Period Ending 31 March 2025
Highlights
Hot Chili Announces Preliminary Feasibility Study (PFS) & Maiden1 Ore Reserve2for the Costa Fuego Cu-Au Project
— Low-risk, Chilean coastal copper development with advanced permitting – multi-decade mine life, top quartile copper production scale3and lowest quartile capital intensity
— Strong economics and leverage to rising copper price:
— Post-tax Net Present Value (NPV8%) of US$1.2 billion (approximately, within a range of US$786 million to US$1.62 billion) and post-tax Internal Rate of Return (IRR) of 19% (approximately, within a range of 15% to 22%)
— Maiden ore reserve for Costa Fuego Copper-Gold Project (Costa Fuego) lowers operational risk1,2:
— Probable Ore Reserves of 502 Mt at 0.37% Cu, 0.10 g/t Au, 0.49 g/t Ag and 97 ppm Mo: Across sulphide concentrator, oxide leach and low-grade sulphide leach processing streams
Hot Chili Announces PFS for Huasco Water & MOU for Seawater Supply to Costa Fuego
— Strong economics for a large, multi-user, water business opportunity
— Stage 1 PFS4 for 500L/s of potential seawater supply to Costa Fuego
— Post-tax NPV8% of US$122 million and IRR of 19%
— Staged approach for regional, desalinated water supply with large 4,000 L/s catchment of potential off-takers
— Stage 2 PFS for 1,300 L/s of potential desalinated water supply
— Post-tax NPV8% of US$977 million and IRR of 19%
— First-Mover Advantage, only active maritime licence in the Huasco Valley region of Chile
Hot Chili Confirms Major Cu-Au Porphyry Discovery at La Verde
— Multiple new significant drill intersections underpin rapidly growing oxide and sulphide discovery, located 30km south of Costa Fuego, providing significant potential for front-end, open pit, mine life growth
— Phase 1 drill programme completed on 10 April 2025, phase 2 planned and awaiting regulatory approval
— Assay results for nineteen holes pending and second Environmental Impact Assessment (EIA) commenced to integrate La Verde into Costa Fuego and materially enhance project economics
A$7.5M Cash and A$5.0M in Returns Expected (VAT and JV recoup)
— Expenditure reduced by 60% to 65% over next six months during Definitive Feasibility Study (DFS) planning & PFS optimisation phases
Potential Strategic Funding Discussions Advancing
— Strong interest in asset-level investment opportunities for Costa Fuego and Huasco Water
__________1 Hot Chili previously released Ore Reserves forProductora, a component of Costa Fuego, in the ASX announcement 'Hot Chili Delivers PFS and Near Doubles Reserves at Productora' 2 March 2016. Maiden Ore Reserve for Cortadera and San Antonio and Alice deposits, and updated Ore Reserve for Productora and as a whole Costa Fuego.2 Hot Chili is a dual listed entity and complies with theJORC 2012 code for the ASX for the reporting of Exploration Results, Mineral Resources and Ore Reserves. The company complies with CIM Definition Standards for Mineral Resources and Mineral Reserves (10 May 2014) that are incorporated by reference into NI 43-101 for the TSXV. Terminology of Ore Reserves and Mineral Reserves are interchangeable and have the same meaning within this announcement.3 S&P Market Intelligence. The Global Developer Peer Group of project studies were selected on the following basis: Global primary copper projects (not controlled by a major miner), with net by-product credits where applicable, reporting studies of average annual life-of-mine copper production of greater than 40kt, which have been published within the last 5 years.4 TheHuasco Water Supply PFS has been aligned with the preliminary feasibility study for the Company's Costa Fuego project (the “Costa Fuego PFS”) and shares the same assumptions for Costa Fuego in stage 1. See announcement dated 27th March 2025 “Hot Chili Announces PFS & Maiden Mineral Reserve for the Costa Fuego Cu-Au Project” outlining the results of the Costa Fuego PFS. An independent technical report for the Costa Fuego PFS, prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and JORC Code 20212 within 45 days thereof.
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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 99% are classified as Indicated and 1% 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, as permitted under the JORC Code. 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. 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 drilling.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. The Mineral Resource Estimate update released in February 2024 does not materially change the Mineral Resource inventory that formed the basis of the 2023 PEA, and no new scientific or technical information has been developed that would materially affect the outcome of the 2023 PEA and, therefore, the results and conclusions of the 2023 PEA are considered current and have been restated for this Report.To achieve the outcomes indicated in the PEA, including reaching Definitive Feasibility Study (“DFS”), mine construction and production stages, funding in the order of US$1.10 Billion will be required, including pre-production and working capital and assumed financing charges. Investors should note that that there is no certainty that Hot Chili will be able to raise that amount of funding when needed. One of the key assumptions is that the funding for the Project will be available when required and on acceptable terms. It is also possible that such funding may only be available on terms that may be dilutive to, or otherwise affect the value of, Hot Chili's existing shares. It is also possible that Hot Chili could pursue other value realisation strategies such as debt financing, a sale or partial sale of its interest in the Costa Fuego Copper Project and/or Huasco Water, sale of further royalties and/or streaming rights, sale of non-committed offtake rights, and sale of non-core assets.This Report contains forward-looking statements. Hot Chili has concluded that it has a reasonable basis for providing these forward-looking statements and believes it has a reasonable basis to expect it will be able to fund development of the Costa Fuego Copper Project. However, a number of factors could cause actual results or expectations to differ materially from the results expressed or implied in the forward-looking statements. Given the uncertainties involved, investors should not make any investment decisions based solely of the results of the PEA.
SUMMARY OF OPERATIONAL ACTIVITIES
Costa Fuego PFS Delivered On-Time & Within Guidance
The Costa Fuego PFS was announced on 27th March 2025. The PFS delivered globally meaningful scale and a multi-decade project life for Costa Fuego. Highlights included:
Globally Meaningful Scale & Multi-Decade Mine Life
— Project Life Extended to 20 Years
— Average Annual Production Increased 116 ktpa Average CuEq1 Production Rate: Including 95 kt Cu and 48 koz Au during primary production (first 14 years)
— Competitive Cost Position: Life of mine (LOM) average C1 Cash Cost2 of US$ 1.38/lb and All-in-Sustaining Cost of US$1.85/lb (both estimated net of by-product credits)
— Increase in Total Copper and Gold Production: 1.5 Mt Cu (3.31 Blb Cu) and 780 koz Au produced over the LOM
— Robust Financial Profile: Total LOM revenue of approximately US$17.3 billion and total LOM free cash flow of approximately US$3.86 billion (post-tax, after operating costs, capital costs, and royalties)
— Significant Risk Reduction: PFS prepared assuming ± 25% accuracy. An additional US$442 million of capital costs applied to significantly reduce key areas of risk, including changes in project scope and inflationary pressures
Strong Economics and Leverage to Rising Copper Price
— Post-tax NPV8% of US$1.2 billion (approximately, within a range of US$786 million to US$1.62 billion) and post-tax IRR of 19% (approximately, within a range of 15% to 22%)
— First Quartile Capital Intensity: Start-up Capital Cost of US$ 1.27 billion delivers a capital intensity of US$ 14,079/t of average annual CuEq. metal produced
— Highly Leveraged to Copper Price: At spot copper price of US$5.30/lb3, post-tax NPV8% increases to US$2.2 billion and post-taxIRR to 30%, respectively
Low-Risk, Coastal Copper Development with Advanced Permitting
— Low Elevation and Over a Decade of Permitting Advance Provides a Foundation for Development: One of only a few global copper development projects at low elevation with a water permit, and grid power
— Preparing to submit Environmental Impact Assessment (EIA): Costa Fuego Stage-1 (EIA-1) based on current PFS-scale and definition
Maiden Ore Reserve for Costa Fuego Lowers Operational Risk
— Maiden4 Ore Reserve5for Costa Fuego. Probable Ore Reserves of 502 Mt at 0.37% Cu, 0.10 g/t Au, 0.49 g/t Ag and 97 ppm Mo: Across sulphide concentrator, oxide leach and low-grade sulphide leach processing streams
__________1 The copper-equivalent (CuEq) annual production rate was based on the combined processing feed (across all sources) and used long-term commodity prices of: Copper US$ 4.30/lb, Gold US$ 2,280/oz, Molybdenum US$ 20/lb, and Silver US$25/oz; and estimated metallurgical recoveries for the production feed to the following processes: Concentrator (86% Cu, 54% Au, 37% Ag, 70% Mo), Oxide Leach (65% Cu only), & Low-grade Sulphide Leach (39% Cu only).2 See page Announcement page 3 for full non-IFRS measures disclaimer.3 Copper price – Fast markets quote 26/03/2025. High of $5.37/lb closing price $5.24/lb4 Hot Chili previously released Ore Reserves for Productora, a component of Costa Fuego, in the ASX announcement 'Hot Chili Delivers PFS and Near Doubles Reserves at Productora' 2 March 2016. Maiden Ore Reserve for Cortadera and San Antonio and Alice deposits, and updated Ore Reserve for Productora and as a whole Costa Fuego.5 Hot Chili is a dual listed entity and complies with the JORC 2012 code for the ASX for the reporting of Exploration Results, Mineral Resources and Ore Reserves. The company complies with CIM Definition Standards for Mineral Resources and Mineral Reserves (10 May 2014) that are incorporated by reference into NI 43-101 for the TSXV. Terminology of Ore Reserves and Mineral Reserves are interchangeable and have the same meaning within this announcement.
