Hot Chili Quarterly Report

Period Ending 31 March 2025

PERTH, Australia, April 24, 2025 /PRNewswire/ -

Highlights

Hot Chili Announces Preliminary Feasibility Study (PFS) & Maiden¹ Ore Reserve² for the Costa Fuego Cu-Au Project

• Low-risk, Chilean coastal copper development with advanced permitting - multi-decade mine life, top quartile copper production scale³ and lowest quartile capital intensity
• Strong economics and leverage to rising copper price:
  • Post-tax Net Present Value (NPV8%) of US$1.2 billion (approximately, within a range of US$786 million to US$1.62 billion) and post-tax Internal Rate of Return (IRR) of 19% (approximately, within a range of 15% to 22%)
• Maiden ore reserve for Costa Fuego Copper-Gold Project (Costa Fuego) lowers operational risk^1,2:
  • Probable Ore Reserves of 502 Mt at 0.37% Cu, 0.10 g/t Au, 0.49 g/t Ag and 97 ppm Mo:  Across sulphide concentrator, oxide leach and low-grade sulphide leach processing streams

Hot Chili Announces PFS for Huasco Water & MOU for Seawater Supply to Costa Fuego

• Strong economics for a large, multi-user, water business opportunity
• Stage 1 PFS⁴  for 500L/s of potential seawater supply to Costa Fuego
  • Post-tax NPV8% of US$122 million and IRR of 19%
• Staged approach for regional, desalinated water supply with large 4,000 L/s catchment of potential off-takers
• Stage 2 PFS for 1,300 L/s of potential desalinated water supply
  • Post-tax NPV8% of US$977 million and IRR of 19%
• First-Mover Advantage, only active maritime licence in the Huasco Valley region of Chile

Hot Chili Confirms Major Cu-Au Porphyry Discovery at La Verde

• Multiple new significant drill intersections underpin rapidly growing oxide and sulphide discovery, located 30km south of Costa Fuego, providing significant potential for front-end, open pit, mine life growth
• Phase 1 drill programme completed on 10 April 2025, phase 2 planned and awaiting regulatory approval
• Assay results for nineteen holes pending and second Environmental Impact Assessment (EIA) commenced to integrate La Verde into Costa Fuego and materially enhance project economics

A$7.5M Cash and A$5.0M in Returns Expected (VAT and JV recoup)

• Expenditure reduced by 60% to 65% over next six months during Definitive Feasibility Study (DFS) planning & PFS optimisation phases

Potential Strategic Funding Discussions Advancing

• Strong interest in asset-level investment opportunities for Costa Fuego and Huasco Water

Cautionary Statement – JORC Code (2012)

SUMMARY OF OPERATIONAL ACTIVITIES

Costa Fuego PFS Delivered On-Time & Within Guidance

The Costa Fuego PFS was announced on 27th March 2025. The PFS delivered globally meaningful scale and a multi-decade project life for Costa Fuego.  Highlights included:

Globally Meaningful Scale & Multi-Decade Mine Life

• Project Life Extended to 20 Years
• Average Annual Production Increased 116 ktpa Average CuEq¹ Production Rate: Including 95 kt Cu and 48 koz Au during primary production (first 14 years)
• Competitive Cost Position: Life of mine (LOM) average C1 Cash Cost² of US$ 1.38/lb and All-in-Sustaining Cost of US$1.85/lb (both estimated net of by-product credits)
• Increase in Total Copper and Gold Production: 1.5 Mt Cu (3.31 Blb Cu) and 780 koz Au produced over the LOM
• Robust Financial Profile: Total LOM revenue of approximately US$17.3 billion and total LOM free cash flow of approximately US$3.86 billion (post-tax, after operating costs, capital costs, and royalties)
• Significant Risk Reduction: PFS prepared assuming ± 25% accuracy. An additional US$442 million of capital costs applied to significantly reduce key areas of risk, including changes in project scope and inflationary pressures

