La Verde Emerging as Hot Chili's Cornerstone Asset

Highlights

Hot Chili's La Verde porphyry discovery is fast-shaping from growth engine to cornerstone asset for the Company's coastal range Costa Fuego copper-gold (Cu-Au) project in Chile.

Several recently returned Reverse Circulation (RC) and Diamond (DD) drill results continue to strengthen La Verde's significance ahead of a planned maiden Mineral Resource Estimate (MRE). Latest results include:

Shallow RC Drilling Continues to Delineate Near-Surface Enrichment Zone

• DKP053 recorded 250 m grading 0.50% CuEq¹ (0.39% Cu, 0.14g/t Au) from 64 m depth
  • Including 36 m grading 0.72% CuEq (0.59% Cu, 0.18g/t Au) from 82 m
• DKP054 recorded 124 m grading 0.46% CuEq (0.40% Cu, 0.07g/t Au) from 42 m depth
  • Including 26 m grading 0.71% CuEq (0.63% Cu, 0.10g/t Au) from 58 m
• DKP056 recorded 90 m grading 0.45% CuEq (0.36% Cu, 0.12 g/t Au) from 56 m depth
  • Including 30 m grading 0.62% CuEq (0.50% Cu, 0.17 g/t Au) from 64 m
• DKP058 recorded 108 m grading 0.54% CuEq (0.45% Cu, 0.11 g/t Au) from 24 m depth
  • Including 32 m grading 0.60% CuEq (0.52% Cu, 0.12 g/t Au) from 24 m

Step-Out DD Drilling Continues to Expand Discovery Footprint

• DKD049 recorded 213 m grading 0.44% CuEq¹ (0.38% Cu, 0.07g/t Au) from 504 m depth
• o Including 57.3 m grading 0.60% CuEq (0.51% Cu, 0.10 g/t Au) from 535.8 m
• DKP028D recorded 258.9 m grading 0.42% CuEq (0.33% Cu, 0.09 g/t Au) from 358 m
• o Including 27.4 m grading 0.76% CuEq (0.63% Cu, 0.16 g/t Au) from 499.5 m

Assays pending for 21 drillholes (three DD, three DD tails and 15 RC) and second accredited laboratory now operating at full capacity – significantly improving Hot Chili's assay turnaround times

PERTH, Australia, July 28, 2026 /PRNewswire/ -- Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) ("Hot Chili" or the "Company") is pleased to provide further strong drilling results from its La Verde Cu-Au porphyry discovery (La Verde), located 30 km south of the Company's Costa Fuego Cu-Au Project (Costa Fuego) planned central processing hub in Chile's coastal Atacama region.

Higher-Grade Starter Pit Firming as a Standout Feature of La Verde

The Company's ongoing focus on shallow infill and step-out drilling across the up-dip extension of La Verde's high-grade core has delivered more outstanding results from RC drill holes DKP053, DKP054, DKP056, and DKP058 (Figures 2 and 3). Numerous drilling intersections returned across the up-dip portion of La Verde's high-grade core, including these latest results, contain broad zones of higher grade (+0.7% CuEq) mineralisation from shallow depths. Importantly, assay results are pending for nearby up-dip drillhole DKP052 (Figure 4), results expected soon.

These latest RC drill results further expand the footprint of near-surface higher-grade mineralisation and continue to strengthen the scale and continuity of a significant, near-surface, enrichment zone - capable of delivering a higher-grade starter pit opportunity for Costa Fuego (Figure 5).

Expansion Drilling Delivering Continued Success

Recently returned assay results for step-out diamond drill holes DKD049 and DKP028D also confirmed additional bulk tonnage extensions and delivered further expansion of La Verde's high-grade core (Figures 2 and 3).

Importantly, DKD049 was designed as a 175 m step-out from DKD039 - which recorded the highest-grade and widest drilling intersection to date at La Verde. Results from DKD049 confirm a significant expansion of La Verde's eastern flank at depth.

DKP028D successfully extended a previous RC drillhole (which ended in mineralisation), recording a further 200m down-hole of mineralisation across La Verde's western flank.

Advancing Toward Maiden MRE and Pre-Feasibility Study (PFS) Integration

Hydrogeological, geotechnical, metallurgical, mine engineering and environmental workstreams are all advancing well toward full integration of La Verde into the Company's Costa Fuego production hub.

A maiden MRE for La Verde is expected to be released later this year followed by a revised PFS for Costa Fuego and then finally culminating in the formal submission of an Environmental Impact Assessment for Costa Fuego in Q2 2027.

The Company expects that La Verde's rapid integration will be transformative for Costa Fuego's financial metrics and global standing, already ranked amongst the world's top five by-scale¹, independent copper developments, not controlled by a major mining company.

The Directors look forward to increased news flow following debottlenecking of assay turnaround times and remedial works, following recent heavy rain events in the Atacama region. Next drill results from La Verde are expected shortly.

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

Figure 1. Location of La Verde in relation to Costa Fuego, coastal range Chile 

Table 1. New significant drilling intersections from La Verde

Figure 2. Plan view map of La Verde showing recent drill hole results and updated +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (magenta) mineralisation interpolants. Drilled holes with pending assays are shown in black. Position of A – A' cross section (Figure 3), and B – B' cross section (Figure 4) annotated with white dashed lines. Conceptual open pit shells¹ displayed for $US3.50/lb Cu (blue) and $US6.00/lb Cu (green) displayed as dashed lines. Results reported including CuEq².

