HCH.V · 2024-02-26 12:00:00

Hot Chili Indicated Resource at Costa Fuego Copper-Gold Project Increases to 798 Mt

Resource Estimates

Hot Chili Indicated Resource at Costa Fuego Copper-Gold Project

Increases to 798 Mt

Highlights

Mineral Resource at Hot Chili's coastal-range, Costa Fuego copper-gold project in

Chile

has seen a 6% increase in copper-

equivalent (CuEq) contained metal for the total Indicated Resource1,2 and a 9% increase in CuEq contained metal for the higher-

grade component of the Indicated Resource

Total Mineral Resource

Indicated - 798 Mt grading 0.45% CuEq for 2.9 Mt Cu, 2.6

Moz Au

, 12.9

Moz Ag

& 68 kt Mo

Inferred - 203 Mt grading 0.31% CuEq for 0.5 Mt Cu, 0.4

Moz Au

, 2.4

Moz Ag

& 12 kt Mo

High Grade Mineral Resource

(Reported +0.6% CuEq)

Indicated - 173 Mt grading 0.78% CuEq for 1.1 Mt Cu, 1.0

Moz Au

, 4.3

Moz Ag

& 25 kt Mo

Inferred - 7 Mt grading 0.74% CuEq for 0.04 Mt Cu, 0.03

Moz Au

, 0.1

Moz Ag

& 1 kt Mo

Over 85% of Costa Fuego's Mineral Resource Estimate is now Classified as Indicated

Strong platform to deliver a maiden Mineral Reserve

for Costa Fuego Pre-feasibility study (PFS) expected to be completed in H2 2024

Further updates expected

(development, drilling, exploration, and commercial activities)

Growth of Costa Fuego Resource since maiden 2011 Resource (Contained CuEq Metal) (CNW Group/Hot Chili Limited)

Reported on a 100% Basis - combining Mineral Resource estimates for the Cortadera, Productora, Alice and San Antonio deposits comprising the Costa Fuego project. Figures are rounded to nearest thousand, or if less, to the nearest hundred. Reported

to appropriate significant figures and in accordance with the Joint Ore Reserves Committee Code (2012) and National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101"). Mineral resource estimation practices are in accordance

with CIM Estimation of Mineral Resource and Mineral Reserve Best Practice Guidelines (November 29, 2019) and CIM Environmental, Social and Governance Guidelines for Mineral Resources and Mineral Reserve Estimation (September 8, 2023) and

reported in accordance CIM Definition Standards for Mineral Resources and Mineral Reserves (May 10, 2014) that are incorporated by reference into NI 43-101.Total Resource reported at +0.20% CuEq for open pit and +0.27% CuEq for underground.

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=3.00 USD/lb, Au=1,700 USD/oz, Mo=14 USD/lb, and Ag=20 USD/oz. For Cortadera (Inferred + Indicated) the average Metallurgical Recoveries are Cu=82%, Au=55%, Mo=81%, and Ag=36%. For San Antonio (Indicated +

Inferred) the average Metallurgical Recoveries are 85% Cu, 66% Au, 80% Mo and 63% Ag. For Alice (Indicated + Inferred) the average Metallurgical Recoveries are 81% Cu, 47% Au, 52% Mo and 37% Ag. For Productora (Inferred + Indicated), the average

Metallurgical Recoveries are Cu=84%, Au=47%, Mo=48% and Ag=18%. For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries are Cu=83%, Au=53%, Mo=71% and Ag=26%.

See announcement dated 6th September 2011 "First Resource at Productora" for details on historical MRE reporting.

See announcement dated 12th October 2020 "Costa Fuego Becomes a Leading Global Copper Project" for details on MRE reporting.

See announcement dated 31st March 2022 "Hot Chili Delivers Next Level of Growth" for details on MRE reporting.

