Mr. Christian Easterday reports

HOT CHILI RELEASES INTERIM FINANCIAL REPORT FOR QUARTER ENDED 31ST MARCH 2024

Hot Chili Ltd. has filed financial reports for the quarter ended March 31, 2024.

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

Highlights include:

• Costa Fuego indicated copper-gold resource increases to approximately 798 million tonnes:
  • Mineral resource has seen a 6-per-cent increase in copper equivalent (CuEq) (1) contained metal in the indicated resource and a 9-per-cent increase in CuEq contained metal in the higher-grade component of the indicated resource (plus 0.6 per cent CuEq);
  • Over 85 per cent of Costa Fuego's CuEq contained metal is now classified as indicated -- strong platform to deliver a maiden mineral reserve for the Costa Fuego prefeasibility study (PFS) expected to be completed in the second half (H2) of 2024;
• Hot Chili delivers water study and prepares to create new water company:
  • Hot Chili has completed a water supply concept study for the Huasco valley region of Chile, confirming the potential for a large, multiuser, desalination water supply network;
  • Submission of second maritime concession to accommodate both raw seawater and desalinated water supply;
  • Preparation under way to transfer water assets into a new stand-alone water company;
• Further regional consolidation for Costa Fuego:
  • Large landholdings added to the south (Domeyko mining centre) and southeast (Cometa project) of Costa Fuego;
• Execution of MOU (memorandum of understanding) for port agreement:
  • Hot Chili and Las Losas Port execute an MOU to jointly finance a feasibility study for bulk concentrate exports in addition to negotiating a binding port services agreement for Costa Fuego;
• Exploration advancing:
  • Deep-penetrating, high-resolution MIMDAS and ground magnetics geophysical surveys under way at Productora and Cortadera;
  • Drilling activities paused and awaiting geophysical survey completion prior to recommencement;
• Cash position of $9.5-million (Australian).

This news release is authorized by the managing director for release to the TSX Venture Exchange.

Qualifying statements

Qualified persons -- National Instrument 43-101

The information pertaining to the mineral resource estimates included in this report has been reviewed and approved by Elizabeth Haren (FAUSIMM (CP) and MAIG), of Haren Consulting Pty. Ltd. All other scientific and technical information in this report has been reviewed and approved by Christian Easterday, MAIG, Hot Chili's managing director and chief executive officer. Ms. Haren and Mr. Easterday are each a qualified person within the meaning of NI 43-101.

Competent persons -- JORC

The information in this report that relates to mineral resources for Cortadera, Productora (including Alice) and San Antonio, which constitute the combined Costa Fuego project, is based on information compiled by Ms. Haren, a competent person who is a fellow and chartered professional of the Australasian Institute of Mining and Metallurgy, and a member of the Australian Institute of Geoscientists. Ms. Haren is a full-time employee of Haren Consulting and an independent consultant to Hot Chili. Ms. Haren has sufficient experience, which is relevant to the style of mineralization and types of deposits under consideration and to the activities undertaken, to qualify as a competent person as defined in the 2012 edition of the Australasian Code of 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.

The information in this news release that relates to exploration results for the Cortadera projects is based upon information compiled by Mr. Easterday, who is the managing director and a full-time employee of Hot Chili, and 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 that 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. 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.

Cautionary note for U.S. investors concerning mineral resources

NI 43-101 is a rule of the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Technical disclosure contained in this news release has been prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum classification system. These standards differ from the requirements of the U.S. Securities and Exchange Commission (SEC) and resource information contained in this report may not be comparable with similar information disclosed by domestic United States companies subject to the SEC's reporting and disclosure requirements.

All amounts in this report are in U.S. dollars unless otherwise noted.

(1) Copper equivalent (CuEq) is calculated based on the formula: CuEq per cent equals ((copper (Cu) per cent times Cu price 1 per cent per tonne times Cu recovery) plus (molybdenum (Mo) parts per million (ppm) times Mo price per grams per tonne (g/t) times Mo recovery) plus (gold (Au) ppm times Au price per g/t times Au recovery) plus (silver (Ag) ppm times Ag price per g/t times Ag recovery)) divided by (Cu price 1 per cent per tonne times Cu recovery). It is the company's opinion that all the elements included in the CuEq calculation have a reasonable potential to be recovered and sold. Metallurgical recovery averages for each deposit consider indicated plus inferred material and are weighted to combine sulphide flotation and oxide leaching performance. Process recoveries: Cortadera -- weighted recoveries of 82 per cent Cu, 55 per cent Au, 81 per cent Mo and 36 per cent Ag; CuEq (per cent) equals Cu (per cent) plus 0.55 times Au (g/t) pus 0.00046 times Mo (ppm) plus 0.0043 times Ag (g/t).

We seek Safe Harbor.