Quarterly Activities/Appendix 5B Cash Flow Report

Hot Chili Limited (ASX: HCH) (TSXV:HCH) (OTCQX: HHLKF) ("Hot Chili" or the "Company") is pleased to present its Quarterly Report and Cash Flow Report.

Highlights

Next Phase of Copper-Gold Growth Begins

• New assay results confirm a fourth porphyry at Cortadera, returning a wide diamond drill intersection of copper (Cu) and gold (Au) from shallow depth:
  
  • 120m grading 0.5% CuEq* (0.4% Cu, 0.2g/t Au) from 22m depth down-hole to end of hole (LCD001)
    including 38m grading 1.0% CuEq* (0.8% Cu, 0.4g/t Au) from 22m depth;
• Wide intercept of mineralised porphyry intersected below Cortadera’s Cuerpo 1 porphyry confirming significant resource expansion potential:
  • 270m grading 0.5% CuEq* (0.4% Copper (Cu), 0.1g/t Gold (Au)) from surface (CRP0202D)
    including 114m grading 0.7% CuEq* (0.6% Cu, 0.1g/t Au) from 70m depth,
  • 84m grading 0.4% CuEq* (0.4% Cu) from 336m depth downhole (CORMET001)
    including 26m grading 0.6% CuEq* (0.6% Cu, 0.1g/t Au) from 374m depth.

Costa Fuego Preliminary Economics Assessment (PEA) On-Track for Q2 2023

Unmarketable Parcel Share Sale Facility Opened

Strong Cash Balance of $7.4 million

Drilling operations adjacent to the Cortadera core yard, Costa Fuego copper project, Chile, February 2023

SUMMARY OF OPERATIONAL ACTIVITIES

Next Phase of Copper-Gold Growth Begins

In early January 2023, the Company commenced drilling across several extensional targets to the Cortadera copper-gold Mineral Resource, the centrepiece of the Company’s coastal range, low-altitude, Costa Fuego senior copper development in Chile.

First-pass drilling, which comprised 23 drill holes for 7,700m, was completed in late March and planning is underway for a second phase of exploration drilling to commence in June.

Fourth Porphyry Confirmed at Cortadera

During the quarter, Hot Chili completed its first 3,000m drill commitment on the properties held under a two- year option agreement (the "Option") with Antofagasta Minerals ("AMSA") over the potential western extension of the Cortadera resource (see announcement dated 28th November 2022).

New assay results have recorded a significant drill intersection of shallow copper-gold porphyry mineralisation, confirming the presence of a fourth porphyry (Cuerpo 4) at Cortadera.

Diamond drill hole LD0001 was drilled as a confirmatory twin hole to historical AMSA drill hole COR-03 that intersected 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 depth (as announced on 28th November 2022).

LCD0001 has successfully returned a similar result to AMSA’s hole, intersecting 120m grading 0.5% CuEq* (0.4% Cu, 0.2g/t Au from 22m depth down-hole to end of hole. Importantly, the wide intersection also included 38m grading 1.0% CuEq* (0.8% Cu, 0.4g/t Au) from 22m depth, or 18m grading 1.3% CuEq* (1.0% Cu, 0.5g/t Au) from 32m depth.

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