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HCH.V ·

Hot Chili Quarterly Report - Period Ending 31 March 2026 PERTH, Australia ,

Financials

PERTH, Australia, April 30, 2026 /CNW/ -

Highlights

$40 Million Funding to Accelerate Growth & Development of Costa Fuego

A$40 million private placement during the quarter received strong demand from Australian, Canadian and overseas institutional investors, as well as the Company's three largest shareholders (Glencore, Blue Spec and GS Group).

The Company is now set to deliver strong growth and development milestones for its Costa Fuego copper-gold (Cu-Au) project (Costa Fuego) located in coastal Chile, including:

Delivery of a maiden Mineral Resource at La Verde;

Integration of La Verde into an expanded mine plan;

Completion and submission of an Environmental Impact Assessment (EIA); and Continuation of Feasibility studies.

Global Engineering Firm Ausenco Appointed for Feasibility Study

Major High-Grade Extensions Continue at La Verde

Drilling at the Company's La Verde copper-gold (Cu-Au) porphyry discovery in Chile accelerated during the quarter, with a second drill rig commencing in February

Widest drill result to date at La Verde, confirms a major extension to the deposits' rapidly growing high- grade core:

DKD0039 recorded 725 m grading 0.42% CuEq (0.36% Cu, 0.07 g/t Au) from 18 m depth down-hole, including:

22 m grading 0.71% CuEq (0.67% Cu, 0.03 g/t Au) from 42 m depth 46 m grading 0.65% CuEq (0.54% Cu, 0.12 g/t Au) from 249 m depth 51 m grading 0.62% CuEq (0.51% Cu, 0.10 g/t Au) from 433 m depth 62 m grading 1.03% CuEq (0.90% Cu, 0.18 g/t Au) from 671 m depth Assays pending for thirteen drill holes (seven diamond and six Reverse Circulation (RC)).

Higher-Grade Starter Pit Emerging

Assay results underpin an emerging, shallow zone of higher-grade Cu-Au mineralisation, outlining a potential higher-grade starter pit for Costa Fuego

Thirteen significant drill intersections now delineate +0.6% CuEq zone from surface to 250 m depth, demonstrating strong continuity of higher-grade material.

Additional significant intersections recorded from surface this quarter, included:

DKD036 recorded 150 m grading 0.52% CuEq2 (0.37% Cu, 0.21 g/t Au) from 30 m depth Including 38 m grading 0.70% CuEq (0.55% Cu, 0.21 g/t Au) from 117 m

DKD035 recorded 220 m grading 0.47% CuEq (0.37% Cu, 0.14 g/t Au) from 38 m depth

Including 68 m grading 0.64% CuEq (0.52% Cu, 0.15 g/t Au) from 187 m

Strong Cash Position of A$35.2M

Diamond and RC Drill rigs accelerating development of the La Verde Cu-Au discovery. (CNW Group/Hot Chili Limited)

SUMMARY OF OPERATIONAL ACTIVITIES

Major High-Grade Extensions Continue at La Verde

Phase two diamond drilling continued during the quarter at the Company's La Verde copper-gold (Cu-Au) porphyry discovery in Chile (La Verde). Drilling focused on continuing to expand the mineralised discovery footprint

Results were stronger than anticipated, with the depth extent doubling to 800 m from surface - significantly expanding the high-grade core laterally and up to surface.

A standout significant intersection of 725 m grading 0.42% CuEq1 from 18 m depth has been recorded in diamond drill hole DKD039, which was collared on the western extent of La Verde's discovery footprint (Figure 1), and intersected multiple wide zones of +0.6% CuEq1 mineralisation from near surface (Figure 2 and 3).

As the most significant result to date at La Verde, importantly, DKD039 achieved two key objectives:

Further extended near-surface higher-grade mineralisation by approximately 60 m to the west - recording 22 m grading 0.71% CuEq1 from 42 m depth within a wider intersection of 48 m grading 0.55% CuEq (0.50% Cu, 0.03 g/t Au) from 18 m depth, located immediately beneath shallow gravel cover, and Confirmed a significant 200 m down-dip extension of La Verde's high-grade core - recording 61 m grading 1.03% CuEq1 (0.90% Cu, 0.18 g/t Au, 1.81g/t Ag) from 671 m in association with high Cu/Au, A+B vein abundances >5% and massive and disseminated chalcopyrite (Figure 2).

Continued expansion and integration of La Verde's high-grade core into Costa Fuego's resource base and mining inventory is a priority this year.

Higher-Grade Cu-Au Starter Pit Emerging

Diamond drilling at La Verde has continued to test the shallow up-dip potential of La Verde's high-grade core, with significant intersections returned from drill holes DKD035, DKD036, DKD037 and DKD038.

