HCH.V · 2023-09-30 12:00:00

Hot Chili Limited Quarterly Report - Period Ending 30th September 2023 PERTH, Australia ,

Financials

Hot Chili Limited Quarterly Report - Period Ending 30th

September 2023

PERTH, Australia

Oct. 31, 2023

/CNW/ -

Highlights

Hot Chili Files NI 43-101 Technical Report for the Costa Fuego Copper-Gold Project in

Chile

The Company filed the report titled "Costa Fuego Copper Project NI 43–101 Technical Report Preliminary Economic Assessment"

and dated

August 2023

, with an effective date of

June 28, 2023

(the "Technical Report"), prepared pursuant to CIM National

Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101")

The Technical Report supported the Costa Fuego PEA news release dated

28 June 2023

, outlining Costa Fuego as one of

world's lowest capital intensity, major copper developments, not controlled by a major miner

Closing of US$15 Million Investment Agreement with Osisko Gold Royalties

Closing of an Investment Agreement (see announcement dated 28

July 2023

) and the receipt of

US$15 million

in funds in late

July 2023

Strong endorsement from a leading North American royalty-streaming group with funds being used to advance the growth and

development of Costa Fuego

Water Business Conceptual Study Underway

Potential to monetise water assets while securing water for Costa Fuego adds further non-dilutive funding optionality for Hot Chili

Drilling Programme Underway at Costa Fuego

Drilling operations re-commenced, initially focused on extensional targets to the Cortadera porphyry resource

First drilling underway at the Corroteo target, located 5km SE of Cortadera

Further Regional Consolidation Steps

Binding letter of intent executed for an Option to acquire the Cometa Project, lying contiguous to the Company's Costa Fuego

landholding (see announcement dated 28

August 2023

)

Further opportunities being pursued to expand the scale of the Costa Fuego copper hub

Strong Cash Position of A$21.8 million

The PEA is preliminary in nature and includes 3% of production feed from Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be

categorised as Mineral Reserves (NI 43-101) or Ore Reserves (JORC 2012), and there is no certainty that the PEA will be realised. Mineral Resources that are not Mineral Reserves or Ore Reserves do not have demonstrated economic

viability. References to "Mineral Reserves" in this announcement include Ore Reserves (JORC 2012). See page 18 for additional cautionary language.

Cautionary Statement – JORC Code (2012)

The Preliminary Economic Assessment referred to in this report is equivalent to a Scoping Study under JORC Code (2012) reporting guidelines. It has been undertaken for the purpose of initial evaluation of a potential development of the Costa

Fuego Copper Project in Chile. It is a preliminary technical and economic study of the potential viability of the Costa Fuego Copper Project. The PEA outcomes, production target and forecast financial information referred to in the report are

based on low level technical and economic assessments that are insufficient to support estimation of Ore Reserves. The PEA is presented in US dollars to an accuracy level of +/- 35%. While each of the modifying factors was considered and

applied, there is no certainty of eventual conversion to Ore Reserves or that the production target itself will be realised. Further exploration and evaluation and appropriate studies are required before Hot Chili will be in a position to estimate any

Ore Reserves or to provide any assurance of any economic development case. Given the uncertainties involved, investors should not make any investment decisions based solely on the results of the PEA.

Of the Mineral Resources scheduled for extraction in the PEA production plan, approximately 97% are classified as Indicated and 3% as Inferred. The Company has concluded that it has reasonable grounds for disclosing a production target

which includes a small amount of Inferred Mineral Resources. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work

will result in the determination of Indicated Mineral Resources or that the production target itself will be realised. Inferred Mineral Resources comprise 2.5% of the production schedule in the first four years of operation. The viability of the

development scenario envisaged in the PEA does not depend on the inclusion of Inferred Mineral Resources. However, it is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Measured or Indicated

Mineral Resource with continued exploration.

The Mineral Resources underpinning the production target in the PEA have been prepared by a competent person in accordance with the requirements of the JORC 2012. For full details on the Mineral Resource estimate, please refer to the

ASX announcement of 31 March 2022. Hot Chili confirms that it is not aware of any new information or data that materially affects the information included in that release and that all material assumptions and technical parameters underpinning

the estimate continue to apply and have not been changed.

