Hot Chili Quarterly Report Period Ending June 30, 2025

PERTH, Australia, July 29, 2025 /PRNewswire/ - HighlightsLatest Drill Results Double La Verde Porphyry Discovery FootprintCompletion of phase-one Reverse Circulation ("RC") drilling programme confirms significant copper-gold (Cu-Au) discovery, with mineralisation extending over 1 km in length and up to 750 m in width from near surface.Discovery remains open laterally and at depth, with over half of Hot Chili's drill holes ending in mineralisation.Significant intercepts from latest drill results included:389 m grading 0.4% Cu and 0.1 g/t Au from 4 m depth to end-of-hole (DKP030)including 46 m at 0.6% Cu and 0.2 g/t Au from 238 mincluding 34 m at 0.6% Cu and 0.2g/t Au from 322 m286 m grading 0.3% Cu and 0.1 g/t Au from 4 m depth (DKP027)including 154 m at 0.4% Cu, 0.1g/t Au from 44 mDistrict-Scale Porphyry Cluster Potential Emerging at La VerdeGeophysical and surface geochemical Programmes identify a cluster of three large targets adjacent to the La Verde porphyry discovery.Phase-two expansion drilling of La Verde and first drilling across adjacent porphyry targets awaiting access approval.Projects Registered for Priority Status by Chilean Ministry of EconomyCosta Fuego Copper-Gold Project and Huasco Water Project fulfilled key requirements to be considered in the Chilean government's list of strategic investment projects for the country to expedite through streamlined administrative approval processing.Hot Chili Adds Mine-Build Credentials with Key AppointmentsHigh profile Australian mining executive and former Gold Fields executive vice president Mr Stuart Mathews appointed to the Board of Directors in the role of Non-Executive Chair.Well regarded Chilean mining executive and project director for several of Chile's largest mine developments, Mr Alberto Cerda, has been appointed to the executive role of Project Director.Strategic Partnering Process AdvancingOngoing strategic partnering process to secure qualified partners to support funding and delivery of Costa Fuego and Huasco Water, with BMO Capital Markets appointed as financial advisor.A$5.2M Cash & A$2.0M in Returns Expected (VAT reimbursements)Cautionary Statement – JORC Code (2012)The Costa Fuego Copper-Gold Project is currently at the Pre-Feasibility Study ("PFS") stage. The production targets and forecast financial information contained in this report are based on technical and economic assessments that are preliminary in nature. While the PFS incorporates Measured, Indicated, and Inferred Mineral Resources, there is a lower level of geological confidence associated with Inferred Mineral Resources, and no certainty that further exploration or development will result in the conversion of Inferred Mineral Resources to Indicated or Measured categories.The PFS is not a definitive study and is based on a number of assumptions, including commodity prices, capital and operating costs, metallurgical recoveries, permitting, and other factors, which are subject to change. The outcomes of the PFS should not be used as the basis for a final investment decision. Further work, including additional drilling, metallurgical testing, and detailed engineering, is required before the Company can make a decision to proceed to development.Of the Mineral Resources scheduled for extraction in the PFS production plan, more than 99% are classified as Indicated, with the remaining The Mineral Resources underpinning the production target in the PFS 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 27 March 2025.To achieve the outcomes indicated in the PFS, including reaching Definitive Feasibility Study ("DFS"), mine construction and production stages, funding in the order of US$1.27 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.The Company cautions that there is no certainty that the results or estimates contained in the PFS will be realised.