A 450 m x 400 m higher-grade, near-surface copper-gold zone has been defined by thirteen significant intersection +0.6% CuEq at La Verde (Figure 4), including most recently:

DKD036 recorded 150 m grading 0.52% CuEq (0.37% Cu, 0.21 g/t Au) from 30 m depth Including 38 m grading 0.70% CuEq (0.55% Cu, 0.21 g/t Au) from 117 m, and DKD035 recorded 220 m grading 0.47% CuEq (0.37% Cu, 0.14 g/t Au) from 38 m depth Including 68 m grading 0.64% CuEq (0.52% Cu, 0.15 g/t Au) from 187 m

Similar to previous near-surface drill intersections, these latest significant results commence immediately beneath shallow gravel cover, indicating the potential for simple, cost-effective overburden removal in a future open pit development.

These results have the potential to contribute to a higher-grade starter pit for the Costa Fuego mine schedule, significantly reducing payback and positively impacting key financial metrics of Hot Chili's March 2025 Pre-Feasibility Study.

Confirming Bulk Tonnage Continuity

Further assay results reported during the quarter continue to confirm continuity of bulk tonnage mineralisation at La Verde, including:

DKD037 recorded 184 m grading 0.42% CuEq1 (0.32% Cu, 0.12 g/t Au) from 105 m depth including 22 m grading 0.60% CuEq (0.48% Cu, 0.15 g/t Au) from 203 m DKD038 recorded 221 m grading 0.37% CuEq1 (0.29% Cu, 0.11 g/t Au) from 48 m depth including 45 m grading 0.51% CuEq (0.37% Cu, 0.19 g/t Au) from 53 m

Drill hole DKD037 was designed to target a gap between two higher-grade zones, with assay results now confirming expansion and continuity of mineralisation across this zone (Figure 2). The significant intersection from DKD038 also commences immediately beneath shallow gravel cover (Figure 3).

La Verde Footprint Expands Further

During the quarter the diamond drill rig also completed four diamond drill tails, extending the mineralisation footprint reached by the RC drilling in Phase 1, which ended in mineralisation.

Assay results from diamond drill tail DKP009D extended La Verde's Cu-Au mineralisation footprint along the eastern flank of the discovery in the north (Figures 1 and 3). The drill hole was a 200 m diamond tail to earlier RC drill hole DKP009 and reported 68 m grading 0.42% CuEq (0.33% Cu, 0.11 g/t Au) from 354 m depth, extending mineralisation downhole of DKP009.

Similarly, diamond drill tail DKP012D extended the mineralisation footprint along the northern flank of the discovery. The drill hole was a 284 m diamond tail to earlier RC drill hole DKP012 and reported 132 m grading 0.36% CuEq (0.26% Cu, 0.05 g/t Au) from 306 m depth extending mineralisation downhole of DKP012. Several higher-grade zones were intercepted in the tail, confirming the system is still open and mineralised to the north and will be followed up with additional drilling along the interpreted NNE-trending structural corridor (Figure 2 and 4).

DKP006D and DKP021D extended the mineralisation along the eastern flank of the discovery in the south, with DKD021D recording an additional 54 m grading 0.42% CuEq (0.34% Cu, 0.11 g/t Au) from 593 m depth, including 19 m grading 0.66% CuEq (0.51% Cu, 0.21 g/t Au) from 593 m depth.

Including the new diamond tail extensions:

DKP009D now records 388 m grading 0.41% CuEq (0.32% Cu, 0.12 g/t Au) from 34 m DKP012D now records 394 m grading 0.46% CuEq (0.35% Cu, 0.11g/t Au) from 44 m DKP021D now records 194 m grading 0.32% CuEq (0.26% Cu, 0.06 g/t Au) from 284 m DKP006D now records 110 m grading 0.39% CuEq (0.27% Cu, 0.15 g/t Au) from 76 m

Diamond drilling has been instrumental in development of an early "4D litho-structural model" by the Company, with the interpretation of multiple intrusive phases optimising drill target design. Hot Chili geologists are applying the same targeting strategies that proved successful at the Company's nearby Cortadera Cu-Au porphyry Resource and anticipate these methods will continue to drive growth at La Verde.

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

Development Studies Progressing

Global engineering firm Ausenco – with offices in Chile and Australia – has been appointed as the lead engineering group to progress the Feasibility Study for the Costa Fuego project. The appointment follows a review of major engineering groups in Chile, with Ausenco's impressive execution of engineering, procurement, construction and ramp-up of the nearby, similar-scale, coastal project Mantoverde, a key factor in the decision.