To achieve the outcomes indicated in the PEA, including reaching Definitive Feasibility Study ("DFS") stage, funding in the order of US$1.10 Billion will be required, including pre-production and working capital and assumed financing charges.

Investors should note that that there is no certainty that Hot Chili will be able to raise that amount of funding when needed. One of the key assumptions is that the funding for the

Project will be available when required. It is also possible that such funding may only be available on terms that may be dilutive to or otherwise affect the value of Hot Chili's existing shares. It is also possible that Hot Chili could pursue other

value realisation strategies such as debt financing, a sale or partial sale of its interest in the Costa Fuego Copper Project, sale of further royalties and/or streaming rights, sale of non- committed offtake rights, and sale of non-core assets.

This report contains forward-looking statements. Hot Chili has concluded that it has a reasonable basis for providing these forward-looking statements and believes it has a reasonable basis to expect it will be able to fund development of the

Costa Fuego Copper Project. However, a number of factors could cause actual results or expectations to differ materially from the results expressed or implied in the forward-looking statements. Given the uncertainties involved, investors

should not make any investment decisions based solely of the results of the PEA.

SUMMARY OF OPERATIONAL ACTIVITIES

Hot Chili Files NI 43-101 Technical Report for the Costa Fuego Copper-Gold Project in

Chile

The Company filed the report titled "Costa Fuego Copper Project NI 43–101 Technical Report Preliminary Economic Assessment"

dated

August 2023

, with an effective date of

June 28, 2023

(the "Technical Report"), prepared pursuant to CIM National

Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43- 101").

As outlined in the announcement dated Wednesday 28 June 2023 titled "Hot Chili Announces PEA for Costa Fuego", highlights from

the Technical Report include:

Strong Economics:

Costa Fuego PEA delivers using an 8% discount rate and long-term metal price assumptions of

US$3.85

/lb

copper (Cu) and

US$1,750

/oz gold (Au)

Base-case post-tax Net Present Value (NPV

) of

US$1.10 Billion

(approximately, within a range of

US$733 Million

US$1.46 Billion

)

and Internal Rate of Return (IRR) of 21%

(approximately, within a range of 17% to 25%)

Low Start-up Capital:

US$1.05 Billion

estimated, resulting in fast 3.5-year payback. Initial phases of open pit mining fully fund

development of a bulk underground operation

Low Capital Intensity:

One of the lowest capital intensities of global copper development projects

Approximately 112 ktpa Average CuEq

Production Rate:

Including 95 kt Cu and 49 koz Au during primary production (first 14

years) at C1 Cash Cost

US$1.33

/lb (estimated, net of by- product credits)

Initial

Mine Life

16-years with 1.41 Mt Cu and 718 koz Au produced for total revenue of approximately

US$13.52 Billion

and

total free cash flow of approximately

US$3.28 Billion

(post-tax, after operating costs, capital costs, and royalties)

Key Development Study Workstreams Advancing

Approximately 80% of Pre-feasibility Study (PFS) workstreams for Costa Fuego are already complete. Since completion of the PEA in

late

June 2023

, the Company's development expenditure has been focused on advancing key long lead-time study items, such as:

Hydrogeology Drilling and Water Monitoring Programme:

Eleven water monitoring wells for a total of

557m

of drilling have

been completed at Cortadera and Productora over the past month. Water and groundwater monitoring data is a key input

requirement for the Company's Environmental Impact Assessment (EIA), which requires a minimum of one year of water

monitoring data from down-stream water catchments. The data from this programme is one of the few remaining inputs required

in advance of submission of an EIA for Costa Fuego.

Low-grade Leach Metallurgy Programme:

Bulk samples, including 19 tonnes of underground ore from Productora and 3 tonnes

of drill core from Cortadera, have been collected and sent to Nova Mineralis in

Chile

for preparation and long-duration column

leach testwork using intermediate bulk containers. In addition, a further 1.5 tonne of drill core was collected for variability leach

testwork using

columns. Long lead-time, leach recovery testwork is now underway to support PFS level metallurgy results for

this component of Costa Fuego's process flow sheet.

__________

References to "Mineral Reserves" in this announcement include Ore Reserves (JORC 2012). See page 18 for additional cautionary language.

