ASX Announcement

Thursday 4th November 2021

NOT FOR DISTRIBUTION OR DISSEMINATION INTO THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES

Preliminary IPO Prospectus Lodged for TSXV Listing Application

Hot Chili Limited (ASX: HCH) (OTCQB: HHLKF) (“Hot Chili” or the “Company”) is pleased to announce the launch of a Canadian secondary market Initial Public Offering (IPO), following lodgement of a preliminary prospectus with the Securities Commissions in the Provinces of Canada, other than Quebec.

The preliminary prospectus and associated IPO are key steps in Hot Chili’s application to dual list the Company on the TSX Venture Exchange (TSXV) and fund an ambitious phase of growth and development ahead of the Company’s transition into a future copper producer.

The preliminary prospectus contains an offering of new ordinary shares (Share or Shares) of the Company to raise funds from institutional investors in Canada, the USA and other jurisdictions outside of Australia (Offering). iA Capital Markets and Cormark Securities Inc. are acting as co-lead underwriters for the Offering (Underwriters).

The offering price and size will be determined between the Company and the Underwriters in the context of the market following shareholder resolution of a proposed fifty (50) to one (1) consolidation (Consolidation) at the Company’s General Meeting scheduled for November 15, 2021.

The proposed Consolidation will reduce the number of ordinary shares currently on issue from approximately 4.4 billion to 87.5 million and provide a more effective capital structure of the Company, and a more appropriate share price for a wider range of investors, particularly institutional investors.

If the Consolidation is approved, the ordinary shares of the Company would begin trading on the ASX on a post-consolidation basis on November 17, 2021, with pricing of the IPO to be determined after that point.

Net proceeds from the IPO are proposed to be used to upgrade the Cortadera Resource, advance the Costa Fuego Preliminary Feasibility Study (PFS), test several high-priority exploration targets and for general corporate purposes.

As previously announced, the Company intends to submit an application to list its Shares on the TSXV and has reserved the symbol “HCH”.

Listing will be subject to the Company fulfilling all of the initial listing requirements and conditions of the TSXV, and there is no assurance such a listing will be obtained.  Closing of the IPO (Closing) is conditional upon the Shares from the IPO being approved for listing on the TSXV.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), or applicable state securities laws, and may not be offered or sold to persons in the United States absent registration or an exemption from such registration requirements.  This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

An indicative timetable of the offering is as follows:

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

For more information please contact:

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

Technical Information

All technical information in this document has been prepared by or under the supervision of Grant King, Chief Operating Officer of the Company. Mr. King is the “qualified person” for the purposes of NI 43-101.

For further information on the Productura Project, please see the report titled “Productora Copper Project Preliminary Feasibility Study, Chile”, effective dated 28 October 2021, prepared by Boris Caro of Caro & Navarro Limitada, Leendert (Leon) Lorenzen of Mintrex Pty Ltd, Tom Kendall of Mintrex Pty Ltd, and Elizabeth Haren of Haren Consulting, available on the website of the Company and under the profile of the Company on www.sedar.com.

For further information on the Cortadera Project, please see the report titled “Cortadera Copper Deposit, Mineral Resource Estimate, Chile”, effective dated 28 October 2021 prepared by Elizabeth Haren of Haren Consulting, available on the website of the Company and under the profile of the Company on www.sedar.com. 

Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. 

Forward-Looking Statements

This press release contains certain statements which contain “forward-looking information” within the meaning of Canadian securities legislation (each a “forward-looking statement”). No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this presentation 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 “anticipate”, “plan”, “contemplate”, “continue”, “estimate”, “expect”, “intend”, “propose”, “might”, “may”, “will”, “shall”, “project”, “should”, “could”, “would”, “believe”, “predict”, “forecast”, “pursue”, “potential”, “capable”, “budget”, “pro forma” and similar expressions are intended to identify forward-looking statements.

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 document, including, but not limited to, the following material factors: the ability obtain sufficient financing, and otherwise to satisfy the conditions to complete the offering; the ability to obtain conditional listing approval of the TSXV and to satisfy the conditions of such conditional listing approval; if granted, economic and market conditions, operational risks associated with the COVID-19 pandemic; risks related to the cost estimates of exploration; sovereign risks associated with the Company’s operations in Chile; changes in estimates of mineral resources 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; and other risks and uncertainties described elsewhere in this presentation and in the prospectus.

Although the forward-looking statements contained in this new release are based upon assumptions which the Company believes to be reasonable, the Company cannot be certain that actual results will be consistent with these forward-looking statements. Forward-looking statements speak only as of the date of this document. .Factors emerge from time to time, and it is not possible for management to predict all of 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 document are expressly qualified by the foregoing cautionary statements and are made as of the date of this document. 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 document or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.

Figure 1 Location of Productora and the Cortadera discovery in relation to the coastal range infrastructure of Hot Chili’s combined Costa Fuego copper project, located 600km north of Santiago in Chile.

Refer to ASX Announcement “Costa Fuego Becomes a Leading Global Copper Project” (12th October 2020) for JORC Table 1 information related to the Cortadera JORC compliant Mineral Resource estimate by Wood and the Productora re-stated JORC compliant Mineral Resource estimate by AMC Consultants

Copper Equivalent (CuEq) reported for the resource were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne). The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz. For Cortadera (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=56%, Mo=82%, and Ag=37%. For Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%. For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% and Ag=23%.

** Reported on a 100% Basis – combining Cortadera and Productora Mineral Resources using a +0.25% CuEq reporting cut-off grade

To read the full announcement click on the below link

Proposed Share Consolidation Ahead of TSXV Listing

Cortadera North Flank Delivers High Grade Extensions82m at 1.0% CuEq & 168m at 1.0% CuEq

ASX Announcement

Friday 10^th September 2021

CRP00124D (702m depth down-hole) – 1.0% copper, 0.5g/t gold, 2.2g/t silver and 49 ppm molybdenum.  Early-stage porphyry, sericite-chlorite-albite alteration with 11% A-B vein abundance

* Copper Equivalent (CuEq) reported for the drill holes were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne).  The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz.  Average Metallurgical Recoveries used were: Cu=83%, Au=56%, Mo=82%, and Ag=37%

Highlights

• Hot Chili has recorded further strong extensional results from the Cortadera copper-gold porphyry discovery in Chile, demonstrating continued expansion of high grade resources (+1% CuEq) across the northern flank (North Flank) of the main porphyry (Cuerpo 3)
• CRP0124D returned a broad intersection of 362m grading 0.6% CuEq (0.5% copper (Cu), 0.2g/t gold (Au)) from 480m depth down-hole, including 82m grading 1.0% CuEq (0.7% Cu, 0.3g/t Au) from 634m depth
• Final assays from CRP0088D have significantly upgraded the initial result (reported to ASX 16^th June, 2021) to 486m grading 0.6% CuEq (0.5% Cu, 0.2g/t Au) from 426m depth down-hole, including 168m grading 1.0% CuEq (0.8% Cu, 0.3g/t Au) from 682m depth
• High Grade (+1% CuEq) mineralisation shows strong continuity across the North Flank over 400m of strike length with further extensions expected (assay results for CRP0134D pending)
• Successful drill testing of additional open flanks at Cuerpo 2, results pending for five drill holes which have visually recorded wide intersections of strong porphyry mineralisation from surface
• Three drill rigs in operation, 6,302m of assay results pending from 27 drill holes, assay turnaround currently 44 days

Hot Chili Limited (ASX: HCH) (OTCQB: HHLKF) (“Hot Chili” or “Company”) is pleased to announce that recent drill results from its Cortadera copper-gold discovery in Chile continue to add significant resource growth from extensional drilling, as the Company’s Costa Fuego coastal copper development draws ever-closer toward Tier-1 status.

Hot Chili’s Managing Director Christian Easterday said drilling continued to demonstrate strong continuity of high grade extensions ahead of plans to up-grade the maiden 451Mt Cortadera resource.

“Systematic extensional drill testing of multiple open flanks to the orebody is proving highly successful.

“The North Flank of the high grade core to the main porphyry is a significant resource addition with wide results of +1%Cu Eq now recorded in multiple drill holes.

“We are also seeing highly encouraging, wide intersections in new shallow RC drilling at Cuerpo 2.

“Following our recent $40 million capital raising and Glencore’s strategic investment, we are now well positioned to accelerate and broaden our growth plans for Costa Fuego’s existing 724Mt resource base.

“We expect to deliver several announcements across all activity fronts (exploration, resource drilling, development studies and corporate) as we lead into a planned Q4 dual-listing in Canada this year.”

Cuerpo 3 North Flank Extension Emerging as Strong High Grade Addition

New assay results from resource extensional drilling across the North Flank to the high grade core of the main porphyry (Cuerpo 3) at Cortadera have returned further strong results.

CRP0124D returned a broad intersection of 362m grading 0.6% CuEq (0.5% copper (Cu), 0.2g/t gold (Au)) from 480m depth down-hole, including 82m grading 1.0% CuEq (0.7% Cu, 0.3g/t Au) from 634m depth.