Figure 1. Plan view map of La Verde showing returned diamond drilling compared with updated +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (magenta) mineralisation interpolants. Drilled holes with pending assays are shown in black. Position of A – A’ cross section (Figure 3) and B – B’ long section (Figure 4) annotated in black. Conceptual open pit shells1 displayed for $US3.50/lb Cu (blue) and $US6.00/lb Cu (green) displayed as dashed lines. Results reported including CuEq2. (CNW Group/Hot Chili Limited)

Legend for Figure 1. (CNW Group/Hot Chili Limited)

1 See Page 23 of this announcement for detail on the US$3.50 Cu and US$6.00 Cu conceptual open pit shells (Exploration Targets). Any potential tonnage and grade of the Exploration Target shown is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource within the target area, and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

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

Figure 2. Cross section slice along DKD039 (± 75m clipping) showing +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (magenta) mineralisation interpolants and returned assay results for DKD039, DKP012D, DKD037, DKP009D1. Returned Cu grades shown on hole traces.

Figure 2. Cross section slice along DKD039 (± 75m clipping) showing +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (magenta) mineralisation interpolants and returned assay results for DKD039, DKP012D, DKD037, DKP009D1. Returned Cu grades shown on hole traces. (CNW Group/Hot Chili Limited)

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

Figure 3. NNW facing longitudinal section of the La Verde porphyry system showing +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (magenta) mineralisation interpolants. Returned Cu grades shown on hole traces. Drilled holes with pending assays are shown in black. (CNW Group/Hot Chili Limited)

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

Figure 4. Plan view slice at 1025 m, clipped to +/- 125 m (surface is ~1150 mRL). Significant intersections are shown for the entire drill hole, where available. 13 drill intersections +0.6% CuEq inform the high-grade core within 250 m of surface. Drill holes with pending assays are shown in black. Updated +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (magenta) mineralisation interpolants included, drill hole intervals bolded by >0.6% CuEq1. (CNW Group/Hot Chili Limited)

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

Table 1. Drill Holes Completed for La Verde in Quarter 1 2026

ProspectHole IDNorthEastRLDepthAzi.DipResults
La VerdeDKP009D6,786,075324,5521,152555.3131-60Significant result returned Q4 2025
DKP012D6,785,977324,8391,192590.7300-60Significant result returned Q4 2025
DKD0396,785,723324,4201,15084054-60Significant result returned Q4 2025
DKD0406,785,901324,6291,13938160-59Results Pending
DKP0416,785,786324,5611,12439054-70Results Pending
DKD0426,785,902324,6351,140258.1299-70Results Pending
DKP0436,785,848324,5931,130342104-56Results Pending
DKD0446,785,738324,5081,131711.471-65Results Pending
DKP045D6,785,944324,4101,10930661-60Results Pending
DKP0466,786,015324,5911,153184230-59Results Pending
DKP0476,785,882324,3801,0906070-65Results Pending
DKP048D6,785,847324,7401,15130080-62Results Pending
DKD0496,785,852324,6001,126779.980-62Results Pending
DKP0506,785,739324,6251,12735475-60Results Pending

Table 2. Significant Drilling Intersections from La Verde in Quarter 1 2026

Hole IDCoordinatesAzi.DipHole DepthIntersectionIntervalCopperGoldSilverMolyb.
NorthEastRLFromTo(m)(% Cu)(g/t Au)(ppm Ag)(ppm Mo)
DKD0336,785,775324,7851,132274-6054334984950.380.100.727
Incl202239370.510.131.243
Incl2894121230.500.130.739
& Incl521543220.180.040.375
DKD0346,785,839324,4331,09699-597141946204260.370.080.732
Incl4265331070.460.101.023
Incl566618520.500.081.050
& Incl679714350.270.060.7183
DKD0356,786,027324,5961,15380-60278.5382582200.470.370.140.65
Incl121153320.560.410.200.68
& Incl187255680.640.520.150.88
Or Incl187207200.760.610.211.05
DKD0366,786,029324,5971,153130-54371.9301801500.520.370.210.86
Incl117155380.700.550.211.31
2383711330.420.330.120.46
Incl254289350.630.490.190.69
DKP006D6,785,721324,7271130110-60384.2761861100.390.270.150.84
Incl124172480.540.380.221.09
Or Incl124144200.740.490.351.36
& Incl22723360.590.420.250.38
254272180.490.400.130.41
DKP021D6,785,619324,325117875-60834.1118128100.300.270.030.41
2844781940.320.260.060.45
Incl286300140.430.370.080.61
& Incl437449120.510.400.100.81
593647540.420.340.110.61
Incl593612190.660.510.210.93
75776690.430.300.150.47
DKD0376,785,842324,5271,12269-63321.11052891840.420.320.120.61
Incl203281780.500.390.140.89
Or Incl203225270.600.480.150.64
DKD0386,786,088324,6851,185149-65306.4482692210.370.290.110.48
Incl5398450.510.370.190.30
& Incl1262351090.410.320.110.59
Or Incl175213380.500.400.130.77
DKD009D6,786,075324,5521,152131-60555.3344223880.410.320.120.67
Incl386398120.510.410.140.85
454499450.400.330.080.74
Incl45546270.600.490.131.14
DKD012D6,785,977324,8391,193300-60590.7444383940.460.350.110.53
Incl6282200.610.460.210.25
& Incl192202100.640.470.180.57
& Incl228308800.560.460.120.81
471493220.340.220.040.34
DKD0396,785,723324,4201,15054-60872.418.07447250.420.360.070.68
Incl42.464220.710.670.030.29
& Incl249.0295460.650.540.120.71
& Incl433.0484510.620.510.101.25
& Incl670.7732621.030.900.181.81
Or Incl693.1713201.511.300.292.26
800.3816160.450.390.070.89

