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Regulatory Green Light Paves Way for La Verde Cu-Au Discovery Expansion Drilling

Permits & Approvals

Regulatory Green Light Paves Way for La Verde Cu-Au Discovery

Expansion Drilling

Two diamond drill at La Verde (CNW Group/Hot Chili Limited)

PERTH, Australia

,

Oct. 9, 2025

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

pleased to announce the receipt of regulatory approval

1

to expand drill coverage across the La Verde copper-gold (Cu-Au) discovery,

located approximately 30km south of the Company's Costa Fuego Cu-Au Project ("Costa Fuego" or "the Project") planned central processing

hub at low elevation in the coastal range of the Atacama region,

Chile

.

The approval follows the commencement of phase two diamond drilling (single drill rig, double shift) from existing drill platforms at La Verde

on 22 September 2025.

Diamond drilling is currently testing depth extensions to higher grade centres within the current +0.2% Cu discovery footprint, which measures

1,000 m

by

750 m

and extends up to

400 m

vertical depth (refer announcement dated

19 May 2025

).

Two diamond drill holes of an eleven-hole programme are already complete. Both diamond drill holes have visually recorded wide

intersections of porphyry-style copper mineralisation and assay results are pending. Results will be announced to ASX on receipt of assays in

coming weeks.

Note: Visual estimates of mineral abundance should never be considered a proxy or substitute for laboratory analyses where

concentrations or grades are the factor of principal economic interest. Visual estimates also potentially provide no information regarding

impurities or deleterious physical properties relevant to valuations.

_________________________________

1

Regulatory green light for La Verde refers to a Sectoral Permit, which is the appropriate regulatory authorisation for a project of this scale. A full DIA (Environmental Impact Declaration) would be processed in a next drilling stage following current

regulations. Hot Chili remains fully committed to transparency and environmental responsibility in every stage of the project.

This recent regulatory approval allows Hot Chili to continue expanding the La Verde discovery, providing access to test:

1

.

Further lateral and along-strike extensions to the La Verde discovery footprint, and

2

.

Potential for La Verde to be part of a district-scale copper porphyry cluster, with three nearby look-alike targets set for first-pass drilling.

Drill platform clearing is planned to start ahead of the arrival of a second drill rig (Reverse Circulation) to accelerate phase two drilling at La

Verde.

Phase one drill results have already demonstrated significant potential for resource growth and additional front-end open pit mine life,

materially enhancing the economics of Hot Chili's

March 2025

Pre-feasibility Study for Costa Fuego.

La Verde is shaping to be a significant growth engine, and the Company looks forward to providing further updates on the results from drilling

activities.

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

For more information please contact:

Christian Easterday

Managing Director & CEO – Hot Chili

Tel: +61 8 9315 9009

Email:

[email protected]

Carol Marinkovich

Company Secretary – Hot Chili

Tel: +61 8 9315 9009

Email:

[email protected]

Graham Farrell

Investor & Public Relations

Email:

[email protected]

or visit Hot Chili's website at

www.hotchili.net.au

Figure 1. Location of La Verde in relation to Costa Fuego, coastal range Chile (CNW Group/Hot Chili Limited)

Figure 2. Plan view map of the La Verde porphyry system showing approved extensional collar locations (red points), planned (white traces)

and completed DD drilling (black) compared with +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (Magenta) mineralisation

interpolants from Phase one drilling. Conceptual open pit shells1 displayed for $US3.50/lb Cu (blue) and $US6.00/lb Cu (green) displayed as

dashed lines. See announcement dated 25 September 2025 for JORC Table 1 additional technical information. (CNW Group/Hot Chili

Limited)

Figure 3. Plan view showing the La Verde +0.2% Cu mineralisation interpolant in relation to regional magnetic destruction footprint (red

dashed), local magnetic low features (white dashed), weakly magnetic anomalies (white line) and Fathom 3D geochemical probability models

(purple isosurfaces). Left – shown overlain on reduced-to-the-pole (RTP) ground magnetics. Right – shown in relation to mapped gravel

cover, interpreted regional structures and soil sample coverage. See announcement dated 29 May 2025 for JORC Table 1 additional

technical information. (CNW Group/Hot Chili Limited)