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Sphere size represents Leverage Index – which was calculated as the ratio of % increase in Cu price to % increase in NPV8%. The Global Developer Peer Group of project studies were selected on the following basis: Global primary copper projects (not controlled by a major miner), with net by-product credits where applicable, reporting studies of average annual life-of-mine copper production of greater than 40 kt, which have been published within the last 5 years. Projects with older studies were considered to be on hold. Significant projects such as Pebble and King-king were excluded by Hot Chili due to high perceived geopolitical risk, limiting the probability of development. Projects controlled by mid-tier mining companies near Costa Fuego were also included (Josemaría, Santa Domingo, Mantos Blanco and Mantoverde) for comparison purposes. References to active mines and other mineral projects is for illustration purposes only. There can be no assurances the Company will achieve comparable results. Source: Published Company reports on studies undertaken on projects that were not in production at the time of the studies. Information from projects has been sourced from publicly available data that has been provided under differing economic assumptions. Public information for projects has been adjusted to provide a standardised data set under a US$4.30/lb Cu price. Published sensitivity data provided results that bracketed an US$4.30/lb Cu price, which was then calculated. Details of the adjustment are provided in the reference table on Benchmarking Data in the appendix (see slides 55-59 of presentation “Costa Fuego Copper-Gold Project Preliminary Feasibility Study & Maiden Ore Reserve” Dated 27th March 2025 ).
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Sphere size represents projected Life of Mine Average Annual CuEq* Production. 1PFS CuEq considers long-term commodity prices and PFS metallurgical recoveries for the production feed from testwork. The CuEq metal was determined as the equivalent copper metal with equal value to all saleable production. See slide 37 for PFS commodity prices and slides 33 & 34 for PFS metallurgical recoveries. The South American Developer Peer Group of project studies were selected on the following basis: South American primary copper projects (not controlled by a major miner), net of by-product credits where applicable, reporting studies of average annual life-of-mine copper production of greater than 40 kt, which have been published within the last 5 years. Projects with older studies were considered to be on hold. Projects controlled by mid-tier mining companies near Costa Fuego were also included (Josemaría, Santa Domingo, Mantos Blanco and Mantoverde) for comparison purposes. References to active mines and other mineral projects is for illustration purposes only. There can be no assurances the Company will achieve comparable results. Source: Published Company reports on studies undertaken on projects that were not in production at the time of the studies. Information from projects has been sourced from publicly available data that has been provided under differing economic assumptions. Public information for projects has been adjusted to provide a standardised data set under a US$4.30/lb Cu price. Published sensitivity data provided results that bracketed an US$4.30/lb Cu price, which was then calculated. Details of the adjustment are provided in the reference table on Benchmarking Data in the appendix (see slides 55-59 of presentation “Costa Fuego Copper-Gold Project Preliminary Feasibility Study & Maiden Ore Reserve” Dated 27th March 2025 ).
Huasco Water PFS Outlines Valuable Strategic Asset
The Huasco Water1PFS was announced on 31 March 2025. The Huasco Water PFS presented a robust business case for both Stage 1 and Stage 2 of its proposed regional scale seawater and desalinated water business, with a conceptual level study for Stage 3 desalinated water supply expansion. Highlights included:
Strong Economics for a Large, Multi-User, Water Business
— Stage 12 Water SupplyPFS for 500L/s of Potential Seawater Supply: Post-tax NPV8% of US$122 million and IRR of 19%. Construction capital cost for seawater supply estimated at US$151 million with a 4.5-year payback
— Stage 2 Water Supply PFS for 1,300 L/s of Potential Desalinated Water Supply: Post-tax NPV8% of US$977 million and IRR of 19%. Construction capital cost for desalinated water supply estimated at US$1.4 billion with a 4-year payback. Stage 2 financial outcomes include Stage 1 capital and operating cashflows
— Stage 3 Conceptual Study for Expansion to 2,300 L/s of Potential Desalinated Water Supply
Stage 1- Multi-Decade Seawater Supply to Costa Fuego
— 20 Year Seawater Supply with Foundation Off-taker: Memorandum of Understanding (MOU) executed for water supply of up to 500 L/s to Costa Fuego
— Long Lead-times Permits Secured: Granted maritime water concession to extract seawater, permit for coastal land access, Stage 1 pipeline easements and connection to the electrical grid secured
— Near-Term Development Decision Tied to Costa Fuego: First water supply planned for end of decade
Stage 2 and 3 – Regional, Desalinated Water Supply Opportunity
— Large Catchment of Potential Off-takers: Over 4,000 L/s of desalinated water demand identified, including six undeveloped mining projects without secured access to desalinated water supply. No offtake agreements have been secured for stage 2 or 3 and discussions with potential customers are ongoing
— Staged Growth Approach: Establishment of seawater supply infrastructure toward the end of the decade, followed by the commencement of initial desalinated water supply shortly thereafter, and subsequent staged expansion. The staged approach enables long term scalable water supply to support mining, community, and agriculture in the Huasco Valley region with potential to extend well beyond the initial project horizons
First-Mover Advantage
— Only Active Maritime License: HW Aguas para El Huasco SpA (Huasco Water), a joint venture between Hot Chili (80% interest) and Compañia Minera Del Pacifico “CMP” (20% interest), is the only company with permitted access to supply seawater in the Huasco Valley region following a ten-year regulatory approval process
— Desalination Permitting Advancing: Over a year advanced on regulatory applications to enable the supply of desalinated water from the existing maritime concession and a second maritime concession application by Huasco Water
— Long Permitting Timelines Continue: No regulatory changes have been made to Chile's maritime permitting process since Huasco Water was granted its concession. Hot Chili maintains a competitive advantage as the first mover in the area for a water distribution business
— EIA Advanced: Stage 1 seawater supply is included within the Costa Fuego EIA, baseline studies complete.
__________1HW Aguas para El Huasco SpA (“Huasco Water”), a joint venture between Hot Chili (80% interest) and Compañia Minera Del Pacifico “”CMP” (20% interest)2 The Huasco Water Supply PFS has been aligned with the preliminary feasibility study for the Company's Costa Fuego project (the “Costa Fuego PFS”) and shares the same assumptions for Costa Fuego in stage 1. See announcement dated 27th March 2025 “Hot Chili Announces PFS & Maiden Mineral Reserve for the Costa Fuego Cu-Au Project” outlining the results of the Costa Fuego PFS. An independent technical report for the Costa Fuego PFS, prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and JORC Code 20212 within 45 days thereof.
Huasco Water PFS Key Outcomes
Stage Key Performance Indicator IRR 12% 15.5% 19% (Base case)Stage 1 Fixed Water Tariff US$M/year 23 28 33PFSEngineering(Seawater)Variable Water Tariff US$/m³ 0.48 0.58 0.69Average Annual Price of Water1 US$/m³ 2.31 2.80 3.32Nominal Seawater Water Demand L/s 500 500 500Costa Fuego PFS Total Cash Costs US$/lb Cu 1.31 1.35 1.38Impact on Costa Fuego PFS Total Cash Cost US$/lb Cu -0.07 -0.04 0Post-tax NPV8 US$M 41 80 122Levelized Cost of Water to Huasco Water (8%) US $/m³ 1.66 1.66 1.66Construction Capital US$M 151 151 151Sustaining Capital US$M 26 26 26Stage 1 & 2 Fixed Water Tariff US$M/year 243 283 327PFS Engineering(Seawater & Desalinated Water)Variable Water Tariff US$/m³ 1.47 1.71 1.98Average Annual Price of Water2 US$/m³ 6.39 7.44 8.59Nominal Desalinated Water Demand L/s 1,300 1,300 1,300Post-tax NPV8 US$M 328 640 977Levelized Cost of Water to Huasco Water (8%) US $/m³ 4.85 4.85 4.85Construction Capital US$M 1,430 1,430 1,430Sustaining Capital US$M 1,170 1,170 1,170Stage 33 Fixed Water Tariff US$M/year 312 359 410Conceptual Study(Desalinated Water Expansion)Variable Water Tariff US$/m³ 1.78 2.04 2.33Average Annual Price of Water4 US$/m³ 6.93 7.97 9.11Nominal Desalinated Water Demand L/s 2,300 2,300 2,300Expansion Capital US$M 1,900 1,900 1,900Sustaining Capital US$M 2,380 2,380 2,380
_________1 Average Annual Price of Water for Costa Fuego. Price is calculated subject to each project's location and requirements.2 Average Annual Price of Water for customers supplied in the Stage 2. Price is calculated subject to each customers location and requirements.3 Stage 3 tariffs are the average for all customers for Stage 1, 2 and 34 Average Annual Price of Water for customers supplied in the Stage 3. Price is calculated subject to each customers location and requirements.
La Verde Exploration Update
On 11 February 2025, Hot Chili reported a second round of strong assay results from its La Verde copper-gold discovery, located approximately 30km south of Costa Fuego. Highlights included:
Rapidly Emerging Major Copper-Gold Porphyry Discovery
— New drill results from an additional ten Reverse Circulation (RC) drill holes confirm La Verde as a major copper-gold porphyry discovery in low elevation coastal Chile, with broad, consistently mineralised intersections extending over 300 m vertically, commencing at shallow depths.