Notes to Table 1: Significant intercepts for La Verde are reported above a nominal cut-off grade of 0.20% Cu. Reported intersections may include internal dilution (intervals below 0.20% Cu), including zones exceeding 30 m downhole width, where the overall weighted average grade of the intersection remains above the cut-off grade. Significant intersections are separated where zones of internal dilution result in discrete intervals that do not meet the reporting criteria. The selection of a 0.20% Cu cut-off grade is aligned with a marginal economic cut-off for bulk tonnage polymetallic copper deposits of comparable grade in Chile and globally. Significant intersection widths (interval) have been rounded to the nearest metre.

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

SUMMARY OF CORPORATE ACTIVITIES

Strategic Partnering Process Update

Hot Chili continues to advance its asset-level strategic Partnering Process, aimed at introducing one or more qualified partners with the financial, technical and operational capability to assist in funding and delivery of the projects.

During the quarter, engagement levels remained strong, with additional parties entering the Partnering Process, with several advancing through due diligence, including site visits. The Company has received further non-binding, indicative, incomplete and conditional proposals in relation to potential transactions for the Projects and remains actively engaged in assessing these alongside existing proposals.

The Partnering Process may result in a range of transactions for the Projects. Investors are cautioned that there is no certainty the Partnering Process will result in a transaction or binding agreement.

BMO Capital Markets continues to act as financial adviser in connection with the Partnering Process.

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

Successful Closing of A$40 Million Funding

In February 2026, the Company closed a A$40 million (before costs) private placement to institutional, professional and other investors. The placement is intended to support Costa Fuego's position as one of the few globally significant copper projects not controlled by major mining companies, with the potential to contribute substantially to new copper supply this decade.

Hot Chili issued a total of 24,242,425 shares made up of 13,209,698 ordinary fully paid shares at A$1.65 on the ASX and 11,032,727 ordinary fully paid shares at CAD$1.56 on the TSXV. Additionally, 1,212,121 broker options were issued at an exercise price of A$2.145 with an expiry date of 12 August 2028 to complete the capital raising transaction.

Proceeds will be used to accelerate drilling across the La Verde Cu-Au discovery to establish a maiden mineral resource and further define the potential size, scale and grade of a higher-grade starter pit for the Costa Fuego Project, development of the Company's Huasco Water Project, commencement of the Costa Fuego Feasibility Study, completion and submission of the Costa Fuego EIA, ongoing exploration, strategic funding activities and for general working capital purposes.

Cash Position

As of 31 March 2026, the Company had cash of A$35.2 million and no debt.

The operating expenditure for quarter ended 31 March 2026 included payments for staff costs of A$0.7 million and administration and corporate costs of A$1.7 million.

The investing expenditure for quarter ended 31 March 2026 included payments for tenements of A$2.3 million, including payments for US$1.0 million for the Dominoceros Purchase Option Agreement and US$0.3 million AMSA Purchase Option and payments for exploration and evaluation of A$3.1 million relating to activities across the La Verde copper-gold porphyry discovery, value engineering works and EIA submission activities.

Capital Structure

The following summarises the Company's securities on issue:

177,561,814 ordinary fully paid shares 1,914,000 options at AUD $1.50 expiring 24 July 2026 1,212,121 options at AUD $2.145 expiring 12 August 2028 1,176,563 service and performance rights

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 2026.

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 $234,000. This is comprised of directors' salaries and superannuation of $234,000.

Health, Safety, Environment and Quality

Field operations during the quarter included geological reconnaissance activities, diamond drilling, field mapping, and sampling exercises across the Company's Costa Fuego project landholdings, focused on La Verde. Activities on new tenements are run at the Productora or Cortadera operations centers and their safety statistics are included under the figures for all projects.

There was a single Lost Time Injury (LTI) during the quarter, where accidental contact with a damaged core tray injured a worker's hand.

