Earnings release
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Hot Chili Limited ACN 130 955 725 First Floor, 768 Canning Highway, Applecross, Western Australia 6153 PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 F: +61 8 9315 5004 www.hotchili.net.au @hotchiliIR Contact Mr Christian Easterday Managing Director E: admin@hotchili.net.au @hotchililimited ASX: HCH TSXV: HCH OTCQX: HHLKF Highlights Hot Chili Announces Preliminary Feasibility Study ( PFS) & Maiden 1 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 risk1,2: • 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 s econd 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 (D FS) planning & PFS optimisation phases Potential Strategic Funding Discussions Advancing • Strong interest in asset-level investment opportunities for Costa Fuego and Huasco Water 1 Hot Chili previously released Ore Reserves for Productora, a component of Costa Fuego, in the ASX announcement ‘Hot Chili Del ivers PFS and Near Doubles Reserves at Productora’ 2 March 2016. Maiden Ore Reserve for Cortadera and San Antonio and Alice deposits, and updated Ore Reserve for Productora and as a whole Costa Fuego. 2 Hot Chili is a dual listed entity and complies with the JORC 2012 code for the ASX for the reporting of Exploration Results, Mineral Resources and Ore Reserves. The company complies with CIM Definition Standards for Mineral Resources and Mineral Reserves (10 May 2014) that are incorporated by reference into NI 43 - 101 for the TSXV. Terminology of Ore Reserves and Mineral Reserves are interchangeable and have the same meaning within this announcement. 3 S&P Market Intelligence. 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. 4 The Huasco Water Supply PFS has been aligned with the preliminary feasibility study for the Company’s Costa Fuego project (the “Costa Fuego PFS”) and shares the same assumptions for Costa Fuego in stage 1. See announcement dated 27 th March 2025 “Hot Chili Announces PFS & Maiden Mineral Reserve for the Costa Fuego Cu-Au Project” outlining the results of the Costa Fuego PFS. An independent technical report for the Costa Fuego PFS, prepared in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”) and JORC Code 20212 within 45 days thereof. Quarterly Report Period Ending 31 March 2025 Release Date: 24th April 2025 For personal use only
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2 ASX: HCH TSXV: HCH OTCQX: HHLKF Hot Chili Limited ACN 130 955 725 First Floor, 768 Canning Highway, Applecross, Western Australia 6153 PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au @hotchiliIR @hotchililimited Drilling operations continued at La Verde during the quarter , located 30km south of Costa Fuego in coastal Chile Cautionary Statement – JORC Code (2012) The Preliminary Economic Assessment referred to in this Report is equivalent to a Scoping Study under JORC Code (2012) reporting guidelines. It has been undertaken for the purpose of initial evaluation of a potential development of the Costa Fuego Copper Project in Chile. It is a preliminary technical and economic study of the potential viability of the Costa Fuego Coppe r Project. The PEA outcomes, production target and forecast financial information referred to in the Report are based on low level technical and economic assessments that are insufficient to support estimation of Ore Reserves. The PEA is presented in US do llars to an accuracy level of +/ - 35%. While each of the modifying factors was considered and applied, there is no certainty of eventual conversion to Ore Reserves or that the production target itself will be realised. Further exploration and evaluation and appropriate studies are required before Hot Chili will be in a position to estimate any Ore Reserves or to provide any assurance of any economic development case. Given the uncertainties involved, investors should not make any investment decisions based solely on the results of the PEA. Of the Mineral Resources scheduled for extraction in the PEA production plan, approximately 9 9% are classified as Indicated and 1% as Inferred. The Company has concluded that it has reasonable grounds for disclosing a production target which includes a small amount of Inferred Mineral Resources, as permitted under the JORC Code. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resou rces or that the production target itself will be realised. The viability of the development scenario envisaged in the PEA does not depend on the inclusion of Inferred Mineral Resour ces. However, it is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Measured or Indicated Mineral Resource with continued drilling. The Mineral Resources underpinning the production target in the PEA have been prepared by a competent person in accordance with the requirements of the JORC 2012. For full details on the Mineral Resource estimate, please refer to the ASX announcement of 31 March 2022. The Mineral Resource Estimate update released in February 2024 does not materially change the Mineral Resource inventory that formed the basis of the 2023 PEA, and no new scientific or technical information has been developed that would materially affect the outcome of the 2023 PEA and, therefore, the results and conclusions of the 2023 PEA are considered current and have been restated for this Report. To achieve the outcomes indicated in the PEA, including reaching Definitive Feasibility Study (“DFS”) , mine construction and production stages, funding in the order of US$1.10 Billion will be required, including pre-production and working capital and assumed financing charges. Investors should note that that there is no certainty that Hot Chili will be able to raise that amount of funding when needed. One of the key assumptions is that the funding for the Project will be available when required and on acceptable terms. It is also possible that such funding may only be available on terms that may be dilutive to, or otherwise affect the value of, Hot Chili’s existing shares. It is also possible that Hot Chili could pursue other value realisation strategies such as debt financing, a sale or partial sale of its interest in the Costa Fuego Copper Project and/or Huasco Water , sale of further royalties and/or streaming rights, sale of non-committed offtake rights, and sale of non -core assets. This Report contains forward-looking statements. Hot Chili has concluded that it has a reasonable basis for providing these forward -looking statements and believes it has a reasonable basis to expect it will be able to fund development of the Costa Fuego Copper Project. However, a number of factors could cause actual results or expectations to differ materially from the results expressed or implied in the forward-looking statements. Given the uncertainties involved, investors should not make any investment decisions based solely of the results of the PEA. For personal use only
