Hot Chili Quarterly Report Period Ending 30 September, 2025

News provided by

Hot Chili Limited

Oct 30, 2025, 07:00 ET

PERTH, Australia, Oct. 30, 2025 /CNW/ - 

Highlights

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A$14.1M Entitlement Offer Fully Subscribed

  • Completion of Entitlement Offer to all eligible shareholders, raising A$14.1M (before costs) in early September 2025.
  • Proceeds from the Entitlement Offer provide funding to deliver the following key milestones in the growth and development of Hot Chili's Costa Fuego copper-gold project (Costa Fuego), located in the coastal range of Chile:
    • Completion of the Company's asset-level, strategic partnering processes (Partnering Process) (as announced 5 August 2025), and
    • Commencement of phase-two diamond drilling at the La Verde copper-gold discovery (La Verde) is expected to facilitate a maiden mineral resource estimate.

Diamond Drilling Commences at La Verde Cu-Au Porphyry Discovery

  • Diamond drilling commenced in late September 2025 with one drill rig in operation on a double-shift basis.
  • Phase-two drilling follows the success of the Company's first-pass, 10,000m reverse circulation (RC) drill program, which confirmed a significant +0.2% Cu discovery footprint measuring 1,000 m by 750 m and extending up to 400 m vertical depth.
  • Second phase of drilling at La Verde aims to significantly expand the initial shallow porphyry discovery with diamond drilling targeting depth extensions to higher grade centres.
  • Impact modelling by Hot Chili has outlined potential for significant additional open pit material to be added to the front-end of Coast Fuego's 20 year mine schedule, providing both mine life growth and materially enhanced financial metrics to Hot Chili's March 2025 Pre-feasibility Study for Costa Fuego.
  • Three diamond drill holes complete to date with results pending.

Regulatory Approval for Expansion Drilling at La Verde

  • In early October 2025, the Company received approval1 to expand drill coverage across La Verde. This will provide access to test lateral and along-strike extensions at La Verde, as well as first-pass drilling of three look alike targets to test potential for a district-scale copper porphyry cluster.

____________________________________

1 Regulatory approval refers to a Sectoral Permit, which is the appropriate regulatory authorisation for a project of this scale. A full DIA (Environmental Impact Declaration) would be processed in a next drilling stage following current regulations. Hot Chili remains fully committed to transparency and environmental responsibility in every stage of the project.

Strategic Partnering Process Advancing

  • Ongoing asset-level Partnering Process, being led by BMO Capital Markets, to introduce one or more qualified partners with the financial, technical and operational capability to assist in funding and delivering of the Company's Costa Fuego and Huasco Water projects (as announced 5 August 2025).
  • Significant additional interest received in Hot Chili's asset-level Partnering Process during the quarter.

A$13.8M Cash and no debt

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 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 <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 Resources or that the production target itself will be realised. The viability of the development scenario envisaged in the PFS does not depend on the inclusion of Inferred Mineral Resources. 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 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 ACTIVITIES

Diamond Drilling Commences at La Verde Cu-Au Porphyry Discovery

Diamond drilling commenced on 22 September 2025 with one drill rig in operation on a double-shift basis. This second phase of drilling at La Verde aims to significantly expand the initial shallow porphyry discovery (Figure 1).

Phase-two drilling follows the success of the Company's first-pass 10,000 m RC drill program, which confirmed a significant +0.2% Cu discovery footprint measuring 1,000 m by 750 m and extending up to 400 m vertical depth.

Importantly, over half of Hot Chili's first pass drill holes ended in significant mineralisation at the capacity of RC drilling, leaving the porphyry discovery open at depth and laterally (Figure 2).

Phase-two diamond drilling will target depth extensions to three high-grade centres confirmed in Phase one (Figure 3).

Impact modelling by Hot Chili has outlined the potential for significant additional open pit material to be added to the front-end of Coast Fuego's 20 year mine schedule, providing both mine life growth and materially enhanced financial metrics to Hot Chili's March 2025 Pre-feasibility Study for Costa Fuego.

Three diamond drill holes are already complete, with all three drill holes visually recording wide intersections of porphyry-style copper mineralisation.  Assay results are pending and results will be announced to ASX following receipt of assays.

Note: Visual estimates of mineral abundance should never be considered a proxy or substitute for laboratory analyses where concentrations or grades are the factor of principal economic interest. Visual estimates also potentially provide no information regarding impurities or deleterious physical properties relevant to valuations.

Regulatory Green Light Paves Way for La Verde Expansion Drilling

In early October, an application to expand drill coverage across La Verde was approved. In addition, 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.