In addition, final results from CRP0088D have significantly upgraded the initial result (reported to ASX 16th June, 2021) to 486m grading 0.6% CuEq (0.5% Cu, 0.2g/t Au) from 426m depth down-hole, including 168m grading 1.0% CuEq (0.8% Cu, 0.3g/t Au) from 682m depth.

Importantly, the high grade results in CRP0124D and CRP0088D are recorded at approximately the same vertical depth and along strike to CRP0013D, which recorded 100m grading 1.0% Cu and 0.5g/t Au within a broader intersection of 750m grading 0.7% CuEq (0.6% Cu, 0.2g/t Au) from 204m depth.

Recent drilling has increased the width of the main porphyry by approximately 100m and demonstrated strong continuity of high grade (+1% CuEq) mineralisation across the North Flank over 400m of strike length so far.

Further expansion of the North Flank is expected to be confirmed with assay results pending from another step-out diamond hole CRP0134D, which has returned a wide visual intersection of mineralised porphyry between 480m and 830m depth down-hole. 

Mineralised porphyry in CRP0134D comprises visual estimates of 0.7% – 3.0% chalcopyrite contained as fine disseminations and in association with 2% to 8% B-vein abundance.  Visual estimates of sulphide minerals are not an accurate representation of expected assay value and are provided for indicative purposes only.

Figures 2 to 6 display the location of these new significant drilling intersections at Cortadera.

Expansion of Shallow Resources at Cortadera

A significant number of Reverse Circulation (RC) drill holes have been completed in up-dip positions across Cuerpo 3 and Cuerpo 2 over the past two months.

Several of these holes have been completed as pre-collars for deeper diamond tail extensions and others have tested areas of shallow resource potential across both porphyries where drill hole density was limited.

Shallow RC drilling across the southern, eastern and north eastern flanks of Cuerpo 2 has been particularly encouraging – identifying new, shallow mineralisation.  Assay results are pending for five drill holes which have returned wide zones of oxide and sulphide mineralisation from surface.  Further drilling is being undertaken to assess this potential.

All five drill holes have visually recorded mineralised porphyry in RC chips at Cuerpo 2.  Mineralisation comprises visual estimates of 0.5% – 1.5% chalcopyrite contained as fine dissemination and 0.5% – 2% copper-bearing limonite in oxides.  Visual estimates of sulphide and oxide minerals are not an accurate representation of expected assay value and are provided for indicative purposes only.  Widths of mineralisation in all five holes extend from surface to approximately 100m down-hole.

Further Updates Expected in Advance of Canadian TSXV Dual-Listing

Hot Chili continues to operate five shifts of drilling per day with three drill rigs at Cortadera in advance of a targeted major resource upgrade this year.  A fourth drill rig is being sourced to accelerate drilling in the coming months.

Diamond drilling is continuing to test open flanks to the Cortadera resource at both Cuerpo 3 and Cuerpo 2 with a focus on expansion of both size and grade across the 2.3km discovery zone.

The Company is on-track with its process to dual-list on the TSXV in Q4 this year.

In the lead-up to the planned dual listing in Canada, Hot Chili aims to provide several updates on multiple activity streams, including:

• Exploration activity updates and new results across Costa Fuego
• Ongoing drill results, with assay results currently pending for 27 drill holes comprising approximately 6,302m of drilling
• Preliminary Feasibility Study (PFS) work stream advances for Costa Fuego
• Further corporate appointments

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

For more information please contact:

Christian Easterday
Managing Director Tel: +61 8 9315 9009
Email: christian@hotchili.net.au

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

Table 1 New Significant DD & RC Drill Results at Cortadera

Significant intercepts are calculated above a nominal cut-off grade of 0.2% Cu.  Where appropriate, significant intersections may contain up to 30m down-hole distance of internal dilution (less than 0.2% Cu).  Significant intersections are separated where internal dilution is greater than 30m down-hole distance.  The selection of 0.2% Cu for significant intersection cut-off grade is aligned with marginal economic cut-off grade for bulk tonnage polymetallic copper deposits of similar grade in Chile and elsewhere in the world.

* Copper Equivalent (CuEq) reported for the drill holes were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne).  The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz.  Average Metallurgical Recoveries used were: Cu=83%, Au=56%, Mo=82%, and Ag=37%

Figure 1 Location of Productora and the Cortadera discovery in relation to the coastal range infrastructure of Hot Chili’s combined Costa Fuego copper project, located 600km north of Santiago in Chile

Refer to ASX Announcement “Costa Fuego Becomes a Leading Global Copper Project” (12th October 2020) for JORC Table 1 information related to the Cortadera JORC compliant Mineral Resource estimate by Wood and the Productora re-stated JORC compliant Mineral Resource estimate by AMC Consultants

* Copper Equivalent (CuEq) reported for the resource were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne).  The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz.  For Cortadera (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=56%, Mo=82%, and Ag=37%.  For Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%.  For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% and Ag=23%.

** Reported on a 100% Basis – combining Cortadera and Productora Mineral Resources using a +0.25% CuEq reporting cut-off grade

Figure 2  Plan view across the Cortadera discovery area displaying significant historical copper-gold DD intersections across Cuerpo 1, 2, 3 and 4 tonalitic porphyry intrusive centres (represented by modelled copper envelopes, yellow- +0.1% Cu and magenta +0.4% Cu).  Note the selected HCH drilling intersections (White) and the new result reported from CRP0088D and CRP0124D (Magenta).

Figure 3  Plan view across the Cortadera discovery area displaying significant copper-gold DD intersections across Cuerpo 3 since the October 2020 resource estimate.  The plan view displays the Mineral Resource extents (represented by modelled copper envelope, yellow- +0.1% Cu). Note the new result reported from CRP00124D, CRP0088D and CRP0090D (Magenta collar) as well as the location of DD holes which are pending assay results (black traces, red collars).

Figure 4  Plan view flitch across Cuerpo 3 at Cortadera.  Flitch plan set at 380m RL (+/-100m window) displaying recent significant intersections in relation to the 4D geology model for Cortadera.  Note the growth in early (magenta) and intra-mineral (red) porphyries since the October 2020 maiden resource estimate.  High grade at this level in Cuerpo 3 correlates with the transition from stockwork to flat A-B veining.  Several areas of lateral growth are being tested to expand the extent of high grade mineralisation (+1% CuEq)

Figure 5 Cross section A-A’ displaying the location of CRP00124D in relation to the geology model at the time of the maiden Cortadera Resource Estimate (October 2020).  Note the lateral extension of early mineralised porphyry by approximately 85m.

Figure 6 Cross section B-B’ displaying the location of CRP00134D (assays pending) in relation to the geology model at the time of the maiden Cortadera Resource Estimate (October 2020).  Note the lateral extension of a further 85m from the recent significant intersection reported in CRP0124D and the continued extension of early mineralised porphyry which remain open for further extensional drill testing.

To read the full announcement click on the below link

https://es.hotchili.net.au/wp-content/uploads/2021/09/HCH_22_Cortadera-Delivers-82m-at-1-CuEq-168m-at-1-CuEq_10092021.pdf

Big 836m Intercept at 0.5% CuEq* at Cortadera

ASX Announcement

Tuesday 18^th May 2021

Highlights

• Diamond drill hole CRD0080 has returned a strong extensional intersection from initial step-out drilling at the Cortadera copper-gold porphyry discovery in Chile
• 836m grading 0.4% copper & 0.1g/t gold (0.5% CuEq*) from 536m depth, including a higher grade interval of 436m grading 0.5% copper & 0.2g/t gold (0.6%CuEq*) from 536m
• CRD0080 extends the southern flank of the main porphyry (Cuerpo 3) by a further 80m, with the hole ending in mineralised porphyry
• Diamond drill hole CRP0062D has confirmed connection of the two largest porphyries at depth (Cuerpo 2 and 3) at Cortadera – second “gap zone” diamond drill hole complete with assays pending
• All three drill rigs now focussed on step-out extensional drilling with approximately 9,000m of assay results outstanding

Hot Chili Limited (ASX: HCH) (OTCQB: HHLKF) (“Hot Chili” or “Company”) is pleased to announce strong results from initial step-out extensional drilling at its Cortadera copper-gold discovery in Chile.

The Company’s first two step-out drill holes have expanded the maiden resource envelope for the main porphyry by 80m and, most importantly, have confirmed that the two largest porphyries join at depth.

All three drill rigs in operation at Cortadera have now been directed toward the extensional phase of the Company’s 40,000m drilling programme, focussed on key growth areas outside the maiden resource.

* Copper Equivalent (CuEq) reported for the drill holes were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne).  The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz.  Average Metallurgical Recoveries used were: Cu=83%, Au=56%, Mo=82%, and Ag=37%. 

CRD0080 – Extension of the Main Porphyry at Cortadera

CRD0080 is the Company’s first significant step-out extensional drill hole this year, and was designed to test the width of the main porphyry (Cuerpo 3) across its southern flank.

Results received from CRD0080 recorded 836m grading 0.4% copper & 0.1g/t gold (0.5% CuEq*) from 536m depth, with the hole ending in mineralised porphyry; including a higher grade interval of 436m grading 0.5% copper & 0.2g/t gold (0.6%CuEq*) from 536m

The new result in CRD0080 is substantial; extending the southern flank of Cuerpo 3 by approximately 80m and confirming depth continuation of the main porphyry below 1,000m.