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3 ASX: HCH TSXV: HCH OTCQX: HHLKF Hot Chili Limited ACN 130 955 725 First Floor, 768 Canning Highway, Applecross, Western Australia 6153 PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au @hotchiliIR @hotchililimited 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 CuEq 1 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/lb 3, post-tax NPV8% increases to US$2.2 billion and post-tax IRR to 30%, respectively Low-Risk, Coastal Copper Development with Advanced Permitting • Low Elevation and Over a Decade of Permitting Advance Provides a Foundation for Development: One of only a few global copper development projects at low elevation with a water permit, and grid power • Preparing to submit Environmental Impact Assessment (EIA): Costa Fuego Stage-1 (EIA-1) based on current PFS-scale and definition Maiden Ore Reserve for Costa Fuego Lowers Operational Risk • Maiden4 Ore Reserve 5 for Costa Fuego. Probable Ore Reserves of 502 Mt at 0.37% Cu, 0.10 g/t Au, 0.49 g/t Ag and 97 ppm Mo: Across sulphide concentrator, oxide leach and low -grade sulphide leach processing streams 1 The copper-equivalent (CuEq) annual production rate was based on the combined processing feed (across all sources) and used long-term commodity prices of: Copper US$ 4.30/lb, Gold US$ 2,280/oz, Molybdenum US$ 20/lb, and Silver US$25/oz; and estimated metallurgical recoveries for the production feed to the following processes: Concentrator (86% Cu, 54% Au, 37% Ag, 70% Mo), Oxide Leach (65% Cu only), & Low-grade Sulphide Leach (39% Cu only). 2 See page Announcement page 3 for full non-IFRS measures disclaimer. 3 Copper price – Fast markets quote 26/03/2025. High of $5.37/lb closing price $5.24/lb 4 Hot Chili previously released Ore Reserves for Productora, a component of Costa Fuego, in the ASX announcement ‘Hot Chili Del ivers PFS and Near Doubles Reserves at Productora’ 2 March 2016. Maiden Ore Reserve for Cortadera and San Antonio and Alice deposits, and updated Ore Reserve for Productora and as a whole Costa Fuego. 5 Hot Chili is a dual listed entity and complies with the JORC 2012 code for the ASX for the reporting of Exploration Results, Mineral Resources and Ore Reserves. The company complies with CIM Definition Standards for Mineral Resources and Mineral Reserves ( 10 May 2014) that are incorporated by reference into NI 43 - 101 for the TSXV. Terminology of Ore Reserves and Mineral Reserves are interchangeable and have the same meaning within this announcement. For personal use only
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4 ASX: HCH TSXV: HCH OTCQX: HHLKF Hot Chili Limited ACN 130 955 725 First Floor, 768 Canning Highway, Applecross, Western Australia 6153 PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au @hotchiliIR @hotchililimited Figure 3. Costa Fuego PFS to PEA highlights across key metrics For personal use only
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5 ASX: HCH TSXV: HCH OTCQX: HHLKF Hot Chili Limited ACN 130 955 725 First Floor, 768 Canning Highway, Applecross, Western Australia 6153 PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au @hotchiliIR @hotchililimited 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 s ensitivity 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 ). For personal use only
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6 ASX: HCH TSXV: HCH OTCQX: HHLKF Hot Chili Limited ACN 130 955 725 First Floor, 768 Canning Highway, Applecross, Western Australia 6153 PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au @hotchiliIR @hotchililimited 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. I nformation 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 s ensitivity 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 ). For personal use only
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7 ASX: HCH TSXV: HCH OTCQX: HHLKF Hot Chili Limited ACN 130 955 725 First Floor, 768 Canning Highway, Applecross, Western Australia 6153 PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au @hotchiliIR @hotchililimited 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 ongo ing • 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. 1 HW Aguas para El Huasco SpA (“Huasco Water”), a joint venture between Hot Chili (80% interest) and Compañia Minera Del Pacifico “”CMP” (20% interest) 2 The Huasco Water Supply PFS has been aligned with the preliminary feasibility study for the Company’s Costa Fuego project (th e “Costa Fuego PFS”) and shares the same assumptions for Costa Fuego in stage 1. See announcement dated 27 th March 2025 “Hot Chili Announces PFS & Maiden Mineral Reserve for the Costa Fuego Cu-Au Project” outlining the results of the Costa Fuego PFS. An independent technical report for the Costa Fuego PFS, prepared in accordance with National Instrument 43 -101 - Standards of Disclosure for Mineral Projects (“NI 43-101”) and JORC Code 20212 within 45 days thereof. For personal use only
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8 ASX: HCH TSXV: HCH OTCQX: HHLKF Hot Chili Limited ACN 130 955 725 First Floor, 768 Canning Highway, Applecross, Western Australia 6153 PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au @hotchiliIR @hotchililimited Huasco Water PFS Key Outcomes Stage Key Performance Indicator IRR 12% 15.5% 19% (Base case) Stage 1 PFS Engineering (Seawater) Fixed Water Tariff US$M/year 23 28 33 Variable Water Tariff US$/m³ 0.48 0.58 0.69 Average Annual Price of Water1 US$/m³ 2.31 2.80 3.32 Nominal Seawater Water Demand L/s 500 500 500 Costa Fuego PFS Total Cash Costs US$/lb Cu 1.31 1.35 1.38 Impact on Costa Fuego PFS Total Cash Cost US$/lb Cu -0.07 -0.04 0 Post-tax NPV8 US$M 41 80 122 Levelized Cost of Water to Huasco Water (8%) US $/m³ 1.66 1.66 1.66 Construction Capital US$M 151 151 151 Sustaining Capital US$M 26 26 26 Stage 1 & 2 PFS Engineering (Seawater & Desalinated Water) Fixed Water Tariff US$M/year 243 283 327 Variable Water Tariff US$/m³ 1.47 1.71 1.98 Average Annual Price of Water2 US$/m³ 6.39 7.44 8.59 Nominal Desalinated Water Demand L/s 1,300 1,300 1,300 Post-tax NPV8 US$M 328 640 977 Levelized Cost of Water to Huasco Water (8%) US $/m³ 4.85 4.85 4.85 Construction Capital US$M 1,430 1,430 1,430 Sustaining Capital US$M 1,170 1,170 1,170 Stage 33 Conceptual Study (Desalinated Water Expansion) Fixed Water Tariff US$M/year 312 359 410 Variable Water Tariff US$/m³ 1.78 2.04 2.33 Average Annual Price of Water4 US$/m³ 6.93 7.97 9.11 Nominal Desalinated Water Demand L/s 2,300 2,300 2,300 Expansion Capital US$M 1,900 1,900 1,900 Sustaining Capital US$M 2,380 2,380 2,380 1 Average Annual Price of Water for Costa Fuego. Price is calculated subject to each project’s location and requirements. 2 Average Annual Price of Water for customers supplied in the Stage 2. Price is calculated subject to each customers location and requirements. 3 Stage 3 tariffs are the average for all customers for Stage 1, 2 and 3 4 Average Annual Price of Water for customers supplied in the Stage 3. Price is calculated subject to each customers location and requirements. For personal use only