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 PFS.SUMMARY OF OPERATIONAL ACTIVITIESLa Verde Exploration UpdateRapidly Expanding Discovery, Multiple Higher-Grade Centres ConfirmedThe phase-one RC drilling programme across the La Verde copper-gold porphyry discovery ("La Verde"), located 30km south of the Company's Costa Fuego Copper-Gold Project ("Costa Fuego"), was completed on 8 April 2025 with a total of 31 RC drillholes for 9,630 m drilled. Final results from the phase-one drill programme reported during the quarter confirm:Three higher-grade centres defined by multiple intersections (refer Figure 1)Shallow copper-gold (Cu-Au) mineralisation extending over 1 km in length and up to 750 m in width (refer Figure 2).The La Verde discovery remains open laterally and at depth with over half of Hot Chili's drilling ending in mineralisation (at depth of RC drill capability).Significant drill results reported during the quarter included: 389 m grading 0.4% Cu and 0.1 g/t Au from 4 m depth to end-of-hole (DKP030)including 46 m at 0.6% Cu and 0.2 g/t Au from 238 mincluding 34 m at 0.6% Cu and 0.2g/t Au from 322m 120 m grading 0.4% Cu and 0.1 g/t Au from 6 m depth (DKP028)including 48 m at 0.5% Cu and 0.1 g/t Au from 26 mand, 114m at 0.3% Cu, 0.1g/t Au from 318m depth to end-of-holeincluding 34m at 0.4% Cu, 0.2g/t Au from 380 m to end-of-hole 114 m grading 0.4% Cu from 86 m depth (DKP024)including 52 m at 0.5% Cu and 0.1 g/t Au from 96 m 286 m grading 0.3% Cu and 0.1 g/t Au from 4 m depth (DKP027)including 154 m at 0.4% Cu, 0.1g/t Au from 44 m228 m grading 0.3% Cu and 0.2 g/t Au from 42 m depth (DKP013)including 104 m at 0.4% Cu and 0.3 g/t Au from 42 m 202 m grading 0.3% Cu and 0.1 g/t Au from 50 m depth (DKP017)including 14 m at 0.4% Cu and 0.1 g/t Au from 96 mincluding 16 m at 0.4% Cu and 0.1 g/t Au from 180 m 138 m grading 0.3% Cu and 0.1 g/t Au from 6m depth to end-of-hole (DKP020)including 24 m at 0.4% Cu and 0.1 g/t Au from 6 mincluding 48 m at 0.4% Cu and 0.1 g/t Au from 36 mincluding 36 m at 0.4% Cu and 0.1 g/t Au from 102 mThe Company is planning to commence diamond drilling planned for phase two to extend higher grade centres at depth. Regulatory application for phase-two drilling access has been submitted and is progressing.Baseline studies for a second Environmental Impact Assessment ("EIA") are ongoing to ensure timely integration of La Verde into Costa Fuego's potential future mine plan.District-Scale Porphyry Cluster Potential Emerging at La Verde Regional exploration activities reported during the quarter have identified multiple look-alike magnetic features adjacent to La Verde highlight potential for a broader district-scale porphyry system.The integration of a 3D magnetic inversion model from ground magnetic data shows a spatial correlation between the mineralised tonalitic porphyry intrusion and a NNE-SSW trending weakly magnetic anomaly over La Verde. This magnetic anomaly sits within a localised circular magnetic-low feature. This relationship has been used to identify three additional circular magnetic-low features (lookalike targets) adjacent to La Verde, all of which are well-positioned at the intersection point of major regional structures (Figure 3).In addition to the geophysical data, the Company has also completed 3D geochemical probability modelling using an extensive regional soil geochemistry programme (Figure 4).This work has outlined three priority porphyry targets as outlined in Figure 3, with two of these porphyry targets concealed under shallow gravel cover (blind exploration opportunity). Regulatory applications for access clearing are being progressed across these new target areas adjacent to La Verde. 0.014). Right – shown in relation to mapped gravel cover, interpreted regional structures and soil sample coverage. A - A' indicates the position of long section in Figure 4. (CNW Group/Hot Chili Limited)" alt="Figure 3. Plan view showing the La Verde +0.2% Cu mineralisation interpolant in relation to regional magnetic destruction footprint (red dashed), local magnetic low features (white dashed), weakly magnetic anomalies (white line) and Fathom 3D geochemical probability models (purple isosurfaces). Left – shown overlain on reduced-to-the-pole (RTP) ground magnetics and the 3D magnetic inversion model (sliced at 850 RL, displayed as blocks, filtered for Magnetic Susceptibility > 0.014). Right – shown in relation to mapped gravel cover, interpreted regional structures and soil sample coverage. A - A' indicates the position of long section in Figure 4. (CNW Group/Hot Chili Limited)" /> 0.014) and 3D geochemical target at La Verde North-East. Local circular magnetic low features are outlined (white dashed line) and locations where shallow weakly magnetic anomalies extend to the surface are marked with blue arrows. Position of 850 RL depth shown for 3D magnetic inversion model slice in Figure 3. (CNW Group/Hot Chili Limited)" alt="Figure 4. Long section view A - A' facing north-west showing the La Verde +0.2% (yellow) and +0.3% copper (red) mineralisation interpolants in comparison to