Cuerpo 3 is already approximately 900m in strike length, 600m in width and over 1,200m in vertical extent. 

The porphyry remains open in most directions with forthcoming drilling targeting its south-eastern extent, where the high grade core remains open.

CRP0062D –Confirmation The Two Largest Porphyries Join at Depth

Results from the first diamond drill hole testing the “gap zone” between Cuerpo 2 and Cuerpo 3 confirm that the two largest porphyries connect at depth.

No significant result was returned from CRP0062D; however, the diamond hole intersected a wide 460m zone of weakly mineralised “intra-mineral” porphyry between 600m and 1,060m depth down hole.

Intra-mineral porphyries at Cortadera typically grade between 0.1% and 0.4% copper and were emplaced immediately following the early porphyry phase of mineralisation which typically grades between 0.3% and 1.0% copper. 

A second “gap zone” hole (CRP0090D) has just been completed to a depth of 985m and has intersected a wide zone of porphyry mineralisation between 350m and 650m depth down-hole.  Mineralised porphyry comprised visual estimates of 0.4% – 2.0% chalcopyrite contained as fine dissemination and in association with 1% to 5% B-vein abundance.  Visual estimates of sulphide minerals are not an accurate representation of expected assay value and are provided for indicative purposes only

Results from CRP0090D are expected shortly with further diamond drill holes planned to test the gap zone.

Step-out Drilling Underway and Results for 9,000m of Drilling Expected

The initial phase of the Company’s 40,000m drill programme at Cortadera this year focussed on growth of the high grade core at Cuerpo 3.  Results so far have proven the resource is robust and that the high grade core is continuing to grow predictably.

All three drill rigs are now targeting extensional areas outside of the existing maiden resource envelopes at Cortadera.

Diamond (DD) drilling (two drill rigs) and Reverse Circulation (RC) drilling (one drill rig) is currently being undertaken across potential extensions to the Cuerpo 1 and Cuerpo 3 porphyries.

A third phase of first-pass drilling is scheduled to commence at Cortadera North in the coming weeks.

The Company is awaiting the return of assay results for approximately 9,000m of drilling already undertaken from five DD holes and seventeen RC holes across Cortadera and Cortadera North.

Further updates are expected shortly as the Company advances key workstreams spanning exploration, resource development and development studies for the combined Costa Fuego copper development.

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

For more information please contact:

Christian Easterday

Managing Director

Tel: +618 9315 9009

Email: christian@hotchili.net.au

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

Significant intercepts are calculated above a nominal cut-off grade of 0.2% Cu.  Where appropriate, significant intersections may contain up to 30m down-hole distance of internal dilution (less than 0.2% Cu).  Significant intersections are separated where internal dilution is greater than 30m down-hole distance.  The selection of 0.2% Cu for significant intersection cut-off grade is aligned with marginal economic cut-off grade for bulk tonnage polymetallic copper deposits of similar grade in Chile and elsewhere in the world.

CuEq % = Cu grade (%) + (0.5083x Au grade(g/t)) +0.0039x Ag grade(g/t)) + 0.0004x Mo grade(ppm))

Note: only outstanding DD holes included in figures are outlined in Table 1 above.  Assay results for a further two DD holes and seventeen RC holes are pending

Figure 1 Location of Productora and the Cortadera discovery in relation to the coastal range infrastructure of Hot Chili’s combined Costa Fuego copper project, located 600km north of Santiago

Refer to ASX Announcement “Costa Fuego Becomes a Leading Global Copper Project” (12th October 2020) for JORC Table 1 information related to the Cortadera JORC compliant Mineral Resource estimate by Wood and the Productora re-stated JORC compliant Mineral Resource estimate by AMC Consultants * Copper Equivalent (CuEq) reported for the resource were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne).  The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz.  For Cortadera (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=56%, Mo=82%, and Ag=37%.  For Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%.  For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% and Ag=23%. ** Reported on a 100% Basis – combining Cortadera and Productora Mineral Resources using a +0.25% CuEq reporting cut-off grade

Figure 2  Plan view across the Cortadera discovery area displaying significant historical copper-gold DD intersections across Cuerpo 1, 2, 3 and 4 tonalitic porphyry intrusive centres (represented by modelled copper envelopes, yellow- +0.1% Cu and majenta +0.4% Cu).  Note the selected HCH drilling intersections (White) and the new result reported from CRD0080 (Red).

Figure 3 Long Section displaying the location of CRD0080 in relation to the Cortadera copper-gold discovery window.  A wide intersection of weakly mineralised porphyry in CRP0061D confirms that the two largest porphyries at join at depth.  Results are pending for CRP0090D, CRP0088D and CRP0047D

Figure 4  Plan view across the Cortadera discovery area displaying significant copper-gold DD intersections across Cuerpo 3 since the October 2020 resource estimate.  The plan view displays the Mineral Resource extents (represented by modelled copper envelope, yellow- +0.1% Cu). Note the new result reported from CRD0080D (Magenta collar) as well as the location of current deep diamond holes (black traces, red collars).

Figure 5 Cross Section across Cuerpo 3 with a 100m slicing window (+/-50m viewing) through the bulk copper envelope (+0.1%Cu model) and high grade copper envelope (+0.4% Cu model).  Note the location of CRD0080.  Importantly the hole has extended the footwall to the main porphyry by approximately 80m.  The new drill results have added substantially to the 0.1% and 0.4% copper envelopes which have been updated to include the new result.

To read the full announcement click on the below link

https://es.hotchili.net.au/wp-content/uploads/2021/05/HCH_9_Big-836m-Intercept-at-0.5-CuEq-at-Cortadera_18052021.pdf

Hot Chili Reports 144m at 1.0% CuEq-

High Grade Resources Set To Grow Significantly

ASX Announcement

Wednesday 16^th June 2021

Highlights

• Hot Chili has recorded its second-best high grade interval from the Cortadera copper-gold porphyry discovery in Chile, 300m from its high grade discovery hole CRP0013D, and demonstrating strong mineralisation (+1% CuEq) across the northern flank of the main porphyry
• CRP0088D returned a broad intersection of 410m grading 0.6% CuEq (0.5% copper (Cu), 0.2g/t gold (Au)) from 440m to 850m depth down-hole, with the last 144m grading 1.0% CuEq (0.8% Cu, 0.3g/t Au) between 706m and 850m depth – Assays results pending for the remainder of CRP0088D (850m to 1,434m)
• CRP0013D intersected 188m grading 1.1% CuEq (0.9% Cu and 0.4g/t Au) at approximately the same vertical depth as CRP0088D, within a broader intersection of 750m grading 0.7% CuEq (0.6% Cu and 0.2g/t Au) from 204m depth
• Pre-feasibility study for Hot Chili’s combined 724Mt Costa Fuego resource will take advantage of a high grade inventory which is set to significantly expand– currently 56.6Mt grading 0.97% CuEq (0.8% Cu & 0.22g/t Au, Oct 2020)
• Three drill rigs in operation, 5,900m of assay results pending, and reverse circulation drilling to re-commence at Cortadera North in the coming fortnight

CRP0088D (768m to 770m depth down-hole) – 2.0% copper, 0.7g/t gold, 4.1g/t silver and 751 ppm molybdenum.  Early-stage porphyry, chlorite-albite-sericite alteration with 6% A-B vein abundance

* Copper Equivalent (CuEq) reported for the drill holes were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne).  The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz.  Average Metallurgical Recoveries used were: Cu=83%, Au=56%, Mo=82%, and Ag=37%

Hot Chili Limited (ASX: HCH) (OTCQB: HHLKF) (“Hot Chili” or “Company”) is pleased to announce it has recorded its second best high grade intercept from drilling at its Cortadera copper-gold discovery in Chile.

Hot Chili’s Managing Director Christian Easterday said the new drill results suggest Cortadera’s growth has a long way to go.

“It is an exciting time for our Company ahead of our Pre-feasibility and resource upgrade.

“Cortadera continues to deliver exceptional widths of copper and gold, with the new result recording some 62m grading 1.0% copper and 0.4g/t gold, much higher grade than we had estimated in that area of the main porphyry.

“Our combined Costa Fuego copper project is set to deliver on both scale and grade – at a time of increasing copper price and limited large-scale new copper supply opportunities in top-tier mining jurisdictions.

“We are now poised to commence our Pre-feasibility study into the largest copper development of any ASX-listed emerging company since Equinox Minerals advanced it’s Lumwana copper project to production over ten years ago.  Equinox Minerals, which was dual-listed in Toronto, was acquired by Barrick Gold in 2011 for A$7.1 billion.

“The PFS for our 724Mt combined Costa Fuego resource will take advantage of a large high grade copper-gold inventory – currently 56.6Mt grading 0.97% CuEq (0.80% copper & 0.22g/t gold) – which we expect will grow significantly”.

