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HCH.V ·

Hot Chili Releases Quarterly Activity Statement and 5B Cash Flow Report for

Corporate Updates

Hot Chili Releases Quarterly Activity Statement and 5B Cash Flow Report for

Quarter ended 31 December 2022

Perth, Australia - Hot Chili Limited (TSXV:HCH) (ASX:HCH) OTCQX:HHLKF) (the “Company” or

“Hot Chili”) is pleased to announce that its has filed its Q2 2022 Quarterly Activity Report.

The complete report is available under the Company’s profile at www.asx.com, www.sedar.com and on

Hot Chili’s website (www.hotchili.net.au) .

Highlights include :

• Consolidation Efforts Secure Major Extensions to Cortadera

• Access Granted by Chilean Naval Authority to Maritime Concession Land for Costa Fuego

• Appointment of New Canadian Director Stephen Quin

• Final 2022 Metallurgical Drill Results confirm robust resource estimate for Productora

o MET026 - 80m1 grading 0.7% CuEq* (0.6% Cu, 0.2g/t Au) from 101m downhole

including 23m grading 1.0% CuEq (0.9% Cu, 0.2g/t Au) from 101m

o MET028 - 277m2 grading 0.5% CuEq (0.4% Cu, 0.1g/t Au) from 49m downhole

including 46m grading 1.1% CuEq (1.0% Cu, 0.2g/t Au) from 280m

• Next Growth Phase Begins with Drilling Underway, Strong Cash Balance of A$10.8M

* 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 equ ivalent formula for Productora is: Recoveries of 84% Cu, 47% Au, 47% Mo and 0%

Ag (not reported). CuEq(%) = Cu(%) + 0.48 x Au(g/t) + 0.00026 x Mo(ppm).

1,2 Drillholes previously reported only metallurgical samples (see ‘New High-Grade Results from Costa Fuego’ dated 19th July 2022. Subsequent entire drillhole

analysis then completed

This announcement is authorised by the Board of Directors for release to 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]

ASX Investor

Investor & Public Relations (Australia)

Email: [email protected]

Harbor Access

Investor & Public Relations (Canada)

Email:[email protected]

Email:[email protected]

or visit Hot Chili’s website at www.hotchili.net.au

Qualifying Statements

Forward Looking Statements

This Announcement is provided on the basis that neither the Company nor its representatives make any warranty (express or implied)

as to the accuracy, reliability, relevance or completeness of the material contained in the Announcement and nothing contained in the

Announcement is, or may be relied upon as a promise, representation or warranty, whether as to the past or the future. The Company

hereby excludes all warranties that can be excluded by law. The Announcement contains material which is predictive i n nature and

may be affected by inaccurate assumptions or by known and unknown risks and uncertainties and may differ materially from resu lts

ultimately achieved.

The Announcement contains “forward -looking statements”. All statements other than those of historical facts included in the

Announcement are forward -looking statements including estimates of Mineral Resources. However, forward -looking statements are

subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expres sed,

projected or implied by such forward-looking statements. Such risks include, but are not limited to, copper, gold and other metals price

volatility, currency fluctuations, increased production costs and variances in ore grade recovery rates from those assumed in mining

plans, as well as political and operational risks and governmental regulation and judicial outcomes. The Company does not undertake

any obligation to release publicly any revisions to any “forward-looking statement” to reflect events or circumstances after the date of

the Announcement, or to reflect the occurrence of unanticipated events, except as may be required u nder applicable securities laws.

All persons should consider seeking appropriate professional advice in reviewing the Announcement and all other information w ith

respect to the Company and evaluating the business, financial performance and operations of th e Company. Neither the provision of

the Announcement nor any information contained in the Announcement or subsequently communicated to any person in connection

with the Announcement is, or should be taken as, constituting the giving of investment advice to any person

Disclaimer

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

Exchange) accepts responsibility for the adequacy or accuracy of this news release.