Hot Chili Announces Latest Drill Results for La Verde, Doubling Porphyry Discovery Footprint

Highlights

Rapidly Expanding Discovery, Multiple Higher-Grade Centres Confirmed

• Latest assays from phase-one Reverse Circulation (RC) drilling confirm copper-gold (Cu-Au) mineralisation now extending over 1 km in length and up to 750 m in width, from near surface
• Higher-grade centres confirmed across the extent of the shallow oxide and sulfide discovery
• New significant drill results include:
  • 389 m grading 0.4% Cu and 0.1 g/t Au from 4 m depth to end-of-hole (DKP030)
    • including 46 m at 0.6% Cu and 0.2 g/t Au from 238 m
    • including 34 m at 0.6% Cu and 0.2g/t Au from 322m
  • 120 m grading 0.4% Cu and 0.1 g/t Au from 6 m depth (DKP028)
    • including 48 m at 0.5% Cu and 0.1 g/t Au from 26 m
  • And, 114m at 0.3% Cu, 0.1g/t Au from 318m depth to end-of-hole
    • including 34m at 0.4% Cu, 0.2g/t Au from 380 m to end-of-hole
  • 114 m grading 0.4% Cu from 86 m depth (DKP024)
    • including 52 m at 0.5% Cu and 0.1 g/t Au from 96 m
  • 286 m grading 0.3% Cu and 0.1 g/t Au from 4 m depth (DKP027)
    • including 154 m at 0.4% Cu, 0.1g/t Au from 44 m
  • 228 m grading 0.3% Cu and 0.2 g/t Au from 42 m depth (DKP013)
    • including 104 m at 0.4% Cu and 0.3 g/t Au from 42 m
  • 202 m grading 0.3% Cu and 0.1 g/t Au from 50 m depth (DKP017)
    • including 14 m at 0.4% Cu and 0.1 g/t Au from 96 m
    • including 16 m at 0.4% Cu and 0.1 g/t Au from 180 m
  • 138 m grading 0.3% Cu and 0.1 g/t Au from 6m depth to end-of-hole (DKP020)
    • including 24 m at 0.4% Cu and 0.1 g/t Au from 6 m
    • including 48 m at 0.4% Cu and 0.1 g/t Au from 36 m
    • including 36 m at 0.4% Cu and 0.1 g/t Au from 102 m

Open Laterally and At-Depth, Larger Cu-Au Porphyry Discovery Emerging

• Over half of Hot Chili's drill holes ended in significant mineralisation at the limit of RC drilling depth capability; deeper diamond drilling planned for phase 2 to extend higher grade centres at depth
• Regulatory application for phase-two drilling access progressing
• Exploration activity streams investigating potential for larger porphyry cluster at La Verde, further updates expected

Potential for Significant Open Pit Mine Life Addition for Costa Fuego Cu-Au Hub

Further Development Study Updates Expected for Costa Fuego and Huasco Water

PERTH, Australia, May 20, 2025 /PRNewswire/ - Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) ("Hot Chili" or the "Company") is pleased to report a third round of strong assay results from its La Verde copper-gold (Cu-Au) discovery, located approximately 30km south of the Company's Costa Fuego Cu-Au Project ("Costa Fuego" or "the Project") planned central processing hub at low elevation in the coastal range of the Atacama region, Chile.

The Company concluded a phase-one drilling campaign across the La Verde Cu-Au porphyry discovery on 10 April 2025, with a total of 31 RC drill holes (9,600 m) completed to date.  Following a period of delayed laboratory turnaround time, final assay results have been received and compiled.

Initial assay results from the first 12 RC drill holes at La Verde confirmed a 400 m by 550 m discovery footprint, extending from near-surface to approximately 300 m vertical depth (refer to announcement dated 11 February 2025).

Recently returned assay results have now more than doubled the initial discovery footprint, resulting in an extensive +0.2% Cu mineralisation footprint of 1,000 m by 750 m extending up to 400 m vertical depth (Figures 2 and 5) and remaining open laterally and at depth.  

Importantly, multiple distinct higher-grade centres have been confirmed from near surface (Figures 2, 3 and 5).  Assessment of each of these higher-grade centres indicates:

1.  North-East (NE) Higher-Grade Centre

• Located approximately 180 m to the north-east of the historical shallow copper oxide open pit
• Higher-grade Cu-Au zone defined in six RC drill holes
• Current dimensions: 180 m strike by 280 m width by 320 m in vertical extent
• Remains open along strike to the north-east (beneath shallow gravel cover) and at depth

2.  South-east (SE) Higher-Grade Centre

• Located approximately 70 m to the south-east of the historical shallow copper oxide open pit
• High-grade Cu-Au zone defined by nine RC drill holes
• Current dimensions: 320 m strike by 340 m width by 400 m in vertical extent
• Remains open to the west beneath the open pit, to the east (beneath shallow gravel cover), and at depth

3.  South-west (SW) Higher-Grade Centre

• Located 310 m to the south of the historic open pit
• High grade Cu-Au zone defined by two RC drill holes
• Current dimensions: 90 m strike by 120 m width by 260 m in vertical extent
• Remains open to the south (beneath shallow gravel cover) and at depth

The extent of mineralisation beneath the existing La Verde open pit remains untested at this stage, due to limitations of RC drilling through clay altered structures. 

The Company is reviewing multi-element assay results to enhance understanding of the La Verde discovery, validate geological interpretations, and guide four-dimensional modelling and future drilling plans.