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9 ASX: HCH TSXV: HCH OTCQX: HHLKF Hot Chili Limited ACN 130 955 725 First Floor, 768 Canning Highway, Applecross, Western Australia 6153 PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au @hotchiliIR @hotchililimited 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) o including 134 m at 0.4% Cu and 0.2 g/t Au from 180 m depth o 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) o 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) o 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 o 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) o including 62 m at 0.4% Cu and 0.2 g/t Au from 124 m depth o 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) o 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) o including 202 m at 0.6% Cu, 0.3g/t Au from 70 m depth o 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) o including 174 m at 0.4% Cu and 0.1 g/t Au from 36 m depth o 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 10th April 2025 For personal use only
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10 ASX: HCH TSXV: HCH OTCQX: HHLKF Hot Chili Limited ACN 130 955 725 First Floor, 768 Canning Highway, Applecross, Western Australia 6153 PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au @hotchiliIR @hotchililimited 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 View looking SW across the La Verde copper-gold porphyry discovery – showing the location of discovery drill hole DKP002 and historic copper oxide open pit area. For personal use only
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11 ASX: HCH TSXV: HCH OTCQX: HHLKF Hot Chili Limited ACN 130 955 725 First Floor, 768 Canning Highway, Applecross, Western Australia 6153 PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au @hotchiliIR @hotchililimited Figure 1 Plan view map of the La Verde porphyry system showing significant intercepts compared to recent drill hole collars (yellow circles), planned drill collars (white circles) historic drill collars (black circles), +1% A+B vein footprint from mapping and drillholes (blue outline) and copper mineralisation interpolants from returned assay results. For full details of the drilling intercepts and assay results to date, refer to the Company's announcement "Hot Chili Confirms Major Cu-Au Porphyry Discovery at La Verde" dated 11 February 2025. For personal use only
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12 ASX: HCH TSXV: HCH OTCQX: HHLKF Hot Chili Limited ACN 130 955 725 First Floor, 768 Canning Highway, Applecross, Western Australia 6153 PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au @hotchiliIR @hotchililimited Figure 2. Plan view slice at 950 RL (± 50 m clipping) of modelled tonalitic (pink polygon) and dioritic porphyry (red polygon) intrusions. Returned Cu grades graphed downhole. Area currently being drill tested is outlined by the dashed blue box. For full details of the drilling intercepts and assay results to date, refer to the Company's announcement "Hot Chili Confirms Major Cu-Au Porphyry Discovery at La Verde" dated 11 February 2025. Table 1 - Drill Holes Completed for Costa Fuego in Quarter 1 2025 Prospect Hole ID North East RL Depth Azimuth Dip Results La Verde DKP014 6785852 324747 1,147 444 300 -60 Pending La Verde DKP015 6786096 324434 1,159 313 132 -60 Pending La Verde DKP016 6785947 324416 1,110 360 110 -60 Pending La Verde DKP017 6786094 324685 1,185 336 100 -60 Pending La Verde DKP018 6785835 324428 1,108 145 100 -60 Pending La Verde DKP019 6785720 324718 1,145 279.5 255 -60 Pending La Verde DKP020 6785748 324586 1,141 144 270 -60 Pending La Verde DKP021 6785619 324324 1,197 402 75 -60 Pending For personal use only
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13 ASX: HCH TSXV: HCH OTCQX: HHLKF Hot Chili Limited ACN 130 955 725 First Floor, 768 Canning Highway, Applecross, Western Australia 6153 PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au @hotchiliIR @hotchililimited La Verde DKP022 6785527 324414 1,200 288 75 -60 Pending La Verde DKP023 6785421 324320 1,197 402 90 -60 Pending La Verde DKP024 6785424 324417 1,203 402 110 -60 Pending La Verde DKP025 6785313 324415 1,187 276 270 -75 Pending La Verde DKP026 6785870 324312 1,110 147 105 -60 Pending La Verde DKP027 6785755 324906 1,139 402 300 -60 Pending La Verde DKP028 6785617 324758 1,136 432 300 -60 Pending La Verde DKP029 6785615 324758 1,175 366 265 -60 Pending La Verde DKP030 6785770 324774 1,133 393 275 -60 Pending Table 2 – Significant Intersections returned for Costa Fuego in Quarter 1 2025 Hole ID Coordinates Azim. Dip Hole Depth Intersection Interval Copper Gold Silver Molybdenum North East RL From To (m) (% Cu) (g/t Au) (ppm Ag) (ppm Mo) DKP003 6785971 324840 1192 117 -59 282 36 246 210 0.2 0.1 0.4 5 110 128 18 0.2 0.2 0.3 7 140 160 20 0.3 0.1 0.4 7 188 196 8 0.3 0.1 0.5 4 DKP004 6785836 324423 1093 90 -60 120 8 88 80 0.3 0.1 0.5 19 Incl 8 42 34 0.4 0.0 0.6 16 Or Incl 26 36 10 0.6 0.1 0.5 18 DKP005 6785789 324564 1124 91 -60 248 8 247.5 239.5 0.3 0.1 0.9 18 Or 48 247.5 199.5 0.4 0.1 1.0 21 Incl 32 40 8 0.5 0.1 0.5 8 And Incl 68 106 38 0.5 0.2 1.1 9 Or Incl 70 82 12 0.6 0.2 1.0 8 DKP006 6785721 324727 1130 110 -60 199.5 64 199.5 135.5 0.3 0.1 0.8 6 Incl 124 186 62 0.4 0.2 1.1 7 Or Incl 124 150 26 0.5 0.3 1.2 7 And Incl 170 174 4 0.6 0.2 2.2 7 DKP007 6785854 324742 1149 270 -60 204 0 204 204 0.2 0.1 0.4 32 Incl 80 88 8 0.3 0.1 0.7 23 And Incl 160 204 44 0.3 0.1 0.5 84 Or Incl 186 194 8 0.4 0.1 0.7 91 DKP008 6785855 324748 1150 5 -60 324 0 324 324 0.2 0.1 0.5 12 Incl 0 16 16 0.3 0.1 0.3 6 And Incl 144 154 10 0.3 0.1 1.4 20 And Incl 174 218 44 0.3 0.1 0.5 7 DKP009 6786075 324552 1152 131 -60 354 34 354 320 0.3 0.1 0.7 13 Incl 46 66 20 0.5 0.1 0.9 8 And Incl 124 140 16 0.5 0.2 0.7 21 And Incl 180 314 134 0.4 0.2 0.8 8 Or Incl 258 314 56 0.5 0.2 1.1 6 Or Incl 260 274 14 0.5 0.3 1.7 4 DKP010 6785851 324742 1148 209 -60 276 0 92 92 0.2 0.1 0.3 10 Incl 0 10 10 0.4 0.2 0.3 4 For personal use only
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14 ASX: HCH TSXV: HCH OTCQX: HHLKF Hot Chili Limited ACN 130 955 725 First Floor, 768 Canning Highway, Applecross, Western Australia 6153 PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au @hotchiliIR @hotchililimited Hole ID Coordinates Azim. Dip Hole Depth Intersection Interval Copper Gold Silver Molybdenum North East RL From To (m) (% Cu) (g/t Au) (ppm Ag) (ppm Mo) 136 220 84 0.3 0.1 0.8 15 Incl 190 206 16 0.4 0.1 1.2 20 252 274 22 0.3 0.1 0.6 14 DKP011 6786096 324429 1159 91 -60 326 0 32 32 0.4 0.0 0.8 23 228 252 24 0.2 0.0 0.5 72 Incl 232 234 2 0.4 0.0 2.1 44 274 310 36 0.2 0.0 0.3 31 DKP012 6785977 324839 1193 300 -60 306 48 220 172 0.4 0.2 0.5 14 Incl 62 82 20 0.5 0.2 0.3 6 And Incl 192 202 10 0.5 0.2 0.6 94 And Incl 228 306 78 0.5 0.1 0.8 24 Or Incl 232 264 32 0.6 0.2 1.0 16 248 260 12 0.7 0.2 0.8 21 For personal use only
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15 ASX: HCH TSXV: HCH OTCQX: HHLKF Hot Chili Limited ACN 130 955 725 First Floor, 768 Canning Highway, Applecross, Western Australia 6153 PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au @hotchiliIR @hotchililimited 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. For personal use only