— Multiple new significant drill intersections underpin rapidly growing oxide and sulphide discovery:
— 320 m grading 0.3% Cu and 0.1 g/t Au from 34 m to end-of-hole (DKP009)
— including 134 m at 0.4% Cu and 0.2 g/t Au from 180 m depth
— including 56 m at 0.5% Cu and 0.2 g/t Au from 258 m depth
— 200 m grading 0.4% Cu and 0.1 g/t Au from 48 m to end-of-hole (DKP005)
— including 38 m at 0.5% Cu and 0.2 g/t Au from 68 m depth
— 172 m grading 0.4% Cu and 0.2 g/t Au from 48 m (DKP012)
— including 20 m at 0.5% Cu and 0.2 g/t Au from 62 m depth
and 78 m grading 0.5% Cu and 0.1 g/t Au from 228 m to end-of-hole
— including 32 m at 0.6% Cu and 0.2 g/t Au from 232 m depth
— 135.5 m grading 0.3% Cu and 0.1 g/t Au from 64 m to end-of-hole (DKP006)
— including 62 m at 0.4% Cu and 0.2 g/t Au from 124 m depth
— which included 26 m at 0.5% Cu and 0.3g/t Au from 124 m depth
— 32 m grading 0.4% Cu from surface (DKP011)
— 80 m grading 0.3% Cu and 0.1 g/t Au from 8 m depth (DKP004)
— including 34 m at 0.4% Cu from 8 m depth
La Verde Discovery Keeps Growing – Large Scale Appeal
— New drill results reinforce La Verde's potential scale, adding to the strong results reported on 18 December 2024:
— 308 m grading 0.5% Cu, 0.3 g/t Au from 46 m to end-of-hole (DKP002)
—
— including 202 m at 0.6% Cu, 0.3g/t Au from 70 m depth
— which included 100 m at 0.7% Cu and 0.3g/t Au from 118 m depth
— 362 m grading 0.3% Cu, 0.1g/t Au from 28m to end-of-hole (DKP001)
— including 174 m at 0.4% Cu and 0.1 g/t Au from 36 m depth
— which included 22 m at 0.6% Cu, 0.2g/t Au from 144 m depth
Drilling Coverage at La Verde Doubled & Porphyry Mineralisation Remains Open
— First-pass drill coverage now extends across an area measuring 1,000 m by 550 m: 30 reverse circulation (RC) holes for 9,352 m drilled.
— Assay results pending for nineteen drill holes: Assay turnaround time from laboratories slower than usual due to peak summer drilling season in the high Andes
— Shallow porphyry mineralisation remains open in all directions
— Phase 1 drill programme completed on 10th April 2025
Next Steps
— Regulatory application for further clearing access being advanced
— Phase 2 drill programme (RC and diamond drilling) planned to commence following regulatory approval
— Deeper diamond drill testing being planned: 8 of 12 RC drill holes reported to date recorded significant mineralisation to end-of-hole
— Advanced four-dimensional geological modelling underway in addition to regional scale exploration activities across the La Verde discovery area and Domeyko landholdings
— Second EIA commenced to integrate La Verde into Costa Fuego
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Table 1 – Drill Holes Completed for Costa Fuego in Quarter 1 2025
Prospect Hole ID North East RL Depth Azimuth Dip ResultsLa Verde DKP014 6785852 324747 1,147 444 300 -60 PendingLa Verde DKP015 6786096 324434 1,159 313 132 -60 PendingLa Verde DKP016 6785947 324416 1,110 360 110 -60 PendingLa Verde DKP017 6786094 324685 1,185 336 100 -60 PendingLa Verde DKP018 6785835 324428 1,108 145 100 -60 PendingLa Verde DKP019 6785720 324718 1,145 279.5 255 -60 PendingLa Verde DKP020 6785748 324586 1,141 144 270 -60 PendingLa Verde DKP021 6785619 324324 1,197 402 75 -60 PendingLa Verde DKP022 6785527 324414 1,200 288 75 -60 PendingLa Verde DKP023 6785421 324320 1,197 402 90 -60 PendingLa Verde DKP024 6785424 324417 1,203 402 110 -60 PendingLa Verde DKP025 6785313 324415 1,187 276 270 -75 PendingLa Verde DKP026 6785870 324312 1,110 147 105 -60 PendingLa Verde DKP027 6785755 324906 1,139 402 300 -60 PendingLa Verde DKP028 6785617 324758 1,136 432 300 -60 PendingLa Verde DKP029 6785615 324758 1,175 366 265 -60 PendingLa Verde DKP030 6785770 324774 1,133 393 275 -60 Pending
Table 2 – Significant Intersections returned for Costa Fuego in Quarter 1 2025
Hole ID Coordinates Azim. Dip Hole Depth Intersection Interval Copper Gold Silver Molybdenum North East RL From To (m) (% Cu) (g/t Au) (ppm Ag) (ppm Mo)DKP003 6785971 324840 1192 117 -59 282 36 246 210 0.2 0.1 0.4 5 110 128 18 0.2 0.2 0.3 7 140 160 20 0.3 0.1 0.4 7 188 196 8 0.3 0.1 0.5 4DKP004 6785836 324423 1093 90 -60 120 8 88 80 0.3 0.1 0.5 19 Incl 8 42 34 0.4 0.0 0.6 16 Or Incl 26 36 10 0.6 0.1 0.5 18DKP005 6785789 324564 1124 91 -60 248 8 247.5 239.5 0.3 0.1 0.9 18 Or 48 247.5 199.5 0.4 0.1 1.0 21 Incl 32 40 8 0.5 0.1 0.5 8 And Incl 68 106 38 0.5 0.2 1.1 9 Or Incl 70 82 12 0.6 0.2 1.0 8DKP006 6785721 324727 1130 110 -60 199.5 64 199.5 135.5 0.3 0.1 0.8 6 Incl 124 186 62 0.4 0.2 1.1 7 Or Incl 124 150 26 0.5 0.3 1.2 7 And Incl 170 174 4 0.6 0.2 2.2 7DKP007 6785854 324742 1149 270 -60 204 0 204 204 0.2 0.1 0.4 32 Incl 80 88 8 0.3 0.1 0.7 23 And Incl 160 204 44 0.3 0.1 0.5 84 Or Incl 186 194 8 0.4 0.1 0.7 91DKP008 6785855 324748 1150 5 -60 324 0 324 324 0.2 0.1 0.5 12 Incl 0 16 16 0.3 0.1 0.3 6 And Incl 144 154 10 0.3 0.1 1.4 20 And Incl 174 218 44 0.3 0.1 0.5 7DKP009 6786075 324552 1152 131 -60 354 34 354 320 0.3 0.1 0.7 13 Incl 46 66 20 0.5 0.1 0.9 8 And Incl 124 140 16 0.5 0.2 0.7 21 And Incl 180 314 134 0.4 0.2 0.8 8 Or Incl 258 314 56 0.5 0.2 1.1 6 Or Incl 260 274 14 0.5 0.3 1.7 4DKP010 6785851 324742 1148 209 -60 276 0 92 92 0.2 0.1 0.3 10 Incl 0 10 10 0.4 0.2 0.3 4 136 220 84 0.3 0.1 0.8 15 Incl 190 206 16 0.4 0.1 1.2 20 252 274 22 0.3 0.1 0.6 14DKP011 6786096 324429 1159 91 -60 326 0 32 32 0.4 0.0 0.8 23 228 252 24 0.2 0.0 0.5 72 Incl 232 234 2 0.4 0.0 2.1 44 274 310 36 0.2 0.0 0.3 31DKP012 6785977 324839 1193 300 -60 306 48 220 172 0.4 0.2 0.5 14 Incl 62 82 20 0.5 0.2 0.3 6 And Incl 192 202 10 0.5 0.2 0.6 94 And Incl 228 306 78 0.5 0.1 0.8 24 Or Incl 232 264 32 0.6 0.2 1.0 16 248 260 12 0.7 0.2 0.8 21
SUMMARY OF CORPORATE ACTIVITIES
Cash Position and Capital Structure Changes
As of 31 March 2025, the Company had cash of A$7.5 million and no debt. The Company expects to receive approximately A$5 million in funds from VAT repayments and joint venture recoup from its partner CMP.
The operating expenditure for quarter ended 31 March 2025 included payments for exploration and evaluation of A$7.9 million. Included in this amount was A$4.0 million related to the completion of the two PFS for Costa Fuego and Huasco Water, and the advancement of the EIA. A total of A$3.9 million was spent on exploration activities across the La Verde copper-gold porphyry discovery and southern landholdings included in the Domeyko project.
The investing expenditure for quarter ended 31 March 2025 related to payments for patentes (annual rent) for the Company's mining tenements.
The Company expects monthly expenditure to be materially reduced by approximately 60% to 65% over the coming six months compared to this quarter, due to the completion and release of both the Costa Fuego and Huasco Water PFS, with only planning and optimisation activities expected during the next two quarters. Exploration expenditure will also be significantly reduced, with phase 1 drilling activities at La Verde having been completed on 10 April 2025.
In addition, the Company is engaged in discussions related to potential renegotiation of forthcoming Option payments later in 2025 to maximise funds, while Hot Chili engages in potential future strategic funding discussions.
The following summarises the Company's securities on issue:
— 151,596,149 ordinary fully paid shares
— 1,914,000 options at AUD $1.50 expiring 24 July 2026
— 5,938,248 service and performance rights
Board Changes
With the release of the Company's Pre-feasibility Studies for its Chilean Costa Fuego copper-gold project and Huasco Water project, Hot Chili commenced preparation in its next steps toward a final phase of development.
On 11 March 2025, Hot Chili advised that Dr Nicole Adshead-Bell, Non-Executive Chair and Mr Stephen Quin, Non-Executive Director had tendered their resignations as Directors of the Company, effective immediately.
On 17 March 2025, the Company announced the appointment of experienced and well-regarded Australian mining executive, Mrs Fiona Van Maanen, to the Board of Hot Chili as an Independent Non-Executive Director
Further board and key executive appointments are planned and aim to strengthen and align the Company's capability at an important inflection in the Company's growth.