This recent regulatory approval allows Hot Chili to continue expanding La Verde, providing access to test:

  1. Further lateral and along-strike extensions to the La Verde footprint, and
  2. Potential for La Verde to be part of a district-scale copper porphyry cluster, with three nearby look-alike targets set for first-pass drilling.

Drill platform clearing is planned to start ahead of the arrival of a second RC drill rig to accelerate phase two drilling at La Verde.

Table 1 - Drill Holes Completed for Costa Fuego in Quarter 3 2025

Prospect

Hole ID

North

East

RL

Depth

Azimuth

Dip

Results

La Verde

DKP032

6785967

324835

1202

570

270

-60

Pending

SUMMARY OF CORPORATE ACTIVITIES

Strategic Partnering Process Advancing

Following completion of the Pre-feasibility Studies (PFS) for Costa Fuego and Huasco Water, Hot Chili initiated an asset-level strategic 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 continues to progress, with no material change to the status previously reported. The Company remains engaged in assessing a range of non-binding, indicative, incomplete and conditional proposals in relation to potential 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 has received significant additional interest in its asset-level Partnering Process during the quarter.

BMO Capital Markets has been appointed as financial adviser in connection with the Partnering Process.

The Company will continue to update the market in accordance with its continuous disclosure obligations.

Hot Chili Raises A$14.1M Under Fully Subscribed Entitlements Offer

In August 2025 the Company announced it was undertaking a non-renounceable, pro rata Rights Issue (Entitlement Offer), offering eligible shareholders 2 new fully paid ordinary shares for every 13 held as of 8 August 2025, at A$0.60 per share.

The Entitlement Offer received strong demand from Australian, Canadian and international shareholders, closing on 2 September 2025, raising A$14.1M before costs.

Proceeds from the fully subscribed Entitlement Offer, in addition to existing treasury, will provide funding to be used for the completion of the Company's asset-level strategic Partnering Process, diamond drilling at La Verde and for general working capital.

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 30 September 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 $180,000. This is comprised of directors' salaries and superannuation of $180,000.

Health, Safety, Environment and Quality

Field operations during the quarter included geological reconnaissance activities, DD drilling, field mapping, and sampling exercises across the Company's Costa Fuego project landholdings, focussed on 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 2. HSEQ Quarter 3 2025 Performance and Statistics

Deposit

Productora

Cortadera

All Projects

Timeframe

Q3
2025

Cum.²
2019

Q3
2025

Cum.²
2019

Q3
2025

Cum.²
2019

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

17

ISR index

0

0

0

498

0

573

IFR Index

0

38

0

39

0

41

Thousands of man-hours

4.7

104

4.5

305

12.9

459

Incidents on materials and assets

0

1

0

0

0

1

Environmental incidents

0

0

0

0

0

0

Headcount¹

18

12

11

29

40

49

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.

Tenement Changes During the Quarter

During the Quarter, Sociedad Minera La Frontera SpA (Frontera SpA) has claimed 2 mining exploration concessions (CF Sur 36 and CF Sur 37) and 2 mining exploitation concessions (Domeyko I 1/12 and Domeyko II 1/40), which are in the process of being constituted. 

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

Table 3. Current Tenement Holdings in Chile as of 30 September 2025

Cortadera Project Tenements

Cortadera Project

N°

License ID

HCH % Held

HCH % Earning

Area (ha)

Agreement Details

1

ALCENIA 1/10

100% SMEA 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


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


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


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


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


91

SIERRA SOLIS 1

100% SMEA SpA


200


92

SIERRA SOLIS 2

100% SMEA SpA


300


93

SIERRA SOLIS 3

100% SMEA SpA


300


94

SIERRA SOLIS 4

100% SMEA SpA


200


95

SIERRA SOLIS 5

100% SMEA SpA


300


96

SIERRA SOLIS 6

100% SMEA SpA


300


97

SIERRA SOLIS 7

100% SMEA SpA


300


98

SIERRA SOLIS 8

100% SMEA SpA


300



TOTAL



16.714


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.

Domeyko 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$170,000 (already satisfied)
US$150,000 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

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

CF SUR 36

100% Frontera SpA


200


68

CF SUR 37

100% Frontera SpA


200


69

DOMEYKO I 1/12

100% Frontera SpA


60


70

DOMEYKO II 1/40

100% Frontera SpA


200


71

KRETA ¼


100% Frontera SpA

16

The mining concession is included in SanAntonio

Purchase Option Agreement

72

MARI 1

100% Frontera SpA


300


73

MARI 1/12


100% Frontera SpA

64

The mining concession is included in San Antonio
Purchase Option Agreement

74

MARI 6

100% Frontera SpA


300


75

MARI 8

100% Frontera SpA


300



TOTAL



16.715


Note. Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited.

