HCH.V · 2024-01-23 12:00:00

Hot Chili Commences Next Phase of Resource Expansion Drilling Programme at Costa Fuego Diamond drilling operations underway across large-scale porphyry targets located immediately adjacent to Hot Chili’s Cortadera copper-gold mineral

Exploration Programs

Hot Chili Commences Next Phase of Resource Expansion Drilling

Programme at Costa Fuego

Diamond drilling operations underway across large-scale porphyry targets located immediately adjacent to Hot Chili’s Cortadera copper-gold mineral

resource. View looking west-southwest across Cortadera deposit valley (CNW Group/Hot Chili Limited)

Highlights

Next phase of Hot Chili's

30,000m

resource growth focused drill programme is underway, with double- shift diamond drilling operations

commencing on 12

January 2024

at the Company's low-altitude, Costa Fuego copper-gold project in

Chile

Seven large-scale copper targets adjacent to the Cortadera and Productora mineral resources prepared (pre-collars completed) for diamond drill

testing, with ten diamond drill tails planned.

First-pass Reverse Circulation drilling complete across three new satellite targets:

Selected significant drill results at Marsellesa include:

25m

grading 0.4% Copper (Cu) from surface

including

10m

grading 0.8% Cu from

depth

16m

grading 0.5% Cu

from

197m

depth downhole

including

grading 1.1% Cu

from

198m

depth

19m

grading 0.5% Cu

from

195m

depth downhole

including

grading 2.2% Cu

from

195m

depth

Selected significant drill results at Cordillera include:

93m

grading 0.3% Cu from surface

including

14m

grading 0.4% Cu from surface

53m

grading 0.3% Cu from

19m

depth

including

10m

grading 0.4% Cu

from

44m

depth

184m

grading 0.2% Cu from surface

including

14m

grading 0.3% Cu

from

42m

depth.

Resource upgrade for Costa Fuego being finalised and expected to be announced in Q1 2024

Pre-feasibility study and water concept study workstreams advancing, updates expected this quarter

LOCATION

Jan. 23, 2024

/CNW/ - Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) ("Hot Chili" or the "Company") is pleased to

announce the commencement of the next phase of the Company's

30,000m

resource growth focused drill programme for the Costa Fuego Copper-

Gold Project ("Costa Fuego" or "the Project"), located in the coastal range of the Atacama Region,

Chile

A total of 47 Reverse Circulation (RC) drill holes for 11,500m have been completed since the Company's resource growth focused drill programme

commenced in late

July 2023

Drilling aims to test multiple resource growth opportunities, which may allow Hot Chili to consider an up-lift in the Pre-feasibility study scale for Costa

Fuego.

The first phase of drilling in H2 2023 focused on resource extensional potential at Cortadera and first-pass drilling across new satellite targets. In

addition, several RC pre-collars were drilled in preparation for the second phase of diamond drill testing in 2024 adjacent to the Company's two

principal mineral resources: Cortadera; and Productora.

The second phase of drilling commenced on 12

January with one diamond drill rig operating on a 24-hour basis (double-shift). A programme of 10

diamond (DD) drill holes for approximately

5,000m

is initially planned. The initial diamond drill programme comprises:

Five DD holes planned to test four large-scale targets at Cortadera (refer to Figures 2 and 3). The first DD hole is currently testing a large co-

incident conductivity and chargeability geophysical anomaly located north of Cortadera.

A further five DD holes are planned to test three large-scale targets adjacent to Productora (refer to Figures 2 and 4)

The Company looks forward to providing further updates as DD drilling advances across these targets over the coming months.

First-Pass Exploration Drill Results Returned

Assay results have been received for first-pass drilling undertaken in late 2023 across three new satellite targets within the Costa Fuego landholding:

Marsellesa, Cordillera and Corroteo.

Both Marsellesa and Cordillera are located approximately 10km southwest of Costa Fuego's planned central processing hub

at Productora, and Corroteo is located approximately 5km southeast of Cortadera (refer to Figures 1 and 2).

A total of 4 RC drill holes for

1,244m

were completed across the historical Marsellesa open pit copper mine footprint

(refer to Figure

5). Significant intersections were recorded in each of the four drill holes:

25m

grading 0.4% Copper (Cu) from surface

including

10m

grading 0.8% Cu from

depth

16m

grading 0.5% Cu

from

197m

depth downhole

including

grading 1.1% Cu

from

198m

depth

19m

grading 0.5% Cu

from

195m

depth downhole

including

grading 2.2% Cu

from

195m

depth

grading 0.8% Cu from

depth

downhole

including

grading 1.0% Cu from

depth

Higher grade copper drilling intersections are associated with both copper oxide (Cu bearing limonite, brochantite and chrysocolla) and copper sulphide

(chalcopyrite) mineralisation localised within moderately east-dipping manto horizons (refer to Figure 5). Follow-up work is being planned to further

assess mineralisation continuity across the

500m

of prospective strike length.