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16 ASX: HCH TSXV: HCH OTCQX: HHLKF Hot Chili Limited ACN 130 955 725 First Floor, 768 Canning Highway, Applecross, Western Australia 6153 PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au @hotchiliIR @hotchililimited 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 For personal use only
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17 ASX: HCH TSXV: HCH OTCQX: HHLKF Hot Chili Limited ACN 130 955 725 First Floor, 768 Canning Highway, Applecross, Western Australia 6153 PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au @hotchiliIR @hotchililimited 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 Deposit Productora Cortadera All Projects Timeframe Q1 2025 Cum.² Q1 2025 Cum.² Q1 2025 Cum.² LTI events 0 0 0 6 0 8 NLTI events 0 4 0 6 0 11 Days lost 0 0 0 152 0 263 LTIFR index 0 0 0 20 0 18 ISR index 0 0 0 510 0 599 IFR Index 0 44 0 40 0 43 Thousands of man-hours 3.6 92 2.5 298 21.4 439 Incidents on materials and assets 0 1 0 0 0 1 Environmental incidents 0 0 0 0 0 0 Headcount¹ 10 11 8 31 57 50 Notes: HSEQ is the acronym for Health, Safety, Environment and Quality. LTIFR per million -manhours. Safety performance is reported on a monthly basis to the National Mine Safety Authority on a standard E-100 form; (1) Average monthly headcount (2) Cumulative statistics since April 2019. For personal use only
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18 ASX: HCH TSXV: HCH OTCQX: HHLKF Hot Chili Limited ACN 130 955 725 First Floor, 768 Canning Highway, Applecross, Western Australia 6153 PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au @hotchiliIR @hotchililimited 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 Cortadera Project N° License ID HCH % Held HCH % Earning Area (ha) Agreement Details 1 ALCENIA 1/10 100% Frontera SpA 50 2 AMALIA 942 A 1/6 100% Frontera SpA 53 3 ATACAMITA 1/82 100% Frontera SpA 82 4 CORROTEO 1 1/260 100% Frontera SpA 260 5 CORROTEO 5 1/261 100% Frontera SpA 261 6 CORTADERA 1 1/200 100% Frontera SpA 200 7 CORTADERA 1/40 100% Frontera SpA 374 8 CORTADERA 2 1/200 100% Frontera SpA 200 9 CORTADERA 41 100% Frontera SpA 1 10 CORTADERA 42 100% Frontera SpA 1 11 LAS CANAS 1/15 100% Frontera SpA 146 12 LAS CANAS 16 100% Frontera SpA 1 13 LAS CANAS ESTE 2003 1/30 100% Frontera SpA 300 14 MAGDALENITA 1/20 100% Frontera SpA 100 15 PAULINA 10 B 1/16 100% Frontera SpA 136 16 PAULINA 11 B 1/30 100% Frontera SpA 249 17 PAULINA 12 B 1/30 100% Frontera SpA 294 18 PAULINA 13 B 1/30 100% Frontera SpA 264 19 PAULINA 14 B 1/30 100% Frontera SpA 265 20 PAULINA 15 B 1/30 100% Frontera SpA 200 21 PAULINA 22 A 1/30 100% Frontera SpA 300 22 PAULINA 24 1/24 100% Frontera SpA 183 23 PAULINA 25 A 1/19 100% Frontera SpA 156 24 PAULINA 26 A 1/30 100% Frontera SpA 294 25 PAULINA 27A 1/30 100% Frontera SpA 300 26 PURISIMA 1/8 (1/2 Y 5/6) 100% Frontera SpA 20 NSR 1.5% 27 CF 1 100% Frontera SpA 300 28 CF 2 100% Frontera SpA 300 29 CF 3 100% Frontera SpA 300 30 CF 4 100% Frontera SpA 300 31 CF 5 100% Frontera SpA 200 32 CF 6 100% Frontera SpA 200 For personal use only
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19 ASX: HCH TSXV: HCH OTCQX: HHLKF Hot Chili Limited ACN 130 955 725 First Floor, 768 Canning Highway, Applecross, Western Australia 6153 PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au @hotchiliIR @hotchililimited Cortadera Project N° License ID HCH % Held HCH % Earning Area (ha) Agreement Details 33 CF 7 100% Frontera SpA 100 34 CF 8 100% Frontera SpA 200 35 CF 9 100% Frontera SpA 100 36 CF 10 100% Frontera SpA 200 37 CF 11 100% Frontera SpA 200 38 CHAPULIN COLORADO 1/3 100% Frontera SpA 3 39 CHILIS 1 100% Frontera SpA 200 40 CHILIS 3 100% Frontera SpA 100 41 CHILIS 4 100% Frontera SpA 200 42 CHILIS 5 100% Frontera SpA 200 43 CHILIS 6 100% Frontera SpA 200 44 CHILIS 7 100% Frontera SpA 200 45 CHILIS 8 100% Frontera SpA 200 46 CHILIS 9 100% Frontera SpA 300 47 CHILIS 10 1/38 100% Frontera SpA 190 48 CHILIS 11 100% Frontera SpA 200 49 CHILIS 12 1/60 100% Frontera SpA 300 50 CHILIS 13 100% Frontera SpA 300 51 CHILIS 14 100% Frontera SpA 300 52 CHILIS 15 100% Frontera SpA 300 53 CHILIS 16 100% Frontera SpA 300 54 CHILIS 17 100% Frontera SpA 300 55 CHILIS 18 100% Frontera SpA 300 56 CORTADERA 1 100% Frontera SpA 200 57 CORTADERA 2 100% Frontera SpA 200 58 CORTADERA 3 100% Frontera SpA 200 59 CORTADERA 4 100% Frontera SpA 200 60 CORTADERA 5 100% Frontera SpA 200 61 CORTADERA 6 1/60 100% Frontera SpA 265 62 CORTADERA 7 1/20 100% Frontera SpA 93 63 CRISTINA 1/40 100% SMEA SpA 40 64 DIABLITO 1/5 100% SMEA SpA 25 65 DONA FELIPA 1/10 100% Frontera SpA 50 66 DORO 1 100% Frontera SpA 200 67 DORO 2 100% Frontera SpA 200 68 DORO 3 100% Frontera SpA 300 69 FALLA MAIPO 2 1/10 100% Frontera SpA 99 70 FALLA MAIPO 3 1/8 100% Frontera SpA 72 71 FALLA MAIPO 4 1/26 100% Frontera SpA 26 72 MINORI 1 100% SMEA SpA 300 73 MINORI 2 100% SMEA SpA 300 74 MINORI 3 100% SMEA SpA 300 75 MINORI 4 100% SMEA SpA 300 76 PORFIADA B 100% Frontera SpA 200 77 PORFIADA D 100% Frontera SpA 300 78 PORFIADA G 100% Frontera SpA 200 79 PORFIADA I 100% Frontera SpA 300 80 PORFIADA II 100% Frontera SpA 300 81 PORFIADA III 100% Frontera SpA 300 82 PORFIADA IV 100% Frontera SpA 300 83 PORFIADA V 100% Frontera SpA 200 84 PORFIADA VI 100% Frontera SpA 100 For personal use only
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20 ASX: HCH TSXV: HCH OTCQX: HHLKF Hot Chili Limited ACN 130 955 725 First Floor, 768 Canning Highway, Applecross, Western Australia 6153 PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au @hotchiliIR @hotchililimited Cortadera Project N° License ID HCH % Held HCH % Earning Area (ha) Agreement Details 85 PORFIADA X 100% Frontera SpA 200 86 SAN ANTONIO 1 100% Frontera SpA 200 87 SAN ANTONIO 2 100% Frontera SpA 200 88 SAN ANTONIO 3 100% Frontera SpA 300 89 SAN ANTONIO 4 100% Frontera SpA 300 90 SAN ANTONIO 5 100% Frontera SpA 300 91 SOLAR 1 100% Frontera SpA 300 92 SOLAR 2 100% Frontera SpA 300 93 SOLAR 3 100% Frontera SpA 300 94 SOLAR 4 100% Frontera SpA 300 95 SOLAR 5 100% Frontera SpA 300 96 SOLAR 6 100% Frontera SpA 300 97 SOLAR 7 100% Frontera SpA 300 98 SOLAR 8 100% Frontera SpA 300 99 SOLAR 9 100% Frontera SpA 300 100 SOLAR 10 100% Frontera SpA 300 101 SOLEDAD 1 100% Frontera SpA 300 102 SOLEDAD 2 100% Frontera SpA 300 103 SOLEDAD 3 100% Frontera SpA 300 104 SOLEDAD 4 100% Frontera SpA 300 TOTAL 22.653 Note. Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited Productora Project Tenements Productora Project N° License ID HCH % Held HCH % Earning Area (ha) Agreement Details 1 ALGA 7 A 1/32 80% SMEA SpA 89 2 ALGA VI 4 100% SMEA SpA 2 3 ALGA VI 5/24 80% SMEA SpA 66 4 ARENA 1 1/6 80% SMEA SpA 40 5 ARENA 2 1/17 80% SMEA SpA 113 6 AURO HUASCO 1A 1/8 80% SMEA SpA 35 7 CABRITO-CABRITO 1/9 80% SMEA SpA 50 8 CACHIYUYITO 1 1/20 80% SMEA SpA 100 9 CACHIYUYITO 2 1/60 80% SMEA SpA 300 10 CACHIYUYITO 3 1/60 80% SMEA SpA 300 11 CARMEN I, 1/50 80% SMEA SpA 222 12 CARMEN II, 1/60 80% SMEA SpA 274 13 CF 12 100% Frontera SpA 100 14 CF 13 100% Frontera SpA 200 15 CF 14 100% Frontera SpA 300 16 CHICA 80% SMEA SpA 1 17 CHOAPA 1/10 80% SMEA SpA 50 18 CUENCA A 1/51 80% SMEA SpA 255 19 CUENCA B 1/28 80% SMEA SpA 139 20 CUENCA C 1/51 80% SMEA SpA 255 21 CUENCA D 80% SMEA SpA 3 22 CUENCA E 80% SMEA SpA 1 23 ELEONOR RIGBY 1/10 100% Frontera SpA 100 24 ELQUI 1/14 80% SMEA SpA 61 For personal use only