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 31 March 2025
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 5B totalled $126,000. This is comprised of directors' salaries and superannuation of $126,000
Health, Safety, Environment and Quality
Field operations during the period included geological reconnaissance activities, reverse-circulation drilling, field mapping, and sampling exercises across the major Cortadera and Productora landholdings, as well as new project at La Verde. Activities on new tenements are run from the Productora or Cortadera operations centres and their safety statistics are included under the figures for all projects.
There were no Lost Time Injuries (LTI) during the quarter.
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 4. HSEQ Quarter 1 2025 Performance and Statistics
Deposit Productora Cortadera All ProjectsTimeframe Q1 2025 Cum.² Q1 2025 Cum.² Q1 2025 Cum.²LTIevents 0 0 0 6 0 8NLTIevents 0 4 0 6 0 11Dayslost 0 0 0 152 0 263LTIFRindex 0 0 0 20 0 18ISRindex 0 0 0 510 0 599IFRIndex 0 44 0 40 0 43Thousandsofman-hours 3.6 92 2.5 298 21.4 439Incidentsonmaterialsandassets 0 1 0 0 0 1Environmentalincidents 0 0 0 0 0 0Headcount(1) 10 11 8 31 57 50
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, Sociedad Minera La Frontera SpA (“La Frontera”) has abandoned the Marsellesa option agreement and the Cometa option agreement and the mining rights have been returned to the respective owners. Furthermore, the Domeyko Option Agreement Offeror has claimed the exploitation concessions “Cazurro 3 1/60”, “Cazurro 4 1/60” and “Cazurro 7 1/40” in use of the preferential right held by virtue of exploration concessions “Cazurro 3”, “Cazurro 4” and “Cazurro 7” respectively. Consequently, the Domeyko Option Agreement has been amended, including the mentioned concessions and the exploitation concession called “Antonio 36 1/15”.
During the same period, Sociedad Minera El Águila has claimed 2 mining exploitation concessions “Suerte 1/7” and “Suerte II 1/15”, which are in process to be constituted.
The Company's existing tenements are detailed in the table below.
Table 4 Current Tenement (Patente) Holdings in Chile as of 31 March 2025
Cortadera Project Tenements
Cortadera ProjectNdegree License ID HCH % Held HCH % Earning Area (ha) Agreement Details1 ALCENIA 1/10 100% Frontera SpA 502 AMALIA 942 A 1/6 100% Frontera SpA 533 ATACAMITA 1/82 100% Frontera SpA 824 CORROTEO 1 1/260 100% Frontera SpA 2605 CORROTEO 5 1/261 100% Frontera SpA 2616 CORTADERA 1 1/200 100% Frontera SpA 2007 CORTADERA 1/40 100% Frontera SpA 3748 CORTADERA 2 1/200 100% Frontera SpA 2009 CORTADERA 41 100% Frontera SpA 110 CORTADERA 42 100% Frontera SpA 111 LAS CANAS 1/15 100% Frontera SpA 14612 LAS CANAS 16 100% Frontera SpA 113 LAS CANAS ESTE 2003 1/30 100% Frontera SpA 30014 MAGDALENITA 1/20 100% Frontera SpA 10015 PAULINA 10 B 1/16 100% Frontera SpA 13616 PAULINA 11 B 1/30 100% Frontera SpA 24917 PAULINA 12 B 1/30 100% Frontera SpA 29418 PAULINA 13 B 1/30 100% Frontera SpA 26419 PAULINA 14 B 1/30 100% Frontera SpA 26520 PAULINA 15 B 1/30 100% Frontera SpA 20021 PAULINA 22 A 1/30 100% Frontera SpA 30022 PAULINA 24 1/24 100% Frontera SpA 18323 PAULINA 25 A 1/19 100% Frontera SpA 15624 PAULINA 26 A 1/30 100% Frontera SpA 29425 PAULINA 27A 1/30 100% Frontera SpA 30026 PURISIMA 1/8 (1/2 Y 5/6) 100% Frontera SpA 20 NSR 1.5%27 CF 1 100% Frontera SpA 30028 CF 2 100% Frontera SpA 30029 CF 3 100% Frontera SpA 30030 CF 4 100% Frontera SpA 30031 CF 5 100% Frontera SpA 20032 CF 6 100% Frontera SpA 20033 CF 7 100% Frontera SpA 10034 CF 8 100% Frontera SpA 20035 CF 9 100% Frontera SpA 10036 CF 10 100% Frontera SpA 20037 CF 11 100% Frontera SpA 20038 CHAPULIN COLORADO 1/3 100% Frontera SpA 339 CHILIS 1 100% Frontera SpA 20040 CHILIS 3 100% Frontera SpA 10041 CHILIS 4 100% Frontera SpA 20042 CHILIS 5 100% Frontera SpA 20043 CHILIS 6 100% Frontera SpA 20044 CHILIS 7 100% Frontera SpA 20045 CHILIS 8 100% Frontera SpA 20046 CHILIS 9 100% Frontera SpA 30047 CHILIS 10 1/38 100% Frontera SpA 19048 CHILIS 11 100% Frontera SpA 20049 CHILIS 12 1/60 100% Frontera SpA 30050 CHILIS 13 100% Frontera SpA 30051 CHILIS 14 100% Frontera SpA 30052 CHILIS 15 100% Frontera SpA 30053 CHILIS 16 100% Frontera SpA 30054 CHILIS 17 100% Frontera SpA 30055 CHILIS 18 100% Frontera SpA 30056 CORTADERA 1 100% Frontera SpA 20057 CORTADERA 2 100% Frontera SpA 20058 CORTADERA 3 100% Frontera SpA 20059 CORTADERA 4 100% Frontera SpA 20060 CORTADERA 5 100% Frontera SpA 20061 CORTADERA 6 1/60 100% Frontera SpA 26562 CORTADERA 7 1/20 100% Frontera SpA 9363 CRISTINA 1/40 100% SMEA SpA 4064 DIABLITO 1/5 100% SMEA SpA 2565 DONA FELIPA 1/10 100% Frontera SpA 5066 DORO 1 100% Frontera SpA 20067 DORO 2 100% Frontera SpA 20068 DORO 3 100% Frontera SpA 30069 FALLA MAIPO 2 1/10 100% Frontera SpA 9970 FALLA MAIPO 3 1/8 100% Frontera SpA 7271 FALLA MAIPO 4 1/26 100% Frontera SpA 2672 MINORI 1 100% SMEA SpA 30073 MINORI 2 100% SMEA SpA 30074 MINORI 3 100% SMEA SpA 30075 MINORI 4 100% SMEA SpA 30076 PORFIADA B 100% Frontera SpA 20077 PORFIADA D 100% Frontera SpA 30078 PORFIADA G 100% Frontera SpA 20079 PORFIADA I 100% Frontera SpA 30080 PORFIADA II 100% Frontera SpA 30081 PORFIADA III 100% Frontera SpA 30082 PORFIADA IV 100% Frontera SpA 30083 PORFIADA V 100% Frontera SpA 20084 PORFIADA VI 100% Frontera SpA 10085 PORFIADA X 100% Frontera SpA 20086 SAN ANTONIO 1 100% Frontera SpA 20087 SAN ANTONIO 2 100% Frontera SpA 20088 SAN ANTONIO 3 100% Frontera SpA 30089 SAN ANTONIO 4 100% Frontera SpA 30090 SAN ANTONIO 5 100% Frontera SpA 30091 SOLAR 1 100% Frontera SpA 30092 SOLAR 2 100% Frontera SpA 30093 SOLAR 3 100% Frontera SpA 30094 SOLAR 4 100% Frontera SpA 30095 SOLAR 5 100% Frontera SpA 30096 SOLAR 6 100% Frontera SpA 30097 SOLAR 7 100% Frontera SpA 30098 SOLAR 8 100% Frontera SpA 30099 SOLAR 9 100% Frontera SpA 300100 SOLAR 10 100% Frontera SpA 300101 SOLEDAD 1 100% Frontera SpA 300102 SOLEDAD 2 100% Frontera SpA 300103 SOLEDAD 3 100% Frontera SpA 300104 SOLEDAD 4 100% Frontera SpA 300 TOTAL 22.653
Note.Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited
Productora Project Tenements