¹ See Page 10 of this announcement for detail on the US$3.50 Cu and US$6.00 Cu conceptual open pit shells (Exploration Targets). Any potential tonnage and grade of the Exploration Target shown is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource within the target area, and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

² Copper Equivalent (CuEq) reported for the drillhole intersections were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery) + (Mo ppm × Mo price per g/t × Mo_recovery) + (Au ppm × Au price per g/t × Au_recovery) + (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne × Cu_recovery). The Metal Prices applied in the calculation were: Cu=4.50 USD/lb, Au=3,150 USD/oz, Mo=20 USD/lb, and Ag=30 USD/oz. The entirety of the intersection is assumed as fresh. The recovery and copper equivalent formula for La Verde uses Cortadera as a proxy, which is considered reasonable given both the similar mineralisation style and amenability testwork completed thus far at La Verde – Recoveries of 83% Cu, 56% Au, 83% Mo and 37% Ag. CuEq (%) = Cu(%) + 0.69 x Au(g/t) + 0.00044 x Mo(ppm) + 0.0043 x Ag(g/t).

Figure 3. Long-section slice (A – A') showing recent drill hole results and updated +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (magenta) mineralisation interpolants. Returned Cu grades shown on hole traces, drilled holes with pending assays are shown in black. Conceptual open pit shells¹ displayed for $US3.50/lb Cu (blue) and $US6.00/lb Cu (green) displayed as dashed lines. Results reported including CuEq².

Figure 4. Cross section slice (B – B') showing recent drill hole results DKP053 and DKP054 (± 75m clipping) and updated +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (magenta) mineralisation interpolants. Returned Cu grades shown on hole traces, drilled holes with pending assays are shown in black. Conceptual open pit shells¹ displayed for $US3.50/lb Cu (blue) and $US6.00/lb Cu (green) displayed as dashed lines. Results reported including CuEq². Assay pending for DKP052.

Figure 5. Oblique slice towards NW (Azi 325°, Plunge+26°). 0.3% and 0.4% Cu interpolants displayed for oxide and transitional material, sliced along NNE orientation with the front removed. US$3.50/lb Cu conceptual open pit shell displayed in dark grey; US$6.00/lb Cu conceptual open pit shell displayed in light grey¹. Base of weathering shown as dashed blue line. Results reported including CuEq².

Qualifying Statements

Conceptual Open Pit Shells

Conceptual open pit shells represent Exploration Targets as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (JORC Code). They are based on completed exploration activities reported in the announcement released 19 May 2025 ('Hot Chili Announces Latest Drill Results for La Verde, Doubling Porphyry Discovery Footprint').

The conceptual open pit shells were generated using copper (Cu) prices of US$3.50/lb Cu and US$6.00/lb Cu on a series of nested Cu grade shells. Other input parameters informing the conceptual open-pit shells (pit slope angles, mining cost, processing cost, etc.) were derived from values reported in the March 2025 Costa Fuego Pre-Feasibility Study and are considered appropriate for the style of mineralisation encountered at the La Verde Cu-Au porphyry discovery.

Any potential quantity and grade of the Exploration Target shown is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource within the target area, and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

Further exploration activities are detailed in this announcement and include (but may not necessarily be limited to) a program of diamond drillholes aiming to extend the mineralised footprint at La Verde. Drilling commenced on 22 September 2025, with the length of the program dependent on a number of considerations including (but not limited to) the results of the exploration activities and regulatory applications and approvals.

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 National Instrument 43-101 – Standards of Disclosure for Mineral Projects. For further information, please refer to the Company's technical report titled "Costa Fuego Project, NI 43-101 Technical Report Preliminary Feasibility Study", with an effective date of 27 March 2025, a copy of which is available for review under the Company's issuer profile on SEDAR+ (www.sedarplus.ca).

Competent Person – JORC

The information in this announcement that relates to Exploration Results and Exploration Targets 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.

The information in this announcement relating to previously reported Exploration Results for La Verde was previously reported in the Company's announcements 'Hot Chili Confirms Major Cu-Au Porphyry Discovery at La Verde', 'Hot Chili Announces Latest Drill Results for La Verde, Doubling Porphyry Discovery Footprint', 'District-Scale Porphyry Cluster Potential Emerging at La Verde Cu-Au Discovery', 'First Diamond Drillhole Confirms Gold-Rich Major Copper Discovery in Coastal Chile', 'Near-Surface Higher-Grade Core Confirmed at La Verde', 'Rapid Growth of High Grade Core Continues at La Verde', 'Shallow High Grade Results Continue at La Verde', 'Hot Chili Confirms Major High-Grade Extension at La Verde', 'Latest Drilling Lifts HG Core Potential of La Verde' and 'Strong Copper-Gold Results Continue at La Verde" released to ASX on 26 February 2024, 19 May 2025, 29 May 2025, 27 November 2025, 10 December 2025, 20 January 2026, 16 February 2026, 8 April 2026, 5 May 2026 and 16 June 2026, respectively, which are available to view on the Company's website at www.hotchili.net.au/investors/investor-centre/market-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.

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 announcement.

Forward Looking Statements

This announcement contains certain statements that are "forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of applicable Australian securities regulation (collectively, the "forward-looking statements"). 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 "capable", "estimate", "expansion", "expectations", "likely", "may", "plan", "potential", "project", "reinforce", "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