Cuerpo 3 High Grade Core Returns Another Outstanding Result

New assays from definition drilling of the high grade core of the main porphyry (Cuerpo 3) have returned results grading up to 2% copper (Cu) and 0.7g/t gold (Au) within a wide intercept of 144m grading 1.0% CuEq (0.8% Cu, 0.3g/t Au) between 706m and 850m depth in drill hole CRP0088D.

The new results were recorded within an even broader intersection of 410m grading 0.6% CuEq (0.5% Cu, 0.2g/t Au) from 440m to 850m depth down-hole.

Assays results are pending for the remainder of CRP0088D between 850m and 1,434m.

Importantly, CRP0088D returned a 62m wide zone grading 1.0% Cu and 0.4g/t Au – significantly higher than previous drilling included in Cortadera’s maiden resource of 451Mt grading 0.46% CuEq.

The new result is similar to the high grade discovery zone hole CRP0013D, which recorded 100m grading 1.0% Cu and 0.5g/t Au within a broader intersection of 750m grading 0.7% CuEq (0.6% Cu, 0.2g/t Au) from 204m depth

CRP0088D is located 300m to the southeast of CRP0013D along the northern flank of Cuerpo 3, with both high grade intersections recorded at approximately the same vertical depth.

In addition, diamond drill hole CRP0047D also returned a strong new intercept from Cuerpo 3.  CRP0047D recorded 218m grading 0.6% CuEq (0.5% Cu, 0.1g/t Au) from 720m depth down-hole including 24m grading 0.8% CuEq (0.7% Cu, 0.2g/t Au).

Figures 2 to 5 display the location of these new significant drilling intersections at Cortadera.

New Discovery Joins Cortadera’s Porphyries Together Across 2.3km

A new porphyry zone located between Cuerpo 1 and Cuerpo 2 has been discovered by new extensional drill testing.  The new porphyry zone is approximately 500m in strike length, 60m in width, extends from surface, and confirms that all of Cortadera’s porphyry centres are connected over 2.3km of strike extent.

Results returned from the first four holes completed into the new discovery include 56m grading 0.4% Cu and 0.1g/t Au from 40m depth in drill hole CRP0091, which included 20m grading 0.7% Cu and 0.2g/t Au.

Results for eight shallow holes completed across the near-surface position of the new discovery are pending.

Deeper testing of this zone will commence in the coming months.

Three Drill Rigs in Operation to Deliver Resource Upgrade in 2021

Hot Chili is operating five shifts of drilling per day with three drill rigs at Cortadera, as it advances towards a targeted major resource upgrade this year.
Planning is underway to follow-up and continue expanding the high grade zone confirmed by drill holes CRP0088D and CRP0013D at Cuerpo 3.
The Company looks forward to providing further updates across several activity streams over the coming weeks, including:

• Progress towards a dual-listing in the Canadian market this year
• Commencement of a combined Pre-feasibility study for Costa Fuego and key appointments
• Ongoing drill results, with assay results currently pending for 23 drill holes comprising approximately 5,900m of drilling
• Exploration activity updates from Cortadera North and Santiago Z growth targets

This announcement is authorised by the Board of Directors for release to ASX.
For more information please contact:
Christian Easterday
Managing Director
Tel: +61 8 9315 9009
Email: christian@hotchili.net.au

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

Table 1 New Significant DD Drill Results at Cortadera

Significant intercepts are calculated above a nominal cut-off grade of 0.2% Cu.  Where appropriate, significant intersections may contain up to 30m down-hole distance of internal dilution (less than 0.2% Cu).  Significant intersections are separated where internal dilution is greater than 30m down-hole distance.  The selection of 0.2% Cu for significant intersection cut-off grade is aligned with marginal economic cut-off grade for bulk tonnage polymetallic copper deposits of similar grade in Chile and elsewhere in the world.

CuEq % = Cu grade (%) + (0.5083x Au grade(g/t)) +0.0039x Ag grade(g/t)) + 0.0004x Mo grade(ppm))

Figure 1 Location of Productora and the Cortadera discovery in relation to the coastal range infrastructure of Hot Chili’s combined Costa Fuego copper project, located 600km north of Santiago

Refer to ASX Announcement “Costa Fuego Becomes a Leading Global Copper Project” (12th October 2020) for JORC Table 1 information related to the Cortadera JORC compliant Mineral Resource estimate by Wood and the Productora re-stated JORC compliant Mineral Resource estimate by AMC Consultants * Copper Equivalent (CuEq) reported for the resource were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne).  The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz.  For Cortadera (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=56%, Mo=82%, and Ag=37%.  For Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%.  For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% and Ag=23%. ** Reported on a 100% Basis - combining Cortadera and Productora Mineral Resources using a +0.25% CuEq reporting cut-off grade.

Figure 2  Plan view across the Cortadera discovery area displaying significant historical copper-gold DD intersections across Cuerpo 1, 2, 3 and 4 tonalitic porphyry intrusive centres (represented by modelled copper envelopes, yellow- +0.1% Cu and majenta +0.4% Cu).  Note the selected HCH drilling intersections (White) and the new result reported from CRP0088D and CRP0047D (Red).

Figure 3  Long Section displaying the location of CRP0088D and CRP0047D in relation to the Cortadera copper-gold discovery window.  A new shallow porphyry zone confirms that all of Cortadera’s porphyries join across 2.3km strike length.  Results are pending for CRP0090D, CRP00103D and CRP0058D.  Diamond drilling of CRP0103D and CRP0058D is in progress

Figure 4  Plan view across the Cortadera discovery area displaying significant copper-gold DD intersections across Cuerpo 3 since the October 2020 resource estimate.  The plan view displays the Mineral Resource extents (represented by modelled copper envelope, yellow- +0.1% Cu). Note the new result reported from CRP0088D and CRP0047D (Magenta collar) as well as the location of CRP0090D which is pending assay results (black traces, red collars).

Figure 5  Plan view across the Cortadera discovery area displaying new significant copper-gold DD and RC drilling intersections (Majenta).  The plan view displays the Mineral Resource extents (represented by modelled copper envelope, yellow- +0.1% Cu) and the extent of modelled porphyries. Note the location of the new shallow porphyry discovery zone as well as the location of DD holes which are pending assay results (black traces, red collars).

To download the full announcement please click on the below link.

https://es.hotchili.net.au/wp-content/uploads/2021/06/HCH_11_Hot-Chili-Reports-144m-at-1.0-CuEq_16062021.pdf

Current Copper Prices see Productora’s NPV increase 500%
and firm as a Higher Grade Development Option

ASX Announcement

Thursday 27^th May 2021

Highlights

• Pre-feasibility Study (PFS) for Hot Chili’s 2.9Mt copper and 2.7Moz gold Costa Fuego (the combined Cortadera and Productora Resources – 14km apart) copper development in Chile is on-track to commence in the coming weeks
• Several months work has re-shaped the Productora resource as a potential higher grade, open pit, satellite option for Costa Fuego
• Resource re-modelling and recent underground mine reconciliation confirms higher grade resources (above 0.4% Cu) at Productora are robust and shallow
• Grind size re-optimisation and further metallurgical testwork is set to increase Productora’s metal recoveries
• Productora’s 2016 PFS (US$3.00/lb Cu) is already highly leveraged to current spot copper prices (US$4.62/lb Cu, 20th May 2021) as a standalone, bulk tonnage, open pit development:
  • 500% increase in Net Present Value (NPV) to US$1.1 Billion, and
  • 150% increase in Internal Rate of Return (IRR) to 38%
• Combining Cortadera and Productora into one central development hub cements Costa Fuego as one of the largest coastal copper developments in Chile

Productora 2016 PFS Results Versus Copper Price (Wood, 2020)

Refer to “Hot Chili Delivers PFS and Near-Doubles Reserves at Productora”, 2nd March 2016. The PFS financial model for Productora is adjusted each year by independent consultants Wood to model changing economic conditions. The copper price leverage using the 2020 adjustment is shown above. The model was adjusted for the following changes (only) - Au = 1,550 USD/oz Au (increased 300 USD/oz), Mo = 12.00 USD/lb Mo (decreased 2.00 USD/lb), Foreign Exchange CLP:USD was adjusted from 690 CLP : 1 USD to 719 CLP : 1 USD (the average FX rate for YTD according to S&P Global, increased 4%)

Hot Chili Limited (ASX: HCH) (OTCQB: HHLKF) (“Hot Chili” or “Company”) is pleased to announce several advances in the lead-up to commencement of a combined Pre-feasibility Study for its Costa Fuego copper-gold development in Chile.

Review of Productora as a Higher Grade Satellite Pit Option

Detailed work over the past nine months has confirmed the potential for Productora to provide a higher grade open pit development option for Costa Fuego.

Productora is located 14km from the Company’s flagship Cortadera copper-gold porphyry discovery which has a maiden resource of 451Mt grading 0.46% Cu Eq that is set to be upgraded this year.

Productora’s current resource of 273Mt grading 0.44% Cu and 0.09g/t Au supports a bulk tonnage open pit ore reserve estimate of 166.9Mt grading 0.43% copper, 0.09g/t gold (refer to ASX Announcement “Hot Chili Delivers PFS and Near-Doubles Reserves at Productora”, 2nd March 2016)
Hot Chili have been undertaking reconciliation of lease mining results (Santa Innes mine) and reviewing block model estimation approaches to confidently define high grade resources at Productora.