Productora ProjectNdegree License ID HCH % Held HCH % Earning Area (ha) Agreement Details1 ALGA 7 A 1/32 80% SMEA SpA 892 ALGA VI 4 100% SMEA SpA 23 ALGA VI 5/24 80% SMEA SpA 664 ARENA 1 1/6 80% SMEA SpA 405 ARENA 2 1/17 80% SMEA SpA 1136 AURO HUASCO 1A 1/8 80% SMEA SpA 357 CABRITO-CABRITO 1/9 80% SMEA SpA 508 CACHIYUYITO 1 1/20 80% SMEA SpA 1009 CACHIYUYITO 2 1/60 80% SMEA SpA 30010 CACHIYUYITO 3 1/60 80% SMEA SpA 30011 CARMEN I, 1/50 80% SMEA SpA 22212 CARMEN II, 1/60 80% SMEA SpA 27413 CF 12 100% Frontera SpA 10014 CF 13 100% Frontera SpA 20015 CF 14 100% Frontera SpA 30016 CHICA 80% SMEA SpA 117 CHOAPA 1/10 80% SMEA SpA 5018 CUENCA A 1/51 80% SMEA SpA 25519 CUENCA B 1/28 80% SMEA SpA 13920 CUENCA C 1/51 80% SMEA SpA 25521 CUENCA D 80% SMEA SpA 322 CUENCA E 80% SMEA SpA 123 ELEONOR RIGBY 1/10 100% Frontera SpA 10024 ELQUI 1/14 80% SMEA SpA 6125 ESPERANZA 1/5 80% SMEA SpA 1126 FRAN 1 1/60 80% SMEA SpA 22027 FRAN 12 1/40 80% SMEA SpA 20028 FRAN 13 1/40 80% SMEA SpA 20029 FRAN 14 1/40 80% SMEA SpA 20030 FRAN 15 1/60 80% SMEA SpA 30031 FRAN 18, 1/60 80% SMEA SpA 27332 FRAN 2 1/20 80% SMEA SpA 10033 FRAN 21, 1/46 80% SMEA SpA 22634 FRAN 3 1/20 80% SMEA SpA 10035 FRAN 4 1/20 80% SMEA SpA 10036 FRAN 5 1/20 80% SMEA SpA 10037 FRAN 6 1/26 80% SMEA SpA 13038 FRAN 7 1/37 80% SMEA SpA 17639 FRAN 8 1/30 80% SMEA SpA 12040 JULI 10, 1/60 80% SMEA SpA 30041 JULI 11, 1/60 80% SMEA SpA 30042 JULI 12, 1/42 80% SMEA SpA 21043 JULI 13, 1/20 80% SMEA SpA 10044 JULI 14, 1/50 80% SMEA SpA 25045 JULI 15, 1/55 80% SMEA SpA 27546 JULI 16 1/60 80% SMEA SpA 30047 JULI 17 1/20 80% SMEA SpA 10048 JULI 19 80% SMEA SpA 30049 JULI 20 80% SMEA SpA 30050 JULI 21 1/60 80% SMEA SpA 30051 JULI 22 80% SMEA SpA 30052 JULI 23 1/60 80% SMEA SpA 30053 JULI 24 1/60 80% SMEA SpA 30054 JULI 25 80% SMEA SpA 30055 JULI 27 B, 1/10 80% SMEA SpA 4856 JULI 27, 1/30 80% SMEA SpA 14657 JULI 28, 1/60 80% SMEA SpA 30058 JULI 9, 1/60 80% SMEA SpA 30059 JULIETA 10, 1/60 80% SMEA SpA 30060 JULIETA 11 80% SMEA SpA 30061 JULIETA 12 80% SMEA SpA 30062 JULIETA 13 1/60 80% SMEA SpA 29863 JULIETA 14 1/60 80% SMEA SpA 26964 JULIETA 15 1/40 80% SMEA SpA 20065 JULIETA 16 80% SMEA SpA 20066 JULIETA 17 80% SMEA SpA 20067 JULIETA 18 1/40 80% SMEA SpA 20068 JULIETA 5 80% SMEA SpA 20069 JULIETA 6 80% SMEA SpA 20070 JULIETA 7 80% SMEA SpA 10071 JULIETA 8 80% SMEA SpA 10072 JULIETA 9 80% SMEA SpA 10073 JULITA ¼ 80% SMEA SpA 474 LEONA 2A 1/4 80% SMEA SpA 1075 LIMARI 1/15 80% SMEA SpA 6676 LOA 1/6 80% SMEA SpA 3077 MAIPO 1/10 80% SMEA SpA 5078 MONTOSA 1/4 80% SMEA SpA 35 NSR 3%79 ORO INDIO 1A 1/20 80% SMEA SpA 8280 PEGGY SUE 1/10 100% Frontera SpA 10081 PRODUCTORA 1/16 80% SMEA SpA 7582 SUERTE 1/7 100% SMEA SpA 2183 SUERTE II 1/15 100% SMEA SpA 1584 TOLTEN 1/14 80% SMEA SpA 7085 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-metallic86 ZAPA 1 1/10 80% SMEA SpA 10087 ZAPA 1/6 80% SMEA SpA 6 GSR 1%88 ZAPA 3 1/23 80% SMEA SpA 9289 ZAPA 5A 1/16 80% SMEA SpA 8090 ZAPA 7 1/24 80% SMEA SpA 120 TOTAL 14.514
Note. SMEA SpA is subsidiary company – 80% owned by Hot Chili Limited, 20% owned by CMP (Compañía Minera del Pacífico)Note. Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited.
El Fuego Project Tenements
Domeyko ProjectNdegree License ID HCH % Held HCH % Earning Area (ha) Agreement Details1 ANTONIO 1 1/56 100% Frontera SpA 280 100% HCH Domeyko Purchase Option Agreement US$120,000 (already satisfied) US$100,000 payable by April 19th 2025 US$100,000 payable by April 19th 2026 US$200,000 payable by April 19th 2027 US$3.480,000 payable by April 19th 2028 NSR 1%2 ANTONIO 1/40 100% Frontera SpA 2003 ANTONIO 10 1/21 100% Frontera SpA 634 ANTONIO 19 1/30 100% Frontera SpA 1285 ANTONIO 21 1/20 100% Frontera SpA 606 ANTONIO 36 1/15 100% Frontera SpA 747 ANTONIO 5 1/40 100% Frontera SpA 2008 ANTONIO 9 1/40 100% Frontera SpA 1939 CAZURRO 1 100% Frontera SpA 20010 CAZURRO 2 100% Frontera SpA 20011 CAZURRO 3 100% Frontera SpA 30012 CAZURRO 4 100% Frontera SpA 30013 CAZURRO 5 100% Frontera SpA 10014 CAZURRO 6 100% Frontera SpA 20015 CAZURRO 7 100% Frontera SpA 20016 CAZURRO 8 100% Frontera SpA 20017 CERRO MOLY 1 100% Frontera SpA 30018 CERRO MOLY 2 100% Frontera SpA 30019 CERRO MOLY 3 100% Frontera SpA 30020 CERRO MOLY 4 100% Frontera SpA 30021 CAZURRO 3 1/60 100% Frontera SpA 30022 CAZURRO 4 1/60 100% Frontera SpA 30023 CAZURRO 7 1/40 100% Frontera SpA 20024 EMILIO 1 1/8 100% Frontera SpA 3825 EMILIO 3 1/9 100% Frontera SpA 4526 INES 1/40 100% Frontera SpA 20027 LORENA 1/2 100% Frontera SpA 228 MERCEDITA 1/7 100% Frontera SpA 2229 PRIMO 1 1/6 100% Frontera SpA 3630 SANTIAGUITO 5 1/24 100% Frontera SpA 11431 DOMINOCEROS 1/20 (1/4) 100% Frontera SpA 20 100% HCH Dominoceros Purchase Option Agreement US$320,000 (already satisfied) US$680,000 payable by October 25th 2025 US$1000,000 payable by October 25th 2026 US$6.890,000 payable by October 25th 202732 CF SUR 1 100% Frontera SpA 30033 CF SUR 2 100% Frontera SpA 30034 CF SUR 3 100% Frontera SpA 30035 CF SUR 4 100% Frontera SpA 30036 CF SUR 5 100% Frontera SpA 20037 CF SUR 6 100% Frontera SpA 30038 CF SUR 7 100% Frontera SpA 30039 CF SUR 8 100% Frontera SpA 30040 CF SUR 9 100% Frontera SpA 20041 CF SUR 10 100% Frontera SpA 20042 CF SUR 11 100% Frontera SpA 30043 CF SUR 12 100% Frontera SpA 30044 CF SUR 13 100% Frontera SpA 30045 CF SUR 14 100% Frontera SpA 30046 CF SUR 15 100% Frontera SpA 20047 CF SUR 16 100% Frontera SpA 30048 CF SUR 17 100% Frontera SpA 30049 CF SUR 18 100% Frontera SpA 30050 CF SUR 19 100% Frontera SpA 30051 CF SUR 20 100% Frontera SpA 30052 CF SUR 21 100% Frontera SpA 30053 CF SUR 22 100% Frontera SpA 30054 CF SUR 23 100% Frontera SpA 20055 CF SUR 24 100% Frontera SpA 20056 CF SUR 25 100% Frontera SpA 30057 CF SUR 26 100% Frontera SpA 30058 CF SUR 27 100% Frontera SpA 30059 CF SUR 28 100% Frontera SpA 20060 CF SUR 29 100% Frontera SpA 30061 CF SUR 30 100% Frontera SpA 20062 CF SUR 31 100% Frontera SpA 30063 CF SUR 32 100% Frontera SpA 30064 CF SUR 33 100% Frontera SpA 30065 CF SUR 34 100% Frontera SpA 30066 CF SUR 35 100% Frontera SpA 30067 KRETA ¼ 100% Frontera SpA The mining concession is included in San Antonio Purchase Option Agreement68 MARI 1 100% Frontera SpA 30069 MARI 1/12 100% Frontera SpA 64 The mining concession is included in San Antonio Purchase Option Agreement70 MARI 6 100% Frontera SpA 30071 MARI 8 100% Frontera SpA 300 TOTAL 16.055
Note.Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited.