PERTH, AUSTRALIA

Feb. 26, 2024

/CNW/ -

Hot Chili Limited

(ASX: HCH) (TSXV: HCH) (OTCQB: HHLKF)

("Hot Chili" or "Company") is

pleased to announce another Resource increase for its Costa Fuego copper-gold project, located in the coastal range, 600 km north

Santiago, Chile

Costa Fuego comprises the Cortadera, Productora (including

Alice

) and

San Antonio

deposits, all of which have updated Mineral Resource

Estimates ("MRE" or "Resource") and lie proximal to one another, at low altitude (

800 m

1,000 m

), approximately 600 km north of

Santiago

(Figure 2).

The MRE update follows 24 months of material investment, totalling 24.5 km of drilling across Costa Fuego; a mix of development, metallurgical,

geotechnical, resource expansion and exploration drilling, designed to progress the Costa Fuego project towards its Pre-feasibility Study (PFS)

expected in H2 2024.

Figure 2. Location of the Costa Fuego Project Regionally in Relation to Key Infrastructure (CNW Group/Hot Chili Limited)

At Cortadera, the Company completed 43 Reverse Circulation (RC) and Diamond Drillhole tails (DD) for 17,000 metres of additional exploration

and Resource extension drilling at Cortadera, including six development drillholes. The Cortadera MRE (porphyry copper-gold deposit) has again

delivered the majority of Resource growth for Costa Fuego. Cortadera is defined by over 108,000 metres of drilling and now contains an

Indicated Resource of

531 Mt

grading 0.44% CuEq (previously 471 Mt grading 0.46% CuEq) and an Inferred Resource of

149 Mt

grading 0.29%

CuEq (previously

108 Mt

grading 0.35% CuEq); see Table 1 for complete breakdown.

Cortadera's Indicated Resource tonnage has grown by a further 13%, further supporting the Company's

June 2023

Preliminary Economic

Assessment (PEA), which outlined Costa Fuego as having the potential to be one of the world's lowest capital intensity major copper

developments. The proportion of Indicated Resource now reported within the Open Pit Reasonable Prospect of Eventual Economic Extraction

(RPEEE) constraints has also increased by 32%, with no change in the reported CuEq grade (0.44%). The higher-grade +0.6% CuEq Indicated

material has also increased by 14%, at an average grade of 0.76% CuEq. This material sits largely within the Open Pit RPEEE constraints, with

the balance of the Resource within the underground RPEEE constraints.

The Productora MRE (breccia hosted copper-gold deposit) has been re-estimated following an additional 16 RC and DD exploration drillholes for

5,000 metres (including four metallurgical drillholes), a large pulp resampling campaign for silver and soluble copper assays, and a new approach

to estimating the oxide and transition weathering domains. The MRE was reported using RPEEE constraints, similar to those used at Cortadera.

Immaterial positive changes were reported for the Productora Indicated MRE copper and gold contained metal, as well as an additional 2.8 Moz

of silver metal at 0.35 g/t, which has now been incorporated into the CuEq contained metal, in line with the approach at Cortadera.

The porphyry deposit

Alice

(previously included in Productora MRE reporting) has also been re-estimated. The previous historical MRE was

completed in 2015 and has now been brought into line with the approach taken at Cortadera, which comprises a similar style of mineralisation.

An additional nine drillholes for 2,600 metres, including one DD metallurgical drillhole (

800 m

), completed in 2017 and 2022, respectively, were

also included. These changes did not result in a material change to the overall MRE tonnage or grade, but improved confidence in the local

variability of the estimation, which has been reflected in the updated Resource Classifications.

A San Antonio MRE update included an additional 16 drillholes (2,500 metres), including three DD metallurgical drillholes, designed to upgrade

the Inferred Resource to Indicated Classification. Additional mapping and sampling were also completed to validate the higher-grade copper

mineralisation exposed at surface. This additional information resulted in 3 Mt grading 0.71% CuEq being converted to Indicated Classification,

from the previously Inferred 4 Mt grading 1.15% CuEq.