The copper-equivalent (CuEq) annual production rate was based on the combined processing feed (across all sources) and used long- term commodity prices of: Copper US$3.85/lb, Gold US$1,750/oz, Molybdenum US$17/lb, and Silver

US$21/oz; and estimated metallurgical recoveries for the production feed to the following processes: Concentrator (87% Cu, 56% Au, 37% Ag, 58% Mo), Oxide Leach (55% Cu only), & Low-grade Sulphide Leach (40% Cu only).

See page 19 for full non-IFRS measures disclaimer.

Water Business Conceptual Study Underway

Hot Chili has initiated a conceptual study of the Company's water assets (water easements, maritime concession and associated

coastal land access rights) and their potential to underpin a future water utility business for the Huasco region of the Atacama,

Chile

Hot Chili controls one of the few registered maritime concessions in the region, and there is no other major water utility provider in the

Huasco Valley.

Hot Chili's water licence for the extraction of 2,000 litres per second of sea water (maritime concession) can be expanded and is

transferable. The Company is also assessing the application for the licence to be upgraded to include the supply of de-salinated water.

Based on the Technical Report, Costa Fuego is estimated to require approximately 600 litres per second of sea water at its current

study scale of future annual metal production (95ktpa Cu & 49koz Au).

A large new water supplier could help to unlock multiple undeveloped mining projects in the Huasco Valley that do not currently have

access to water supply. New mine developments are driving a forecast water supply deficit, which has been estimated at

approximately 15,000 litres per second for the Atacama region.

The opportunity to potentially monetise a portion of the Company's Chilean water assets, while also securing

future seawater supply for the Costa Fuego Projects, may add further non-dilutive funding optionality for Hot Chili.

Exploration Drilling Underway at Costa Fuego

Drilling re-commenced at Costa Fuego in late July 2023 with one Reverse Circulation (RC) drill rig in operation for the majority of the

quarter. In addition, four diamond drill holes were completed over a four-week period (two completed during the quarter). Drilling

expenditure is being prudently managed to maximize the impact of invested dollars, with only one RC drill rig planned to be operating

for the remainder of this year.

A total of 26 holes for 6,442m of drilling was completed during the quarter with numerous low-grade significant intersections

recorded. Tables 1 and 2 summarise details of drilling undertaken during the quarter and significant drill results received to date,

respectively.

Drilling initially focused on satisfying the Company's remaining

3,000m

drill commitment with Antofagasta Minerals (see announcement

dated

28th November 2022

) to acquire key leases lying along the western extension of Cortadera. In addition, numerous

drill holes have been completed across extensional targets to the Cortadera resource, peripheral to Cuerpo 2 and Cuerpo 3.

Drill holes CRP0220 and CRP0222 have confirmed extensions to the south and east of Cuerpo 2, and drill hole CRP0217D has

confirmed further extensions to the east at Cuerpo 3. These new results will add to other potential additions to the Cortadera Mineral

Resource Estimate from drilling undertaken since March 2022. Further drill results from drilling undertaken during the quarter at

Cortadera are pending.

Following completion of a limited hydrogeology drilling programme (11 RC holes for

557m

) during October, RC drilling operations

commenced at the large-scale Corroteo exploration target, located approximately 5km SE of Cortadera. A total of seven deep RC

holes for approximately 2,000m are planned in the current first- pass exploration drill programme at Corroteo.

Corroteo features a surface alteration footprint measuring approximately 2km in strike length by 500m in width and has never

previously been drilled. Detailed mapping and surface geochemical programmes confirm some similarities to the deposit style and

footprint of the Company's Productora copper-gold resource.

Corroteo is one of several exploration targets being advanced toward first drill testing over the coming year.

SUMMARY OF CORPORATE ACTIVITIES

Closing of US$15 Million Investment Agreement with Osisko Gold Royalties

In late

July 2023

, Hot Chili closed its previously announced transaction with Osisko Gold Royalties Ltd ("Osisko"), pursuant to which

Hot Chili received proceeds of

US$15 million

in exchange for the sale of a 1.0% Net Smelter Return (NSR) royalty on copper and a 3%

NSR royalty on gold (the "Investment") across the Company's Costa Fuego Copper-Gold Project.

The Investment by Osisko has strengthened the Company's current cash position without the need for a dilutive equity capital raise,

demonstrated strong look-through value of the Project's economics. It also provided another significant endorsement of Hot Chili's

Costa Fuego project from one of

North America's

leading royalty-streaming groups (see the Company's announcement dated

28th

June 2023

, entitled "Hot Chili Announces

US$15 Million

Investment Agreement with Osisko Gold Royalties").