San Antonio ProjectNdegree License ID HCH % Held HCH % Earning Area (ha) Agreement Details1 MERCEDES 1/3 100% Frontera SpA 50 100% HCH San Antonio Purchase Option Agreement USD 300,000 already paid. US$1,000,000 payable September 30th 2024 US$1,000,000 payable September 30th 2025 US$2,000,000 payable by September 30th 2026 to exercise the El Fuego Option. (2 additional and conditional payments of USD 2,000,000, each one, to be paid by December 31, 2030 under certain conditions detailed at title “Tenement Changes During the Quarter” of this quarterly report.)2 PORFIADA A 1/33 100% Frontera SpA 1603 PORFIADA C 1/60 100% Frontera SpA 3004 PORFIADA E 1/20 100% Frontera SpA 1005 PORFIADA F 1/50 100% Frontera SpA 2406 PORFIADA IX 1/60 100% Frontera SpA 3007 PORFIADA VII 1/60 100% Frontera SpA 2708 PORFIADA VIII 1/60 100% Frontera SpA 3009 PRIMA 1 100% Frontera SpA 110 PRIMA 2 100% Frontera SpA 211 ROMERO 1/31 100% Frontera SpA 3112 SAN ANTONIO 1/5 100% Frontera SpA 2513 SAN JUAN SUR 1/5 100% Frontera SpA 1014 SAN JUAN SUR 6/23 100% Frontera SpA 9015 SANTIAGO Z 1/30 100% Frontera SpA 30016 SANTIAGO 1/4 Y 20 100% Frontera SpA 7517 SANTIAGO 15/19 100% Frontera SpA 2518 SANTIAGO 21/36 100% Frontera SpA 7619 SANTIAGO 37/43 100% Frontera SpA 2620 SANTIAGO A, 1/26 100% Frontera SpA 24421 SANTIAGO B, 1/20 100% Frontera SpA 20022 SANTIAGO C, 1/30 100% Frontera SpA 30023 SANTIAGO D, 1/30 100% Frontera SpA 30024 SANTIAGO E, 1/30 100% Frontera SpA 300 TOTAL 3.725
Note. Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited.
Cordillera ProjectNdegree License ID HCH % Held HCH % Earning Area (ha) Agreement Details1 ALBORADA III 1/35 100% Frontera SpA 162 100% HCH Purchase Option Agreement USD 100,000 already paid US$200,000 payable by November 14th 2025 US$3,700,000 payable by November 14th 2027 NSR 1% for underground mining and 1,5% for open-pit mining2 ALBORADA IV 1/20 100% Frontera SpA 543 ALBORADA VII 1/25 100% Frontera SpA 954 CAT IX 1/30 100% Frontera SpA 1505 CATITA IX 1/20 100% Frontera SpA 1006 CATITA XII 1/13 100% Frontera SpA 617 CORDILLERA 1/5 100% Frontera SpA 208 HERREROS 1/14 100% Frontera SpA 289 MINA HERREROS III 1/6 100% Frontera SpA 1810 MINA HERREROS IV 1/10 100% Frontera SpA 2311 PORSIACA 1/20 100% Frontera SpA 2012 QUEBRADA 1/10 100% Frontera SpA 2813 VETA 1/17 100% Frontera SpA 17 TOTAL 776
Note.Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited.
Qualifying Statements
The technical information in this presentation has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 – Standards of Disclosure for Mineral Projects ( “NI 43-101” ) and Joint Ore Reserves Committee of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (the “JORC Code”) and has been reviewed and approved by the “Qualified Persons” as defined under NI 43-101 and “Competent Persons” as defined under the JORC Code as set out below.
The Costa Fuego Copper project pre-feasibility study (the “PFS”) was compiled by the Qualified Persons and Competent Persons listed below based on information available up to the effective date of the PFS. Additional details of responsibilities are provided at page 23 of this presentation and will be provided in the PFS technical report (to be available on SEDAR+ (www.sedarplus.ca) and at www.hotchili.net.au within 45 days of March 27, 2025 (the “PFS Technical Report”).
PFS Technical Report
For readers to fully understand the information in this presentation, they should read the PFS Technical Report in its entirety when it is available, including all qualifications, assumptions, limitations and exclusions that relate to the information to be set out in the PFS Technical Report. The PFS Technical Report is intended to be read as a whole, and sections should not be read or relied upon out of context. The technical information in this presentation is subject to the assumptions and qualifications to be contained in the PFS Technical Report.
The PFS Technical Report will replace and supersede the technical report titled “Costa Fuego Copper Project – NI 43-101 Technical Report Mineral Resource Estimate Update” dated April 8, 2024, with an effective date of February 26, 2024 (the “2024 PEA”).
Qualified Persons – NI 43-101
The PFS was compiled by Wood Australia Pty Ltd with contributions from a team of independent “Qualified Persons” within the meaning of NI 43 -101. The scientific and technical information contained in this presentation pertaining to Costa Fuego has been reviewed and verified by the following independent qualified persons within the meaning of NI 43-101:
— Ms Elizabeth Haren (FAUSIMM (CP) & MAIG) of Haren Consulting – Mineral Resource Estimate
— Mr Dean David (FAUSIMM (CP)) of Wood Pty Ltd – Metallurgy
— Mr Piers Wendlandt (PE) of Wood Pty Ltd – Market Studies and Contracts, Economic Analysis
— Mr David Cuello (MAUSIMM) of GMT Servicios de Ingeniería – Geotechnical
— Mr Jeffrey Stevens (Pr. Eng, MSAIMM) of Wood Pty Ltd – Infrastructure and Capital Cost
— Mr Luis Bernal (Comisión Minera (PC) Registered Member) of Process Mineral Consulting – Leaching
— Mr Anton von Wielligh (FAUSIMM) of ABGM Consulting Pty Ltd – Mine Planning and Scheduling
— Mr Edmundo LaPorte (PE, PEng, CPEng, SME Registered Member) of High River Services – Environmental
— The above independent Qualified Persons have verified the information disclosed herein, including the sampling, preparation, security, and analytical procedures underlying such information.
Competent Persons – JORC
The information in this presentation that relates to Mineral Resources, Exploration Results, and Ore Reserves for the Costa Fuego Project is based on information compiled by:
— Ms Elizabeth Haren (FAUSIMM (CP) & MAIG) who is a full-time employee of Haren Consulting – Mineral Resource Estimate
— Mr Dean David (FAUSIMM (CP)) who is a full-time employee of Wood Pty Ltd – Metallurgy
— Mr Piers Wendlandt (PE) who is a full-time employee of Wood Pty Ltd – Market Studies and Contracts, Economic Analysis
— Mr David Cuello (MAUSIMM) who is a full-time employee of GMT Servicios de Ingeniería – Geotechnical
— Mr Jeffrey Stevens (Pr. Eng, MSAIMM) who is a full-time employee of Wood Pty Ltd – Infrastructure and Capital Cost
— Mr Luis Bernal (Comisión Minera (PC) Registered Member) who is a full-time employee of Process Mineral Consulting – Leaching
— Mr Anton von Wielligh (FAUSIMM) who is a full-time employee of ABGM Consulting Pty Ltd – Mine Planning and Scheduling
— Mr Edmundo LaPorte (PE, PEng, CPEng, SME Registered Member) who is a full-time employee of High River Services – Environmental
— Mr Christian Easterday (MAIG), who is the Managing Director and is a full-time employee of Hot Chili Limited – Exploration Results
Ms Haren, Mr David, Mr Wendlandt, Mr Cuello, Mr Stevens, Mr Bernal, Mr LaPorte, Mr Easterday, and Mr von Wielligh each have sufficient experience, which is relevant to the style of mineralisation and types of deposits under consideration and to the activities undertaken, to qualify as a Competent Person as defined in the JORC Code and as Qualified Persons under NI43-101.
Production Targets Statement
The production targets and forecast financial information derived from the production targets for: (1) the Productora production mine site referred to in this release is based on 52% of material of the Probable Ore Reserves and 31% of the material from Indicated Mineral Resources. (2) Alice production mine site referred to in this release is based on 3% of the material from Probable Ore Reserves and 2% of the material from Indicated Mineral Resources; (3) the Cortadera production mine site referred to in this release is based on 45% of the material from Probable Ore Reserves and 67% of the material from Indicated Mineral Resources; and (4) San Antonio production mine site referred to in this release is based on 1% of the material from Probable Ore Reserves and 0% of the material from Indicated Mineral Resources. No portions of the production targets are based on Inferred Mineral Resources. The material assumptions used in the estimation of the production targets and associated forecast financial information are set out in Mineral Resource and Mineral Reserve pages 30-41, Mine Design and Scheduling Pages 43-47, Metallurgy and Mineral Processing Pages 48-50, and Basis of Economic Assumption pages 58-59. The Mineral Resource and Ore Reserve estimates underpinning the production targets were prepared by Competent Persons in accordance with the JORC Code 2012.
Disclaimer
This presentation does not purport to be complete or contain all the information that may be material to the current or future business, operations, financial condition, or prospects of Hot Chili Limited (Hot Chili, HCH or the Company).
Certain information contained herein is based on, or derived from, information obtained from independent third-party sources, publicly available reports and other trade and industry sources. Hot Chili believes that such information is accurate and that the sources from which it has been obtained are reliable; however, Hot Chili has not independently verified such information and does not assume any responsibility for the accuracy or completeness of such information.
Cautionary Note for U.S. Investors Concerning Mineral Resources
NI 43-101 is a rule of the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning material mineral projects. Technical disclosure contained in this presentation has been prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Classification System. These standards differ from the requirements of the U.S. Securities and Exchange Commission (“SEC”) and technical information contained in this presentation may not be comparable to similar information disclosed by domestic United States companies subject to the SEC's reporting and disclosure requirements.
All amounts in this presentation are in U.S. dollars unless otherwise noted.
Non IFRS Financial Performance Measures
“Total Cash Cost”, “All-in Sustaining Cost”, “All-in cost LOM”, “C1”, “EBITDA” and “Free Cashflow” are not performance measures reported in accordance with International Financial Reporting Standards (“IFRS”). These performance measures are included because these statistics are key performance measures that management uses to monitor performance. Management uses these statistics to assess how the Costa Fuego Project compares against its peer projects and to assess the overall effectiveness and efficiency of the contemplated mining operations. These performance measures do not have a meaning within IFRS and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. These performance measures should not be considered in isolation as a substitute for measures of performance in accordance with IFRS.