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21 ASX: HCH TSXV: HCH OTCQX: HHLKF Hot Chili Limited ACN 130 955 725 First Floor, 768 Canning Highway, Applecross, Western Australia 6153 PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au @hotchiliIR @hotchililimited Productora Project N° License ID HCH % Held HCH % Earning Area (ha) Agreement Details 25 ESPERANZA 1/5 80% SMEA SpA 11 26 FRAN 1 1/60 80% SMEA SpA 220 27 FRAN 12 1/40 80% SMEA SpA 200 28 FRAN 13 1/40 80% SMEA SpA 200 29 FRAN 14 1/40 80% SMEA SpA 200 30 FRAN 15 1/60 80% SMEA SpA 300 31 FRAN 18, 1/60 80% SMEA SpA 273 32 FRAN 2 1/20 80% SMEA SpA 100 33 FRAN 21, 1/46 80% SMEA SpA 226 34 FRAN 3 1/20 80% SMEA SpA 100 35 FRAN 4 1/20 80% SMEA SpA 100 36 FRAN 5 1/20 80% SMEA SpA 100 37 FRAN 6 1/26 80% SMEA SpA 130 38 FRAN 7 1/37 80% SMEA SpA 176 39 FRAN 8 1/30 80% SMEA SpA 120 40 JULI 10, 1/60 80% SMEA SpA 300 41 JULI 11, 1/60 80% SMEA SpA 300 42 JULI 12, 1/42 80% SMEA SpA 210 43 JULI 13, 1/20 80% SMEA SpA 100 44 JULI 14, 1/50 80% SMEA SpA 250 45 JULI 15, 1/55 80% SMEA SpA 275 46 JULI 16 1/60 80% SMEA SpA 300 47 JULI 17 1/20 80% SMEA SpA 100 48 JULI 19 80% SMEA SpA 300 49 JULI 20 80% SMEA SpA 300 50 JULI 21 1/60 80% SMEA SpA 300 51 JULI 22 80% SMEA SpA 300 52 JULI 23 1/60 80% SMEA SpA 300 53 JULI 24 1/60 80% SMEA SpA 300 54 JULI 25 80% SMEA SpA 300 55 JULI 27 B, 1/10 80% SMEA SpA 48 56 JULI 27, 1/30 80% SMEA SpA 146 57 JULI 28, 1/60 80% SMEA SpA 300 58 JULI 9, 1/60 80% SMEA SpA 300 59 JULIETA 10, 1/60 80% SMEA SpA 300 60 JULIETA 11 80% SMEA SpA 300 61 JULIETA 12 80% SMEA SpA 300 62 JULIETA 13 1/60 80% SMEA SpA 298 63 JULIETA 14 1/60 80% SMEA SpA 269 64 JULIETA 15 1/40 80% SMEA SpA 200 65 JULIETA 16 80% SMEA SpA 200 66 JULIETA 17 80% SMEA SpA 200 67 JULIETA 18 1/40 80% SMEA SpA 200 68 JULIETA 5 80% SMEA SpA 200 69 JULIETA 6 80% SMEA SpA 200 70 JULIETA 7 80% SMEA SpA 100 71 JULIETA 8 80% SMEA SpA 100 72 JULIETA 9 80% SMEA SpA 100 73 JULITA ¼ 80% SMEA SpA 4 74 LEONA 2A 1/4 80% SMEA SpA 10 75 LIMARI 1/15 80% SMEA SpA 66 76 LOA 1/6 80% SMEA SpA 30 For personal use only
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22 ASX: HCH TSXV: HCH OTCQX: HHLKF Hot Chili Limited ACN 130 955 725 First Floor, 768 Canning Highway, Applecross, Western Australia 6153 PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au @hotchiliIR @hotchililimited Productora Project N° License ID HCH % Held HCH % Earning Area (ha) Agreement Details 77 MAIPO 1/10 80% SMEA SpA 50 78 MONTOSA 1/4 80% SMEA SpA 35 NSR 3% 79 ORO INDIO 1A 1/20 80% SMEA SpA 82 80 PEGGY SUE 1/10 100% Frontera SpA 100 81 PRODUCTORA 1/16 80% SMEA SpA 75 82 SUERTE 1/7 100% SMEA SpA 21 83 SUERTE II 1/15 100% SMEA SpA 15 84 TOLTEN 1/14 80% SMEA SpA 70 85 URANIO 1/70 0% 350 25-year Lease Agreement US$250,000 per year (average for the 25 year term); plus 2% NSR all but gold; 4% NSR gold; 5% NSR non-metallic 86 ZAPA 1 1/10 80% SMEA SpA 100 87 ZAPA 1/6 80% SMEA SpA 6 GSR 1% 88 ZAPA 3 1/23 80% SMEA SpA 92 89 ZAPA 5A 1/16 80% SMEA SpA 80 90 ZAPA 7 1/24 80% SMEA SpA 120 TOTAL 14.514 Note. SMEA SpA is subsidiary company - 80% owned by Hot Chili Limited, 20% owned by CMP (Compañía Minera del Pacífico) Note. Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited. El Fuego Project Tenements Domeyko Project N° License ID HCH % Held HCH % Earning Area (ha) Agreement Details 1 ANTONIO 1 1/56 100% Frontera SpA 280 100% HCH Domeyko Purchase Option Agreement US$120,000 (already satisfied) US$100,000 payable by April 19th 2025 US$100,000 payable by April 19th 2026 US$200,000 payable by April 19th 2027 US$3.480,000 payable by April 19th 2028 NSR 1% 2 ANTONIO 1/40 100% Frontera SpA 200 3 ANTONIO 10 1/21 100% Frontera SpA 63 4 ANTONIO 19 1/30 100% Frontera SpA 128 5 ANTONIO 21 1/20 100% Frontera SpA 60 6 ANTONIO 36 1/15 100% Frontera SpA 74 7 ANTONIO 5 1/40 100% Frontera SpA 200 8 ANTONIO 9 1/40 100% Frontera SpA 193 9 CAZURRO 1 100% Frontera SpA 200 10 CAZURRO 2 100% Frontera SpA 200 11 CAZURRO 3 100% Frontera SpA 300 12 CAZURRO 4 100% Frontera SpA 300 13 CAZURRO 5 100% Frontera SpA 100 14 CAZURRO 6 100% Frontera SpA 200 15 CAZURRO 7 100% Frontera SpA 200 16 CAZURRO 8 100% Frontera SpA 200 17 CERRO MOLY 1 100% Frontera SpA 300 18 CERRO MOLY 2 100% Frontera SpA 300 19 CERRO MOLY 3 100% Frontera SpA 300 20 CERRO MOLY 4 100% Frontera SpA 300 21 CAZURRO 3 1/60 100% Frontera SpA 300 22 CAZURRO 4 1/60 100% Frontera SpA 300 23 CAZURRO 7 1/40 100% Frontera SpA 200 24 EMILIO 1 1/8 100% Frontera SpA 38 25 EMILIO 3 1/9 100% Frontera SpA 45 26 INES 1/40 100% Frontera SpA 200 27 LORENA 1/2 100% Frontera SpA 2 For personal use only
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23 ASX: HCH TSXV: HCH OTCQX: HHLKF Hot Chili Limited ACN 130 955 725 First Floor, 768 Canning Highway, Applecross, Western Australia 6153 PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au @hotchiliIR @hotchililimited Domeyko Project N° License ID HCH % Held HCH % Earning Area (ha) Agreement Details 28 MERCEDITA 1/7 100% Frontera SpA 22 29 PRIMO 1 1/6 100% Frontera SpA 36 30 SANTIAGUITO 5 1/24 100% Frontera SpA 114 31 DOMINOCEROS 1/20 (1/4) 100% Frontera SpA 20 100% HCH Dominoceros Purchase Option Agreement US$320,000 (already satisfied) US$680,000 payable by October 25th 2025 US$1000,000 payable by October 25th 2026 US$6.890,000 payable by October 25th 2027 32 CF SUR 1 100% Frontera SpA 300 33 CF SUR 2 100% Frontera SpA 300 34 CF SUR 3 100% Frontera SpA 300 35 CF SUR 4 100% Frontera SpA 300 36 CF SUR 5 100% Frontera SpA 200 37 CF SUR 6 100% Frontera SpA 300 38 CF SUR 7 100% Frontera SpA 300 39 CF SUR 8 100% Frontera SpA 300 40 CF SUR 9 100% Frontera SpA 200 41 CF SUR 10 100% Frontera SpA 200 42 CF SUR 11 100% Frontera SpA 300 43 CF SUR 12 100% Frontera SpA 300 44 CF SUR 13 100% Frontera SpA 300 45 CF SUR 14 100% Frontera SpA 300 46 CF SUR 15 100% Frontera SpA 200 47 CF SUR 16 100% Frontera SpA 300 48 CF SUR 17 100% Frontera SpA 300 49 CF SUR 18 100% Frontera SpA 300 50 CF SUR 19 100% Frontera SpA 300 51 CF SUR 20 100% Frontera SpA 300 52 CF SUR 21 100% Frontera SpA 300 53 CF SUR 22 100% Frontera SpA 300 54 CF SUR 23 100% Frontera SpA 200 55 CF SUR 24 100% Frontera SpA 200 56 CF SUR 25 100% Frontera SpA 300 57 CF SUR 26 100% Frontera SpA 300 58 CF SUR 27 100% Frontera SpA 300 59 CF SUR 28 100% Frontera SpA 200 60 CF SUR 29 100% Frontera SpA 300 61 CF SUR 30 100% Frontera SpA 200 62 CF SUR 31 100% Frontera SpA 300 63 CF SUR 32 100% Frontera SpA 300 64 CF SUR 33 100% Frontera SpA 300 65 CF SUR 34 100% Frontera SpA 300 66 CF SUR 35 100% Frontera SpA 300 67 KRETA ¼ 100% Frontera SpA The mining concession is included in San Antonio Purchase Option Agreement 68 MARI 1 100% Frontera SpA 300 69 MARI 1/12 100% Frontera SpA 64 The mining concession is included in San Antonio Purchase Option Agreement 70 MARI 6 100% Frontera SpA 300 71 MARI 8 100% Frontera SpA 300 TOTAL 16.055 Note. Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited. For personal use only