The Company is now well funded to deliver the next steps in its growth and development plan to advance the Costa Fuego Pre-

Feasibility Studies (PFS), resource growth drilling programmes and general advancement of the Project.

Further Regional Consolidation Steps

In late August, the Hot Chili executed a binding letter of intent ("LOI") with Bastion Minerals Limited (ASX: BMO) ("Bastion") for the

grant to Hot Chili of an Option to acquire 100% of Bastion's Cometa Project in Chile ("Cometa"), located near Costa Fuego (see

announcement dated 28th August).

Cometa consists of exploration and mining concessions covering an area of approximately 56km2, located almost 15km SE of Costa

Fuego's planned operating centre and contiguous with Hot Chili's landholdings in the region (see Figure 1 below).

Figure 1 - Location of the Cometa Project in relation to the Costa Fuego Project (CNW Group/Hot Chili Limited)

The Option is another step in Hot Chili's consolidation strategy for the Costa Fuego copper project.

Cometa provides additional optionality for the discovery of further mineral deposits in the Costa Fuego Project area, with the potential

to provide supplemental feed and/or a longer mine life to the project laid out in the Company's PEA.

The material terms of the LOI are as follows:

Exclusivity period of 60 days for Hot Chili to conduct due diligence and for Hot Chili's subsidiary Sociedad Minera La Frontera SpA

("Frontera") to enter into a definitive Option agreement with Bastion's subsidiary SCM Cornet Constelación, the holder of a 100%

interest in the concessions comprising Cometa, for the grant to Frontera of an option to acquire a 100% interest in the Cometa

concessions ("Option").

Non-refundable cash payment of

US$100,000

to Bastion upon grant of the Option.

Non-refundable cash payment of

US$200,000

within 12 months from the grant of the Option to keep the Option in good standing.

Option may be exercised within 30 months of the date of grant.

If the Option is exercised, the consideration payable to Bastion to purchase the Cometa concessions is:

US$2,400,000

if the Option is exercised by Hot Chili within 18 months from the date of grant of the Option; or

US$3,000,000

if the Option is exercised by Hot Chili within 30 months from the date of grant of the Option.

Hot Chili may elect to satisfy the purchase consideration in cash (100%), or in cash (50%) and ordinary shares of Hot Chili (50%)

issued at a price per share equal to the 15-day VWAP at the date of exercise of the Option, subject to applicable regulatory

approvals, including the approval of the TSX Venture Exchange ("TSXV").

The Company has recently agreed to an extension of the Exclusivity period by 45 days to allow for completion of due diligence in

advance of exercise of the Option, expected by

mid-December 2023

Further opportunities are being pursued to expand the scale of the Costa Fuego copper hub, with multiple discussions underway on

prospective exploration targets in the area.

Sustainability

The Company has continued local community engagement, holding several meetings with stakeholders and local indigenous

communities. Continued support programs in the Vallenar municipality delivering water to irrigation, funding for social programmes and

the development of counselling programmes for mental health support in partnership with the University of

Chile

A spring flora and vegetation survey was carried out on the entire Costa Fuego Project footprint, focused on strengthening the

environmental baseline information for the EIA submission.

As the Company advances the Costa Fuego Project, it continues to focus on innovative techniques to minimise the environmental

impact of the development, including the use of renewable energy for the delivery of power and the use of sea water for processing.

Cash Position and Capital Structure Changes

As of 30 September 2023, the company had cash of A$21.8 million and no debt.

The Company issued 345,000 service rights and 345,000 performance rights during the period to employees and consultants.

The Company has the following securities on issue:

119,445,206 ordinary fully paid shares

10,900,000 warrants at

CAD$2.50

expiring

31 January 2024

1,259,789 options at

CAD$1.85

expiring

31 January 2025

1,850,001 AUD$2.25 options expiring

30 September 2024

5,996,728 unvested services and performance rights.