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 3. HSEQ Quarter 1 2026 Performance and Statistics

DepositDomeykoProductoraAll Projects
TimeframeQ1 2026Cum.² 2024Q1 2026Cum.² 2024Q1 2026Cum.² 2024
LTI events100012
NLTI events000001
Days lost4000488
LTIFR index501300013
ISR index20154000579
IFR Index5013084020
Thousands of man-hours19.9744.24825.4152
Incidents on materials and assets000000
Environmental incidents000000
Headcount¹522317197437

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, 2024.

Tenement Changes During the Quarter

During the Quarter, the following mining exploration concessions have expired upon reaching their expiration date (March 30): Solar 1, Solar 3, Solar 5, Solar 7, Solar 9 Soledad 2 and Soledad 4.

In addition, the following exploitation concessions in process of being granted have been abandoned, as they do not hold priority rights over the overlapping area: Suerte 1/7, Suerte II 1/15, Domeyko I 1/12 and Domeyko II 1/40.

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

Table 4. Current Tenement Holdings in Chile as of March 31th 2026

Cortadera Project Tenements

Cortadera Project
N°License IDHCH % HeldHCH % EarningArea Agreement Details (ha)
1ALCENIA 1/10100% SMEA SpA50
2AMALIA 942 A 1/6100% Frontera SpA53
3ATACAMITA 1/82100% Frontera SpA82
4CORROTEO 1 1/260100% Frontera SpA260
5CORROTEO 5 1/261100% Frontera SpA261
6CORTADERA 1 1/200100% Frontera SpA200
7CORTADERA 1/40100% Frontera SpA374
8CORTADERA 2 1/200100% Frontera SpA200
9CORTADERA 41100% Frontera SpA1
10CORTADERA 42100% Frontera SpA1
11LAS CANAS 1/15100% Frontera SpA146
12LAS CANAS 16100% Frontera SpA1
13LAS CANAS ESTE 2003 1/30100% Frontera SpA300
14MAGDALENITA 1/20100% Frontera SpA100
15PAULINA 10 B 1/16100% Frontera SpA136
16PAULINA 11 B 1/30100% Frontera SpA249
17PAULINA 12 B 1/30100% Frontera SpA294
18PAULINA 13 B 1/30100% Frontera SpA264
19PAULINA 14 B 1/30100% Frontera SpA265
20PAULINA 15 B 1/30100% Frontera SpA200
21PAULINA 22 A 1/30100% Frontera SpA300
22PAULINA 24 1/24100% Frontera SpA183
23PAULINA 25 A 1/19100% Frontera SpA156
24PAULINA 26 A 1/30100% Frontera SpA294
25PAULINA 27A 1/30100% Frontera SpA300
26PURISIMA 1/8 (1/2 Y 5/6)100% Frontera SpA20NSR 1.5%
27CF 1100% Frontera SpA300
28CF 2100% Frontera SpA300
29CF 3100% Frontera SpA300
30CF 4100% Frontera SpA300
31CF 5100% Frontera SpA200
32CF 6100% Frontera SpA200
33CF 7100% Frontera SpA100
34CF 8100% Frontera SpA200
35CF 9100% Frontera SpA100
36CF 10100% Frontera SpA200
37CF 11100% Frontera SpA200
38CHAPULIN COLORADO 1/3100% Frontera SpA3
39CHILIS 1100% Frontera SpA200
40CHILIS 3100% Frontera SpA100
41CHILIS 4100% Frontera SpA200
42CHILIS 5100% Frontera SpA200
43CHILIS 6100% Frontera SpA200
44CHILIS 7100% Frontera SpA200
45CHILIS 8100% Frontera SpA200
46CHILIS 9100% Frontera SpA300
47CHILIS 10 1/38100% Frontera SpA190
48CHILIS 11100% Frontera SpA200
49CHILIS 12 1/60100% Frontera SpA300
50CHILIS 13100% Frontera SpA300
51CHILIS 14100% Frontera SpA300
52CHILIS 15100% Frontera SpA300
53CHILIS 16100% Frontera SpA300
54CHILIS 17100% Frontera SpA300
55CHILIS 18100% Frontera SpA300
56CORTADERA 1100% Frontera SpA200
57CORTADERA 2100% Frontera SpA200
58CORTADERA 3100% Frontera SpA200
59CORTADERA 4100% Frontera SpA200
60CORTADERA 5100% Frontera SpA200
61CORTADERA 6 1/60100% Frontera SpA265
62CORTADERA 7 1/20100% Frontera SpA93
63CRISTINA 1/40100% SMEA SpA40
64DIABLITO 1/5100% SMEA SpA25
65DONA FELIPA 1/10100% Frontera SpA50
66DORO 1100% Frontera SpA200
67DORO 2100% Frontera SpA200
68DORO 3100% Frontera SpA300
69FALLA MAIPO 2 1/10100% Frontera SpA99
70FALLA MAIPO 3 1/8100% Frontera SpA72
71FALLA MAIPO 4 1/26100% Frontera SpA26
72MINORI 1100% SMEA SpA300
73MINORI 2100% SMEA SpA300
74MINORI 3100% SMEA SpA300
75MINORI 4100% SMEA SpA300
76PORFIADA B100% Frontera SpA200
77PORFIADA D100% Frontera SpA300
78PORFIADA G100% Frontera SpA200
79PORFIADA I100% Frontera SpA300
80PORFIADA II100% Frontera SpA300
81PORFIADA III100% Frontera SpA300
82PORFIADA IV100% Frontera SpA300
83PORFIADA V100% Frontera SpA200
84PORFIADA VI100% Frontera SpA100
85PORFIADA X100% Frontera SpA200
86SAN ANTONIO 1100% Frontera SpA200
87SAN ANTONIO 2100% Frontera SpA200
88SAN ANTONIO 3100% Frontera SpA300
89SAN ANTONIO 4100% Frontera SpA300
90SAN ANTONIO 5100% Frontera SpA300
92SOLAR 2100% Frontera SpA300
94SOLAR 4100% Frontera SpA300
96SOLAR 6100% Frontera SpA300
98SOLAR 8100% Frontera SpA300
100SOLAR 10100% Frontera SpA300
101SOLEDAD 1100% Frontera SpA300
103SOLEDAD 3100% Frontera SpA300
105MARINA 1/10100% Frontera SpA100
106CATITA V 1/9100% Frontera SpA9
107CHILIS 19100% Frontera SpA300
108PAULINA100% Frontera SpA100
TOTAL21.062