The Company is encouraged by the further conversion of Inferred material to Indicated Classification, now standing at 85% of the total CuEq

contained metal, following focused development drilling (metallurgical and geotechnical) designed to support a Pre-Feasibility Study (PFS) and

targeted exploration and Resource extension drill programs. The expansion of Costa Fuego Indicated Resources, without material impact to

reported metal grades, increases confidence in the reliability of the MRE and its ability to inform the Company's planned PFS.

Table 1. Costa Fuego Copper-Gold Project Mineral Resource Estimate, February 26th, 2024 (CNW Group/Hot Chili Limited)

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 (November 29, 2019) and CIM Environmental,

Social and Governance Guidelines for Mineral Resources and Mineral Reserve Estimation (September 8, 2023) and reported in accordance CIM Definition Standards for Mineral Resources and Mineral Reserves (May 10, 2014) that are incorporated by

reference into NI 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 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 Frontera has an Option Agreement 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.

All Mineral Resource Estimates 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 Productora, Alice and San

Antonio.

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%

and 36% Ag.

CuEq

(%) = Cu(%) + 0.55

Au(

) + 0.00046

(

ppm

) + 0.0043

Ag(

) San Antonio - Weighted recoveries of 85% Cu, 66% Au, 80%

and 63% Ag.

CuEq

(%) = Cu(%) +

0.64

Au(

) + 0.00044

(

ppm

) + 0.0072

Ag(

) Alice - Weighted recoveries of 81% Cu, 47% Au, 52%

and 37% Ag.

CuEq

(%) = Cu(%) + 0.48

Au(

) + 0.00030

(

ppm

) + 0.0044

Ag(

)

Productora

– Weighted recoveries of 84% Cu, 47% Au,

48%

and 18% Ag.

CuEq

(%) = Cu(%) + 0.46

Au(

) + 0.00026

(

ppm

) + 0.0021

Ag(

) Costa Fuego – Recoveries of 83% Cu, 53% Au, 71%

and 26% Ag.

CuEq

(%) = Cu(%) + 0.53

Au(

) + 0.00040

(

ppm

) + 0.0030

Ag(

)

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.

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 February 26th, 2024. Refer to JORC Code Table 1 information in this announcement related to the Costa Fuego Mineral Resource Estimate (MRE) by Competent Person Elizabeth Haren, who is

also a qualified person (within the meaning of NI 43-101), constituting the MREs of Cortadera, Productora, Alice 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.

Cut Off Grade and Reporting Copper Price Analysis

Following release of the Company's PEA in

June 2023

, a review of MRE appropriate CuEq Cut-off Grades (COG) was completed, with revisions

to long-term consensus copper price assumptions and breakeven grade assessments considered.

The long-term consensus copper price assumption changed from

US$ 3.30

/lb Cu in 2022, to

US$ 3.85

/lb Cu in 2024. The change in copper

price, in combination with the latest costs, as informed by the Company's PEA in

June 2023

, has reduced the breakeven grade for Costa Fuego.

The revised COGs reflect these changes in assumptions and have been set appropriately higher than the calculated breakeven grade.

These key assumptions in relation to COG's are summarised in Table 2.

Table 2. Summary of Cut-Off Grades and Copper Price changes (CNW Group/Hot Chili Limited)

*Refer to Table 1in Appendix for CuEq

calculations

Cortadera Mineral Resource Increase

The Cortadera MRE increase follows an additional

17,000 m

of DD and RC drilling since the

March 2022

Mineral Resource Estimate. Samples

used during the MRE update were obtained using both RC and DD and were analysed using Inductively Coupled Plasma (ICP) techniques to

quantify 33 elements along with fire-assay techniques to quantify gold. The update resulted in a 7% increase in total Indicated Resource tonnage

at the same cut-off grade, for approximately 88 kt of additional CuEq contained metal.