Forward Looking Statements
Statements in this presentation that are not historical facts are “forward-looking information” or “forward-looking statements” within the meaning of Canadian securities legislation and Australian securities legislation (each, a “forward-looking statement”). The use of any of the words “anticipate”, “envisage”, “forecast”, “consider”, “proposed”, “conceptual”, “opportunity”, “designed to”, “believe”, “could”, “estimate”, “expect”, “intended”, “may”, “might”, “plan”, “potential”, “project”, “should”, “will”, “would” and similar expressions are intended to identify forward-looking statements. Statements concerning mineral resource and mineral reserve estimates may also be deemed to constitute forward-looking statements to the extent that they involve estimates of the mineralization that may be encountered if the Costa Fuego Project is developed.
In this presentation, forward-looking statements relate, among other things, to: prospects, projections and success of the Company and its projects; the results of the PFS, including expected cash inflows; anticipated production, mine life, expected costs and other projections; metal price assumptions; metal recovery rate; the ability of the Company to expand mineral resources, and/or mineral reserves and/or ore reserves beyond current estimates; the impacts of the PFS including but not limited to economic and social outcomes; the timing and ability to complete an environmental impact assessment ( “EIA” ) study; the estimation of mineral resources and reserves; opportunities to add to the Costa Fuego Project; potential opportunities related to recent discoveries; derisking of certain development items; the anticipated production profile and mine life of the Costa Fuego Project; expected access to local workforce due to the Costa Fuego Project's proximity to the regional centre; the investigation of additional growth opportunities, high-value development optimisation, monetization of cobalt and increase to overall copper and gold recovery; projected, financial measures, capital costs, cooperating costs, mine life, metal production and revenue generation; comparisons to peers confidence levels of the PFS in comparison to the 2024 PEA; the optimal exploitation strategy and the mine design, scheduling and economic evaluation pertaining thereto; marginal and breakeven new smelter return cut-offs; project layout, mine design and scheduling; processing suitability based on metallurgical testwork conducted to date; anticipated infrastructure requirements, including power supply, water supply, processing and tailings storage facilities, concentrates storage and site layouts; economic assessments and evaluations; expectations relating to environmental impact assessments, ongoing relations with local communities, local, regional and national government and regulators; anticipated projects risks and mitigation thereof; potential opportunities for growth and other optimisations; timing of the Company to file the PFS Technical Report; plans for a definitive feasibility study; statements regarding the Company's water business; and future funding requirements..
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 presentation, including, but not limited to, the following material factors: industry-wide and project-specific risks identified in the PFS Technical Report and in this presentation; operational risks; risks related to the cost estimates of exploration and development; sovereign risks associated with the Company's operations in Chile; changes in mineral resource and mineral reserve estimates; 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; the Company's lack of operating revenues; risks to employee health and safety or disruption to operations in the event of an outbreak of disease; estimates used in budgeting and economic analyses proving to be incorrect and other risks and uncertainties described elsewhere in this presentation and in the Company's public filings with the ASX and the Company's Canadian public disclosure record.
Although the forward-looking statements contained in this presentation are based upon assumptions which the Company believes to be reasonable, there can be no assurance that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this presentation, the Company has applied certain material assumptions including: the continuity of future commodity prices and demand; the availability of skilled labour; the timing and amount of capital expenditures; that future currency exchange and interest rates will be consistent with the Company's expectations; that increasing competition will not have a material adverse impact; that general conditions in economic and financial markets will be sustained or will improve; availability of drilling and related equipment; that regulation by governmental agencies and relations with local communities will not change in a materially adverse manner; that future tax rates operating costs will be as expected; availability of future sources of funding; that requisite financing will be available and can be obtained on reasonable terms; that the assumptions underlying estimates related to adjusted funds from operations will prove to be as anticipated and that current exploration, development, environmental and other objectives concerning the Costa Fuego Project can be achieved and that Company's other corporate activities will proceed as expected.
Although the Company has attempted to identify important factors that could cause actual results to vary materially from those projected in such forward-looking statements, there can be no assurance that forward- looking statements will prove to be accurate. Accordingly, readers should not place undue reliance on forward- looking statements. The forward-looking statements in this presentation are based on plans, expectations, and estimates of management as at the date hereof and the Company undertakes no obligation to update such forward-looking statements, other than as required by applicable law.
Mineral Resource Statement
Costa Fuego Combined Mineral Resource (Effective Date 26 February 2024)
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1 Mineral Resources are reported on a 100% Basis – combining Mineral Resource estimates for the Cortadera, Productora, Alice and San Antonio deposits. All figures are rounded, reported to appropriate significant figures and reported in accordance with the Joint Ore Reserves Committee Code (2012) and NI 43-101. Mineral Resource estimation practices are in accordance with CIM Estimation of Mineral Resource and Mineral Reserve Best Practice Guidelines (29 November 2019) and reported in accordance CIM Definition Standards for Mineral Resources and Mineral Reserves (10 May 2014) that are incorporated by reference into NI 43-101.2 Mineral Resources are inclusive of the Mineral Reserve3 The Productora deposit is 100% owned by Chilean incorporated company Sociedad Minera El Aguila SpA (SMEA). SMEA is a joint venture (JV) company – 80% owned by Sociedad Minera El Corazón SpA (a 100% subsidiary of Hot Chili), and 20% owned by Compañía Minera del Pacífico S.A (CMP).4 The Cortadera deposit is controlled by a Chilean incorporated company Sociedad Minera La Frontera SpA (Frontera). Frontera is a subsidiary company – 100% owned by Sociedad Minera El Corazón SpA, which is a 100% subsidiary of Hot Chili.5 The San Antonio deposit is controlled through Frontera (100% owned by Sociedad Minera El Corazón SpA, which is a 100% subsidiary of Hot Chili Liited) and Frontera is party to an Option Agreement pursuant to which it can earn a 100% interest in the property.6 The Mineral Resource Estimates (MRE) in the tables above form coherent bodies of mineralisation that are considered amenable to a combination of open pit and underground extraction methods based on the following parameters: Base Case Metal Prices: Copper US$ 3.00/lb, Gold US$ 1,700/oz, Molybdenum US$ 14/lb, and Silver US$20/oz.7 All MRE were assessed for Reasonable Prospects of Eventual Economic Extraction (RPEEE) using both Open Pit and Block Cave Extraction mining methods at Cortadera and Open Pit mining methods at the Productora, Alice and San Antonio deposits.8 Metallurgical recovery averages for each deposit consider Indicated + Inferred material and are weighted to combine sulphide flotation and oxide leaching performance. Process recoveries: Cortadera – Weighted recoveries of 82% Cu, 55% Au, 81% Mo and 36% Ag. CuEq(%) = Cu(%) + 0.55 x Au(g/t) + 0.00046 x Mo(ppm) + 0.0043 x Ag(g/t). San Antonio – Weighted recoveries of 85% Cu, 66% Au, 80% Mo and 63% Ag. CuEq(%) = Cu(%) + 0.64 x Au(g/t) + 0.00044 x Mo(ppm) + 0.0072 x Ag(g/t) Alice – Weighted recoveries of 81% Cu, 47% Au, 52% Mo and 37% Ag. CuEq(%) = Cu(%) + 0.48 x Au(g/t) + 0.00030 x Mo(ppm) + 0.0044 x Ag(g/t). Productora – Weighted recoveries of 84% Cu, 47% Au, 48% Mo and 18% Ag. CuEq(%) = Cu(%) + 0.46 x Au(g/t) + 0.00026 x Mo(ppm) + 0.0021 x Ag(g/t). Costa Fuego – Recoveries of 83% Cu, 53% Au, 71% Mo and 26% Ag. CuEq(%) = Cu(%) + 0.53 x Au(g/t) + 0.00040 x Mo(ppm) + 0.0030 x Ag(g/t)9 Copper Equivalent (CuEq) grades are calculated based on the 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 base case cut-off grade for Mineral Resources considered amenable to open pit extraction methods at the Cortadera, Productora, Alice and San Antonio deposits is 0.20% CuEq, while the cut-off grade for Mineral Resources considered amenable to underground extraction methods at the Cortadera deposit is 0.27% CuEq. It is the Company's opinion that all the elements included in the CuEq calculation have a reasonable potential to be recovered and sold.10 Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. The MRE include Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorised as Mineral Reserves. It is reasonably expected that the majority of Inferred mineral resources could be upgraded to Measured or Indicated Mineral Resources with continued exploration.11 The effective date of the MRE is 26 February 2024. The MRE were previously reported in Hot Chili's technical report entitled “Costa Fuego Copper Project – NI 43-101 Technical Report Mineral Resource Estimate Update” dated 8 April 2024 with an effective date of 26 February 2024 (the “2024 MRE”). Hot Chili confirms it is not aware of any new information or data that materially affects the information included in the 2024 PEA and all material assumptions and technical parameters stated for the MRE in the 2024 PEA continue to apply and have not materially changed.12 Hot Chili Limited is not aware of political, environmental, or other risks that could materially affect the potential development of the Mineral Resources other than as disclosed in the 2024 PEA. A detailed list of Costa Fuego Project risks is included in Chapter 25.12 of the 2024 PEA.
