybdenum (in 725 million tonnes) and inferred resource of 600,000 tonnes, 1.2 million ounces gold and 13,000 tonnes molybdenum (in 202 million tonnes). Costa Fuego is rated by S&P Global Market Intelligence one of the top 10 low-risk undeveloped copper projects globally. Hot Chili has materially derisked the potential future development of Costa Fuego, securing seawater extraction rights, surface rights for mining activities, easement corridors for water and power pipelines, and electrical connection to the national power grid as well as entering into a letter of intent with the nearby port of Las Losas. Costa Fuego has exceptional ESG (environmental, social and governance) credentials due to the abundance of existing infrastructure, amenability of ore processing using seawater, potential to operate Costa Fuego on a 100-per-cent-renewable-power mix, minimal community impact and ability to drive growth in an economically deprived area. Hot Chili's growth trajectory continues with the recent announcement of further consolidation contiguous with the bulk of its resources. This new, low-cost acquisition contains near-surface copper-gold porphyry mineralization intersected in historic drilling that has yet to be followed up. The company commenced an initial 10,000-metre drill program in January, 2023, to test highly prospective copper-gold porphyry targets along strike of the existing porphyry cluster. Hot Chili recently obtained secondary listings on the TSX Venture Exchange and the OTCQX to better align with the exchanges of its global copper peer group. The company aims to narrow the relative valuation gap with its North American listed peers, particularly as the general market starts to appreciate the medium-term structural deficit in copper -- a critical commodity -- and the copper price required to incentivize new production.

We seek Safe Harbor.