Cortadera has maintained a proportion of 84% Indicated CuEq contained metal during this MRE update, with the spacing and location of drilling

at Cortadera ranging from

80 m

300 m

. The selected drill spacing and orientation over the Resource area ensures that drilling is optimised

where possible to intersect perpendicular to mineralisation.

The additional drilling enabled improved delineation of low-grade copper across Cortadera, but particularly at Cuerpo 3 where the porphyry

mineralisation halo extends the furthest (Figure 2), following analysis during the Preliminary Economic Assessment (PEA). The economics of the

low-grade sulphide leach presented in the PEA indicated processing material down to grades of 0.15% Cu at Costa Fuego would be profitable.

Drilling below Cuerpo 1 resulted in additional Resource material at depth, included largely within the underground RPEEE.

Continuity of grade and geology is controlled by the emplacement of mineralised porphyry intrusions into shallow dipping host stratigraphy. While

these porphyry intrusions have a reasonably consistent pipe-like geometry, grade distribution also extends into the host stratigraphy.

Mineralisation models have been generated using over

109,000 m

of drilling and continued increase in knowledge of the geological controls on

mineralisation. Each metal has been independently optimised following the completion of extensional drilling, resulting in improved continuity of

copper, gold, silver, and molybdenum within each of Cortadera's three porphyry bodies (Cuerpos). These models correlate well with higher A + B

porphyry vein percentages and other key porphyry mineralisation metrics.

Review of the late-stage dyke model was also completed following infill drilling of six diamond development drillholes, which resulted in additional

narrow dykes being added to the geology model, particularly beneath the dyke-eye at Cuerpo 3. This improved geology model reduced dilution

of the estimated porphyry mineralisation and contributed to a 14% increase in Indicated CuEq contained metal above 0.6% CuEq.

Extensive test work was completed to determine an optimal estimation approach and ensure the model was representative of the underlying

porphyry mineralisation controls. The updated Cortadera MRE continues to utilise a probabilistic estimation approach (Categorical Indicator

Kriging or CIK) within each mineralisation domain. This approach enabled the spatial and chronological aspects of the multiple phases of

mineralisation to be better represented.

Table 3, Figure 3, and Figure 4 below outline the upgraded Cortadera MRE.

Table 3. Cortadera Deposit Mineral Resource Estimate, February 26th, 2024 (CNW Group/Hot Chili Limited)

Mineral Resources are reported on a 100% Basis. 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 (November 29, 2019) and CIM Environmental, Social and Governance Guidelines for Mineral Resources and Mineral Reserve Estimation (September 8,

2023) and reported in accordance CIM Definition Standards for Mineral Resources and Mineral Reserves (May 10, 2014) that are incorporated by reference into NI 43-101.

Limited.

Copper US$ 3.00/lb, Gold US$ 1,700/oz, Molybdenum US$ 14/lb, and Silver US$20/oz.

All Mineral Resource Estimates were assessed for Reasonable Prospects of Eventual Economic Extraction (RPEEE) using both Open Pit and Block Cave Extraction mining methods at Cortadera.

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).

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, 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.

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

Figure 3. Oblique Long Section of the Cortadera MRE displaying CuEq grade distribution in relation to drilling coverage and PEA pit shell *Refer

to Table 3 for CuEq calculation (CNW Group/Hot Chili Limited)

*Refer to Table 3 for CuEq calculation

Figure 4. Plan view at 470 mRL displaying the change in distribution of CuEq grade at Cuerpo 3, Cortadera, between March 2022 and February

2024 MREs. Resource blocks and Classification boundaries are shown at the RL intersection, while drillholes are displayed within +/-100 m of

the RL. *Refer to Table 3 for CuEq calculation (CNW Group/Hot Chili Limited)

*Refer to Table 3 for CuEq calculation

Productora Mineral Resource Update

The Productora MRE has been updated following an additional 16 RC and DD exploration drillholes (~5,000 metres), including four metallurgical

drillholes. The drilling increased confidence in the previously developed probabilistic CIK technique used for estimation, with the model able to

predict high- and low-grade zones within the structurally complex, breccia-hosted Productora mineralisation. This increase in confidence allowed

for the lateral expansion of classification boundaries, converting material from Inferred to Indicated, before subsequent application RPEEE Open

Pit constraint. These changes resulted in a minimal increase (2%) in Indicated CuEq contained metal above 0.20% CuEq.