Table 1 – Significant Drill Results for Costa Fuego in Quarter 3 2023

Hole_ID

Coordinates

Azim

Dip

Hole

Depth

Intersection

Interval

Copper

Gold

Silver

Moly

Cu Eq*

North

East

From

(m)

( %)

(g/t)

(ppm)

( %)

LCP0018

6815926

334600

863

270

-59

300

0.1

0.0

0.3

0.1

0.6

0.3

0.4

122

0.1

0.0

0.3

0.1

172

192

0.1

0.0

0.3

0.1

CRP0204

6816271

334840

937

-60

300

214

242

0.1

0.0

0.4

0.1

CRP0213

6813277

336232

1082

214

-73

270

226

246

0.1

0.0

0.3

0.1

CRP0214

6814012

335925

1007

-60

252

150

210

0.1

0.0

0.2

0.1

CRP0215

6813518

336053

1040

191

-60

270

0.2

0.1

0.3

0.2

Incl

0.2

0.3

CRP0216D

6813389

336312

1055

129

-70

546.4

0.2

0.0

0.3

0.2

100

120

0.2

0.1

0.3

0.2

130

190

0.2

0.0

0.3

0.2

208

234

0.2

0.0

0.3

0.2

304

458

154

0.2

0.1

0.3

0.2

CRP0217

6813454

336343

1060

-58

252

0.2

0.1

0.3

0.2

230

236

0.2

0.0

0.4

0.2

CRP0218

6813718

336358

1047

-80

173.5

164

168

0.2

0.0

0.3

CRP0220

6813844

335665

1003

199

-72

261

190

0.2

0.1

0.4

0.2

Including

0.2

0.1

0.5

0.3

& including

142

170

0.2

0.1

0.3

CRP0221

6813914

335758

992

-80

204

0.3

0.1

0.3

0.4

CRP0222

6813850

335666

1003

111

-71

210

0.2

0.1

0.4

0.3

130

190

0.2

0.0

0.3

0.2

208

234

0.2

0.0

0.3

0.2

304

458

154

0.2

0.1

0.3

0.2

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

¹ Molybdenum

* Copper Equivalent (CuEq) reported for the drillhole 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=3.00 USD/lb, Au=1,700 USD/oz, Mo=14 USD/lb, and Ag=20 USD/oz. The entirety of the intersection is assumed as fresh. The recovery and copper equivalent formula for each deposit is:

Cortadera – Recoveries of 83% Cu, 56% Au, 83% Mo and 37% Ag.

Cortadera CuEq(%) = Cu(%) + 0.56 x Au(g/t) + 0.00046 x Mo(ppm) + 0.0043 x Ag(g/t)

Productora – Recoveries of 84% Cu, 47% Au, 47% Mo and 0% Ag (not reported).

Productora CuEq(%) = Cu(%) + 0.48 x Au(g/t) + 0.00026 x Mo(ppm)

San Antonio and Valentina – Recoveries of 88% Cu, 72% Au, 88% Mo and 69% Ag. San Antonio CuEq(%) = Cu(%) + 0.68 x Au(g/t) + 0.00047 x Mo(ppm) + 0.0076 x Ag(g/t)

