Second Porphyry Discovery Confirmed at La Verde

Long section view with locations of DKP084 and DKD100, relative to the La Verde porphyry copper-gold discovery²

• Step-out drilling has confirmed the discovery of a second porphyry centre – La Verde South - near-doubling the growth potential of the La Verde copper-gold porphyry discovery.
• The Company's rapidly emerging cornerstone asset is located 30 km south of its Costa Fuego copper-gold (Cu-Au) Project, located on Chile's coastal range at low elevation.
• First step-out Reverse Circulation (RC) drill hole DKP084, located approximately 250 m to the south of La Verde's +0.4% Cu mineralisation footprint, has delivered:
  • 148 m grading 0.44% CuEq¹ (0.39% Cu, 0.07 g/t Au) from 36 m
    • Including 44 m grading 0.56% CuEq (0.50% Cu, 0.06 g/t Au) from 138 m
• First step-out Diamond (DD) drill hole DKD100, located a further 100 m to the south of DKP084, has visually recorded a 307 m down-hole interval of copper porphyry-style mineralisation³. Diamond drilling is continuing in mineralisation at 347 m and is currently planned to a depth of 500 m.
• The maiden La Verde Mineral Resource Estimate (MRE), revised Costa Fuego Pre-Feasibility Study (PFS) and preparation of an Environmental Impact Assessment (EIA) submission all remain on track.
• Four drill rigs operating at La Verde, with assay results pending for 25 drill holes (6 southern step-out and 19 resource definition drill holes).

PERTH, Australia, Oct. 19, 2026 /PRNewswire/ -- Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) ("Hot Chili" or the "Company") is pleased to announce the discovery of a second porphyry centre at its La Verde Cu-Au deposit (La Verde), located 30 km south of the planned central processing hub for the Company's Costa Fuego Cu-Au Project (Costa Fuego) in Chile's coastal Atacama region.

First step-out drilling has unlocked significant growth potential, with near-surface higher-grade copper mineralisation immediately south of, and along strike, from La Verde.

Christian Easterday, Managing Director of Hot Chili, said: 

"We are very pleased with the results of our first step-out drilling to the south of La Verde. Drilling has confirmed a second porphyry centre, concealed beneath shallow Atacama gravels, with the potential to be of similar scale to La Verde.

These initial results provide yet another boost to Hot Chili's growth plans for its Costa Fuego copper hub in Chile. 

Costa Fuego is already one of the top five independent copper developments by scale. The upcoming addition of a maiden MRE for La Verde, and now confirmation of a much larger discovery than first recognised, is a game changer for the Company."

First RC Step-out Drilling Delivers Broad Extension of Shallow Oxide Footprint

Step-out drill hole DKP084 was collared along strike, approximately 250 m south of La Verde's existing +0.4% Cu mineralisation footprint, which has been defined by over 40,000 m of RC and DD drilling to date. DKP084 returned a significant intersection of 148 m grading 0.44% CuEq (0.39% Cu, 0.07 g/t Au) from 36 m, including 44 m grading 0.56% CuEq (0.50% Cu, 0.06 g/t Au) from 138 m.

DKP084 was designed to follow-up and test for extensions south of previously reported RC drill hole DKP024, which recorded 114 m grading 0.4% CuEq (0.4% Cu) from 86 m, including 52 m grading 0.5% CuEq (0.5% Cu, 0.1 g/t Au) from 96 m (see announcement dated 19 May 2025).

The intersection in DKP084 is primarily oxide copper porphyry-style mineralisation, commencing immediately below shallow gravel cover.

First DD Step-out Drill Hole Confirms Second Porphyry Centre at La Verde South

Building on the initial RC drill results from DKP024 and DKP084, Hot Chili mobilised a diamond drill rig to test the potential for higher-grade copper porphyry-style sulphide mineralisation below the wide zone of oxide mineralisation.

Diamond drill hole DKD100 was collared a further 100 m to the south of DKP084, and like DKP084, has visually recorded a wide zone of copper porphyry-style oxide mineralisation (associated with copper clays, malachite and black copper oxide mineralogy) between 40 m and 172 m down hole depth. 

Significantly, below this oxide zone, DKD100 has also visually recorded a wide zone of porphyry-style sulphide mineralisation (associated with disseminated chalcopyrite and porphyry-style A, B and C veining) between 172 m and 347 m down hole depth (current depth of hole). DKD100 is continuing and currently planned to a depth of 500 m.

Drilling is continuing with two drill rigs (one DD and one RC) testing La Verde South, while the remaining two drill rigs (one DD and one RC) continue infill drilling La Verde ahead of the Company's planned completion of a maiden MRE.

Core photo from DKD100 (259 – 261 m downhole) with vein-hosted and disseminated chalcopyrite and pyrite mineralisation in strongly veined tonalite host rock¹

Further drill results are expected to be released shortly from La Verde and the newly discovered La Verde South porphyry centre.

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

Table 2. Mineral abundance details for DKD100

Figure 2. Plan view map of La Verde showing recent drill hole result and +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (magenta) mineralisation interpolants prior to inclusion of DKP084. Drilled holes with pending assays are shown in black. Position of A – A' long section (front page figure) annotated with white dashed lines. Conceptual open pit shells¹ displayed for $US3.50/lb Cu (short dash) and $US6.00/lb Cu (long dash) displayed as dashed lines. Returned Cu grades shown on traces, results reported including CuEq², visual estimate from DKD100 shown³.

Figure 3. Plan view slice at 950 mRL (+- 150 m) with La Verde showing geological model. Collar locations for existing drillholes (black outline where assays have been received, red outline where assays are pending) and planned drillholes (blue outline) are included. Conceptual open pit shells¹ displayed for $US3.50/lb Cu (short dash) and $US6.00/lb Cu (long dash) displayed as dashed lines. Returned Cu grades shown on traces, results reported including CuEq², visual estimate from DKD100 shown³.

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', 'Strong Copper-Gold Results Continue at La Verde', 'La Verde Emerging as Cornerstone Asset for HCH', 'Hot Chili Delivers More Copper-Gold at La Verde', 'HG Enrichment Zone Extends at La Verde' and 'Shallow Cu-Au Intersections Grow La Verde Final' 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, 16 June 2026, 28 July 2026, 24 August 2026, 7 September 2026 and 8 October 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, "estimate", "expansion", "expand", "expected", "likely", "may", "momentum", "plan", "potential", "project", "large-scale", "should", "will", 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 technical and economic studies, including the completion of a maiden MRE for La Verde; the potential incorporation of La Verde into a revised Costa Fuego Pre-Feasibility Study and any effect on the Costa Fuego Project; the timing of submission of the Costa Fuego EIA in Q2 2027; the results of pending assays; 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; the timely receipt of permits and approvals; metallurgical recoveries for La Verde based on Cortadera as a proxy; that pending assays will be received and reported on anticipated timelines; that drill density will be sufficient to support a mineral resource estimate; future tax rates; future operating costs; availability of future sources of funding; and 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