Drillhole spacing at Productora varies from

40 m

160 m

and has provided a high level of support for the geological,

mineralisation and resource estimation models, with both Indicated and Inferred Resource Classification at Productora. Samples used during the

MRE update were obtained using both RC and DD and were analysed using ICP for 33-elements and fire-assay for gold.

A large pulp resampling campaign for silver, comprising approximately 3,000 samples, culminated in a maiden Indicated Resource of 2.8 Moz of

silver at Productora. A smaller pulp resampling campaign (approximately 900 samples) was completed for soluble copper, which was also been

included in the updated Productora MRE to allow for modelling of metallurgical recovery in the Company's planned PFS later this year.

An updated approach to the modelling of weathering surfaces was also developed, utilising a combination of quantitative (i.e. ratio of soluble

copper to total copper) and qualitative (i.e. proximity to structures and logged regolith) data to model the oxide, transitional, and fresh weathering

zones. This technique accounts for the impact of structural complexity on weathering at Productora and allows for the more accurate application

of metal recoveries for calculation of CuEq%.

Table 4 and Figures 5 and 6 below show the upgraded Productora MRE.

Table 4. Productora Deposit Mineral Resource Estimate, February 26th, 2024 (CNW Group/Hot Chili Limited)

2023) and reported in accordance CIM Definition Standards for Mineral Resources and Mineral Reserves (May 10, 2014) that are incorporated by reference into NI 43-101.

20% owned by Compañía Minera del Pacífico S.A (CMP).

Copper US$ 3.00/lb, Gold US$ 1,700/oz, Molybdenum US$ 14/lb, and Silver US$20/oz.

Antonio.

Metallurgical recovery averages for each deposit consider Indicated + Inferred material and are weighted to combine sulphide flotation and oxide leaching performance. Process recoveries:

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).

off grade for Mineral Resources considered amenable to underground extraction methods at the Cortadera deposit is 0.27% CuEq.

also a qualified person (within the meaning of NI 43-101) constituting the MREs of Cortadera, Productora, Alice 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

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

Figure 5. Long Section of the Productora MRE displaying CuEq grade distribution in relation to drilling coverage and PEA pit shell shape, +/- 100

m clipping. *Refer to Table 4 for CuEq calculation (CNW Group/Hot Chili Limited)

*Refer to Table 4 for CuEq calculation

Figure 6. Productora MRE Cross Sections of Habanero and CCHEN displaying CuEq grade distribution in relation to drilling coverage, PEA pit

shell shape and Indicated and Inferred Classification boundaries, +/- 100 m clipping. *Refer to Table 4 for CuEq calculation (CNW Group/Hot

Chili Limited)

*Refer to Table 4 for CuEq calculation

Alice Mineral Resource Update

The Alice MRE has been updated following the addition of nine drillholes for 2,600 metres, including one DD metallurgical drillhole (

800 m

Alice

was previously reported as part of the Productora MRE due to its proximity (less than 300 metres). Drillhole spacing at

Alice

is on a nominal

40 m

spacing. This drillhole spacing has provided a high level of support for domaining of mineralisation. Geological and grade continuity is

sufficient for Mineral Resource estimation, with both Indicated and Inferred Resources being classified at

Alice

. Samples used during the MRE

update were obtained using both RC and DD and were analysed using ICP (33 element) and fire-assay for gold.