Costa Fuego Mineral Reserve Estimate (March 2025) Grade Contained Metal Tonnes Cu Au Ag Mo Cu Au Ag Mo (Mt) (%) (g/t) (g/t) (ppm) (kt) (koz) (koz) (kt)Open PitConcentratorProven – – – – – – – – -Probable 293 0.36 0.08 0.37 113 1 043 728 3 517 33Total 293 0.36 0.08 0.37 113 1 043 728 3 517 33Heap LeachProven – – – – – – – – -Probable 41 0.35 0.07 0.43 35 142 96 563 1Total 41 0.35 0.07 0.43 35 142 96 563 1Dump LeachProven – – – – – – – – -Probable 22 0.13 0.03 0.23 41 29 20 168 1Total 22 0.13 0.03 0.23 41 29 20 168 1CombinedProven – – – – – – – – -Probable 356 0.34 0.07 0.37 98 1 213 844 4 248 35Total 356 0.34 0.07 0.37 98 1 213 844 4 248 35UndergroundConcentratorProven – – – – – – – – -Probable 146 0.44 0.16 0.79 93 645 734 3 704 14Total 146 0.44 0.16 0.79 93 645 734 3 704 14Combined (Open Pit and Underground)Proven – – – – – – – – -Probable 502 0.37 0.10 0.49 97 1 858 1 578 7 951 49Total 502 0.37 0.10 0.49 97 1 858 1 578 7 951 49
1Mineral Reserves are reported on a 100% Basis – combining Mineral Reserve estimates for the Cortadera, Productora, Alice and San Antonio deposits, and have an effective date of 27 March 2025.2An Ore Reserve (declared in accordance with JORC Code 2012) was previously reported at Productora, a component of Costa Fuego, on 2nd March 2016 on the ASX. The Company was not subject to the requirements of NI 43-101 at that time.3Mineral Reserve estimation practices are in accordance with CIM Estimation of Mineral Resource and Mineral Reserve Best Practice Guidelines (29 November 2019) and reported in accordance CIM Definition Standards for Mineral Resources and Mineral Reserves (10 May 2014) that are incorporated by reference into NI 43-101. Mineral Reserve estimates are in accordance with the JORC Code. References to “Mineral Reserves” mean “Ore Reserves” as defined in the JORC Code and references to “Proven Mineral Reserves” mean “Proved Ore Reserves” as defined in the JORC Code.4The Mineral Reserve reported above was not additive to the Mineral Resource. The Mineral Reserve is based on the 26 February 2024 Mineral Resource.5Tonnages and grades are rounded to two significant figures. All figures are rounded, reported to appropriate significant figures and reported in accordance with the Joint Ore Reserves Committee Code (2012) and NI 43-101. As each number is rounded individually, the table may show apparent inconsistencies between the sum of rounded components and the corresponding rounded total.6Mineral Reserves are reported using long-term metal prices of US$4.30/lb Cu, US$2,280/oz Au, US$27/oz Ag, US$20/lb Mo.7The Mineral Reserve tonnages and grades are estimated and reported as delivered to plant (the point where material is delivered to the processing facility) and is therefore inclusive of ore loss and dilution.8The Productora deposit is 100% owned by Chilean incorporated company Sociedad Minera El Aguila SpA (SMEA). SMEA is a joint venture (JV) company – 80% owned by Sociedad Minera El Corazón SpA (a 100% subsidiary of Hot Chili), and 20% owned by Compañía Minera del Pacífico S.A (CMP).9The Cortadera deposit is controlled by a Chilean incorporated company Sociedad Minera La Frontera SpA (Frontera). Frontera is a subsidiary company – 100% owned by Sociedad Minera El Corazón SpA, which is a 100% subsidiary of Hot Chili.10The San Antonio deposit is controlled through Frontera (100% owned by Sociedad Minera El Corazón SpA, which is a 100% subsidiary of Hot Chili) and Frontera is party to an Option Agreement pursuant to which it can earn a 100% interest in the property.11The Mineral Reserve Estimate as of 27 March 2025 for Costa Fuego was prepared by Anton von Wielligh, Fellow with the AUSIMM (FAUSIMM). Mr. von Wielligh fulfils the requirements to be a “Qualified Person” within the meaning of NI 43-101 and is the Competent Person under JORC for the Mineral Reserve.12Hot Chili Limited is not aware of political, environmental, or other risks that could materially affect the potential development of the Mineral Reserves other than those that will be disclosed in a technical report for the PFS. A detailed list of Costa Fuego Project risks is also included in Chapter 25.12 of the 2024 PEA.
Appendix 5B
Mining exploration entity or oil and gas exploration entity quarterly cash flow report
Name of entityHot Chili LimitedABN Quarter ended (“current quarter”)91 130 955 725 31 March 2025
Consolidated statement of cash flows Current quarter Year to date $A'000 (9 months) $A'0001. Cash flows from operating activities – -1.1 Receipts from customers1.2 Payments for (a) exploration & evaluation * (7,894) (16,751) (a) development – – (b) production – – (c) staff costs (437) (1,566) (d) administration and corporate costs (2,083) (4,571)1.3 Dividends received (see note3) – -1.4 Interest received 88 4441.5 Interest and other costs of finance paid – -1.6 Income taxes paid – -1.7 Government grants and tax incentives – -1.8 Other (provide details if material) – -1.9 Net cash from / (used in) operating activities (10,326) (22,444)* Included in this amount was $4.0m related to the advancement of the Costa Fuego and Huasco Water PFS and the Costa Fuego EIA.Approx $3.9m wasspent on exploration and drilling activities on the La Verde discovery and surrounding Domeyko landholding.2. Cash flows from investing activities – -2.1 Payments to acquire or for: (a) entities (b) tenements (1,082) (3,554) (c) property, plant and equipment (11) (70) (d) exploration & evaluation – – (e) investments – – (f) other non-current assets – -2.2 Proceeds from the disposal of: – – (a) entities (b) tenements – – (c) property, plant and equipment – – (d) investments – – (e) other non-current assets – -2.3 Cash flows from loans to other entities – -2.4 Dividends received (see note3) – -2.5 Other – -2.6 Net cash from / (used in) investing activities (1,093) (3,624)3. Cash flows from financing activities – -3.1 Proceeds from issues of equity securities (excluding convertible debt securities)3.2 Proceeds from issue of convertible debt securities – -3.3 Proceeds from exercise of options – -3.4 Transaction costs related to issues of equity securities or convertible debt securities – (117)3.5 Proceeds from borrowings – -3.6 Repayment of borrowings – -3.7 Transaction costs related to loans and borrowings – -3.8 Dividends paid – -3.9 Other (provide details if material) – -3.10 Net cash from / (used in) financing activities – (117)4. Net increase / (decrease) in cash and cash equivalents for the period4.1 Cash and cash equivalents at beginning of period 19,032 33,7424.2 Net cash from / (used in) operating activities (item1.9 above) (10,326) (22,444)4.3 Net cash from / (used in) investing activities (item2.6 above) (1,093) (3,624)4.4 Net cash from / (used in) financing activities (item3.10 above) – (117)4.5 Effect of movement in exchange rates on cash held (100) (44)4.6 Cash and cash equivalents at end of period 7,513 7,513
5. Reconciliation of cash and cash equivalents Current quarter Previous quarter at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts $A'000 $A'0005.1 Bank balances 2,513 14,0325.2 Call deposits 5,000 5,0005.3 Bank overdrafts – -5.4 Other (provide details) – -5.5 Cash and cash equivalents at end of quarter (should equal item4.6 above) 7,513 19,032
6. Payments to related parties of the entity and their associates Current quarter $A'0006.1 Aggregate amount of payments to related parties and their associates included in item1 1266.2 Aggregate amount of payments to related parties and their associates included in item2 -Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.
7. Financing facilities Total facility amount at quarter end Amount drawn at quarter end Note: the term “facility' includes all forms of financing arrangements available to the entity. $A'000 $A'000 Add notes as necessary for an understanding of the sources of finance available to the entity.7.1 Loan facilities – -7.2 Credit standby arrangements – -7.3 Other (please specify) – -7.4 Total financing facilities – -7.5 Unused financing facilities available at quarter end -7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.
8. Estimated cash available for future operating activities $A'0008.1 Net cash from / (used in) operating activities (item1.9) (10,326)8.2 (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) -8.3 Total relevant outgoings (item8.1 + item8.2) (10,326)8.4 Cash and cash equivalents at quarter end (item4.6) 7,5138.5 Unused finance facilities available at quarter end (item7.5) -8.6 Total available funding (item8.4 + item8.5) 7,5138.7 Estimated quarters of funding available (item8.6 divided by item8.3) 0.73 Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item8.3, answer item8.7 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7.8.8 If item8.7 is less than 2quarters, please provide answers to the following questions: 8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not? Significant reduction in cash outflows are expected due to the release of both the Costa Fuego and Huasco Water PFS during the quarter, with only optimisation activities expected during the next two quarters. Exploration activities will also be significantly reduced, with drilling activities at La Verde having been completed on 10th April 2025. Future cash outflows are expected to be reduced by 60-65% compared to this quarter. 8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful? The Company is expected to receive $5m in JV recoup and VAT refunds over the coming months. The Company continues to advance potential strategic funding discussions with asset level investment opportunities for Costa Fuego and Huasco Water. 8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? Any future drilling will be targeted and cost effective and funded by working capital. Drilling can be postponed at any time to ensure commitments in the next two quarters can be met. Note: where item8.7 is less than 2quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.
Compliance statement
1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.2 This statement gives a true and fair view of the matters disclosed.
Date: 24th April 2025
Authorised by: By the Board
(Name of body or officer authorising release – see note4)
Notes
1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule19.11A, the corresponding equivalent standards apply to this report.3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [name of board committee – eg Audit and Risk Committee]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.
Contact:
Mr Christian Easterday,Managing Director, E: admin@hotchili.net.au
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