Channel sample grades and mapping of the Santa Innes underground mine showed positive reconciliation to the Productora 2016 resource block model, however, a positive finding has been the recognition of additional zones of mineralisation that have been encountered while mining.
Structural analysis and mapping suggest the additional zones are high grade (+0.4% Cu) short range breccias which exist within the current drill density at Santa Innes.

Multiple iterations of various re-estimation parameters have been completed to best represent the distribution of high grades at Productora, and provide a fit-for-purpose block model for use in revised pit optimisations using higher cut-off grades.

The Company now has flexibility to assess Productora as either a bulk tonnage or higher grade satellite ore source.

Improved Copper Price and Lower Power Cost Driving Improved Economics

Productora’s value has been enhanced by higher copper prices and lower power costs than that considered in the 2016 PFS.
Since 2016, the central and southern Chilean electrical grids have been connected, driving a large influx of solar power derived from the Atacama region. Several large solar projects are now operating proximal to Costa Fuego.

These factors have allowed Hot Chili to contemplate the adoption of a finer grind size, a key recommendation of the Productora PFS. This will see sulphide copper recoveries increase by 2% to 88% overall at Productora (refer to ASX Announcement “Hot Chili Delivers PFS and Near-Doubles Reserves at Productora”, 2nd March 2016).

Further metallurgical testwork programmes are underway to optimise gold and oxide copper recoveries for the combined Costa Fuego PFS, with both of these items considered significant potential value levers for the project.

The Company looks forward to announcing ongoing drill results from its 40,000m drilling programme at Cortadera, which aims to expand and upgrade Costa Fuego’s 724Mt open pit and underground resource base.

Flexibility of higher grade mine sequencing and improved recoveries provide a strong basis for the kick-off of Costa Fuego’s combined Pre-feasibility Study in the coming weeks.

This announcement is authorised by the Board of Directors for release to ASX.
For more information please contact:
Christian Easterday
Managing Director
Tel: +61 8 9315 9009
Email: christian@hotchili.net.au

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

Figure 1 Location of Productora and the Cortadera discovery in relation to the coastal range infrastructure of Hot Chili’s combined Costa Fuego copper project, located 600km north of Santiago

Refer to ASX Announcement “Costa Fuego Becomes a Leading Global Copper Project” (12th October 2020) for JORC Table 1 information related to the Cortadera JORC compliant Mineral Resource estimate by Wood and the Productora re-stated JORC compliant Mineral Resource estimate by AMC Consultants * Copper Equivalent (CuEq) reported for the resource were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne).  The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz.  For Cortadera (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=56%, Mo=82%, and Ag=37%.  For Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%.  For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% and Ag=23%. ** Reported on a 100% Basis - combining Cortadera and Productora Mineral Resources using a +0.25% CuEq reporting cut-off grade.

Hot Chili Limited (“Hot Chili” or “the Company”) is pleased to advise that it has been approved to join the
US-based OTCQB Venture Market under the ticker symbol HHLKF (OTCQB: HHLKF). Trading
commenced in the US on 6 May 2021 (http://www.otcmarkets.com/stock/HHLKF/quote). Hot Chili met
the financial and corporate governance standards and passed the OTC compliance obligations. USbased MCAP LLC provided advisory services.

The OTCQB is a well-established trading platform, operated by OTC Markets Group in New York, that
provides live-market trading in developing companies which hold primary listings in other markets. There
are no additional compliance or regulatory standards over and above Hot Chili’s compliance with the
ASX Listing Rules.

OTC trading is non-dilutive to existing Hot Chili shareholders as no new shares are being issued to enable
trading on the OTCQB and Hot Chili’s shares will continue to trade on the Australian Securities Exchange
under the symbol ASX:HCH.

OTC trading will enhance the visibility and accessibility of the Company to North American shareholders
and media partners.

ASX Announcement

Friday 16th April 2021

Cortadera Copper-Gold Update

More Copper, More Gold

Highlights

• New drill results continue to expand size and increase grade at the Cortadera copper-gold discovery in Chile
• Eight new extensional drilling intersections post Cortadera 451Mt resource estimate (October 2020)
• Results (CRP0046D) confirm further wide zones of higher-grade copper and gold within Cortadera’s main porphyry (Cuerpo 3)
• Two more wide visual intersections of mineralisation recorded in extensional diamond drill holes CRD0080 and CRP0047D; assays pending
• First diamond drilling underway at Cuerpo 1 porphyry at Cortadera

Significant Drill Results for CRP0046D

114m grading 0.5% copper & 0.2g/t gold

from 248m down-hole depth

 &

185m grading 0.5% copper & 0.2g/t gold

from 568m down-hole depth

(including additional silver and molybdenum credits)

Two More Wide Visual Intersections – Assays Pending

CRD0080 – 550m of Porphyry Mineralisation Recorded

from 550m to 1,100m depth, hole complete

&

CRP0047D – 200m of Porphyry Mineralisation Recorded

from 720m to 920m depth, current hole depth at 960m

Hot Chili Limited (ASX code HCH) (“Hot Chili” or “Company”) is pleased to announce that extensional drilling at the Cortadera copper-gold discovery is on-track to deliver a significant upgrade to the Company’s combined Costa Fuego copper-gold resource in Chile.

Costa Fuego’s combined resource base sits at 724Mt grading 0.48% CuEq for 2.9Mt copper, 2.7Moz gold, 9.9Moz silver and 64kt molybdenum and is being expanded toward a Tier-1 copper resource (+5Mt copper).

New results for CRP0046D and confirmation of a further two wide visual intersections (assays pending for CRD0080 and CRP0047D) continue Cortadera’s run of strong resource extensions.

Hot Chili have now achieved eight significant extensional diamond drill intersections since Cortadera’s maiden resource was announced in October last year.

Various Photos of CRP0047D diamond core between 757m and 783m depth down-hole, displaying well mineralised porphyry with strong A-B vein abundance along with disseminated pyrite-chalcopyrite-molybdenite mineralisation.

New Diamond Drill Results from Cortadera

Two diamond drill rigs are operating on a 24-hr basis to complete a large resource expansion drill programme across Cortadera this year.

New results for drill hole CRP0046D have returned two significant intersections comprising 114m grading 0.5% copper and 0.2g/t gold from 248m depth and 185m grading 0.5% copper and 0.2g/t gold from 568m depth down-hole.  The two higher grade intersections were contained within a broader drill result of 838m grading 0.3% copper and 0.1g/t gold from 140m depth.

Importantly, the two higher grade intersections in CRP0046D were recorded in areas previously modelled as low grade within the main porphyry (Cuerpo 3) of the Cortadera resource.

Results are pending for two wide visual intersections of porphyry mineralisation recorded in CRD0080 (between 550m and 1,100m depth) and CRP0047D (between 720m and 920m depth) across extensions to the high grade core at Cortadera’s main porphyry.

Both zones of mineralised porphyry comprise visual estimates of 0.5% – 2.5% chalcopyrite contained as fine dissemination and in association with 2% to 8% B-vein abundance.  Visual estimates of sulphide minerals are not an accurate representation of expected assay value and are provided for indicative purposes only.

These latest results add to the high grade zone recently recorded in CRP0061D (318m grading 0.6% copper and 0.2g/t gold) and continue to confirm growth of higher grade, bulk tonnage, resources at Cortadera.

First diamond drill testing by Hot Chili below Cuerpo 1 has commenced and diamond drilling is continuing across Cuerpo 3. 

RC Drilling Update at Cortadera and Cortadera North

The Company is also advancing well with its Reverse Circulation (RC) drill programme at Cortadera and Cortadera North. 

A total of eight first-pass RC drill holes are complete across the large Cortadera North target, located 2km north of Cortadera.  An additional three RC drill holes remain to be drilled and the Company expects to report results once all assays have been received and compiled.

Multielement pathfinder results will be key to determining potential areas for second-pass diamond drill hole tails and RC follow-up drilling at Cortadera North. 

In addition, several shallow significant intersections have been recorded from preliminary RC drill holes across Cuerpo 1 at Cortadera, including 36m grading 0.4% copper and 0.1g/t gold from surface (including 10m grading 0.7% copper and 0.2g/t gold from 24m) and 22m grading 0.5% copper and 0.1g/t gold from surface. 

Further RC drilling is planned to extend areas of shallow higher grade copper and gold at Cuerpo 1. 

The Company looks forward to providing further drill results and operational updates from its rapidly advancing Costa Fuego copper development in Chile. 

This announcement is authorised by the Board of Directors for release to ASX.
For more information please contact:
Christian Easterday
Managing Director
Tel: +61 8 9315 9009
Email: christian@hotchili.net.au

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

Table 1 New Significant DD & RC Drill Results at Cortadera

Significant intercepts are calculated above a nominal cut-off grade of 0.2% Cu.  Where appropriate, significant intersections may contain up to 30m down-hole distance of internal dilution (less than 0.2% Cu).  Significant intersections are separated where internal dilution is greater than 30m down-hole distance.  The selection of 0.2% Cu for significant intersection cut-off grade is aligned with marginal economic cut-off grade for bulk tonnage polymetallic copper deposits of similar grade in Chile and elsewhere in the world.