The Marsellesa mine area is laterally extensive, measuring 400m in length and 200m in width, with historical open pit and underground mine workings

exposing multiple zones of shallowly-dipping, strata-bound (manto-style), copper mineralisation.

A total of 6 RC drill holes for

1,450m

were completed across the historical Cordillera copper mine footprint

, located approximately 1km west of

Marsellesa (refer to Figure 6). Significant intersections recorded, include:

93m

grading 0.3% Cu from surface

including

14m

grading 0.4% Cu from surface

53m

grading 0.3% Cu

from

19m

depth

including

10m

grading 0.4% Cu

from

44m

depth

184m

grading 0.2% Cu from surface

including

14m

grading 0.3% Cu

from

42m

depth

Wide RC drilling intersections returned at Cordillera relate to broad zones of oxide (Cu bearing limonite with very minor cuprite) and sulphide

(chalcopyrite, molybdenite) porphyry copper mineralisation confirmed below and surrounding the small surface mine workings.

Porphyry copper mineralisation with well-developed stockwork and sheeted A and B style porphyry veining is exposed in the Cordillera open pit mine

workings, and porphyry outcrop has been mapped across an area measuring

300m

in length and

200m

in width.

A total of 8 RC drill holes for

2,324m

was completed across the greenfield Corroteo exploration target

located 5km southeast of

Cortadera (refer to Figure 7). No significant intersections were recorded.

Wide spaced RC drilling has tested approximately 1.8km strike extent of the large-scale Corroteo alteration footprint. Significant

pyrite mineralisation was encountered in drilling toward the northern extent of the target area extending under a wide alluvial gravel plain. Final drilling

directed under this alluvial cover confirmed the presence of tonalitic porphyry.

Hot Chili's exploration team is currently assessing the new drill results on each of these satellite exploration targets in preparation for potential follow-up

drilling and exploration work programmes.

Resource Upgrade Being Finalised

The Company is in the final stages of completing an upgrade to its mineral resource for Costa Fuego based on all drilling completed since

February

2022

. The resource upgrade is expected to be released in Q1 2024.

Ongoing Development and Water Studies Advancing

The Company also looks forward to providing further updates on development study and water supply concept study advances this quarter.

This announcement is authorised by the Board of Directors for release to ASX and TSXV.

Hot Chili's Managing Director and Chief Executive Officer Mr Christian Easterday is responsible for this announcement and has provided

sign-off for release to the ASX and TSXV.

For more information please contact:

Christian Easterday

Managing Director – Hot Chili

Tel: +61 8 9315 9009

Email: [email protected]

Penelope Beattie

Company Secretary – Hot Chili

Tel: +61 8 9315 9009

Email: [email protected]

Harbor Access

Investor & Public Relations

Email:

graham.farrell@harbor

-access.com

Email: [email protected]

or visit Hot Chili's website at

www.hotchili.net.au

Table 1 Significant Drilling Intersections from Cordillera and Marsellesa

Location

Hole_ID

Coordinates

Azim.

Dip

Hole

Depth

(m)

Intersection

Interval

Copper

Gold

Silver

Molybdenum

North

East

(m)

From

(m)

(% Cu)

(g/t Au)

(g/t Ag)

(ppm Mo)