Table 2 - Drill Holes Completed for Costa Fuego in Quarter 3 2023

Prospect

Hole_ID

North

East

Depth

Azimuth

Dip

Results

Cuerpo 4

LCP0017

6816113

334616

859

300

-60

NSR

Cuerpo 4

LCP0018

6815926

334600

863

300

270

-59

NSR

Cuerpo 4

LCP0019

6816163

334587

857

246

269

-59

NSR

Cuerpo 4

LCP0020D

6815842

334867

927

755

245

-60

Results pending

Cortadera North

CRP0204

6816271

334840

937

300

-60

NSR

Cuerpo 3

CRP0205

6813247

335815

1184

300

-74

NSR

Cuerpo 3

CRP0206

6813249

335817

1184

300

-75

NSR

Cuerpo 3

CRP0207

6813031

336070

1174

-71

NSR

Cuerpo 3

CRP0208

6813030

336070

1174

-74

NSR

Cuerpo 3

CRP0209

6813502

336655

1088

228

205

-69

NSR

Cuerpo 3

CRP0210

6813502

336657

1088

359

-77

NSR

Cuerpo 3 North

CRP0211

6814125

336261

1090

174

-57

NSR

Cuerpo 2

CRP0212

6813753

335463

1004

150

-85

NSR

Cuerpo 3

CRP0213

6813277

336232

1082

270

214

-73

NSR

Cuerpo 3

CRP0214

6814012

335925

1007

252

-60

NSR

Cuerpo 3

CRP0215

6813518

336053

1040

270

191

-60

Significant result returned Q2

Cuerpo 3

CRP0216D

6813389

336312

1055

546

129

-70

Significant result returned Q2

Cuerpo 3

CRP0217

6813454

336343

1060

252

-58

Significant result returned Q2

Cuerpo 3

CRP0218

6813718

336358

1047

174

-80

Significant result returned Q2

Cuerpo 3

CRP0219

6813591

336365

1045

-66

NSR

Cuerpo 2

CRP0220

6813844

335665

1003

261

199

-72

Significant result returned Q2

Cuerpo 2

CRP0221

6813914

335758

992

204

-80

Significant result returned Q2

Cuerpo 2

CRP0222

6813850

335666

1003

210

111

-71

Results pending

Cuerpo 3 North

CRP0223

6814534

336075

1174

360

-58

Results pending

Cuerpo 2 North

CRP0224

6814227

335625

1058

198

-58

Results pending

Cortadera Hydro

CORMW01

6814879

334509

883

-90

Results pending

Note 1: NSR – no significant intersection recorded.

Figure 2. Plan view of Cortadera displaying collar locations of significant drilling results returned during the quarter (CNW Group/Hot

Chili Limited)

Figure 3. Cross-section view looking Northwest at Cortadera displaying new drillhole CRP0220 at Cuerpo 2 with the PEA pit shape

and 2022 Resource model (+0.21% CuEq blocks outlined). Lithology is shown on the trace, Cu% assays shown as histograms

downhole and the view is clipped at +/- 40m into and out of section (CNW Group/Hot Chili Limited)

Figure 4. Cross-section view looking Northeast at Cortadera displaying new drillhole CRP0222 at Cuerpo 2 with the PEA pit shape and

2022 Resource model (+0.21% CuEq blocks outlined). Lithology is shown on the trace, Cu% assays shown as histograms downhole

and the view is clipped at +/- 40m into and out of section (CNW Group/Hot Chili Limited)

Figure 5. Cross-section view looking North at Cortadera displaying new drillhole CRP0217D at Cuerpo 3 with the PEA pit shape and

2022 Resource model (+0.21% CuEq blocks outlined). Lithology is shown on the trace, Cu% assays shown as histograms downhole

and the view is clipped at +/- 40m into and out of section (CNW Group/Hot Chili Limited)

Additional ASX Disclosure Information

ASX Listing Rule 5.3.2:

There was no substantive mining production and development activities during the quarter.

ASX Listing Rule 5.3.3 - Schedule of Mineral Tenements as of

30 September 2023

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

totaled

$166,458

. This is comprised of directors' salaries and superannuation of

$166,458

Health, Safety, Environment and Quality

Field operations during the period included geological reconnaissance activities, core-testing and logging, field mapping, and sampling

exercises across the Cortadera, El Fuego and Productora landholdings. El Fuego field activities are run from the Cortadera operations

centre and safety statistics are combined for reporting.

No safety incidents were recorded during the quarter. The Company's HSEQ quarterly performance is summarised in Table 3 below.

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 3 2023 Performance and Statistics

Deposit

Productora

Cortadera

Timeframe

Q2 2023

Cum.

Q2 2023

Cum.²

Q2 2023

Cum.²

LTI events

NLTI events

Days lost

152

175

LTIFR index

ISR index

568

492

IFR Index

Thousands of manhours

4.7

10.5

268

17.4

356

Incidents on materials and assets

Environmental

incidents

Headcount¹

Notes: HSEQ is the acronym for Health, Safety, Environment and Quality. LTIFR per million-manhours. Safety performance is reported on a monthly basis to the National Mine Safety Authority on a standard E-100 form; (1) Average monthly

headcount (2) Cumulative statistics since April 2019.