Figure 1 Location of the Cortadera discovery and Productora in relation to the coastal range infrastructure of Hot Chili’s combined Costa Fuego copper project, located 600km north of Santiago in Chile

Refer to ASX Announcement “Costa Fuego Becomes a Leading Global Copper Project” (12th October 2020) for JORC Table 1 information related to the Cortadera JORC compliant Mineral Resource estimate by Wood and the Productora re-stated JORC compliant Mineral Resource estimate by AMC Consultants

* Copper Equivalent (CuEq) reported for the resource were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne).  The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz.  For Cortadera (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=56%, Mo=82%, and Ag=37%.  For Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%.  For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% and Ag=23%.

** Reported on a 100% Basis - combining Cortadera and Productora Mineral Resources using a +0.25% CuEq reporting cut-off grade

Figure 2 Plan view across the Cortadera discovery area displaying significant historical copper-gold DD intersections across Cuerpo 1, 2, 3 and 4 tonalitic porphyry intrusive centres (represented by modelled copper envelopes, yellow- +0.1% Cu and magenta +0.4% Cu). Note the selected HCH drilling intersections (White) and the new results reported from CRP0046D, CRP0068 & CRP0075 (Red).

Figure 3 Plan view across the Cortadera discovery area displaying significant historical copper-gold DD intersections across Cuerpo 2 and 3. The plan view displays the Mineral Resource extents (represented by modelled copper envelope, yellow- +0.1% Cu). Note the selected HCH drilling intersections (White) and the new results reported from CRP0046D (Red). as well as the location of diamond holes (black traces) with assays pending.

Figure 4. Long Section displaying the location of CRP0061D in relation to the Cortadera copper-gold discovery window.

Qualifying Statements

Independent JORC Code Costa Fuego Combined Mineral Resource (Reported 12th October 2020)

Reported at or above 0.25% CuEq*. Figures in the above table are rounded, reported to appropriate significant figures, and reported in accordance with the JORC Code – Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Metal rounded to nearest thousand, or if less, to the nearest hundred. * * Copper Equivalent (CuEq) reported for the resource were calculated using the following formula:: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1 % per tonne). The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz. For Cortadera (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=56%, Mo=82%, and Ag=37%. For Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%. For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% and Ag=23%.

** Note: Silver (Ag) is only present within the Cortadera Mineral Resource estimate

Competent Person’s Statement- Exploration Results
Exploration information in this Announcement is based upon work compiled by Mr Christian Easterday, the Managing Director and a full-time employee of Hot Chili Limited whom 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 deposit 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 the report of the matters based on their information in the form and context in which it appears.

Competent Person’s Statement- Productora Mineral Resources
The information in this Announcement that relates to the Productora Project Mineral Resources, is based on information compiled by Mr N Ingvar Kirchner. Mr Kirchner is employed by AMC Consultants (AMC). AMC has been engaged on a fee for service basis to provide independent technical advice and final audit for the Productora Project Mineral Resource estimates. Mr Kirchner is a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM) and is a Member of the Australian Institute of Geoscientists (AIG). Mr Kirchner has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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’ (the JORC Code 2012). Mr Kirchner consents to the inclusion in this report of the matters based on the source information in the form and context in which it appears.

Competent Person’s Statement- Cortadera and Costa Fuego Mineral Resources
The information in this report that relates to Mineral Resources for the Cortadera and combined Costa Fuego Project is based on information compiled by Elizabeth Haren, a Competent Person who is a Member and Chartered Professional of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Elizabeth Haren is employed as an associate Principal Geologist of Wood, who was engaged by Hot Chili Limited. Elizabeth Haren has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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”. Elizabeth Haren consents to the inclusion in the report of the matters based on her information in the form and context in which it appears.

Reporting of Copper Equivalent
Copper Equivalent (CuEq) reported for the resource were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1 % per tonne). The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz. For Cortadera (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=56%, Mo=82%, and Ag=37%. For Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%. For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% and Ag=23%.

Forward Looking Statements
This Announcement is provided on the basis that neither the Company nor its representatives make any warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the Announcement and nothing contained in the Announcement is, or may be relied upon as a promise, representation or warranty, whether as to the past or the future. The Company hereby excludes all warranties that can be excluded by law. The Announcement contains material which is predictive in nature and may be affected by inaccurate assumptions or by known and unknown risks and uncertainties and may differ materially from results ultimately achieved.

The Announcement contains “forward-looking statements”. All statements other than those of historical facts included in the Announcement are forward-looking statements including estimates of Mineral Resources. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, copper, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade recovery rates from those assumed in mining plans, as well as political and operational risks and governmental regulation and judicial outcomes. The Company does not undertake any obligation to release publicly any revisions to any “forward-looking statement” to reflect events or circumstances after the date of the Announcement, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. All persons should consider seeking appropriate professional advice in reviewing the Announcement and all other information with respect to the Company and evaluating the business, financial performance and operations of the Company. Neither the provision of the Announcement nor any information contained in the Announcement or subsequently communicated to any person in connection with the Announcement is, or should be taken as, constituting the giving of investment advice to any person.

To read the announcement in full click on the below link

Cortadera Update- More Copper, More Gold

ASX Announcement

Friday 9th April 2021

Second Large Copper Porphyry System Confirmed 5km South of Cortadera

Highlights

• New soil geochemical results have lifted the potential for a second large 4km by 2km copper porphyry system, located 5km south of the Company’s Cortadera copper-gold discovery in Chile
• Soil results from Hot Chili’s recently consolidated Santiago Z landholding confirm a stronger molybdenum (+10ppm) anomaly than originally recorded in historical XRF soil results
• Santiago Z is also enriched in copper, gold and silver (Cortadera’s metal signature) as well as displaying typical coincident copper porphyry metal zonation patterns
• Similar aged porphyries (91- 96Ma) to Cortadera have also been identified in detailed historical mapping at Santiago Z
• Further work is planned to advance Santiago Z toward first drill testing later this year
• Drilling operations at Cortadera are on-track to deliver a significant upgrade to the Company’s combined Costa Fuego copper-gold resource (724Mt grading 0.48% Cu Eq for 2.9Mt copper, 2.7Moz gold, 9.9Moz silver and 64kt molybdenum) this year
• Results are imminent for CRP0046D which intersected two wide zones of well mineralised porphyry within a broad zone of mineralisation at Cortadera (as outlined in ASX announcement “Cortadera Rising RIU presentation”, 16th Feb 2021)
• An update on drilling activities and new drill results is expected to be released next week

Hot Chili Limited (ASX code HCH) (“Hot Chili” or “Company”) is pleased to confirm that evidence is building toward the potential for Cortadera to be part of larger regional copper porphyry cluster on the Chilean coastal range.

New soil results and mapping confirm a large copper porphyry footprint measuring over 4km in length and 2km in width at the Santiago Z landholding, located immediately south of Cortadera.

Santiago Z contains a large historical XRF soil molybdenum anomaly that is twice the size and four times the tenor of the soil molybdenum anomaly related to the Cortadera copper-gold porphyry discovery.

Soil assays confirm stronger molybdenum results than first outlined in earlier XRF molybdenum results as well as enrichment in copper, gold and silver (Cortadera metal signature).

Other element zonation patterns provide confidence in the presence of a potentially large copper porphyry system at depth.

Mapping by Hot Chili has recognised several areas of outcropping copper-bearing hydrothermal breccia at Santiago Z.

In addition, a review of detailed historical mapping at Santiago Z has highlighted the presence of a corridor of porphyries (91-96Ma) with similar age to Cortadera, recently dated by Hot Chili as a Late Cretaceous porphyry (92Ma +/- 2Ma).

Further detailed mapping will focus across the corridor of hydrothermal brecciation and porphyries which have intruded the shallowly dipping local volcano-sedimentary sequence, similar to the Cortadera porphyry deposit setting.

A review of historical geophysical datasets across Santiago Z is underway and the Company is planning a programme of extensional soil geochemistry and detailed mapping as its next steps in advance of first-pass drilling later this year.

Hot Chili is advancing well with its 40,000m drill programme at Cortadera with three rill rigs in operation.

New drill results are being compiled for release (including CRP0046D) and the Company expects to provide an update on drilling activities next week.

This announcement is authorised by the Board of Directors for release to ASX.
For more information please contact:
Christian Easterday
Managing Director
Tel: +61 8 9315 9009
Email: christian@hotchili.net.au

Qualifying Statements

Independent JORC Code Costa Fuego Combined Mineral Resource (Reported 12th October 2020)

Reported at or above 0.25% CuEq*. Figures in the above table are rounded, reported to appropriate significant figures, and reported in accordance with the JORC Code – Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Metal rounded to nearest thousand, or if less, to the nearest hundred. * * Copper Equivalent (CuEq) reported for the resource were calculated using the following formula:: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1 % per tonne). The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz. For Cortadera (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=56%, Mo=82%, and Ag=37%. For Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%. For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% and Ag=23%.