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24 ASX: HCH TSXV: HCH OTCQX: HHLKF Hot Chili Limited ACN 130 955 725 First Floor, 768 Canning Highway, Applecross, Western Australia 6153 PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au @hotchiliIR @hotchililimited San Antonio Project N° License ID HCH % Held HCH % Earning Area (ha) Agreement Details 1 MERCEDES 1/3 100% Frontera SpA 50 100% HCH San Antonio Purchase Option Agreement USD 300,000 already paid. US$1,000,000 payable September 30th 2024 US$1,000,000 payable September 30th 2025 US$2,000,000 payable by September 30th 2026 to exercise the El Fuego Option. (2 additional and conditional payments of USD 2,000,000, each one, to be paid by December 31, 2030 under certain conditions detailed at title “Tenement Changes During the Quarter” of this quarterly report.) 2 PORFIADA A 1/33 100% Frontera SpA 160 3 PORFIADA C 1/60 100% Frontera SpA 300 4 PORFIADA E 1/20 100% Frontera SpA 100 5 PORFIADA F 1/50 100% Frontera SpA 240 6 PORFIADA IX 1/60 100% Frontera SpA 300 7 PORFIADA VII 1/60 100% Frontera SpA 270 8 PORFIADA VIII 1/60 100% Frontera SpA 300 9 PRIMA 1 100% Frontera SpA 1 10 PRIMA 2 100% Frontera SpA 2 11 ROMERO 1/31 100% Frontera SpA 31 12 SAN ANTONIO 1/5 100% Frontera SpA 25 13 SAN JUAN SUR 1/5 100% Frontera SpA 10 14 SAN JUAN SUR 6/23 100% Frontera SpA 90 15 SANTIAGO Z 1/30 100% Frontera SpA 300 16 SANTIAGO 1/4 Y 20 100% Frontera SpA 75 17 SANTIAGO 15/19 100% Frontera SpA 25 18 SANTIAGO 21/36 100% Frontera SpA 76 19 SANTIAGO 37/43 100% Frontera SpA 26 20 SANTIAGO A, 1/26 100% Frontera SpA 244 21 SANTIAGO B, 1/20 100% Frontera SpA 200 22 SANTIAGO C, 1/30 100% Frontera SpA 300 23 SANTIAGO D, 1/30 100% Frontera SpA 300 24 SANTIAGO E, 1/30 100% Frontera SpA 300 TOTAL 3.725 Note. Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited. Cordillera Project N° License ID HCH % Held HCH % Earning Area (ha) Agreement Details 1 ALBORADA III 1/35 100% Frontera SpA 162 100% HCH Purchase Option Agreement USD 100,000 already paid US$200,000 payable by November 14th 2025 US$3,700,000 payable by November 14th 2027 NSR 1% for underground mining and 1,5% for open-pit mining 2 ALBORADA IV 1/20 100% Frontera SpA 54 3 ALBORADA VII 1/25 100% Frontera SpA 95 4 CAT IX 1/30 100% Frontera SpA 150 5 CATITA IX 1/20 100% Frontera SpA 100 6 CATITA XII 1/13 100% Frontera SpA 61 7 CORDILLERA 1/5 100% Frontera SpA 20 8 HERREROS 1/14 100% Frontera SpA 28 9 MINA HERREROS III 1/6 100% Frontera SpA 18 10 MINA HERREROS IV 1/10 100% Frontera SpA 23 11 PORSIACA 1/20 100% Frontera SpA 20 12 QUEBRADA 1/10 100% Frontera SpA 28 13 VETA 1/17 100% Frontera SpA 17 TOTAL 776 Note. Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited. For personal use only
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25 ASX: HCH TSXV: HCH OTCQX: HHLKF Hot Chili Limited ACN 130 955 725 First Floor, 768 Canning Highway, Applecross, Western Australia 6153 PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au @hotchiliIR @hotchililimited 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 For personal use only
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26 ASX: HCH TSXV: HCH OTCQX: HHLKF Hot Chili Limited ACN 130 955 725 First Floor, 768 Canning Highway, Applecross, Western Australia 6153 PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au @hotchiliIR @hotchililimited 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 Co rtadera production mine site referred to in th is 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 underpinnin g 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 becaus e 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 consider ed 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 For personal use only
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27 ASX: HCH TSXV: HCH OTCQX: HHLKF Hot Chili Limited ACN 130 955 725 First Floor, 768 Canning Highway, Applecross, Western Australia 6153 PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au @hotchiliIR @hotchililimited 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 overal l 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 strat egy 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; antici pated 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, ong oing 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 Re port; 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; m arket 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 outbrea k 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 resp ect 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 exp enditures; 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 e xploration, 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. For personal use only
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28 ASX: HCH TSXV: HCH OTCQX: HHLKF Hot Chili Limited ACN 130 955 725 First Floor, 768 Canning Highway, Applecross, Western Australia 6153 PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au @hotchiliIR @hotchililimited Mineral Resource Statement Costa Fuego Combined Mineral Resource (Effective Date 26 February 2024) 1 Mineral Resources are reported on a 100% Basis - combining Mineral Resource estimates for the Cortadera, Productora, Alice and San Antonio deposits. All figures are rounded, reported to appropriate significant figures and reported in accordance with the Joint Ore Reserves Committee Code (2012) and NI 43 -101. Mineral Resource estimation practices are in accordance with CIM Estimation of Mineral Resource and Mineral Reserve Best Practice Guidelines (29 November 2019) and reported in accordance CIM Definition Standards for Mineral Resources and Mineral Reserves (1 0 May 2014) that are incorporated by reference into NI 43-101. 2 Mineral Resources are inclusive of the Mineral Reserve 3 The Productora deposit is 100% owned by Chilean incorporated company Sociedad Minera El Aguila SpA (SMEA). SMEA is a joint venture (JV) company – 80% owned by Sociedad Minera El Corazón SpA (a 100% subsidiary of Hot Chili), and 20% owned by Compañía Mine ra del Pacífico S.A (CMP). 4 The Cortadera deposit is controlled by a Chilean incorporated company Sociedad Minera La Frontera SpA (Frontera). Frontera is a subsidiary company – 100% owned by Sociedad Minera El Corazón SpA, which is a 100% subsidiary of Hot Chili. 5 The San Antonio deposit is controlled through Frontera (100% owned by Sociedad Minera El Corazón SpA, which is a 100% subsi diary of Hot Chili Liited) and Frontera is party to an Option Agreement pursuant to which it can earn a 100% interest in the property. 