Strong Economics and Leverage to Rising Copper Price

• Post-tax NPV8% of US$1.2 billion (approximately, within a range of US$786 million to US$1.62 billion) and post-tax IRR of 19% (approximately, within a range of 15% to 22%)
• First Quartile Capital Intensity: Start-up Capital Cost of US$ 1.27 billion delivers a capital intensity of US$ 14,079/t of average annual CuEq. metal produced
• Highly Leveraged to Copper Price: At spot copper price of US$5.30/lb³, post-tax NPV8% increases to US$2.2 billion and post-tax IRR to 30%, respectively

Low-Risk, Coastal Copper Development with Advanced Permitting

• Low Elevation and Over a Decade of Permitting Advance Provides a Foundation for Development: One of only a few global copper development projects at low elevation with a water permit, and grid power 
• Preparing to submit Environmental Impact Assessment (EIA): Costa Fuego Stage-1 (EIA-1) based on current PFS-scale and definition

Maiden Ore Reserve for Costa Fuego Lowers Operational Risk

• Maiden⁴ Ore Reserve⁵ for Costa Fuego. Probable Ore Reserves of 502 Mt at 0.37% Cu, 0.10 g/t Au, 0.49 g/t Ag and 97 ppm Mo:  Across sulphide concentrator, oxide leach and low-grade sulphide leach processing streams

Sphere size represents Leverage Index – which was calculated as the ratio of % increase in Cu price to % increase in NPV8%.
The Global Developer Peer Group of project studies were selected on the following basis: Global primary copper projects (not controlled by a major miner), with net by-product credits where applicable, reporting studies of average annual life-of-mine copper production of greater than 40 kt, which have been published within the last 5 years.  Projects with older studies were considered to be on hold.  Significant projects such as Pebble and King-king were excluded by Hot Chili due to high perceived geopolitical risk, limiting the probability of development. Projects controlled by mid-tier mining companies near Costa Fuego were also included (Josemaría, Santa Domingo, Mantos Blanco and Mantoverde) for comparison purposes.  References to active mines and other mineral projects is for illustration purposes only. There can be no assurances the Company will achieve comparable results.
Source: Published Company reports on studies undertaken on projects that were not in production at the time of the studies. Information from projects has been sourced from publicly available data that has been provided under differing economic assumptions. Public information for projects has been adjusted to provide a standardised data set under a US$4.30/lb Cu price. Published sensitivity data provided results that bracketed an US$4.30/lb Cu price, which was then calculated. Details of the adjustment are provided in the reference table on Benchmarking Data in the appendix (see slides 55-59 of presentation "Costa Fuego Copper-Gold Project Preliminary Feasibility Study & Maiden Ore Reserve" Dated 27th March 2025 ).

Sphere size represents projected Life of Mine Average Annual CuEq* Production. ¹ PFS CuEq considers long-term commodity prices and PFS metallurgical recoveries for the production feed from testwork. The CuEq metal was determined as the equivalent copper metal with equal value to all saleable production. See slide 37 for PFS commodity prices and slides 33 & 34 for PFS metallurgical recoveries.
The South American Developer Peer Group of project studies were selected on the following basis: South American primary copper projects (not controlled by a major miner), net of by-product credits where applicable, reporting studies of average annual life-of-mine copper production of greater than 40 kt, which have been published within the last 5 years.  Projects with older studies were considered to be on hold. Projects controlled by mid-tier mining companies near Costa Fuego were also included (Josemaría, Santa Domingo, Mantos Blanco and Mantoverde) for comparison purposes. References to active mines and other mineral projects is for illustration purposes only. There can be no assurances the Company will achieve comparable results.
Source: Published Company reports on studies undertaken on projects that were not in production at the time of the studies. Information from projects has been sourced from publicly available data that has been provided under differing economic assumptions. Public information for projects has been adjusted to provide a standardised data set under a US$4.30/lb Cu price. Published sensitivity data provided results that bracketed an US$4.30/lb Cu price, which was then calculated.
Details of the adjustment are provided in the reference table on Benchmarking Data in the appendix (see slides 55-59 of presentation "Costa Fuego Copper-Gold Project Preliminary Feasibility Study & Maiden Ore Reserve" Dated 27th March 2025 ).