** Note: Silver (Ag) is only present within the Cortadera Mineral Resource estimate

Competent Person’s Statement- Exploration Results
Exploration information in this Announcement is based upon work compiled by Mr Christian Easterday, the Managing Director and a full-time employee of Hot Chili Limited whom 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 deposit 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 the report of the matters based on their information in the form and context in which it appears.

Competent Person’s Statement- Productora Mineral Resources
The information in this Announcement that relates to the Productora Project Mineral Resources, is based on information compiled by Mr N Ingvar Kirchner. Mr Kirchner is employed by AMC Consultants (AMC). AMC has been engaged on a fee for service basis to provide independent technical advice and final audit for the Productora Project Mineral Resource estimates. Mr Kirchner is a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM) and is a Member of the Australian Institute of Geoscientists (AIG). Mr Kirchner has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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’ (the JORC Code 2012). Mr Kirchner consents to the inclusion in this report of the matters based on the source information in the form and context in which it appears.

Competent Person’s Statement- Cortadera and Costa Fuego Mineral Resources
The information in this report that relates to Mineral Resources for the Cortadera and combined Costa Fuego Project is based on information compiled by Elizabeth Haren, a Competent Person who is a Member and Chartered Professional of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Elizabeth Haren is employed as an associate Principal Geologist of Wood, who was engaged by Hot Chili Limited. Elizabeth Haren has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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”. Elizabeth Haren consents to the inclusion in the report of the matters based on her information in the form and context in which it appears.

Reporting of Copper Equivalent
Copper Equivalent (CuEq) reported for the resource were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1 % per tonne). The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz. For Cortadera (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=56%, Mo=82%, and Ag=37%. For Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%. For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% and Ag=23%.

Forward Looking Statements
This Announcement is provided on the basis that neither the Company nor its representatives make any warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the Announcement and nothing contained in the Announcement is, or may be relied upon as a promise, representation or warranty, whether as to the past or the future. The Company hereby excludes all warranties that can be excluded by law. The Announcement contains material which is predictive in nature and may be affected by inaccurate assumptions or by known and unknown risks and uncertainties and may differ materially from results ultimately achieved.

The Announcement contains “forward-looking statements”. All statements other than those of historical facts included in the Announcement are forward-looking statements including estimates of Mineral Resources. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, copper, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade recovery rates from those assumed in mining plans, as well as political and operational risks and governmental regulation and judicial outcomes. The Company does not undertake any obligation to release publicly any revisions to any “forward-looking statement” to reflect events or circumstances after the date of the Announcement, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. All persons should consider seeking appropriate professional advice in reviewing the Announcement and all other information with respect to the Company and evaluating the business, financial performance and operations of the Company. Neither the provision of the Announcement nor any information contained in the Announcement or subsequently communicated to any person in connection with the Announcement is, or should be taken as, constituting the giving of investment advice to any person.

Appendix 1. JORC Code Table 1 for Cortadera

Section 1 Sampling Techniques and Data

Section 2 Reporting of Exploration Results

ASX Announcement Wednesday 24th February 2021

Third Rig Boosts Speed of Drilling at
Cortadera Copper-Gold Discovery

Drilling Re-commences at Cortadera North

Highlights

• A third drill rig has commenced operations at Hot Chili’s world-class Cortadera copper-gold discovery in Chile
• Two diamond drill rigs operating 24 hours a day are targeting a major upgrade to Cortadera’s 451Mt maiden resource later this year
• Diamond drilling is currently testing large extensions to high grade cores and the potential for the two largest porphyries to join at depth
• Reverse circulation drilling has re-commenced testing the exciting 2km long Cortadera North “lookalike” target, located immediately north of Cortadera
• Results are pending for two wide visual intersections of porphyry mineralisation recorded in CRP0046D and CRP0061D across extensions to the high grade core at Cortadera’s main porphyry (as outlined in ASX announcement “Cortadera Rising RIU presentation”, 16th Feb 2021)

Hot Chili Limited (ASX code HCH) (“Hot Chili” or “Company”) is pleased to confirm it has accelerated its 40,000m drilling programme at the Cortadera copper-gold porphyry discovery, part of the Company’s Costa Fuego copper development in Chile.

A third drill rig is now in operation at Cortadera, meaning two diamond rigs are operating on a 24 hour-basis to deliver a major resource upgrade later this year.

Three Drill Rigs in Operation at Cortadera

The Company’s fully funded 2021 work programme aims to continue building Costa Fuego toward a tier one copper project (+5Mt copper) from its current contained metal resource base of 2.9Mt copper and 2.7Moz gold, 9.9Moz silver and 64kt molybdenum.

Drilling has been significantly accelerated and the Company plans to complete two deep diamond holes every four to five weeks at Cortadera in addition to having the flexibility to drill test large growth projects such as Cortadera North.

Re-Commencement of Cortadera North Drilling

The addition of a third drill rig also coincides with the re-commencement of Reverse Circulation (RC) drilling at the exciting 2km long Cortadera North “look-alike” target, located immediately north of Cortadera.

Drilling in late 2020 at Cortadera North focussed on testing the strong molybdenum surface anomaly with results confirming the presence of molybdenum and silver enrichment, indicating potential proximity to porphyry mineralisation.

Twelve deep RC holes (utilising five platforms) are designed to test the large Induced Polarisation (IP) chargeability anomaly at Cortadera North as outlined in Figure 2. This second phase of drilling is expected to be complete by late March.

Results Pending for Two Deep Diamond Holes at Cuerpo 3

The Company looks forward to receiving results for two deep diamond holes (CRP0046D and CRP0061D) completed across Cortadera’s main porphyry (Cuerpo 3).  Both drill holes have recorded very wide visual intersections of porphyry mineralisation (as outlined in ASX announcement “Cortadera Rising RIU presentation”, 16th Feb 2021).

Assay laboratory challenges related to COVID constraints have been resolved and Hot Chili expects a return to normal assay turn-around timeframes for its sample dispatches within the coming week. 

Further updates on Hot Chili’s various workstreams are expected shortly.

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

For more information please contact:

Christian Easterday Tel: +61 8 9315 9009

Managing Director Email: christian@hotchili.net.au

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

Refer to ASX Announcement “Costa Fuego Becomes a Leading Global Copper Project” (12th October 2020) for JORC Table 1 information related to the Cortadera JORC compliant Mineral Resource estimate by Wood and the Productora re-stated JORC compliant Mineral Resource estimate by AMC Consultants

* Copper Equivalent (CuEq) reported for the resource were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne). The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz. For Cortadera (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=56%, Mo=82%, and Ag=37%. For Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%. For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% and Ag=23%.

** Reported on a 100% Basis - combining Cortadera and Productora Mineral Resources using a +0.25% CuEq reporting cut-off grade

Qualifying Statements

Independent JORC Code Costa Fuego Combined Mineral Resource (Reported 12th October 2020)

Reported at or above 0.25% CuEq*. Figures in the above table are rounded, reported to appropriate significant figures, and reported in accordance with the JORC Code - Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Metal rounded to nearest thousand, or if less, to the nearest hundred. * * Copper Equivalent (CuEq) reported for the resource were calculated using the following formula:: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne). The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz. For Cortadera (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=56%, Mo=82%, and Ag=37%. For Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%. For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% and Ag=23%.

** Note: Silver (Ag) is only present within the Cortadera Mineral Resource estimate

Competent Person’s Statement- Exploration Results

Exploration information in this Announcement is based upon work compiled by Mr Christian Easterday, the Managing Director and a full-time employee of Hot Chili Limited whom 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 deposit 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 the report of the matters based on their information in the form and context in which it appears.

Competent Person’s Statement- Productora Mineral Resources

The information in this Announcement that relates to the Productora Project Mineral Resources, is based on information compiled by Mr N Ingvar Kirchner. Mr Kirchner is employed by AMC Consultants (AMC). AMC has been engaged on a fee for service basis to provide independent technical advice and final audit for the Productora Project Mineral Resource estimates. Mr Kirchner is a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM) and is a Member of the Australian Institute of Geoscientists (AIG). Mr Kirchner has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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’ (the JORC Code 2012). Mr Kirchner consents to the inclusion in this report of the matters based on the source information in the form and context in which it appears.

Competent Person’s Statement- Cortadera and Costa Fuego Mineral Resources

The information in this report that relates to Mineral Resources for the Cortadera and combined Costa Fuego Project is based on information compiled by Elizabeth Haren, a Competent Person who is a Member and Chartered Professional of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Elizabeth Haren is employed as an associate Principal Geologist of Wood, who was engaged by Hot Chili Limited. Elizabeth Haren has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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”. Elizabeth Haren consents to the inclusion in the report of the matters based on her information in the form and context in which it appears.

Reporting of Copper Equivalent

Copper Equivalent (CuEq) reported for the resource were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+( Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1 % per tonne). The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz. For Cortadera (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=56%, Mo=82%, and Ag=37%. For Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%. For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% and Ag=23%.

Forward Looking Statements

This Announcement is provided on the basis that neither the Company nor its representatives make any warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the Announcement and nothing contained in the Announcement is, or may be relied upon as a promise, representation or warranty, whether as to the past or the future. The Company hereby excludes all warranties that can be excluded by law. The Announcement contains material which is predictive in nature and may be affected by inaccurate assumptions or by known and unknown risks and uncertainties and may differ materially from results ultimately achieved.