Cordillera

CDP001

6811425

314680

926

-60

264

209

0.1

0.0

0.3

including

0.2

0.0

0.3

& including

0.3

0.0

0.3

& including

146

160

0.2

0.0

0.3

Cordillera

CDP002

6811502

314659

900

161

-60

300

240

0.1

0.0

0.2

including

0.3

0.0

0.3

or including

0.4

0.0

0.3

Cordillera

CDP003

6811402

314718

916

290

-60

222

184

0.2

0.0

0.2

including

0.3

0.1

0.3

& including

0.3

0.0

0.3

& including

0.4

0.1

0.3

Cordillera

CDP004

6811516

314676

922

-60

210

0.1

0.0

0.3

152

158

0.1

0.0

0.3

Cordillera

CDP005

6811514

314661

913

290

-60

204

0.1

0.0

0.3

including

0.2

0.0

0.3

Cordillera

CDP006

6811510

314785

909

196

-59

250

0.3

0.0

0.3

including

0.4

0.0

0.3

& including

0.4

0.1

0.3

Assays pending 93m – EOH

Marsellesa

MRP001

6811161

316113

1,092

271

-70

312

0.4

0.0

0.5

including

0.8

0.0

0.5

108

0.3

0.0

0.3

including

1.0

0.1

0.3

& including

2.2

0.1

0.4

& incl

1.1

0.0

0.3

Marsellesa

MRP002

6811318

316128

1,057

250

-60

340

0.5

0.0

0.3

197

213

0.5

0.0

0.2

including

198

204

1.1

0.1

0.2

Marsellesa

MRP003

6811007

316083

1,106

294

-59

300

195

214

0.5

0.0

0.3

including

195

197

2.2

0.0

0.5

& including

202

204

1.2

0.0

0.3

Marsellesa

MRP004

6810877

315903

1,077

294

-59

270

0.8

0.0

0.3

or including

1.0

0.0

0.3

Notes to Table 1: Significant intercepts are calculated above a nominal cut-off grade of 0.1% Cu. Where appropriate, significant intersections may contain up to 30m down-hole distance of internal dilution (less than 0.1% Cu). Significant intersections are separated

where internal dilution is greater than 30m down-hole distance. The selection of 0.1% Cu for intersection cut-off grade above is selected on the basis of exploration significance and is not meant to represent potential marginal economic cut-off grade for bulk tonnage

polymetallic copper deposits of similar grade in Chile and elsewhere in the world.

Down-hole significant intercept widths are estimated to be at or around true-widths of mineralisation.

Figure 1. Location of New Project Options in relation to Costa Fuego (CNW Group/Hot Chili Limited)

Figure 2. Location of Hot Chili’s exploration target pipeline in relation to regional infrastructure, landholdings and Mineral Resources of Costa Fuego.

(CNW Group/Hot Chili Limited)

Figure 3. Aerial view of Cortadera drill programme including MIMDAS and extensional targets (CNW Group/Hot Chili Limited)

Figure 4. Aerial view of Productora drill programme including IP geophysical targets (CNW Group/Hot Chili Limited)

Figure 5. Aerial photo of surface and underground mine workings at Marsellesa in relation to first-pass RC drilling significant intersections. (CNW

Group/Hot Chili Limited)

Figure 6. Aerial photo of surface and underground mine workings at Cordillera in relation to first-pass RC drilling significant intersections. (CNW

Group/Hot Chili Limited)

Figure 7. Aerial photo of surface and underground mine workings at Corroteo. (CNW Group/Hot Chili Limited)

Qualifying Statements

Qualified Persons – NI 43-101

The scientific and technical information in this new release, has been reviewed and approved by Mr

Christian Easterday

, MAIG, Hot Chili's Managing

Director and Chief Executive Officer, and a qualified person within the meaning of NI 43-101.

Competent Persons – JORC

The information in this announcement that relates to Exploration Results for the Marsellesa and Cordillera projects is based upon information compiled

by Mr

Christian Easterday

, the Managing Director and a full-time employee of Hot Chili Limited whom is a Member of the Australasian Institute of

Geoscientists (AIG). Mr Easterday has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and

to the activity which he is undertaking to qualify as a 'Competent Person' as defined in the 2012 Edition of the 'Australasian Code for Reporting of

Exploration Results, Mineral Resources and Ore Reserves' (JORC Code). Mr Easterday consents to the inclusion in the report of the matters based on

their information in the form and context in which it appears.

Disclaimer

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts

responsibility for the adequacy or accuracy of this 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 mineral projects. Technical disclosure contained in this news release has been prepared in accordance with NI 43-101

and the Canadian Institute of Mining, Metallurgy and Petroleum Classification System. These standards differ from the requirements of the U.S.

Securities and Exchange Commission ("SEC") and resource information contained in this news release 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 news release are in U.S. dollars unless otherwise noted.

Forward Looking Statements

This news release contains certain statements that are "forward-looking information" within the meaning of Canadian securities legislation and

Australian securities legislation (each, a "forward-looking statement"). Forward-looking statements reflect the Company's current expectations,

forecasts, and projections with respect to future events, many of which are beyond the Company's control, and are based on certain assumptions. No

assurance can be given that these expectations, forecasts, or projections will prove to be correct, and such forward-looking statements included in this

news release should not be unduly relied upon. Forward-looking information is by its nature prospective and requires the Company to make certain

assumptions and is subject to inherent risks and uncertainties. All statements other than statements of historical fact are forward-looking statements.