Tenement Changes During the Quarter

During the Quarter, the Company has claimed the exploitation concession Chilis 12 1/60 in use of the preferential right held by virtue of

exploration concession Chilis 12 and renewed the following mining exploration concessions:

Chilis 13 replaces Chilis 13, which expired on

August 9th, 2023

Chilis 14 replaces Chilis 14, which expired on

August 19th, 2023

Chilis 15 replaces Chilis 15, which expired on

July 29th, 2023

Chilis 16 replaces Chilis 16, which expired on

August 17th, 2023

Chilis 17 replaces Chilis 17, which expired on

July 29th, 2023

Chilis 18 replaces Chilis 18, which expired on

August 25th, 2023

Porfiada G replaces Porfiada G, which expired on

August 23rd, 2023

Porfiada V replaces Porfiada V, which expires on

October 26th, 2023

and

Porfiada VI replaces Porfiada VI, which expires on

November 19th, 2023

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

Table 4 Current Tenement (Patente) Holdings in Chile as of 30 September 2023

Cortadera Project

License ID

HCH % Held

HCH % Earning

Area (ha)

Agreement

Details

MAGDALENITA 1/20

100% Frontera SpA

100

ATACAMITA 1/82

100% Frontera SpA

AMALIA 942 A 1/6

100% Frontera SpA

PAULINA 10 B 1/16

100% Frontera SpA

136

PAULINA 11 B 1/30

100% Frontera SpA

249

PAULINA 12 B 1/30

100% Frontera SpA

294

PAULINA 13 B 1/30

100% Frontera SpA

264

PAULINA 14 B 1/30

100% Frontera SpA

265

PAULINA 15 B 1/30

100% Frontera SpA

200

PAULINA 22 A 1/30

100% Frontera SpA

300

PAULINA 24 1/24

100% Frontera SpA

183

PAULINA 25 A 1/19

100% Frontera SpA

156

PAULINA 26 A 1/30

100% Frontera SpA

294

PAULINA 27A 1/30

100% Frontera SpA

300

CORTADERA 1 1/200

100% Frontera SpA

200

CORTADERA 2 1/200

100% Frontera SpA

200

CORTADERA 41

100% Frontera SpA

CORTADERA 42

100% Frontera SpA

LAS CANAS 16

100% Frontera SpA

LAS CANAS 1/15

100% Frontera SpA

146

CORTADERA 1/40

100% Frontera SpA

374

LAS CANAS ESTE 2003 1/30

100% Frontera SpA

300

CORROTEO 1 1/260

100% Frontera SpA

260

CORROTEO 5 1/261

100% Frontera SpA

261

ROMERO 1 AL 31

100% Frontera SpA

PURISIMA

100% Frontera SpA

NSR 1.5%

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

Productora Project

License ID

HCH % Held

HCH % Earning

Area (ha)