6 The Mineral Resource Estimates (MRE) in the tables above form coherent bodies of mineralisation that are considered amenabl e to a combination of open pit and underground extraction methods based on the following parameters: Base Case Metal Prices: Copper US$ 3.00/lb, Gold US$ 1,700/oz, Molybdenum US$ 14/lb, and Silver US$20/oz. 7 All MRE were assessed for Reasonable Prospects of Eventual Economic Extraction (RPEEE) using both Open Pit and Block Cave E xtraction mining methods at Cortadera and Open Pit mining methods at the Productora, Alice and San Antonio deposits. 8 Metallurgical recovery averages for each deposit consider Indicated + Inferred material and are weighted to combine sulphide flotation and oxide leaching performance. Process recoveries: Cortadera – Weighted recoveries of 82% Cu, 55% Au, 81% Mo and 36% A g. CuEq(%) = Cu(%) + 0.55 x Au(g/t) + 0.00046 x Mo(ppm) + 0.0043 x Ag(g/t). San Antonio - Weighted recoveries of 85% Cu, 66% Au, 80% Mo and 63% Ag. CuEq(%) = Cu(%) + 0.64 x Au(g/t) + 0.00044 x Mo(ppm) + 0.0072 x Ag(g/t) Alice - Weighted recoveries of 81% C u, 47% Au, 52% Mo and 37% Ag. CuEq(%) = Cu(%) + 0.48 x Au(g/t) + 0.00030 x Mo(ppm) + 0.0044 x Ag(g/t). Productora – Weighted recoveries of 84% Cu, 47% Au, 48% Mo and 18% Ag. CuEq(%) = Cu(%) + 0.46 x Au(g/t) + 0.00026 x Mo(ppm) + 0.0021 x Ag(g/t). Costa Fue go – Recoveries of 83% Cu, 53% Au, 71% Mo and 26% Ag. CuEq(%) = Cu(%) + 0.53 x Au(g/t) + 0.00040 x Mo(ppm) + 0.0030 x Ag(g/t) 9 Copper Equivalent (CuEq) grades are calculated based on the 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 base case cut-off grade for Mineral Resources considered amenable to open pit extraction methods at the Cortadera, Productora, Alice and San Antonio deposits is 0.20% CuEq, while the cut-off grade for Mineral Resources considered amenable to underground extraction methods at the Cortadera deposit is 0.27% CuEq. It is the Company’s opinion that all the elements included in the CuEq calculation have a re asonable potential to be recovered and sold. 10 Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. The MRE include Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorised as Mineral Reserves. It is reasonably expected that the majority of Inferred mineral resources could be upgraded to Measured or Indicated Mineral Resources with continued exploration. For personal use only
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29 ASX: HCH TSXV: HCH OTCQX: HHLKF Hot Chili Limited ACN 130 955 725 First Floor, 768 Canning Highway, Applecross, Western Australia 6153 PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au @hotchiliIR @hotchililimited 11 The effective date of the MRE is 26 February 2024. The MRE were previously reported in Hot Chili’s technical report entitl ed "Costa Fuego Copper Project – NI 43-101 Technical Report Mineral Resource Estimate Update" dated 8 April 2024 with an effective date of 26 February 2024 (the "2024 MRE"). Hot Chili confirms it is not aware of any new information or data that materially affects the information included in the 2024 PEA and all material assumptions and technical parameters stated for the MRE in the 2024 PEA continue to apply and have not materially changed. 12 Hot Chili Limited is not aware of political, environmental, or other risks that could materially affect the potential development of the Mineral Resources other than as disclosed in the 2024 PEA. A detailed list of Costa Fuego Project risks is included in Chapter 25.12 of the 2024 PEA. . For personal use only
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30 Costa Fuego Mineral Reserve Estimate (March 2025) Grade Contained Metal Tonnes Cu Au Ag Mo Cu Au Ag Mo (Mt) (%) (g/t) (g/t) (ppm) (kt) (koz) (koz) (kt) Open Pit Concentrator Proven - - - - - - - - - Probable 293 0.36 0.08 0.37 113 1 043 728 3 517 33 Total 293 0.36 0.08 0.37 113 1 043 728 3 517 33 Heap Leach Proven - - - - - - - - - Probable 41 0.35 0.07 0.43 35 142 96 563 1 Total 41 0.35 0.07 0.43 35 142 96 563 1 Dump Leach Proven - - - - - - - - - Probable 22 0.13 0.03 0.23 41 29 20 168 1 Total 22 0.13 0.03 0.23 41 29 20 168 1 Combined Proven - - - - - - - - - Probable 356 0.34 0.07 0.37 98 1 213 844 4 248 35 Total 356 0.34 0.07 0.37 98 1 213 844 4 248 35 Underground Concentrator Proven - - - - - - - - - Probable 146 0.44 0.16 0.79 93 645 734 3 704 14 Total 146 0.44 0.16 0.79 93 645 734 3 704 14 Combined (Open Pit and Underground) Proven - - - - - - - - - Probable 502 0.37 0.10 0.49 97 1 858 1 578 7 951 49 Total 502 0.37 0.10 0.49 97 1 858 1 578 7 951 49 1Mineral Reserves are reported on a 100% Basis - combining Mineral Reserve estimates for the Cortadera, Productora, Alice and San Antonio deposits, and have an effective date of 27 March 2025. 2An Ore Reserve (declared in accordance with JORC Code 2012) was previously reported at Productora, a component of Costa Fuego , on 2nd March 2016 on the ASX. The Company was not subject to the requirements of NI 43-101 at that time. 3Mineral Reserve estimation practices are in accordance with CIM Estimation of Mineral Resource and Mineral Reserve Best Pract ice Guidelines (29 November 2019) and reported in accordance CIM Definition Standards for Mineral Resources and Mineral Reserves (10 May 2014) that are incorporated by reference into NI 43-101. Mineral Reserve estimates are in accordance with the JORC Code. References to For personal use only
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31 "Mineral Reserves" mean "Ore Reserves" as defined in the JORC Code and references to "Proven Mineral Reserves" mean "Proved O re Reserves" as defined in the JORC Code. 4The Mineral Reserve reported above was not additive to the Mineral Resource. The Mineral Reserve is based on the 26 February 2024 Mineral Resource. 5Tonnages and grades are rounded to two significant figures. All figures are rounded, reported to appropriate significant figures and reported in accordance with the Joint Ore Reserves Committee Code (2012) and NI 43 -101. As each number is rounded individually, the table may show apparent inconsistencies between the sum of rounded components and the corresponding rounded total. 6Mineral Reserves are reported using long-term metal prices of US$4.30/lb Cu, US$2,280/oz Au, US$27/oz Ag, US$20/lb Mo. 7The Mineral Reserve tonnages and grades are estimated and reported as delivered to plant (the point where material is deliver ed to the processing facility) and is therefore inclusive of ore loss and dilution. 8The Productora deposit is 100% owned by Chilean incorporated company Sociedad Minera El Aguila SpA (SMEA). SMEA is a joint venture (JV) company – 80% owned by Sociedad Minera El Corazón SpA (a 100% subsidiary of Hot Chili), and 20% owned by Compañía Minera del Pacífico S.A (CMP). 9The Cortadera deposit is controlled by a Chilean incorporated company Sociedad Minera La Frontera SpA (Frontera). Frontera is a subsidiary company – 100% owned by Sociedad Minera El Corazón SpA, which is a 100% subsidiary of Hot Chili. 10The San Antonio deposit is controlled through Frontera (100% owned by Sociedad Minera El Corazón SpA, which is a 100% subsidiary of Hot Chili) and Frontera is party to an Option Agreement pursuant to which it can earn a 100% interest in the property. 11The Mineral Reserve Estimate as of 27 March 2025 for Costa Fuego was prepared by Anton von Wielligh, Fellow with the AUSIMM (FAUSIMM). Mr. von Wielligh fulfils the requirements to be a "Qualified Person" within the meaning of NI 43-101 and is the Competent Person under JORC for the Mineral Reserve. 12Hot Chili Limited is not aware of political, environmental, or other risks that could materially affect the potential development of the Mineral Reserves other than those that will be disclosed in a technical report for the PFS. A detailed list of Costa Fuego Project risks is also included in Chapter 25.12 of the 2024 PEA. For personal use only
