Mr. Christian Easterday reports

HOT CHILI CLOSES US$15 MILLION INVESTMENT BY OSISKO GOLD ROYALTIES

Hot Chili Ltd. has closed its previously announced transaction with Osisko Gold Royalties Ltd., pursuant to which Hot Chili received proceeds of $15-million (U.S.) in exchange for the sale of a 1.0-per-cent net smelter return (NSR) royalty on copper and a 3-per-cent NSR royalty on gold across the company's Costa Fuego copper-gold project, located 600 kilometres north of Santiago, at low elevation (less than 1,000 metres) in the coastal range of the Atacama region in Chile.

The Investment by Osisko has strengthened the Company's current cash position to approximately A$26 million, demonstrated strong look-through value of the Project's economics (see the Company's announcement dated 28th June 2023, entitled "Hot Chili Announces PEA for Costa Fuego") and provided another significant endorsement of Hot Chili's Costa Fuego project from one of North America's leading royalty-streaming groups (see the Company's announcement dated 28th June 2023, entitled "Hot Chili Announces US$15 Million Investment Agreement with Osisko Gold Royalties").

The Company is now well funded to deliver the next steps in its growth and development plan, including:

• Commencement of 30,000 m drill program - preparations well-advanced; drilling operations set to commence in the coming weeks.
• Completion of Costa Fuego resource upgrade by late 2023
• Delivery of Costa Fuego pre-feasibility study ("PFS") in H2 2024 - The Company has already considerably advanced its PFS (approximately 80% complete) with minimal expenditure required for completion

Hot Chili's Managing Director Mr Christian Easterday commented , "We are very pleased to have closed the Investment with Osisko Gold Royalties enabling the Company to advance the project without the dilution of a share issuance."

"Costa Fuego is globally relevant, being one of only a handful of projects with potential to deliver near-term, meaningful, new copper supply into a looming global copper supply shortage."

The Company looks forward to providing updates on the Company's next steps shortly.

We seek Safe Harbor.