Huasco Water PFS Outlines Valuable Strategic Asset

The Huasco Water¹ PFS was announced on 31 March 2025. The Huasco Water PFS presented a robust business case for both Stage 1 and Stage 2 of its proposed regional scale seawater and desalinated water business, with a conceptual level study for Stage 3 desalinated water supply expansion. Highlights included:

Strong Economics for a Large, Multi-User, Water Business

• Stage 1² Water Supply PFS for 500L/s of Potential Seawater Supply: Post-tax NPV8% of US$122 million and IRR of 19%.  Construction capital cost for seawater supply estimated at US$151 million with a 4.5-year payback
• Stage 2 Water Supply PFS for 1,300 L/s of Potential Desalinated Water Supply: Post-tax NPV8% of US$977 million and IRR of 19%.  Construction capital cost for desalinated water supply estimated at US$1.4 billion with a 4-year payback. Stage 2 financial outcomes include Stage 1 capital and operating cashflows
• Stage 3 Conceptual Study for Expansion to 2,300 L/s of Potential Desalinated Water Supply

Stage 1- Multi-Decade Seawater Supply to Costa Fuego

• 20 Year Seawater Supply with Foundation Off-taker: Memorandum of Understanding (MOU) executed for water supply of up to 500 L/s to Costa Fuego
• Long Lead-times Permits Secured: Granted maritime water concession to extract seawater, permit for coastal land access, Stage 1 pipeline easements and connection to the electrical grid secured
• Near-Term Development Decision Tied to Costa Fuego: First water supply planned for end of decade

Stage 2 and 3 – Regional, Desalinated Water Supply Opportunity

• Large Catchment of Potential Off-takers: Over 4,000 L/s of desalinated water demand identified, including six undeveloped mining projects without secured access to desalinated water supply. No offtake agreements have been secured for stage 2 or 3 and discussions with potential customers are ongoing
• Staged Growth Approach: Establishment of seawater supply infrastructure toward the end of the decade, followed by the commencement of initial desalinated water supply shortly thereafter, and subsequent staged expansion. The staged approach enables long term scalable water supply to support mining, community, and agriculture in the Huasco Valley region with potential to extend well beyond the initial project horizons

First-Mover Advantage

• Only Active Maritime License: HW Aguas para El Huasco SpA (Huasco Water), a joint venture between Hot Chili (80% interest) and Compañia Minera Del Pacifico "CMP" (20% interest), is the only company with permitted access to supply seawater in the Huasco Valley region following a ten-year regulatory approval process
• Desalination Permitting Advancing: Over a year advanced on regulatory applications to enable the supply of desalinated water from the existing maritime concession and a second maritime concession application by Huasco Water
• Long Permitting Timelines Continue: No regulatory changes have been made to Chile's maritime permitting process since Huasco Water was granted its concession.  Hot Chili maintains a competitive advantage as the first mover in the area for a water distribution business
• EIA Advanced: Stage 1 seawater supply is included within the Costa Fuego EIA, baseline studies complete.

Huasco Water PFS Key Outcomes

La Verde Exploration Update

On 11 February 2025, Hot Chili reported a second round of strong assay results from its La Verde copper-gold discovery, located approximately 30km south of Costa Fuego.  Highlights included:

Rapidly Emerging Major Copper-Gold Porphyry Discovery

• New drill results from an additional ten Reverse Circulation (RC) drill holes confirm La Verde as a major copper-gold porphyry discovery in low elevation coastal Chile, with broad, consistently mineralised intersections extending over 300 m vertically, commencing at shallow depths.
• Multiple new significant drill intersections underpin rapidly growing oxide and sulphide discovery:

• 320 m grading 0.3% Cu and 0.1 g/t Au from 34 m to end-of-hole (DKP009)
• including 134 m at 0.4% Cu and 0.2 g/t Au from 180 m depth
• including 56 m at 0.5% Cu and 0.2 g/t Au from 258 m depth
• 200 m grading 0.4% Cu and 0.1 g/t Au from 48 m to end-of-hole (DKP005)
• including 38 m at 0.5% Cu and 0.2 g/t Au from 68 m depth
• 172 m grading 0.4% Cu and 0.2 g/t Au from 48 m (DKP012)
• including 20 m at 0.5% Cu and 0.2 g/t Au from 62 m depth

and 78 m grading 0.5% Cu and 0.1 g/t Au from 228 m to end-of-hole

• including 32 m at 0.6% Cu and 0.2 g/t Au from 232 m depth
• 135.5 m grading 0.3% Cu and 0.1 g/t Au from 64 m to end-of-hole (DKP006)
• including 62 m at 0.4% Cu and 0.2 g/t Au from 124 m depth
• which included 26 m at 0.5% Cu and 0.3g/t Au from 124 m depth
• 32 m grading 0.4% Cu from surface (DKP011)

• 80 m grading 0.3% Cu and 0.1 g/t Au from 8 m depth (DKP004)
  • including 34 m at 0.4% Cu from 8 m depth

La Verde Discovery Keeps Growing – Large Scale Appeal

• New drill results reinforce La Verde's potential scale, adding to the strong results reported on 18 December 2024:

• 308 m grading 0.5% Cu, 0.3 g/t Au from 46 m to end-of-hole (DKP002)

• • including 202 m at 0.6% Cu, 0.3g/t Au from 70 m depth
  • which included 100 m at 0.7% Cu and 0.3g/t Au from 118 m depth

• 362 m grading 0.3% Cu, 0.1g/t Au from 28m to end-of-hole (DKP001)
  • including 174 m at 0.4% Cu and 0.1 g/t Au from 36 m depth
  • which included 22 m at 0.6% Cu, 0.2g/t Au from 144 m depth

Drilling Coverage at La Verde Doubled & Porphyry Mineralisation Remains Open

• First-pass drill coverage now extends across an area measuring 1,000 m by 550 m: 30 reverse circulation (RC) holes for 9,352 m drilled.
• Assay results pending for nineteen drill holes: Assay turnaround time from laboratories slower than usual due to peak summer drilling season in the high Andes
• Shallow porphyry mineralisation remains open in all directions
• Phase 1 drill programme completed on 10^th April 2025

Next Steps

• Regulatory application for further clearing access being advanced
• Phase 2 drill programme (RC and diamond drilling) planned to commence following regulatory approval
• Deeper diamond drill testing being planned: 8 of 12 RC drill holes reported to date recorded significant mineralisation to end-of-hole
• Advanced four-dimensional geological modelling underway in addition to regional scale exploration activities across the La Verde discovery area and Domeyko landholdings
• Second EIA commenced to integrate La Verde into Costa Fuego

Table 1 - Drill Holes Completed for Costa Fuego in Quarter 1 2025

Table 2 – Significant Intersections returned for Costa Fuego in Quarter 1 2025

SUMMARY OF CORPORATE ACTIVITIES

Cash Position and Capital Structure Changes

As of 31 March 2025, the Company had cash of A$7.5 million and no debt. The Company expects to receive approximately A$5 million in funds from VAT repayments and joint venture recoup from its partner CMP.

The operating expenditure for quarter ended 31 March 2025 included payments for exploration and evaluation of A$7.9 million. Included in this amount was A$4.0 million related to the completion of the two PFS for Costa Fuego and Huasco Water, and the advancement of the EIA. A total of A$3.9 million was spent on exploration activities across the La Verde copper-gold porphyry discovery and southern landholdings included in the Domeyko project.

The investing expenditure for quarter ended 31 March 2025 related to payments for patentes (annual rent) for the Company's mining tenements.