El Fuego Project Tenements

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 1,400,000 already paid.

US$1,000,000 payable February 8th 2026 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.

Qualifying Statements

The scientific and technical information relating to the Company's Costa Fuego project in this report has been derived from or is based on the Costa Fuego Copper project pre-feasibility study (the "Costa Fuego PFS" or 2025 PFS), which 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 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 2025 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 48 of presentation "Costa Fuego Preliminary Feasibility Study March 2025" released on 27 March 2025.

Conceptual Open Pit Shells

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

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

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

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

PFS Technical Report

For readers to fully understand the information in this report, they should read the PFS Technical Report available on SEDAR+ (www.sedarplus.ca) and at www.hotchili.net.au in its entirety titled "Costa Fuego Project, Chile, Preliminary Feasibility Study NI 43-101 Technical Report" dated 9 May 2025 with an effective date of 27 March 2025, including all qualifications, assumptions, limitations and exclusions. 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 report is subject to the assumptions and qualifications to be contained in the PFS Technical Report. The PFS Technical Report replaces and supersedes the technical report titled "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 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 report 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 report that relates to Mineral Resources, Exploration Results, and Ore Reserves for the Costa Fuego Project is based on information compiled by:

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

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

Disclaimer

This report has been prepared by management of Hot Chili Limited ("Hot Chili" or the "Company") and does not represent a recommendation to buy or sell securities of the Company. Investors should always consult their investment advisors prior to making any investment decisions. This report does not purport to be complete or contain all of the information that may be material to the current or future business, operations, financial condition or prospects of the Company and Hot Chili makes no representation or warranty, express or implied, as to the accuracy or completeness of the information contained in this report. 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. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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 report has been prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Classification System. These standards differ from the requirements of the U.S. Securities and Exchange Commission (SEC) and technical information contained in this report 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 report are in U.S. dollars unless otherwise noted.

Forward Looking Statements

Statements in this report 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, "estimate", "expect", "may", "might", "opportunity", "plan", "potential", "project", "proposed", "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 mineralisation that may be encountered if the Costa Fuego Project is developed.

In this report, forward-looking statements relate, among other things, to: the potential of the La Verde discovery; regulatory applications and approvals; and the Company's future exploration and other business plans.

Forward-looking statements involve known and unknown risks, uncertainties, and other factors, which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. A number of factors could cause actual results to differ materially from a conclusion, forecast or projection contained in the forward-looking statements in this announcement, including, but not limited to, the following material factors: the ability of drilling and other exploration activities to accurately predict mineralisation; operational risks; risks related to the cost estimates of exploration; sovereign risks associated with the Company's operations in Chile; changes in estimates of mineral resources or mineral reserves of properties where the Company holds interests; recruiting qualified personnel and retaining key personnel; future financial needs and availability of adequate financing; fluctuations in mineral prices; market volatility; exchange rate fluctuations; ability to exploit successful discoveries; the production at or performance of properties where the Company holds interests; ability to retain title to mining concessions; environmental risks; financial failure or default of joint venture partners, contractors or service providers; competition risks; economic and market conditions; and other risks and uncertainties described elsewhere in this announcement and elsewhere in the Company's public disclosure record.

Although the forward-looking statements contained in this report are based upon assumptions which the Company believes to be reasonable, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this announcement, the Company has made assumptions regarding: future commodity prices and demand; availability of skilled labour; timing and amount of capital expenditures; future currency exchange and interest rates; the impact of increasing competition; general conditions in economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; future tax rates; future operating costs; availability of future sources of funding; ability to obtain financing; and assumptions underlying estimates related to adjusted funds from operations. The Company has included the above summary of assumptions and risks related to forward-looking information provided in this announcement to provide investors with a more complete perspective on the Company's future operations, and such information may not be appropriate for other purposes. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom.

For additional information with respect to these and other factors and assumptions underlying the forward-looking statements made herein, please refer to the public disclosure record of the Company, including the Company's most recent Annual Report, which is available on SEDAR+ (www.sedarplus.ca) under the Company's issuer profile. New factors emerge from time to time, and it is not possible for management to predict all those factors or to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement.

The forward-looking statements contained in this announcement are expressly qualified by the foregoing cautionary statements and are made as of the date of this announcement. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking statement to reflect events or circumstances after the date of this announcement or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise. Investors should read this entire announcement and consult their own professional advisors to ascertain and assess the income tax and legal risks and other aspects of an investment in the Company.