Alice

is an outcropping copper-mineralised porphyry, with minor gold and molybdenum. Significant work has been completed since the maiden

MRE in 2015, including surface mapping for mineralisation and structures, and relogging of RC chips and DD core. This culminated in the

construction of an updated litho-structural model at

Alice

, which then informed the mineralised envelopes. Many of the lessons from Cortadera

were able to be applied to

Alice

due to the similarities in deposit style.

While the estimation updates did not result in a material change to the Alice MRE tonnes and grade, they did improve confidence in the local

variability of the estimation, which has been reflected in the Resource Classification. Open-pit RPEEE constraints have been applied for

Resource reporting at

Alice

Table 5 and Figure 7 below show the upgraded Alice MRE.

Table 5. Alice Deposit Mineral Resource Estimate, February 26th, 2024 (CNW Group/Hot Chili Limited)

2023) and reported in accordance CIM Definition Standards for Mineral Resources and Mineral Reserves (May 10, 2014) that are incorporated by reference into NI 43-101.

The Productora deposit (including Alice) 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 Compañía Minera del Pacífico S.A (CMP).

Copper US$ 3.00/lb, Gold US$ 1,700/oz, Molybdenum US$ 14/lb, and Silver US$20/oz.

Antonio.

Metallurgical recovery averages for each deposit consider Indicated + Inferred material and are weighted to combine sulphide flotation and oxide leaching performance. Process recoveries:

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).

off grade for Mineral Resources considered amenable to underground extraction methods at the Cortadera deposit is 0.27% CuEq.

The effective date of the estimate of Mineral Resources is February 26th, 2024. Refer to JORC Code Table 1 information in this announcement related to the Costa Fuego Resource Estimate (MRE) by Competent Person Elizabeth Haren, who Is also a

qualified person (within the meaning of NI 43-101) constituting the MREs of Cortadera, Productora, Alice 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

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

Figure 7. Cross-section of Alice and Productora MREs displaying CuEq grade distribution in relation to drilling coverage, PEA pit shell shapes

and Indicated and Inferred Classification boundaries. Drillholes are shown within a window of +/- 100 m of the cross-section plane. *Refer to

Table 4 and 5 for CuEq calculation (CNW Group/Hot Chili Limited)

*Refer to Table 4 and 5 for CuEq calculation

San Antonio Mineral Resource Update

The San Antonio MRE has also been updated with an additional 16 drillholes completed (2,500 metres), including four metallurgical drillholes. The

aim of the drilling was to define along-strike and down-dip extents of the mineralisation and aid conversion of the maiden MRE from Inferred to

Indicated Classification.

Drillhole spacing at

San Antonio

is on a nominal

40 m

spacing along strike and between 40-

80 m

spacing up/down dip of the mineralised diorite

unit. Historic drilling includes underground channel and sludge drilling, providing high-density drill spacing down to

20 m

in some areas. Drill

spacing has the highest density around the old underground workings. Samples used during the MRE update were obtained using both RC and

DD and were analysed using ICP (33 element) and fire-assay for gold.

The

San Antonio

deposit is characterised by narrow mineralisation along an NNE-SSW trending shear through the host rocks, which are a

shallowly west-dipping sedimentary and volcanic sequence. An updated litho-structural model was informed by surface mapping (campaigns

completed in 2018 and 2022), underground mapping (2018 and 2019), drillhole logging and assay data (2018 and 2022), and an RC chip

relogging campaign (2022).

The reporting of an Indicated Resource at

San Antonio

is a significant outcome, primarily driven by infill drilling completed since the previous MRE

and detailed surface mapping work culminating in a high- confidence interpretation of the mineralisation. Existing underground workings at

San

Antonio

also assisted in validating mineralisation interpretations.

The San Antonio Indicated Resource totals 3 Mt grading 0.71% CuEq and the Inferred Resource totals 2 Mt grading 0.41% CuEq. The previous

2022 MRE for

San Antonio

was an Inferred 4 Mt grading 1.15% CuEq.