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

Productora Project Tenements

Productora Project
N°License IDHCH % HeldHCH % EarningArea Agreement Details (ha)
1ALGA 7 A 1/3280% SMEA SpA89
2ALGA VI 4100% SMEA SpA2
3ALGA VI 5/2480% SMEA SpA66
4ARENA 1 1/680% SMEA SpA40
5ARENA 2 1/1780% SMEA SpA113
6AURO HUASCO 1A 1/880% SMEA SpA35
7CABRITO-CABRITO 1/9 80% SMEA SpA50
8CACHIYUYITO 1 1/2080% SMEA SpA100
9CACHIYUYITO 2 1/6080% SMEA SpA300
10CACHIYUYITO 3 1/6080% SMEA SpA300
11CARMEN I, 1/5080% SMEA SpA222
12CARMEN II, 1/6080% SMEA SpA274
13CF 12100% Frontera SpA100
14CF 13100% Frontera SpA200
15CF 14100% Frontera SpA300
16CHICA80% SMEA SpA1
17CHOAPA 1/1080% SMEA SpA50
18CUENCA A 1/5180% SMEA SpA255
19CUENCA B 1/2880% SMEA SpA139
20CUENCA C 1/5180% SMEA SpA255
21CUENCA D80% SMEA SpA3
22CUENCA E80% SMEA SpA1
23ELEONOR RIGBY 1/10100% Frontera SpA100
24ELQUI 1/1480% SMEA SpA61
25ESPERANZA 1/580% SMEA SpA11
26FRAN 1 1/6080% SMEA SpA220
27FRAN 12 1/4080% SMEA SpA200
28FRAN 13 1/4080% SMEA SpA200
29FRAN 14 1/4080% SMEA SpA200
30FRAN 15 1/6080% SMEA SpA300
31FRAN 18, 1/6080% SMEA SpA273
32FRAN 2 1/2080% SMEA SpA100
33FRAN 21, 1/4680% SMEA SpA226
34FRAN 3 1/2080% SMEA SpA100
35FRAN 4 1/2080% SMEA SpA100
36FRAN 5 1/2080% SMEA SpA100
37FRAN 6 1/2680% SMEA SpA130
38FRAN 7 1/3780% SMEA SpA176
39FRAN 8 1/3080% SMEA SpA120
40JULI 10, 1/6080% SMEA SpA300
41JULI 11, 1/6080% SMEA SpA300
42JULI 12, 1/4280% SMEA SpA210
43JULI 13, 1/2080% SMEA SpA100
44JULI 14, 1/5080% SMEA SpA250
45JULI 15, 1/5580% SMEA SpA275
46JULI 16 1/6080% SMEA SpA300
47JULI 17 1/2080% SMEA SpA100
48JULI 1980% SMEA SpA300
49JULI 2080% SMEA SpA300
50JULI 21 1/6080% SMEA SpA300
51JULI 2280% SMEA SpA300
52JULI 23 1/6080% SMEA SpA300
53JULI 24 1/6080% SMEA SpA300
54JULI 2580% SMEA SpA300
55JULI 27 B, 1/1080% SMEA SpA48
56JULI 27, 1/3080% SMEA SpA146
57JULI 28, 1/6080% SMEA SpA300
58JULI 9, 1/6080% SMEA SpA300
59JULIETA 10, 1/6080% SMEA SpA300
60JULIETA 1180% SMEA SpA300
61JULIETA 1280% SMEA SpA300
62JULIETA 13 1/6080% SMEA SpA298
63JULIETA 14 1/6080% SMEA SpA269
64JULIETA 15 1/4080% SMEA SpA200
65JULIETA 1680% SMEA SpA200
66JULIETA 1780% SMEA SpA200
67JULIETA 18 1/4080% SMEA SpA200
68JULIETA 580% SMEA SpA200
69JULIETA 680% SMEA SpA200
70JULIETA 780% SMEA SpA100
71JULIETA 880% SMEA SpA100
72JULIETA 980% SMEA SpA100
73JULITA ¼80% SMEA SpA4
74LEONA 2A 1/480% SMEA SpA10
75LIMARI 1/1580% SMEA SpA66
76LOA 1/680% SMEA SpA30
77MAIPO 1/1080% SMEA SpA50
78MONTOSA 1/480% SMEA SpA35NSR 3%
79ORO INDIO 1A 1/2080% SMEA SpA82
80PEGGY SUE 1/10100% Frontera SpA100
81PRODUCTORA 1/1680% SMEA SpA75
84TOLTEN 1/1480% SMEA SpA70
85URANIO 1/700 %35025-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
86ZAPA 1 1/1080% SMEA SpA100
87ZAPA 1/680% SMEA SpA6GSR 1%
88ZAPA 3 1/2380% SMEA SpA92
89ZAPA 5A 1/1680% SMEA SpA80
90ZAPA 7 1/2480% SMEA SpA120
91SIERRA SOLIS 1100% SMEA SpA200
92SIERRA SOLIS 2100% SMEA SpA300
93SIERRA SOLIS 3100% SMEA SpA300
94SIERRA SOLIS 4100% SMEA SpA200
95SIERRA SOLIS 5100% SMEA SpA300
96SIERRA SOLIS 6100% SMEA SpA300
97SIERRA SOLIS 7100% SMEA SpA300
98SIERRA SOLIS 8100% SMEA SpA300
99ZAPALLO 1100% SMEA SpA100
100ZAPALLO 2100% SMEA SpA200
101ZAPALLO 3100% SMEA SpA200
TOTAL17.178