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32 Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report Name of entity Hot Chili Limited ABN Quarter ended (“current quarter”) 91 130 955 725 31 March 2025 Consolidated statement of cash flows Current quarter $A’000 Year to date (9 months) $A’000 1. Cash flows from operating activities - - 1.1 Receipts from customers 1.2 Payments for (7,894) (16,751) exploration & evaluation * (a) development - - (b) production - - (c) staff costs (437) (1,566) (d) administration and corporate costs (2,083) (4,571) 1.3 Dividends received (see note 3) - - 1.4 Interest received 88 444 1.5 Interest and other costs of finance paid - - 1.6 Income taxes paid - - 1.7 Government grants and tax incentives - - 1.8 Other (provide details if material) - - 1.9 Net cash from / (used in) operating activities (10,326) (22,444) * Included in this amount was $4.0m related to the advancement of the Costa Fuego and Huasco Water PFS and the Costa Fuego EIA. Approx $3.9m was spent on exploration and drilling activities on the La Verde discovery and surrounding Domeyko landholding. 2. Cash flows from investing activities - - 2.1 Payments to acquire or for: (a) entities (b) tenements (1,082) (3,554) (c) property, plant and equipment (11) (70) (d) exploration & evaluation - - (e) investments - - (f) other non-current assets - - 2.2 Proceeds from the disposal of: - - (a) entities (b) tenements - - For personal use only
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33 Consolidated statement of cash flows Current quarter $A’000 Year to date (9 months) $A’000 (c) property, plant and equipment - - (d) investments - - (e) other non-current assets - - 2.3 Cash flows from loans to other entities - - 2.4 Dividends received (see note 3) - - 2.5 Other - - 2.6 Net cash from / (used in) investing activities (1,093) (3,624) 3. Cash flows from financing activities - - 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities - - 3.3 Proceeds from exercise of options - - 3.4 Transaction costs related to issues of equity securities or convertible debt securities - (117) 3.5 Proceeds from borrowings - - 3.6 Repayment of borrowings - - 3.7 Transaction costs related to loans and borrowings - - 3.8 Dividends paid - - 3.9 Other (provide details if material) - - 3.10 Net cash from / (used in) financing activities - (117) 4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 19,032 33,742 4.2 Net cash from / (used in) operating activities (item 1.9 above) (10,326) (22,444) 4.3 Net cash from / (used in) investing activities (item 2.6 above) (1,093) (3,624) 4.4 Net cash from / (used in) financing activities (item 3.10 above) - (117) 4.5 Effect of movement in exchange rates on cash held (100) (44) 4.6 Cash and cash equivalents at end of period 7,513 7,513 For personal use only
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34 5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts Current quarter $A’000 Previous quarter $A’000 5.1 Bank balances 2,513 14,032 5.2 Call deposits 5,000 5,000 5.3 Bank overdrafts - - 5.4 Other (provide details) - - 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 7,513 19,032 6. Payments to related parties of the entity and their associates Current quarter $A'000 6.1 Aggregate amount of payments to related parties and their associates included in item 1 126 6.2 Aggregate amount of payments to related parties and their associates included in item 2 - Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments. 7. Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 7.1 Loan facilities - - 7.2 Credit standby arrangements - - 7.3 Other (please specify) - - 7.4 Total financing facilities - - 7.5 Unused financing facilities available at quarter end - 7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well. For personal use only
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35 8. Estimated cash available for future operating activities $A’000 8.1 Net cash from / (used in) operating activities (item 1.9) (10,326) 8.2 (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) - 8.3 Total relevant outgoings (item 8.1 + item 8.2) (10,326) 8.4 Cash and cash equivalents at quarter end (item 4.6) 7,513 8.5 Unused finance facilities available at quarter end (item 7.5) - 8.6 Total available funding (item 8.4 + item 8.5) 7,513 8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) 0.73 Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7. 8.8 If item 8.7 is less than 2 quarters, please provide answers to the following questions: 8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not? Significant reduction in cash outflows are expected due to the release of both the Costa Fuego and Huasco Water PFS during the quarter, with only optimisation activities expected during the next two quarters. Exploration activities will also be significantly reduced, with drilling activities at La Verde having been completed on 10th April 2025. Future cash outflows are expected to be reduced by 60-65% compared to this quarter. 8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful? The Company is expected to receive $5m in JV recoup and VAT refunds over the coming months. The Company continues to advance potential strategic funding discussions with asset level investment opportunities for Costa Fuego and Huasco Water. 8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? Any future drilling will be targeted and cost effective and funded by working capital. Drilling can be postponed at any time to ensure commitments in the next two quarters can be met. Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered. For personal use only
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36 Compliance statement 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A. 2 This statement gives a true and fair view of the matters disclosed. Date: 24th April 2025 Authorised by: By the Board (Name of body or officer authorising release – see note 4) Notes 1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so. 2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report. 3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity. 4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [name of board committee – eg Audit and Risk Committee]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”. 5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively. For personal use only