the 3D magnetic inversion model (displayed as blocks, filtered for Magnetic Susceptibility > 0.014) and 3D geochemical target at La Verde North-East. Local circular magnetic low features are outlined (white dashed line) and locations where shallow weakly magnetic anomalies extend to the surface are marked with blue arrows. Position of 850 RL depth shown for 3D magnetic inversion model slice in Figure 3. (CNW Group/Hot Chili Limited)" />Table 1 - Drill Holes Completed for Costa Fuego in Quarter 2 2025ProspectHole IDNorthEastRLDepthAzimuthDipResultsLa VerdeDKP03167857863245601123279272-60No Significant Intersection Table 2 – Significant Intersections returned for Costa Fuego in Quarter 2 2025Hole_IDCoordinatesAzim.DipHole DepthIntersectionIntervalCopperGoldSilverMolybdenumNorth EastRLFromTo(m)(% Cu)(g/t Au)(ppm Ag)(ppm Mo)DKP01367859713248391192244-60437422702280.30.20.37Incl421461040.40.30.36Or Incl50116660.50.30.352964371410.20.10.419Incl334358240.30.10.718DKP01467858523247471149299-61444012120.30.10.37194204100.30.20.45306402960.30.10.620And incl340352120.40.10.914And incl366376100.40.20.814424444200.20.00.529DKP01567860963244341159130-60313234320.30.00.9221763131370.20.10.529Incl23624260.40.10.920DKP01667859473244161111111-60360048480.40.00.639Incl022220.60.00.623286304180.30.10.952DKP0176786094324685118497-61336502522020.30.10.531Incl96110140.40.10.312And incl14415280.40.21.255And incl180196160.40.10.555DKP0186785835324429109497-60145161341180.20.00.424Incl2046260.30.00.819DKP01967857203247181130253-61279.5106144380.30.10.516Incl11412280.50.20.725202279.577.50.30.10.527DKP02067857483245861125273-6014461441380.30.10.923Incl630240.40.11.16And incl3684480.40.10.920And incl102138360.40.10.831DKP0216785619324325117875-60402118128100.30.00.418234314800.30.10.421Incl284300160.40.10.613324370460.30.10.614DKP0226785527324414118478-60288442021580.20.00.418Incl4466220.40.10.511232288560.20.00.518Incl25025880.50.01.621And incl28228860.30.11.024DKP0236785421324320118190-6040274100260.30.10.421172196240.30.00.8382543661120.30.10.626DKP02467854243244171186111-59402543603060.30.00.728Incl862001140.40.00.723Or Incl96148520.50.10.816And incl32833460.40.11.222DKP02567853133244151186270-74276341621280.20.00.526Incl126136100.30.00.362DKP02667858703243121098105-6014701471470.20.00.613Incl016160.40.10.623DKP02767857553249061138299-6040242902860.30.10.431Incl441981540.40.10.532Or Incl6476120.50.10.315DKP02867856173247581136300-6043261261200.40.10.712Incl1020100.50.11.25And Incl2674480.50.10.8133184321140.30.10.553Incl380414340.40.20.9106Or Incl384396120.50.21.1221DKP02967856153247581136265-603666102960.30.10.9195464100.40.10.827112206940.20.00.344252264120.40.01.633304366620.20.00.343DKP03067857703247741132275-6039343933890.40.10.921Incl2030100.50.20.54And incl1862861000.50.10.935Or Incl238284460.60.20.949And incl322356340.60.20.928DKP03167857893245641128279-60279No significant intersectionSUMMARY OF CORPORATE ACTIVITIESStrategic Partnering ProcessFollowing completion of the Pre-feasibility Studies ("PFS") for Costa Fuego and Huasco Water, Hot Chili initiated asset-level strategic partnering processes ("Partnering Process") to introduce one or more qualified partners with the financial, technical and operational capability to assist in funding and delivering each project.The Partnering Process is ongoing, and the Company confirms it is currently assessing several non-binding, indicative, incomplete and conditional proposals. The Partnering Process may result in a range of possible transactions for the projects. Investors are cautioned that there is no certainty the Partnering Process will result in a transaction or binding agreement. The Company will keep the market updated in accordance with its continuous disclosure obligations. Hot Chili has appointed BMO Capital Markets as its financial adviser in connection with the Partnering Process.Cash Position and Capital Structure ChangesAs of 30 June 2025, the Company had cash of A$5.2 million and no debt. In addition, a further A$2.0M of inbound funds are expected over the coming quarter through government VAT reimbursements.The operating expenditure for quarter ended 30 June 2025 included payments for exploration and evaluation of A$3.3 million.Included in this amount was A$1.6 million related to the final invoices for the competition of the Costa Fuego and Huasco Water Pre-feasibility Studies, initial activities related to the optimisation of the two-studies, and ...Full story available on Benzinga.com