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 IDHCH % HeldHCH % EarningArea (ha)Agreement Details
1ANTONIO 1 1/56100% Frontera SpA280100% 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%
2ANTONIO 1/40100% Frontera SpA200
3ANTONIO 10 1/21100% Frontera SpA63
4ANTONIO 19 1/30100% Frontera SpA128
5ANTONIO 21 1/20100% Frontera SpA60
6ANTONIO 36 1/15100% Frontera SpA74
7ANTONIO 5 1/40100% Frontera SpA200
8ANTONIO 9 1/40100% Frontera SpA193
9CAZURRO 1100% Frontera SpA200
10CAZURRO 2100% Frontera SpA200
11CAZURRO 3100% Frontera SpA300
12CAZURRO 4100% Frontera SpA300
13CAZURRO 5100% Frontera SpA100
14CAZURRO 6100% Frontera SpA200
15CAZURRO 7100% Frontera SpA200
16CAZURRO 8100% Frontera SpA200
17CERRO MOLY 1100% Frontera SpA300
18CERRO MOLY 2100% Frontera SpA300
19CERRO MOLY 3100% Frontera SpA300
20CERRO MOLY 4100% Frontera SpA300
21CAZURRO 3 1/60100% Frontera SpA300
22CAZURRO 4 1/60100% Frontera SpA300
23CAZURRO 7 1/40100% Frontera SpA200
24EMILIO 1 1/8100% Frontera SpA38
25EMILIO 3 1/9100% Frontera SpA45
26INES 1/40100% Frontera SpA200
27LORENA ½100% Frontera SpA2
28MERCEDITA 1/7100% Frontera SpA22
29PRIMO 1 1/6100% Frontera SpA36
30SANTIAGUITO 5 1/24100% Frontera SpA114
31DOMINOCEROS 1/20 (1/4)100% Frontera SpA20100% HCH Dominoceros Purchase Option Agreement US$1,000,000 (already satisfied) US$1,000,000 payable by October 25th 2026 US$6,890,000 payable by October 25th 2027
32CF SUR 1100% Frontera SpA300
33CF SUR 2100% Frontera SpA300
34CF SUR 3100% Frontera SpA300
35CF SUR 4100% Frontera SpA300
36CF SUR 5100% Frontera SpA200
37CF SUR 6100% Frontera SpA300
38CF SUR 7100% Frontera SpA300
39CF SUR 8100% Frontera SpA300
40CF SUR 9100% Frontera SpA200
41CF SUR 10100% Frontera SpA200
42CF SUR 11100% Frontera SpA300
43CF SUR 12100% Frontera SpA300
44CF SUR 13100% Frontera SpA300
45CF SUR 14100% Frontera SpA300
46CF SUR 15100% Frontera SpA200
47CF SUR 16100% Frontera SpA300
48CF SUR 17100% Frontera SpA300
49CF SUR 18100% Frontera SpA300
50CF SUR 19100% Frontera SpA300
51CF SUR 20100% Frontera SpA300
52CF SUR 21100% Frontera SpA300
53CF SUR 22100% Frontera SpA300
54CF SUR 23100% Frontera SpA200
55CF SUR 24100% Frontera SpA200
56CF SUR 25100% Frontera SpA300
57CF SUR 26100% Frontera SpA300
58CF SUR 27100% Frontera SpA300
59CF SUR 28100% Frontera SpA200
60CF SUR 29100% Frontera SpA300
61CF SUR 30100% Frontera SpA200
62CF SUR 31100% Frontera SpA300
63CF SUR 32100% Frontera SpA300
64CF SUR 33100% Frontera SpA300
65CF SUR 34100% Frontera SpA300
66CF SUR 35100% Frontera SpA300
67CF SUR 36100% Frontera SpA200
68CF SUR 37100% Frontera SpA200
71KRETA ¼100% Frontera SpA16The mining concession is included in San Antonio Purchase Option Agreement
72MARI 1100% Frontera SpA300
73MARI 1/12100% Frontera SpA64The mining concession is included in San Antonio Purchase Option Agreement
74MARI 6100% Frontera SpA300
75MARI 8100% Frontera SpA300
76PAJONALES100% Frontera SpA300
TOTAL16.755

