Low Risk, Near-Term, Meaningful Copper Supply

Hot Chili (ASX/TSXV: HCH, OTCQX: HHLKF) is an emerging copper producer focused on delivering large-scale, near-term copper supply to a world facing an increasing shortage of this critical metal. The Company holds strategic assets in two essential resources - copper and water - both with substantial growth and value upside.

Our core focus is the Costa Fuego Copper-Gold Project located at low elevation in Chile’s coastal Atacama region, Huasco. It is one of a handful of independent, globally significant copper developments, capable of producing over 100ktpa CuEq metal. It is further differentiated by the rare combination of substantial growth upside from the recent La Verde porphyry discovery and a clear pathway to near-term production.

The 2025 Pre-Feasibility Study for Costa Fuego outlined a 20-year mine life, top quartile copper production scale and lowest quartile capital intensity with a post-tax NPV_(8%) of US1.2 Billion. Costa Fuego is also significantly leveraged to copper and gold price, both of which are now materially higher than assumptions used in the Company’s PFS.

Beyond the base project, Costa Fuego offers meaningful growth potential. The La Verde discovery has delivered multiple wide, near-surface copper-gold intersections, highlighting the opportunity to incorporate a high-grade starter pit into the existing mine plan. The scale of La Verde has the potential to lift production towards 150 ktpa CuEq metal and beyond.

The ESG of the Costa Fuego Project has been continually de-risked through long-standing community relationships and has more than a decade of permitting progress. The Project produces a clean copper concentrate with no deleterious elements, uses seawater for processing in a region of freshwater scarcity, and benefits from existing infrastructure such as the Pan-American Highway, renewable power supply and access to port facilities. Its proximity to established towns eliminates the need for a permanent camp, supporting local employment and regional development.

Complementing Costa Fuego, Hot Chili also owns Huasco Water, a strategic water infrastructure business in one of Chile’s most water-constrained regions. Huasco Water holds the only granted maritime concession and necessary permits to provide critical water access to the Huasco Valley.

The 2025 PFS delivered a strong economic proposition for the water supply business, with a staged network. Stage 1 delivers seawater to Costa Fuego, with Stages 2 and 3 expanding to include the supply of desalinated water further into the Huasco Valley, which contains six major undeveloped copper projects and two new large-scale greenfield copper discoveries.

Together, Costa Fuego and Huasco Water position Hot Chili as both a future copper producer and a long-term provider of critical water infrastructure. With large-scale assets, low elevation, advanced permitting and embedded funding optionality through Huasco Water, Hot Chili represents a compelling source of future copper supply.