The Company expects monthly expenditure to be materially reduced by approximately 60% to 65% over the coming six months compared to this quarter, due to the completion and release of both the Costa Fuego and Huasco Water PFS, with only planning and optimisation activities expected during the next two quarters. Exploration expenditure will also be significantly reduced, with phase 1 drilling activities at La Verde having been completed on 10 April 2025.

In addition, the Company is engaged in discussions related to potential renegotiation of forthcoming Option payments later in 2025 to maximise funds, while Hot Chili engages in potential future strategic funding discussions.

The following summarises the Company's securities on issue:

• 151,596,149 ordinary fully paid shares
• 1,914,000 options at AUD $1.50 expiring 24 July 2026
• 5,938,248 service and performance rights

Board Changes

With the release of the Company's Pre-feasibility Studies for its Chilean Costa Fuego copper-gold project and Huasco Water project, Hot Chili commenced preparation in its next steps toward a final phase of development. 

On 11 March 2025, Hot Chili advised that Dr Nicole Adshead-Bell, Non-Executive Chair and Mr Stephen Quin, Non-Executive Director had tendered their resignations as Directors of the Company, effective immediately.

On 17 March 2025, the Company announced the appointment of experienced and well-regarded Australian mining executive, Mrs Fiona Van Maanen, to the Board of Hot Chili as an Independent Non-Executive Director

Further board and key executive appointments are planned and aim to strengthen and align the Company's capability at an important inflection in the Company's growth.

Additional ASX Disclosure Information

ASX Listing Rule 5.3.2: There was no substantive mining production and development activities during the quarter.

ASX Listing Rule 5.3.3 - Schedule of Mineral Tenements as of 31 March 2025

The schedule of Mineral Tenements and changes in interests is appended at the end of this activities report.

ASX Listing Rule 5.3.4: Reporting under a use of funds statement in a Prospectus does not apply to the Company currently.

ASX Listing Rule 5.3.5: Payments to related parties of the Company and their associates during the quarter per Section 6.1 of the Appendix 5B totalled $126,000. This is comprised of directors' salaries and superannuation of $126,000

Health, Safety, Environment and Quality

Field operations during the period included geological reconnaissance activities, reverse-circulation drilling, field mapping, and sampling exercises across the major Cortadera and Productora landholdings, as well as new project at La Verde. Activities on new tenements are run from the Productora or Cortadera operations centres and their safety statistics are included under the figures for all projects.

There were no Lost Time Injuries (LTI) during the quarter.

Hot Chili's sustainability framework ensures an emphasis on business processes that target long-term economic, environmental and social value. The Company is dedicated to continual monitoring and improvement of health, safety and the environmental systems. There is no greater importance than ensuring the safety of our people and their families. 

Table 4. HSEQ Quarter 1 2025 Performance and Statistics

Tenement Changes During the Quarter

During the Quarter, Sociedad Minera La Frontera SpA ("La Frontera") has abandoned the Marsellesa option agreement and the Cometa option agreement and the mining rights have been returned to the respective owners. Furthermore, the Domeyko Option Agreement Offeror has claimed the exploitation concessions "Cazurro 3 1/60", "Cazurro 4 1/60" and "Cazurro 7 1/40" in use of the preferential right held by virtue of exploration concessions "Cazurro 3", "Cazurro 4" and "Cazurro 7" respectively. Consequently, the Domeyko Option Agreement has been amended, including the mentioned concessions and the exploitation concession called "Antonio 36 1/15".

During the same period, Sociedad Minera El Águila has claimed 2 mining exploitation concessions "Suerte 1/7" and "Suerte II 1/15", which are in process to be constituted.

The Company's existing tenements are detailed in the table below.

Table 4 Current Tenement (Patente) Holdings in Chile as of 31 March 2025

Cortadera Project Tenements

Productora Project Tenements

El Fuego Project Tenements

Qualifying Statements

The technical information in this presentation has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 – Standards of Disclosure for Mineral Projects ( "NI 43-101" )  and Joint Ore Reserves Committee of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (the "JORC Code") and has been reviewed and approved by the "Qualified Persons" as defined under NI 43-101 and "Competent Persons" as defined under the JORC Code as set out below.

