Hot Chili Limited Announces Closing of Initial Public Offering

HOT CHILI LIMITED ANNOUNCES CLOSING OF INITIAL PUBLIC OFFERING

Not for Distribution to U.S. News Wire Services or Dissemination in the United States

PERTH—(BUSINESS WIRE)—December 22, 2021— Hot Chili Limited (TSXV:HCH) ("HCH"

or the "Company"), an emerging Australian- based copper developer, today announced the

successful closing of its Canadi an initial public offering (the "Offering"). An aggregate of

21,567,286 units of the Company were distributed (t he "Units") at a price of C$1.55, of which

2,445,000 Units were exercised under the underwriters ' over-allotment option. Each Unit consist

of one ordinary share of the Company (an "Ordinary Share, and an Ordinary Share that comprises

a part of a Unit, a "Unit Share") and one-half of one Ordinary Share purchase warrant receipt (each

whole warrant receipt a "Warrant Receipt"). Each full Warrant R eceipt is convertible into one

Ordinary Share purchase warrant (a "Warrant") for no further consideration upon the satisfaction

of shareholder approval. Each full Warrant shall be exercisable to acquire one Ordinary Share of

the Company (a "Warrant Share") for a period of 24 months from the date the Warrants are issued,

at an exercise price of C$2.50 per Warrant Share. The Units have separated into their component

parts immediately upon issue.

In addition, 232,714 Ordinary Shares will be issued to Blue Spec Sondajes Chile SpA, a company

associated with HCH's chairman Murray Black, under a second tranche of the placement, subject

to shareholder approval of the issue under Australian Stock Exchange listing rule 10.11.

In connection with the Offering, the Company received C$33,790,000 in total gross proceeds.

The Ordinary Shares are expected to commen ce trading the week of December 27, 2021 on the

TSX Venture Exchange under the symbol "HCH".

The Offering was co-led by iA Private Wealth Inc. and Cormark Securities Inc. (the

"Underwriters"). Pursuant to an underwriting agreem ent dated December 20, 2021, the

Underwriters were paid a fee e qual to 6.0% of the gross proceeds of the Offering, subject to a

reduction fee of 4.0% of the gross proceeds from subscriptions from purchasers on a president's

list provided by the Company. The Company has al so agreed to issue to the Underwriters

1,259,789 warrants, exercisable at C$1.85 with a term of three years (“Underwriter Warrants”), as

part of the payable to the Underwriters in respect of the Offering, subject to shareholder approval

of the issue of the Underwriter options.

A final prospectus containing important information relating to these securities has been filed with

securities commissions or similar authorities in certain jurisdictions of Canada. A copy of the final

prospectus is available from the persons above and is on the SEDAR website at www.sedar.com.

The final prospectus notes that an investment in the Ordinary Shares is speculative and involves a

high degree of risk. The Company’s business is subject to the ri sks normally encountered in the

mining industry. An investment in the Ordinary Shares is suitable only for those investors who are

willing to risk a loss of some or all of their in vestment. For more information, potential investors

should read the final pros pectus, including the “ Risk Factors ” and the “ Forward-Looking

Statements”.

No securities regulatory authority has either approved or disapproved of the contents of this news

release. The Units, Unit Shares, Warrant Receip ts, Warrants and Warrant Shares have not been

and will not be registered under the United States Securities Ac t of 1933, as amended (the “U.S.

Securities Act”) or any U.S. state securities laws. Accordingly, such securities may not be offered

or sold to, or for the account or benefit of, pers ons in the “United States” or “U.S. persons” (as

such terms are defined in Regulation S under the U. S. Securities Act) unless registered under the

U.S. Securities Act and applicable state securities laws or pursuant to exemptions therefrom. This

news release does not constitute an offer to sell or a solicitation of an offer to buy any securities

of HCH in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About the Company (www.hotchili.net.au)

HCH welcomes you to visit the updated Hot Chili Limited website.

The Company's focus is copper exploration and development in Chile’s Atacama Region, and they

aim to be one of the largest copper companies operating in the area. HC H has three key copper

properties—Cortadera, Productora, and El Fuego—a ll located in close proxi mity to one another

and known as the Costa Fuego Project. HCH believes this kind of project portfolio is unique among

junior copper mining companies.

Forward-Looking Statements

Forward-looking statements involve known and unknown risks, uncertainties and other factors

which may cause the actual results, performance or achievements of HCH to be materially different

from any future results, performance or achievements expressed or implied by the forward-looking

statements. Factors that could affect the outco me include, among others: future prices and the

supply of metals; the results of drilling; inability to raise the money nece ssary to incur the

expenditures required to retain and advance the propert ies; environmental liabilities (known and

unknown); general business, economic, competitive, political and social uncer tainties; results of

exploration programs; accidents, labour disputes and other risks of the mi ning industry; political

instability, terrorism, insurrection or war; or delays in obtaining governmental approvals, projected

cash operating costs, failure to obtain regulatory or shareholde r approvals, and the Company

receiving final listing approval from the TSX Venture Exchange.

Although HCH has attempted to identify important factors that could cause actual actions, events

or results to differ materially from those desc ribed in forward-looking statements, there may be

other factors that cause actions, events or resu lts to differ from those anticipated, estimated or

intended. Forward-looking statements contained herein are made as of the date of this news release

and HCH disclaims any obligation to update any forward-looking statements, whether as a result

of new information, future events or results or othe rwise, except as requi red by applicable

securities laws.

Contact

Christian Easterday, Chief Executive Officer

Tel: +61 8 9315 9009

Email: [email protected]

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 press release.