The use of any of the words "believe", "could", "estimate", "expect", "may", "plan", "potential", "project", "should", 'toward", "up-scale", "will", "would"

and similar expressions are intended to identify forward- looking statements.

The forward-looking statements within this news release are based on information currently available and what management believes are reasonable

assumptions. Forward-looking statements speak only as of the date of this news release. In addition, this news release may contain forward-looking

statements attributed to third-party industry sources, the accuracy of which has not been verified by the Company.

In this news release, forward-looking statements relate, among other things, to: prospects, projections and success of the Company and its projects;

the ability of the Company to expand mineral resources beyond current mineral resource estimates; the results and impacts of current and planned

drilling to convert inferred mineral resources to indicated, to extend mineral resources and to identify new deposits; the Company's ability to convert

mineral resources to mineral reserves; opportunities for growth in mineral projects; the timing and outcomes of this current and future planned economic

studies; the Company's ability to up-scale the project; the timing and outcomes of regulatory processes required to obtain permits for the development

and operation of the Costa Fuego Project and/or future planned economic studies; whether or not the Company will make a development decision and

the timing thereof; the ability of the Company to complete the PFS on the timeline indicated or at all; and estimates of planned exploration.

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 news release, including, but not limited to, the following material factors: 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 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 serv ice providers; competition risks; economic and market

conditions; and other risks and uncertainties described elsewhere in this news release and elsewhere in the Company's public disclosure record.

Although the forward-looking statements contained in this news release 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 news release, 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 news

release 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 news release are expressly qualified by the foregoing cautionary statements and are made as of the

date of this news release. 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 news release 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 news release 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 31st March 2022)

Mineral Resource Statement Costa Fuego Combined Mineral Resource (Effective Date 31st March 2022) (CNW Group/Hot Chili Limited)

Mineral Resources are reported on a 100% Basis - combining Mineral Resource estimates for the Cortadera, Productora 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 the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definition, as required by National Instrument 43-101.

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

Limitada (a 100% subsidiary of Hot Chili Limited), and 20% owned by CMP (Compañía Minera del Pacífico S.A (CMP)).

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 Limitada, which is a 100% subsidiary of Hot Chili Limited.

The San Antonio deposit is controlled through Frontera (100% owned by Sociedad Minera El Corazón Limitada, which is a 100% subsidiary of Hot Chili Limited) and has an Option Agreement with a private party to earn a 100% interest.

The Mineral Resource estimates 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.

Metallurgical recovery averages for each deposit consider Indicated + Inferred material and are weighted to combine sulphide flotation and oxide leaching performance. Process recoveries: Cortadera and San Antonio – Weighted recoveries of 82% Cu, 55% Au, 82% Mo

and 37% Ag. CuEq(%) = Cu(%) + 0.56 x Au(g/t) + 0.00046 x Mo(ppm) + 0.0043 x Ag(g/t). Productora – Weighted recoveries of 84% Cu, 47% Au, 47% Mo and 0% Ag (not reported). CuEq(%) = Cu(%) + 0.46 x Au(g/t) + 0.00026 x Mo(ppm). Costa Fuego – Recoveries of

83% Cu, 53% Au, 69% Mo and 23% Ag. CuEq(%) = Cu(%) + 0.52 x Au(g/t) + 0.00039 x Mo(ppm) + 0.0027 x Ag(g/t).

Resource 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 and San Antonio deposits is 0.21% CuEq while the cut-off grade for mineral resources considered amenable to

underground extraction methods at the Cortadera deposit is 0.3% CuEq.

Mineral resources are not mineral reserves and do not have demonstrated economic viability. These Mineral Resource estimates 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.

The effective date of the estimate of Mineral Resources is March 31st, 2022. Refer to ASX Announcement "Hot Chili Delivers Next Level of Growth" ("Resource Announcement") for JORC Code Table 1 information related to the Costa Fuego Resource

Estimate (MRE) by Competent Person Elizabeth Haren, constituting the MREs of Cortadera, Productora and San Antonio (which combine to form Costa Fuego). Hot Chili confirms it is not aware of any new information or data that materially affects the information included in

the Resource Announcement and all material assumptions and technical parameters stated for the Mineral Resource Estimates in the Resource Announcement continue to apply and have not materially changed.

Hot Chili Limited is not aware of political, environmental or other risks that could materially affect the potential development of the Mineral Resources

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