The Costa Fuego Copper project pre-feasibility study (the "PFS") was compiled by the Qualified Persons and Competent Persons listed below based on information available up to the effective date of the PFS. Additional details of responsibilities are provided at page 23 of this presentation and will be provided in the PFS technical report (to be available on SEDAR+ (www.sedarplus.ca) and at www.hotchili.net.au within 45 days of March 27, 2025 (the "PFS Technical Report").

PFS Technical Report

For readers to fully understand the information in this presentation, they should read the PFS Technical Report in its entirety when it is available, including all qualifications, assumptions, limitations and exclusions that relate to the information to be set out in the PFS Technical Report.  The PFS Technical Report is intended to be read as a whole, and sections should not be read or relied upon out of context. The technical information in this presentation is subject to the assumptions and qualifications to be contained in the PFS Technical Report.

The PFS Technical Report will replace and supersede the technical report titled "Costa Fuego Copper Project – NI 43-101 Technical Report Mineral Resource Estimate Update" dated April 8, 2024, with an effective date of February 26, 2024 (the "2024 PEA").

Qualified Persons – NI 43-101

The PFS was compiled by Wood Australia Pty Ltd with contributions from a team of independent "Qualified Persons" within the meaning of NI 43 -101. The scientific and technical information contained in this presentation pertaining to Costa Fuego has been reviewed and verified by the following independent qualified persons within the meaning of NI 43-101:

• Ms Elizabeth Haren (FAUSIMM (CP) & MAIG) of Haren Consulting – Mineral Resource Estimate
• Mr Dean David (FAUSIMM (CP)) of Wood Pty Ltd – Metallurgy
• Mr Piers Wendlandt (PE) of Wood Pty Ltd – Market Studies and Contracts, Economic Analysis
• Mr David Cuello (MAUSIMM) of GMT Servicios de Ingeniería – Geotechnical
• Mr Jeffrey Stevens (Pr. Eng, MSAIMM) of Wood Pty Ltd – Infrastructure and Capital Cost
• Mr Luis Bernal (Comisión Minera (PC) Registered Member) of Process Mineral Consulting – Leaching
• Mr Anton von Wielligh (FAUSIMM) of ABGM Consulting Pty Ltd – Mine Planning and Scheduling
• Mr Edmundo LaPorte (PE, PEng, CPEng, SME Registered Member) of High River Services - Environmental
• The above independent Qualified Persons have verified the information disclosed herein, including the sampling, preparation, security, and analytical procedures underlying such information.

Competent Persons – JORC

The information in this presentation that relates to Mineral Resources, Exploration Results, and Ore Reserves for the Costa Fuego Project is based on information compiled by:

• Ms Elizabeth Haren (FAUSIMM (CP) & MAIG) who is a full-time employee of Haren Consulting – Mineral Resource Estimate
• Mr Dean David (FAUSIMM (CP)) who is a full-time employee of Wood Pty Ltd – Metallurgy
• Mr Piers Wendlandt (PE) who is a full-time employee of Wood Pty Ltd – Market Studies and Contracts, Economic Analysis
• Mr David Cuello (MAUSIMM) who is a full-time employee of GMT Servicios de Ingeniería – Geotechnical
• Mr Jeffrey Stevens (Pr. Eng, MSAIMM) who is a full-time employee of Wood Pty Ltd – Infrastructure and Capital Cost
• Mr Luis Bernal (Comisión Minera (PC) Registered Member) who is a full-time employee of Process Mineral Consulting – Leaching
• Mr Anton von Wielligh (FAUSIMM) who is a full-time employee of ABGM Consulting Pty Ltd – Mine Planning and Scheduling
• Mr Edmundo LaPorte (PE, PEng, CPEng, SME Registered Member) who is a full-time employee of High River Services – Environmental
• Mr Christian Easterday (MAIG), who is the Managing Director and is a full-time employee of Hot Chili Limited – Exploration Results