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

El Fuego Project Tenements

San Antonio Project
N°License IDHCH % HeldHCH % EarningArea (ha) Agreement Details
1MERCEDES 1/3100% Frontera SpA50100% HCH San Antonio Purchase Option Agreement US$2,400,000 already paid. US$2,000,000 payable by September 30th 2026 to exercise the El Fuego Option. (2 additional and conditional payments of US$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.)
2PORFIADA A 1/33100% Frontera SpA160
3PORFIADA C 1/60100% Frontera SpA300
4PORFIADA E 1/20100% Frontera SpA100
5PORFIADA F 1/50100% Frontera SpA240
6PORFIADA IX 1/60100% Frontera SpA300
7PORFIADA VII 1/60100% Frontera SpA270
8PORFIADA VIII 1/60100% Frontera SpA300
9PRIMA 1100% Frontera SpA1
10PRIMA 2100% Frontera SpA2
11ROMERO 1/31100% Frontera SpA31
12SAN ANTONIO 1/5100% Frontera SpA25
13SAN JUAN SUR 1/5100% Frontera SpA10
14SAN JUAN SUR 6/23100% Frontera SpA90
15SANTIAGO Z 1/30100% Frontera SpA300
16SANTIAGO 1/4 Y 20100% Frontera SpA75
17SANTIAGO 15/19100% Frontera SpA25
18SANTIAGO 21/36100% Frontera SpA76
19SANTIAGO 37/43100% Frontera SpA26
20SANTIAGO A, 1/26100% Frontera SpA244
21SANTIAGO B, 1/20100% Frontera SpA200
22SANTIAGO C, 1/30100% Frontera SpA300
23SANTIAGO D, 1/30100% Frontera SpA300
24SANTIAGO E, 1/30100% Frontera SpA300
TOTAL3.725

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

Cordillera Project
N°License IDHCH % HeldHCH % EarningArea Agreement Details (ha)
1ALBORADA III 1/35100% Frontera SpA162100% HCH Purchase Option Agreement USD 100,000 already paid US$100,000 payable by November 14th 2026 US$100,000 payable by November 14th 2027 US$3,700,000 payable by November 14th 2028 NSR 1% for underground mining and 1,5% for open-pit mining
2ALBORADA IV 1/20100% Frontera SpA54
3ALBORADA VII 1/25100% Frontera SpA95
4CAT IX 1/30100% Frontera SpA150
5CATITA IX 1/20100% Frontera SpA100
6CATITA XII 1/13100% Frontera SpA61
7CORDILLERA 1/5100% Frontera SpA20
8HERREROS 1/14100% Frontera SpA28
9MINA HERREROS III 1/6100% Frontera SpA18
10MINA HERREROS IV 1/10100% Frontera SpA23
11PORSIACA 1/20100% Frontera SpA20
12QUEBRADA 1/10100% Frontera SpA28
13VETA 1/17100% Frontera SpA17
TOTAL776

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 March 27, 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 drill holes 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 May 9 2025 with an effective date of March 27 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 April 8, 2024, with an effective date of February 26, 2024 (the "2024 PEA").

Qualified Persons – NI 43-101

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