Hot Chili Executes Option to Secure Major Extension to Cortadera

Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) (“Hot Chili” or “Company”) is pleased to provide details of a material transaction with Chilean copper major Antofagasta Minerals S.A. (AMSA).

Fourth Porphyry Added to Cortadera

• Hot Chili has executed an Option Agreement with Antofagasta Minerals S.A. (AMSA) to acquire a 100% interest in five highly prospective mining rights, containing the potential western extension of Hot Chili’s Cortadera copper-gold discovery, the centrepiece of the Company’s low-altitude, Costa Fuego senior copper development in Chile
• AMSA’s mining rights contain a large outcropping mineralised porphyry (Cuerpo 4 - 700m in strike length and 300m in width), with similar dimensions to Cortadera’s main porphyry (Cuerpo 3)
• The option enables the consolidation of Cortadera and near doubles the prospective strike length of the existing Cortadera discovery from 2.3km to 4.1km
• Five shallow reverse circulation drill holes for 1,056m* completed across Cuerpo 4 in 2005 confirmed several significant shallow drilling intersections, including:
  • 128m grading 0.5% CuEq** (0.4% copper (Cu) & 0.1g/t gold (Au)) from 28m downhole depth,
    including 16m grading 1.3% CuEq** (1% Cu & 0.5g/t Au) from 28m
• First-pass 6,000m drilling programme to start as soon as possible to assess a potential material resource addition to Costa Fuego
• Low-cost transaction and strong cash position of A$15.4M as at 30^th September 2022

Hot Chili has executed an Option Agreement enabling Hot Chili to acquire a 100% interest in AMSA’s mining rights adjoining the western margin of Hot Chili’s Cortadera copper-gold porphyry discovery, the centre-piece of the Company’s Costa Fuego senior copper development in Chile.

This strategic option agreement consolidates the highly prospective AMSA mining rights, containing near- surface drill intersections of copper-gold porphyry mineralisation, with Hot Chili’s contiguous Cortadera project.

Cortadera has been the growth engine for Hot Chili since the Company executed a transaction to acquire the project in 2019.

Cortadera’s current Indicated resource of 471Mt grading 0.46% CuEq for 1.7Mt copper and 1.8Moz gold and Inferred resource of 108Mt grading 0.35% CuEq for an additional 0.3Mt copper and 0.3Moz gold (ASX announcement dated 31^st March 2022) is contained within three porphyry centres, trending NW-SE, over a strike extent of 2.3km.

The option enables the consolidation of Cortadera and near doubles the prospective strike length of the discovery, increasing the near term, material resource growth potential for Hot Chili.

AMSA’s five mining rights cover 517 hectares and contain a large outcropping mineralised porphyry (Cuerpo 4 - 700m in strike length by 300m in width) with similar dimensions to Cortadera’s main porphyry (Cuerpo 3) as well as other identified porphyry targets, trending N-S, over a prospective strike extent of approximately 1.8km.

In 2005, AMSA intersected significant copper-gold-molybdenum mineralisation at Cuerpo 4, with five shallow Reverse Circulation (RC) drill holes totalling 1,056m (Drilling data and associated drilling intersections not previously publicly reported, AMSA internal report, see JORC Code Table 1 in this announcement for further details).

Four of AMSA’s five drill holes recorded wide intersections of mineralisation, including COR-03 which recorded 128m grading 0.5% CuEq (0.4% Cu & 0.1g/t Au) from 28m downhole depth, including 16m grading 1.3% CuEq (1% Cu & 0.5g/t Au) from 28m.

The historical drilling across Cuerpo 4 clearly demonstrates open pit resource growth potential, given the shallow nature of copper-gold-molybdenum mineralisation, and near-surface, copper-gold enrichment.

Next Steps – Rapid Resource Definition

A first-pass drilling programme comprising 16 holes for 6,000m is expected to start as soon as possible.

Drilling will test Cuerpo 4 and two other targets within AMSA’s landholding using RC and Diamond (DD) drilling. Hot Chili and AMSA have agreed on the detail and staging of the planned drilling programme after a collaborative and detailed geological review by both companies’ technical teams.

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