Ms Haren, Mr David, Mr Wendlandt, Mr Cuello, Mr Stevens, Mr Bernal, Mr LaPorte, Mr Easterday, and Mr von Wielligh each have sufficient experience, which is relevant to the style of mineralisation and types of deposits under consideration and to the activities undertaken, to qualify as a Competent Person as defined in the JORC Code and as Qualified Persons under NI43-101.

Production Targets Statement

The production targets and forecast financial information derived from the production targets for: (1) the Productora production mine site referred to in this release is based on 52% of material of the Probable Ore Reserves and 31% of the material from Indicated Mineral Resources. (2) Alice production mine site referred to in this release is based on 3% of the material from Probable Ore Reserves and 2% of the material from Indicated Mineral Resources; (3) the Cortadera production mine site referred to in this release is based on 45% of the material from Probable Ore Reserves and 67% of the material from Indicated Mineral Resources; and (4) San Antonio  production mine site referred to in this release is based on 1% of the material from Probable Ore Reserves and 0% of the material from Indicated Mineral Resources. No portions of the production targets are based on Inferred Mineral Resources. The material assumptions used in the estimation of the production targets and associated forecast financial information are set out in Mineral Resource and Mineral Reserve pages 30-41, Mine Design and Scheduling Pages 43-47, Metallurgy and Mineral Processing Pages 48-50, and Basis of Economic Assumption pages 58-59. The Mineral Resource and Ore Reserve estimates underpinning the production targets were prepared by Competent Persons in accordance with the JORC Code 2012.

Disclaimer

This presentation does not purport to be complete or contain all the information that may be material to the current or future business, operations, financial condition, or prospects of Hot Chili Limited (Hot Chili, HCH or the Company).

Certain information contained herein is based on, or derived from, information obtained from independent third-party sources, publicly available reports and other trade and industry sources. Hot Chili believes that such information is accurate and that the sources from which it has been obtained are reliable; however, Hot Chili has not independently verified such information and does not assume any responsibility for the accuracy or completeness of such information.

Cautionary Note for U.S. Investors Concerning Mineral Resources

NI 43-101 is a rule of the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning material mineral projects. Technical disclosure contained in this presentation 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 technical information contained in this presentation may not be comparable to similar information disclosed by domestic United States companies subject to the SEC's reporting and disclosure requirements.

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

Non IFRS Financial Performance Measures

"Total Cash Cost", "All-in Sustaining Cost", "All-in cost LOM", "C1", "EBITDA" and "Free Cashflow" are not performance measures reported in accordance with International Financial Reporting Standards ("IFRS"). These performance measures are included because these statistics are key performance measures that management uses to monitor performance. Management uses these statistics to assess how the Costa Fuego Project compares against its peer projects and to assess the overall effectiveness and efficiency of the contemplated mining operations. These performance measures do not have a meaning within IFRS and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. These performance measures should not be considered in isolation as a substitute for measures of performance in accordance with IFRS.

Forward Looking Statements

Statements in this presentation that are not historical facts are "forward-looking information" or "forward-looking statements" within the meaning of Canadian securities legislation and Australian securities legislation (each, a "forward-looking statement"). The use of any of the words "anticipate", "envisage", "forecast", "consider", "proposed", "conceptual", "opportunity", "designed to", "believe", "could", "estimate", "expect", "intended", "may", "might", "plan", "potential", "project", "should", "will", "would" and similar expressions are intended to identify forward-looking statements. Statements concerning mineral resource and mineral reserve estimates may also be deemed to constitute forward-looking statements to the extent that they involve estimates of the mineralization that may be encountered if the Costa Fuego Project is developed.