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 (10 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 Minera 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% subsidiary 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 amenable 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 Extraction 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% Ag. 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% Cu, 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 Fuego – 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 reasonable 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.
  11. The effective date of the MRE is 26 February 2024. The MRE was previously reported in the 2024 PEA. Hot Chili Limited 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 2025 PFS. A detailed list of Costa Fuego Project risks is included in Chapter 25 of the 2025 PFS Technical Report titled "Costa Fuego Copper Project NI43-101 Technical Report Preliminary Feasibility Study" and dated 9 May 2025 (effective 27 March 2025), is available on SEDAR+ (www.sedarplus.ca) and the Company's website (www.hotchili.net.au).

Ore Reserve Statement

Costa Fuego Combined Ore Reserve (Effective Date 27 March 2025)

  1. Mineral 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.
  2. An 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.
  3. Mineral Reserve 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 (10 May 2014) that are incorporated by reference into NI 43-101. Mineral Reserve estimates are in accordance with the JORC Code.  References to "Mineral Reserves" mean "Ore Reserves" as defined in the JORC Code and references to "Proven Mineral Reserves" mean "Proved Ore Reserves" as defined in the JORC Code.
  4. The Mineral Reserve reported above was not additive to the Mineral Resource. The Mineral Reserve is based on the 26 February 2024 Mineral Resource.
  5. Tonnages 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.
  6. Mineral 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.
  7. The Mineral Reserve tonnages and grades are estimated and reported as delivered to plant (the point where material is delivered to the processing facility) and is therefore inclusive of ore loss and dilution.
  8. 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 Minera del Pacífico S.A (CMP).
  9. 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.
  10. The 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.
  11. The 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.
  12. Hot Chili Limited is not aware of political, environmental, or other risks that could materially affect the potential development of the Mineral Reserves other than as disclosed in the 2025 PFS. A detailed list of Costa Fuego Project risks is included in Chapter 25 of the 2025 PFS Technical Report titled "Costa Fuego Copper Project NI43-101 Technical Report Preliminary Feasibility Study" and dated 9 May 2025 (effective 27 March 2025), is available on SEDAR+ (www.sedarplus.ca) and the Company's website (www.hotchili.net.au).

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


30 September 2025

Consolidated statement of cash flows

Current quarter
$A'000

 Year to date
(3 months)
$A'000

1.

Cash flows from operating activities

-

-

1.1

Receipts from customers

1.2

Payments for

-

-


(a)  exploration & evaluation


(a)  development

-

-


(b)  production

-

-


(c)  staff costs

(595)

(595)


(d)  administration and corporate costs

(1,498)

(1,498)

1.3

Dividends received (see note 3)

-

-

1.4

Interest received

37

37

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

(2,056)

(2,056)


2.

Cash flows from investing activities

-

-

2.1

Payments to acquire or for:


(a)  entities


(b)  tenements

(544)

(544)


(c)  property, plant and equipment

-

-


(d)  exploration & evaluation

(2,369)

(2,369)


(e)  investments

-

-


(f)  other non-current assets

-

-

2.2

Proceeds from the disposal of:

-

-


(a)  entities


(b)  tenements

-

-


(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 (CMP recoup)

-

-

2.6

Net cash from / (used in) investing activities

(2,913)

(2,913)


3.

Cash flows from financing activities

 

14,189

 

14,189

 

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

(543)

(543)

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

13,646

13,646


4.

Net increase / (decrease) in cash and cash equivalents for the period



4.1

Cash and cash equivalents at beginning of period

5,189

5,189

4.2

Net cash from / (used in) operating activities (item 1.9 above)

(2,056)

(2,056)

4.3

Net cash from / (used in) investing activities (item 2.6 above)

(2,913)

(2,913

4.4

Net cash from / (used in) financing activities (item 3.10 above)

13,646

13,646

4.5

Effect of movement in exchange rates on cash held

(52)

(52)

4.6

Cash and cash equivalents at end of period

13,814

13,814

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

6,814

5,189

5.2

Call deposits

7,000

-

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)

13,814

5,189

 

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

180

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.


8.

Estimated cash available for future operating activities

$A'000

8.1

Net cash from / (used in) operating activities (item 1.9)

(2,056)

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)

(2,056)

8.4

Cash and cash equivalents at quarter end (item 4.6)

13,814

8.5

Unused finance facilities available at quarter end (item 7.5)

-

8.6

Total available funding (item 8.4 + item 8.5)

13,814




8.7

Estimated quarters of funding available (item 8.6
divided by item 8.3)

6.72

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?


N/A


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?


N/A


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?


            N/A


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.

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:  30 October 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.

SOURCE Hot Chili Limited

Organization Profile

Hot Chili Limited