1

See Page 5 of this announcement for detail on the US$3.50 Cu and US$6.00 Cu conceptual open pit shells (Exploration Targets). Any potential tonnage and grade of the Exploration Target shown is conceptual in nature. There has been insufficient

exploration to estimate a Mineral Resource within the target area, and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

Qualifying Statements

Conceptual Open Pit Shells

Conceptual open pit shells represent Exploration Targets as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration

Results, Mineral Resources and Ore Reserves' (JORC Code). They are based on completed exploration activities reported in the

announcement released

19 May 2025

(

'Hot Chili Announces Latest Drill Results for La Verde, Doubling Porphyry Discovery Footprint'

).

The conceptual open pit shells were generated using copper (Cu) prices of

US$3.50

/lb Cu and

US$6.00

/lb Cu on a series of nested Cu

grade shells. Other input parameters informing the conceptual open-pit shells (pit slope angles, mining cost, processing cost, etc.) were

derived from values reported in the

March 2025

Costa Fuego Pre-feasibility Study and are considered appropriate for the style of

mineralisation encountered at the La Verde Cu-Au porphyry discovery.

Any potential quantity and grade of the Exploration Target shown is conceptual in nature. There has been insufficient exploration to estimate

a Mineral Resource within the target area, and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

Further exploration activities are detailed in this announcement and include (but may not necessarily be limited to) a program of diamond

drillholes aiming to extend the mineralised footprint at La Verde. Drilling commenced on

22 September 2025

, with the length of the program

dependent on a number of considerations including (but not limited to) the results of the exploration activities and regulatory applications and

approvals.

Qualified Person – NI 43-101

The technical information in this announcement has been reviewed and approved by Mr.

Christian Easterday

, MAIG, Hot Chili's Managing

Director and a qualified person within the meaning of NI43-101.

Competent Person – JORC

The information in this announcement that relates to Exploration Targets for the La Verde project is based upon information compiled by Mr

Christian Easterday

, the Managing Director and a full-time employee of Hot Chili Limited, who 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

this announcement of the matters based on their information in the form and context in which it appears.

The information in this announcement relating to the Exploration Results for La Verde was previously reported in the Company's

announcements 'Hot Chili Confirms Major Cu-Au Porphyry Discovery at La Verde', 'Hot Chili Announces Latest Drill Results for La Verde,

Doubling Porphyry Discovery Footprint' and 'District-Scale Porphyry Cluster Potential Emerging at La Verde Cu-Au Discovery' released to

ASX on

26 February 2024

,

19 May 2025

and

29 May 2025

respectively, which are available to view on the Company's website at

www.hotchili.net.au/investors/investor-centre/market-announcements

. The Company confirms that it is not aware of any new information or

data that materially affects the information included in the original market announcements.

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 announcement.

Forward Looking Statements

This announcement 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 announcement 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 "could", "enhancing", "estimate", "plan", "planned",

"potential", "shaping", "should", "will", "would", variants of these words and similar expressions are intended to identify forward-looking

statements.

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

reasonable assumptions. Forward-looking statements speak only as of the date of this announcement.

In this announcement, forward-looking statements relate, among other things, to: the potential of the La Verde discovery; regulatory

applications and approvals; the timing and results of future economic studies; and the Company's future exploration and other business plans.

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 announcement, including, but not limited to, the following material factors: the

ability of drilling and other exploration activities to accurately predict mineralisation; 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 or mineral

reserves 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 announcement and elsewhere in the Company's public

disclosure record.

Although the forward-looking statements contained in this announcement 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 announcement, 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 announcement 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 announcement are expressly qualified by the foregoing cautionary statements and are made

as of the date of this announcement. 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 announcement

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 announcement 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.

View original content to download multimedia:

https://www.prnewswire.com/news-releases/regulatory-green-light-paves-way-for-la-verde-cu-au-discovery-expansion-drilling-302579255.html

SOURCE

Hot Chili Limited

View original content to download multimedia:

http://www.newswire.ca/en/releases/archive/October2025/09/c6763.html

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CO: Hot Chili Limited

CNW 07:00e 09-OCT-25