Mr. Christian Easterday reports

HOT CHILI LIMITED REQUEST FOR TRADING HALT

At the request of the company, Hot Chili Ltd.'s ordinary shares on the Australian Securities Exchange have been placed in a trading halt effective June 27, 2023.

In its letter to the ASX, the company noted that the request for the trading halt was made pending the release of an announcement by the company concerning a form of investment agreement and the results of a preliminary economic assessment (scoping study) in relation to its Coast Fuego copper-gold project in the coastal range of the Atacama region, Chile.

The company will remain in a temporary trading halt on the ASX until the earlier of the commencement of normal trading on June 29, 2023, or when the announcement is released to the market.

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 of molybdenum (in 725 million t) and inferred resource of 600,000 t Cu, 1.2 million oz Au and 13,000 t Mo (in 202 million t). 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 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 -- the critical commodity -- and the copper price required to incentivize new production.

We seek Safe Harbor.