Three-dimensional magnetic inversion modelling has revealed a NNE-SSE trending weak magnetic anomaly aligned with the tonalitic porphyry intrusion (Figure 4). This relationship is guiding the evaluation of regional geophysical and geochemical assessments to identify extensions of the La Verde system and new porphyry targets within the broader magnetic destruction zone (Figure 6).

Regulatory applications for further drill access at La Verde are advancing, with phase-two drilling (RC and diamond drilling) planned to commence once approvals are received.

The Company looks forward to providing further updates, including advancements in exploration understanding of La Verde's growth potential, as well as various development study activities related to the current Pre-Feasibility Study optimisation phase for its Costa Fuego and Huasco Water projects.

This announcement is authorised by the Board of Directors for release to ASX and TSXV.

For more information please contact:

or visit Hot Chili's website at www.hotchili.net.au

Table 1. New Significant Drilling Intersections from La Verde

Qualifying Statements

Qualified Person – NI 43-101

The technical information in this announcement has been reviewed and approved by Mr. Christian Easterday, MAIG, Hot Chili's Managing Director and a qualified person within the meaning of NI43-101.

Competent Person – JORC

The information in this announcement that relates to Exploration Results for the La Verde project is based upon information compiled by Mr Christian Easterday, the Managing Director and a full-time employee of Hot Chili Limited, who is a Member of the Australasian Institute of Geoscientists (AIG). Mr Easterday has sufficient experience that is relevant to the style of mineralisation 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 this announcement of the matters based on their information in the form and context in which it appears.

Mineral Resources and Competent Persons – JORC and ASX

The information in this announcement that relates to Mineral Resources for the Costa Fuego Project was previously reported in the Company's announcements released to ASX on 26 February 2024 'Hot Chili Indicated Resource at Costa Fuego Copper-Gold Project Increases to 798 Mt", which is available to view on the Company's website at www.hotchili.net.au/investors/asx-announcements/.  The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and, that all material assumptions and technical parameters underpinning the mineral resource estimates contained in the original market announcements continue to apply and have not materially changed.

Disclaimer

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this Report.

Forward Looking Statements

This announcement contains certain statements that are "forward-looking information" within the meaning of Canadian securities legislation and Australian securities legislation (each, a "forward-looking statement"). Forward-looking statements reflect the Company's current expectations, forecasts, and projections with respect to future events, many of which are beyond the Company's control, and are based on certain assumptions. No assurance can be given that these expectations, forecasts, or projections will prove to be correct, and such forward-looking statements included in this announcement should not be unduly relied upon. Forward-looking information is by its nature prospective and requires the Company to make certain assumptions and is subject to inherent risks and uncertainties. All statements other than statements of historical fact are forward-looking statements. The use of any of the words "estimate", "expectations", "may", "plan", "potential", "project", "reinforce", "unlock", "large-scale", "could", "should", "will", "would", variants of these words and similar expressions are intended to identify forward-looking statements.

The forward-looking statements within this announcement are based on information currently available and what management believes are reasonable assumptions. Forward-looking statements speak only as of the date of this announcement.

In this announcement, forward-looking statements relate, among other things, to: the potential of the La Verde discovery; regulatory applications and approvals; the timing and results of future economic studies; and the Company's future exploration and other business plans.

Forward-looking statements involve known and unknown risks, uncertainties, and other factors, which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. A number of factors could cause actual results to differ materially from a conclusion, forecast or projection contained in the forward-looking statements in this announcement, including, but not limited to, the following material factors: the ability of drilling and other exploration activities to accurately predict mineralisation; operational risks; risks related to the cost estimates of exploration; sovereign risks associated with the Company's operations in Chile; changes in estimates of mineral resources or mineral reserves of properties where the Company holds interests; recruiting qualified personnel and retaining key personnel; future financial needs and availability of adequate financing; fluctuations in mineral prices; market volatility; exchange rate fluctuations; ability to exploit successful discoveries; the production at or performance of properties where the Company holds interests; ability to retain title to mining concessions; environmental risks; financial failure or default of joint venture partners, contractors or service providers; competition risks; economic and market conditions; and other risks and uncertainties described elsewhere in this announcement and elsewhere in the Company's public disclosure record.

Although the forward-looking statements contained in this announcement are based upon assumptions which the Company believes to be reasonable, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this announcement, the Company has made assumptions regarding: future commodity prices and demand; availability of skilled labour; timing and amount of capital expenditures; future currency exchange and interest rates; the impact of increasing competition; general conditions in economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; future tax rates; future operating costs; availability of future sources of funding; ability to obtain financing; and assumptions underlying estimates related to adjusted funds from operations. The Company has included the above summary of assumptions and risks related to forward-looking information provided in this announcement to provide investors with a more complete perspective on the Company's future operations, and such information may not be appropriate for other purposes. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom.

For additional information with respect to these and other factors and assumptions underlying the forward-looking statements made herein, please refer to the public disclosure record of the Company, including the Company's most recent Annual Report, which is available on SEDAR+ (www.sedarplus.ca) under the Company's issuer profile. New factors emerge from time to time, and it is not possible for management to predict all those factors or to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement.

The forward-looking statements contained in this announcement are expressly qualified by the foregoing cautionary statements and are made as of the date of this announcement. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking statement to reflect events or circumstances after the date of this announcement or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise. Investors should read this entire announcement and consult their own professional advisors to ascertain and assess the income tax and legal risks and other aspects of an investment in the Company.

SOURCE Hot Chili Limited