The Announcement contains “forward-looking statements”. All statements other than those of historical facts included in the Announcement are forward-looking statements including estimates of Mineral Resources. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, copper, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade recovery rates from those assumed in mining plans, as well as political and operational risks and governmental regulation and judicial outcomes. The Company does not undertake any obligation to release publicly any revisions to any “forward-looking statement” to reflect events or circumstances after the date of the Announcement, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. All persons should consider seeking appropriate professional advice in reviewing the Announcement and all other information with respect to the Company and evaluating the business, financial performance and operations of the Company. Neither the provision of the Announcement nor any information contained in the Announcement or subsequently communicated to any person in connection with the Announcement is, or should be taken as, constituting the giving of investment advice to any person

ASX Announcement Tuesday 2nd March 2021

4km Long Copper Porphyry Footprint Secured Next to Cortadera – Santiago Z

Highlights

• A new landholding named Santiago Z has been consolidated by Hot Chili, 5km south of its world-class Cortadera copper-gold discovery in Chile
• Santiago Z contains a large historical soil molybdenum anomaly that is more than twice the size and four times the tenor of Cortadera’s soil molybdenum footprint
• Exploration efforts by Hot Chili over the past 6 months have confirmed Santiago Z as a large-scale copper porphyry footprint, which has never been drill tested
• Copper-bearing hydrothermal breccias and porphyry intrusive stocks have been mapped in several locations coincident with the Santiago Z soil molybdenum anomaly
• Detailed mapping and geophysics (IP/MT) is planned for the first half of 2021 in advance of first-pass drilling later in 2021
• Assay results are pending for a large surface mapping and soil geochemical programme already completed in December and January across Santiago Z

Hot Chili Limited (ASX code HCH) (“Hot Chili” or “Company”) is pleased to confirm the addition of an exciting new land holding, named Santiago Z, to the Company’s Costa Fuego copper development in Chile.

Importantly, Santiago Z contains a large historical soil molybdenum anomaly that is approximately twice as large as the soil molybdenum anomaly related to the Cortadera copper-gold porphyry discovery, located just 5km to the north.

Santiago Z adds an additional 20 per cent (5,468ha) to the Company’s Costa Fuego landholdings.

Exploration by Hot Chili across Santiago Z has confirmed the 4km-long soil molybdenum anomaly is associated with a zone of hydrothermal brecciation related NS regional-scale Las Cañas-El Torito reverse faults and to a corridor of porphyries which have intruded the shallowly dipping local volcano-sedimentary sequence, similar to the Cortadera porphyry deposit setting.

During December and January, Hot Chili undertook a mapping and soil geochemical sampling programme at Santiago Z.  Assay results from the geochemical programme are expected to be received in the coming weeks.  Initial XRF analysis at each soil site has replicated and confirmed the size and grade of the historical soil XRF molybdenum anomaly.  

Hot Chili’s XRF soil molybdenum data correlates very well with soil molybdenum assay results in all campaigns undertaken by the Company.

Molybdenum is a key pathfinder element used to identify copper porphyry systems in leached soil profiles and the Company is encouraged by the size (4km x 2km in dimension) and tenor (+10ppm Molybdenum) of the Santiago Z anomaly in relation to the discovery footprint of Cortadera as displayed on Figure 2 below.

Refer to ASX Announcement “Costa Fuego Becomes a Leading Global Copper Project” (12th October 2020) for JORC Table 1 information related to the Cortadera JORC compliant Mineral Resource estimate by Wood and the Productora re-stated JORC compliant Mineral Resource estimate by AMC Consultants
* Copper Equivalent (CuEq) reported for the resource were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne). The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz. For Cortadera (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=56%, Mo=82%, and Ag=37%. For Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%. For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% and Ag=23%.
** Reported on a 100% Basis - combining Cortadera and Productora Mineral Resources using a +0.25% CuEq reporting cut-off grade

Santiago Z Landholding Consolidation

Hot Chili’s 100% owned subsidiary Sociedad Minera Frontera SpA (Frontera) has consolidated a significant landholding across Santiago Z over the past six months, as outlined in Figure 3 above.

The Santiago Z historical surface soil molybdenum anomaly is primarily contained within exploration leases privately held by the same Chilean landowner with which the Company has an Option agreement in-place across the San Antonio high grade copper mine.

The private Chilean landowner has agreed to include these key leases into the San Antonio Option agreement (as announced to the Australian Securities Exchange 8^th November 2017) at no cost and has also agreed to a 24-month extension of term to the original 90% earn-in Option agreement.

Since rationalising the Option agreement for San Antonio and Santiago Z, the Company has also applied for and secured several exploration applications (100% interest) immediately surrounding the privately held Santiago Z leases.

The revised Option timetable provides Hot Chili sufficient time to assess both Santiago Z and San Antonio and is as follows:

1. Oct 2020 – first extension fee payment – US$100,000 (already satisfied)
2. April 2021 – second extension fee payment US$100,000
3. Nov 2022 – first Option instalment payment US$300,000
4. Nov 2023 – final Option instalment payment – US$6,700,000

Figure 4 below outlines the various leases controlled by Hot Chili through its active Option agreements and direct ownership.

The Company is focussed on the rapid growth of Cortadera toward a major resource upgrade later this year and the advancement of combined development studies for Costa Fuego. 

The Directors of Hot Chili are pleased with the addition of Santiago Z to its exploration pipeline and the cooperation of its partners in Chile to further consolidate and strengthen the potential scale of the combined Costa Fuego copper development.

Further updates and new assay results from the Company’s 40,000m drilling programme at Cortadera are expected to be released shortly.

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

For more information please contact:

Christian Easterday Tel: +61 8 9315 9009

Managing Director Email: christian@hotchili.net.au

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

Qualifying Statements

Reported at or above 0.25% CuEq*. Figures in the above table are rounded, reported to appropriate significant figures, and reported in accordance with the JORC Code - Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Metal rounded to nearest thousand, or if less, to the nearest hundred. * * Copper Equivalent (CuEq) reported for the resource were calculated using the following formula:: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne). The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz. For Cortadera (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=56%, Mo=82%, and Ag=37%. For Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%. For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% and Ag=23%.

** Note: Silver (Ag) is only present within the Cortadera Mineral Resource estimate

Competent Person’s Statement- Exploration Results

Exploration information in this Announcement is based upon work compiled by Mr Christian Easterday, the Managing Director and a full-time employee of Hot Chili Limited whom 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 deposit 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 the report of the matters based on their information in the form and context in which it appears.

Competent Person’s Statement- Productora Mineral Resources

The information in this Announcement that relates to the Productora Project Mineral Resources, is based on information compiled by Mr N Ingvar Kirchner. Mr Kirchner is employed by AMC Consultants (AMC). AMC has been engaged on a fee for service basis to provide independent technical advice and final audit for the Productora Project Mineral Resource estimates. Mr Kirchner is a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM) and is a Member of the Australian Institute of Geoscientists (AIG). Mr Kirchner has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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’ (the JORC Code 2012). Mr Kirchner consents to the inclusion in this report of the matters based on the source information in the form and context in which it appears.

Competent Person’s Statement- Cortadera and Costa Fuego Mineral Resources

The information in this report that relates to Mineral Resources for the Cortadera and combined Costa Fuego Project is based on information compiled by Elizabeth Haren, a Competent Person who is a Member and Chartered Professional of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Elizabeth Haren is employed as an associate Principal Geologist of Wood, who was engaged by Hot Chili Limited. Elizabeth Haren has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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”. Elizabeth Haren consents to the inclusion in the report of the matters based on her information in the form and context in which it appears.

Reporting of Copper Equivalent

Copper Equivalent (CuEq) reported for the resource were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+( Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1 % per tonne). The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz. For Cortadera (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=56%, Mo=82%, and Ag=37%. For Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%. For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% and Ag=23%.

Forward Looking Statements

This Announcement is provided on the basis that neither the Company nor its representatives make any warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the Announcement and nothing contained in the Announcement is, or may be relied upon as a promise, representation or warranty, whether as to the past or the future. The Company hereby excludes all warranties that can be excluded by law. The Announcement contains material which is predictive in nature and may be affected by inaccurate assumptions or by known and unknown risks and uncertainties and may differ materially from results ultimately achieved.

The Announcement contains “forward-looking statements”. All statements other than those of historical facts included in the Announcement are forward-looking statements including estimates of Mineral Resources. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, copper, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade recovery rates from those assumed in mining plans, as well as political and operational risks and governmental regulation and judicial outcomes. The Company does not undertake any obligation to release publicly any revisions to any “forward-looking statement” to reflect events or circumstances after the date of the Announcement, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. All persons should consider seeking appropriate professional advice in reviewing the Announcement and all other information with respect to the Company and evaluating the business, financial performance and operations of the Company. Neither the provision of the Announcement nor any information contained in the Announcement or subsequently communicated to any person in connection with the Announcement is, or should be taken as, constituting the giving of investment advice to any person

To download the announcement please click on the below link.

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