Agreement

Details

FRAN 1, 1-60

80% SMEA SpA

220

FRAN 2, 1-20

80% SMEA SpA

100

FRAN 3, 1-20

80% SMEA SpA

100

FRAN 4, 1-20

80% SMEA SpA

100

FRAN 5, 1-20

80% SMEA SpA

100

FRAN 6, 1-26

80% SMEA SpA

130

FRAN 7, 1-37

80% SMEA SpA

176

FRAN 8, 1-30

80% SMEA SpA

120

FRAN 12, 1-40

80% SMEA SpA

200

FRAN 13, 1-40

80% SMEA SpA

200

FRAN 14, 1-40

80% SMEA SpA

200

FRAN 15, 1-60

80% SMEA SpA

300

FRAN 18, 1-60

80% SMEA SpA

273

FRAN 21, 1-46

80% SMEA SpA

226

ALGA 7A, 1-32

80% SMEA SpA

ALGA VI, 5-24

80% SMEA SpA

MONTOSA 1-4

80% SMEA SpA

NSR 3%

CHICA

80% SMEA SpA

ESPERANZA 1-5

80% SMEA SpA

LEONA 2A 1-4

80% SMEA SpA

CARMEN I, 1-50

80% SMEA SpA

222

CARMEN II, 1-60

80% SMEA SpA

274

ZAPA 1, 1-10

80% SMEA SpA

100

ZAPA 3, 1-23

80% SMEA SpA

ZAPA 5A, 1-16

80% SMEA SpA

ZAPA 7, 1-24

80% SMEA SpA

120

CABRITO, CABRITO 1-9

80% SMEA SpA

CUENCA A, 1-51

80% SMEA SpA

255

CUENCA B, 1-28

80% SMEA SpA

139

CUENCA C, 1-51

80% SMEA SpA

255

CUENCA D

80% SMEA SpA

CUENCA E

80% SMEA SpA

CHOAPA 1-10

80% SMEA SpA

ELQUI 1-14

80% SMEA SpA

LIMARÍ 1-15

80% SMEA SpA

LOA 1-6

80% SMEA SpA

MAIPO 1-10

80% SMEA SpA

TOLTÉN 1-14

80% SMEA SpA

CACHIYUYITO 1, 1-20

80% SMEA SpA

100

CACHIYUYITO 2, 1-60

80% SMEA SpA

300

CACHIYUYITO 3, 1-60

80% SMEA SpA

300

LA PRODUCTORA 1-16

80% SMEA SpA

ORO INDIO 1A, 1-20

80% SMEA SpA

AURO HUASCO I, 1-8

80% SMEA SpA

URANIO, 1-70

0 %

350

25-year Lease Agreement

US$250,000 per year (average for the 25

year term); plus 2% NSR all but gold; 4%

NSR gold; 5% NSR non-metallic

JULI 9, 1-60

80% SMEA SpA

300

JULI 10, 1-60

80% SMEA SpA

300

JULI 11 1/60

80% SMEA SpA

300

JULI 12 1/42

80% SMEA SpA

210

JULI 13 1/20

80% SMEA SpA

100

JULI 14 1/50

80% SMEA SpA

250

JULI 15 1/55

80% SMEA SpA

275

JULI 16, 1-60

80% SMEA SpA

300

JULI 17, 1-20

80% SMEA SpA

100

JULI 19

80% SMEA SpA

300

JULI 20

80% SMEA SpA

300

JULI 21 1/60

80% SMEA SpA

300

JULI 22

80% SMEA SpA

300

JULI 23 1/60

80% SMEA SpA

300

JULI 24, 1-60

80% SMEA SpA

300

JULI 25

80% SMEA SpA

300

JULI 27 1/30

80% SMEA SpA

150

JULI 27 B 1/10

80% SMEA SpA

JULI 28 1/60

80% SMEA SpA

300

JULIETA 5

80% SMEA SpA

200

JULIETA 6

80% SMEA SpA

200

JULIETA 7

80% SMEA SpA

100

JULIETA 8

80% SMEA SpA

100

JULIETA 9

80% SMEA SpA

100

JULIETA 10 1/60

80% SMEA SpA

300

JULIETA 11

80% SMEA SpA

300

JULIETA 12

80% SMEA SpA

300

JULIETA 13, 1-60

80% SMEA SpA

298

JULIETA 14, 1-60

80% SMEA SpA

269

JULIETA 15, 1-40

80% SMEA SpA

200

JULIETA 16

80% SMEA SpA

200

JULIETA 17

80% SMEA SpA

200

JULIETA 18, 1-40

80% SMEA SpA

200

ARENA 1 1-6

80% SMEA SpA

ARENA 2 1-17

80% SMEA SpA

113

ZAPA 1 – 6

80% SMEA SpA

GSR 1%

JULIETA 1-4

80% SMEA SpA

Note. SMEA SpA is subsidiary company - 80% owned by Hot Chili Limited, 20% owned by CMP (Compañía Minera del Pacífico)

El Fuego Project

Licence ID

HCH % Held

HCH % Earning

Area (ha)

Exploration and Expenditure Commitment-

Payments

Santiago 21 al 36

90% Frontera SpA

90% (HCH)-10% (Arnaldo del Campo) JV.

6-year term.

USD 600,000 already paid.

USD 6,600,000 final exercise payment to be paid

by September 7, 2024.

Santiago 37 al 43

90% Frontera SpA

Santiago A, 1 al 26

90% Frontera SpA

236

Santiago B, 1 al 20

90% Frontera SpA

200

Santiago C, 1 al 30

90% Frontera SpA

300

Santiago D, 1 al 30

90% Frontera SpA

300

Santiago E, 1 al 30

90% Frontera SpA

300

Prima Uno

90% Frontera SpA

Prima Dos

90% Frontera SpA

Santiago 15 al 19

90% Frontera SpA

San Antonio 1 al 5

90% Frontera SpA

Santiago 1 AL 14 Y 20

90% Frontera SpA

Mercedes 1 al 3

90% Frontera SpA

Kreta 1 al 4

90% Frontera SpA

Mari 1 al 12

90% Frontera SpA

PORFIADA VII

1 al 60

90% Frontera SpA

300

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