In this presentation, forward-looking statements relate, among other things, to: prospects, projections and success of the Company and its projects; the results of the PFS, including expected cash inflows; anticipated production, mine life, expected costs and other projections; metal price assumptions; metal recovery rate; the ability of the Company to expand mineral resources, and/or  mineral reserves and/or ore reserves beyond current estimates; the impacts of the PFS including but not limited to economic and social outcomes; the timing and ability to complete an environmental impact assessment ( "EIA" ) study; the estimation of mineral resources and reserves; opportunities to add to the Costa Fuego Project; potential opportunities related to recent discoveries; derisking of certain development items; the anticipated production profile and mine life of the Costa Fuego Project; expected access to local workforce due to the Costa Fuego Project's proximity to the regional centre; the investigation of additional growth opportunities, high-value development optimisation, monetization of cobalt and increase to overall copper and gold recovery; projected, financial measures, capital costs, cooperating costs, mine life, metal production and revenue generation; comparisons to peers confidence levels of the PFS in comparison to the 2024 PEA; the optimal exploitation strategy and the mine design, scheduling and economic evaluation pertaining thereto; marginal and breakeven new smelter return cut-offs; project layout, mine design and scheduling; processing suitability based on metallurgical testwork conducted to date; anticipated infrastructure requirements, including power supply, water supply, processing and tailings storage facilities, concentrates storage and site layouts; economic assessments and evaluations; expectations relating to environmental impact assessments, ongoing relations with local communities, local, regional and national government and regulators; anticipated projects risks and mitigation thereof; potential opportunities for growth and other optimisations; timing of the Company to file the PFS Technical Report; plans for a definitive feasibility study; statements regarding the Company's water business; and future funding requirements..

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 presentation, including, but not limited to, the following material factors: industry-wide and project-specific risks identified in the PFS Technical Report and in this presentation; operational risks; risks related to the cost estimates of exploration and development; sovereign risks associated with the Company's operations in Chile; changes in mineral resource and mineral reserve estimates; 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; the Company's lack of operating revenues; risks to employee health and safety or disruption to operations in the event of an outbreak of disease; estimates used in budgeting and economic analyses proving to be incorrect and other risks and uncertainties described elsewhere in this presentation and in the Company's public filings with the ASX and the Company's Canadian public disclosure record.

Although the forward-looking statements contained in this presentation are based upon assumptions which the Company believes to be reasonable, there can be no assurance that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this presentation, the Company has applied certain material assumptions including: the continuity of future commodity prices and demand; the availability of skilled labour; the timing and amount of capital expenditures; that future currency exchange and interest rates will be consistent with the Company's expectations; that increasing competition will not have a material adverse impact; that general conditions in economic and financial markets will be sustained or will improve; availability of drilling and related equipment; that regulation by governmental agencies and relations with local communities will not change in a materially adverse manner; that future tax rates operating costs will be as expected; availability of future sources of funding; that requisite financing will be available and can be obtained on reasonable terms; that the assumptions underlying estimates related to adjusted funds from operations will prove to be as anticipated and that current exploration, development, environmental and other objectives concerning the Costa Fuego Project can be achieved and that Company's other corporate activities will proceed as expected.

Although the Company has attempted to identify important factors that could cause actual results to vary materially from those projected in such forward-looking statements, there can be no assurance that forward- looking statements will prove to be accurate. Accordingly, readers should not place undue reliance on forward- looking statements. The forward-looking statements in this presentation are based on plans, expectations, and estimates of management as at the date hereof and the Company undertakes no obligation to update such forward-looking statements, other than as required by applicable law.

Mineral Resource Statement

Costa Fuego Combined Mineral Resource (Effective Date 26 February 2024)

Appendix 5B

Mining exploration entity or oil and gas exploration entity
quarterly cash flow report

Compliance statement

Date:                 24^th April 2025

Authorised by:   By the Board

    (Name of body or officer authorising release – see note 4)

Notes

Contact:

Mr Christian Easterday, 
Managing Director,
E: [email protected]

SOURCE Hot Chili Limited