Mr. Christian Easterday reports

HOT CHILI RELEASES INTERIM FINANCIAL REPORT FOR QUARTER ENDED 31 DECEMBER 2023

Hot Chili Ltd. has filed its financial reports for the quarter ended Dec. 31, 2023.

All amounts in this news release are in United States dollars unless otherwise noted.

The complete report is available under the company's profile at the Australian Securities Exchange website, on SEDAR+ and on Hot Chili's website.

Highlights include:

• Hot Chili reduces option payments in 2024 by $10-million;
• Further regional consolidation expands Costa Fuego:
  • Options executed to acquire 100-per-cent interest in two historical mine areas located approximately 10 kilometres southwest of Costa Fuego's planned central processing hub;
  • Due diligence extended to facilitate execution of option to acquire 100-per-cent interest in Bastion Minerals Ltd.'s Cometa project, located adjacent to Hot Chili's Costa Fuego landholding.
• Next phase of resource expansion drilling commences:
  • Ten diamond drill holes for approximately 5,000 metres are planned to test seven targets adjacent to the company's two principal mineral resources: Cortadera and Productora;
  • Drilling aims to test multiple, large-scale resource growth opportunities, which may allow Hot Chili to consider an up-lift in the prefeasibility study scale for Costa Fuego.
• First-pass exploration drill results returned:
  • Assay results have been received for first-pass drilling undertaken in late 2023 across three new satellite targets within the Costa Fuego landholding: Marsellesa, Cordillera and Corroteo. Selected significant drill intersections include:
    • 25 m grading 0.4 per cent copper (Cu) from surface, including 10 m grading 0.8 per cent Cu from seven m depth (Marsellesa);
    • 19 m grading 0.5 per cent Cu from 195 m depth downhole, including two m grading 2.2 per cent Cu from 195 m depth (Marsellesa);
    • 93 m grading 0.3 per cent Cu from surface, including 14 m grading 0.4 per cent Cu from surface (Cordillera).

Additional highlights:

• Costa Fuego resource upgrade expected in Q1 2024;
• Prefeasibility and water supply concept studies on track;
• Maritime concession works begin;
• Strong cash position of $13.3-million (Australian).

Qualifying statements

Qualified persons -- National Instrument 43-101

The scientific and technical information in this new release has been reviewed and approved by Christian Easterday, MAIG, Hot Chili's managing director and chief executive officer, and a qualified person within the meaning of NI 43-101.

Competent persons -- JORC (Joint Ore Reserve Committee)

The information in this announcement that relates to exploration results for the Marsellesa and Cordillera projects is based upon information 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 deposits 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.

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