Table 6 and Figure 8 below outline the updated San Antonio MRE.

Table 6. San Antonio Deposit Mineral Resource Estimate, February 26th, 2024 (CNW Group/Hot Chili Limited)

2023) and reported in accordance CIM Definition Standards for Mineral Resources and Mineral Reserves (May 10, 2014) that are incorporated by reference into NI 43-101.

Copper US$ 3.00/lb, Gold US$ 1,700/oz, Molybdenum US$ 14/lb, and Silver US$20/oz.

Antonio.

Metallurgical recovery averages for each deposit consider Indicated + Inferred material and are weighted to combine sulphide flotation and oxide leaching performance. Process recoveries:

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).

off grade for Mineral Resources considered amenable to underground extraction methods at the Cortadera deposit is 0.27% CuEq.

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

Figure 8. Long section looking west of San Antonio MRE displaying CuEq grade distribution in relation to drilling coverage, +/- 100 m clipping.

*Refer to Table 6 for CuEq calculation (CNW Group/Hot Chili Limited)

*Refer to Table 6 for CuEq calculation

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:

jonathan.paterson@harbor

-access.com

or visit Hot Chili's website at

www.hotchili.net.au

Qualifying Statements

Qualified Persons – NI 43-101

The information pertaining to the Mineral Resource Estimates included in this news release has been reviewed and approved by Ms.

Elizabeth

Haren

(MAUSIMM (CP) & MAIG) of Haren Consulting Pty Ltd. All other scientific and technical information in this news release, has been

reviewed and approved by Mr

Christian Easterday

, MAIG, Hot Chili's Managing Director and Chief Executive Officer. Each of Ms. Haren and Mr.

Easterday are a qualified person within the meaning of NI 43-101.

A technical report prepared in accordance with NI 43-101 containing the full details with respect to the updated Mineral Resource Update

Estimate will be filed with the applicable Canadian securities regulators on SEDAR+ (

www.sedarplus.ca.com

) within 45 days of

February 26th,

2024

. For further information on the Costa Fuego Project, refer to the technical report titled "NI 43-101 Technical Report Preliminary Economic

Assessment", dated

June 28, 2023

, which is available for review under Hot Chili's profile at

www.sedarplus.ca.com.

Competent Persons – JORC

The information in this report that relates to Mineral Resources for Cortadera, Productora (including

Alice

) and

San Antonio

which constitute the

combined Costa Fuego Project is based on information compiled by Ms

Elizabeth Haren

, a Competent Person who is a Member and Chartered

Professional of The Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Ms Haren is a full-

time employee of Haren Consulting Pty Ltd and an independent consultant to Hot Chili. Ms Haren has 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 2012 Edition of the 'Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Ms Haren

consents to the inclusion in the report of the matters based on her 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"). 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", "projections", "should", "will", "would",

variants of these words, 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 to practices including (a) mineral resource estimation, (b) preliminary mine design, and

(c) the undertaking of studies including the Preliminary Feasibility Study (PFS) , among other things. (a) Mineral resource estimation includes the

results of completed, and potential impact of planned, programs of sampling, including drilling and pulp resampling in this news release, to

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

mineral resources to mineral reserves. Assumptions and methodology employed within mineral resource estimation that have a material impact

on the reported results include metal prices, forecast and modelled metal recoveries, mining, processing, and shipping methods and costs, and

mineral resource estimation practices. (b) Preliminary mine design refers to the models for reasonable eventual economic extraction for the

mineral resource and in this news release includes Open Pit and Underground methods. In addition to the assumptions made in the mineral

resource, material factors include geotechnical models, and historic or current workings. (c). The undertaking of studies includes consideration of

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 the involvement of contributing third parties such as consultants and subject

matter experts.

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.

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 service 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; ava

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