Maiden Resource at Cortadera

Costa Fuego Becomes a Leading Global
Copper Project

724Mt grading 0.48%CuEq* for 2.9Mt Copper,
2.7Moz Gold, 9.9Moz Silver & 64kt Molybdenum**

Maiden Cortadera Resource Adds
451Mt grading 0.46%CuEq*

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

Highlights

• Cortadera’s maiden Mineral Resource positions Hot Chili with the largest copper Mineral Resource and one of the largest gold Mineral Resources for an ASX-listed emerging company

• The Cortadera maiden Mineral Resource (+0.25% CuEq) of 451Mt at 0.46% copper equivalent (CuEq) takes the total Mineral Resource estimate for Costa Fuego** to 724Mt at 0.48% CuEq 1 for 2.9Mt copper, 2.7Moz gold, 9.9Moz Silver and 64kt molybdenum . The Cortadera maiden Mineral Resource includes a higher grade component (+0.6% CuEq) of 104Mt at 0.74% CuEq*

• The independently estimated Mineral Resource (categorised as, 41% Indicated and 59% Inferred), extends from surface and remains open in several key directions

• Hot Chili’s combined Costa Fuego project now ranks as one of the world’s largest low-altitude, clean concentrate (no arsenic), copper-gold Mineral Resources not controlled by a major mining company

• Second Mineral Resource estimate planned for Cortadera in 2021

• Maiden Resource estimate for the high grade San Antonio satellite deposit due in the coming months

• Drilling underway at Cortadera North and Cuerpo 2 Deeps, results in the coming weeks

Hot Chili Limited (ASX code HCH) (“Hot Chili” or “Company”) is pleased to announce the first Mineral Resource estimate for its Cortadera coastal range porphyry discovery in Chile.

This very substantial Cortadera maiden mineral resource estimate, compares favourably with the only other significant new copper discovery announced globally since 2016 (source S&P Global Market Intelligence, Wood August 2020) – Rio Tinto’s Winu discovery in Western Australia (503Mt grading 0.45%CuEq, 100% Inferred and reported above 0.20% CuEq cut-off grade, announced to ASX 28th July 2020).

The addition of the maiden Cortadera mineral resource to Hot Chili’s copper hub ranks the Costa Fuego copper Mineral Resources amongst the largest along the Chilean coastal range, considered to be one of the most desirable copper development locations in the world.

Hot Chili’s Managing Director Christian Easterday said “the Cortadera resource estimate is a strong achievement given the Company only executed a deal to acquire the privately owned discovery in February 2019”.

“Generating a 451Mt maiden Resource for Cortadera a mere 14km away from our established Productora deposit (273Mt Resource) demonstrates the sheer scale of Hot Chili’s Coast Fuego copper hub.

“Cortadera has a high grade core of 104Mt grading 0.74% copper equivalent and this has strong potential to continue growing rapidly with further drilling.

“Our first resource for Cortadera is particularly significant when considering it is one of just two major copper discoveries to have been reported in the world since 2016.

“Hot Chili now controls a globally significant resource of 2.9Mt copper, 2.7Moz gold, 9.9Moz silver and 64Kt molybdenum.

“We look forward to an exciting 12 months ahead with further drilling results and resource growth”.

Tables 1 ,2 and 3 outline the maiden Cortadera Mineral Resource estimate, the re-stated Productora Mineral Resource estimate and the Global Mineral Resource for the combined Costa Fuego project, respectively.

Table 2 Independent JORC Code Productora Mineral Resource

(Re-stated using +0.25% CuEq cut-off grade)

Table 3 Independent JORC Code Costa Fuego Combined Mineral Resource

Clear Path Forward for Costa Fuego

An internal scoping study is underway to assess a combined development for Costa Fuego involving both open pit and underground operations which will leverage central processing and existing infrastructure access already secured by Hot Chili (power and sea water pipeline easements, surface rights).

Test work from Cortadera has demonstrated consistent and compatible ore metallurgy to Costa Fuego’s other nearby deposits (Productora and San Antonio), with all ore sources expected to be processed using sea water and conventional sulphide flotation.

The Company is likely to pursue a similar development approach to the Nueva Union (Teck 50%, Newmont Goldcorp 50%) copper project in Chile, where the Relincho and El Morro copper-gold deposits are being combined into one development via haulage using a 40km conveyor belt.

Nuevo Union is located between 2,000m and 4,000m elevation, approximately 100km east-northeast of Costa Fuego, with similar average copper grades and co-credit metals. By comparison, Costa Fuego’s
Cortadera and Productora copper-gold deposits are located 14km apart, at low attitude (800-1,000m elevation), along the Pan American Highway and within 50km of port facilities.

Maiden Cortadera Resource – Robust and Set to Grow

Cortadera’s maiden Mineral Resource estimate extends from surface and is considered amenable to large-scale open pit mining.

Cortadera’s high grade core has already delivered six world-class drilling intersections since it was discovered by Hot Chili in August last year. The high grade core has the potential to grow significantly with further drilling and represents a potential large underground development opportunity.

The addition of the maiden Cortadera mineral resource estimate positions Costa Fuego favourably amongst the largest undeveloped copper Mineral Resources in the world not controlled by a major mining company, as outlined in Table 4 and Figure 1.

Figures 2 to 4 outline the extent, morphology and areas of open extensional potential across the Cortadera Mineral Resource estimate.

The independently estimated Mineral Resource for Cortadera and Productora are summarised in detail in the appended JORC Code Table 1’s. An executive summary of the Cortadera Mineral Resource estimate
and Productora Minera Resource estimate is also contained following Figure 4.

Both Mineral Resource estimates for Cortadera and Productora have been reported above 0.25% CuEq* cut-off grade. This is in-line with economic benchmarking for Cortadera and the Productora Pre-feasibility
study (announced to ASX 2nd March 2016) and Is consistent with reporting cut-off grades used in recent comparable large-scale, global copper-gold resource estimates (Winu, Cascabel etc).

The Cortadera Mineral Resource was audited and signed-off by leading global consultancy firm Wood. The re-stated Mineral Resource estimate for Productora has been independently reviewed and signed-off
by leading global consultancy firm AMC Consultants.

Next Steps – Drilling and Resource Growth

The Company is set to generate further significant growth over the coming 12 months through:

1. Announcement of a maiden resource estimate for the high grade San Antonio satellite deposit,

2. Completion of first-pass drilling across three large growth targets at Cortadera,

3. Continued expansion drilling of the Cortadera Mineral Resource targeting an updated resource estimate in 2021, and

4. Continued ramp-up of lease mining and processing of high grade copper-gold ore from Productora, through the Company’s agreement with Chilean government agency ENAMI.

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

Figure 2 Oblique Long Section (looking NNE) displaying the Maiden Cortadera Mineral Resource extents in relation to drilling. Note that the average low grade halo of the block model is exposed on the outer façade of the above image. Please refer to Figure 3 to view grade distribution within the block model.

Figure 4 Plan View of the Cortadera porphyry system and key growth targets outlined in Blue at the Cortadera discovery zone and the Cortadera North “look alike” target.

Summary of the CortD-veins (quartz-pyrite-sericite) and late calcite-bearing fractures. Anhydrite is locally present within some of
the B and C veins.
Chalcopyrite also occurs as disseminations of variable intensity within the porphyritic host rocks, particularly in
association with stockwork A veins. There is a very clear correlation between increased percentage of quartz-
bearing stockwork veining and sulphide content with elevated copper-gold grades.adera Maiden Mineral Resource Estimate

This Maiden Cortadera Mineral Resource estimate was prepared by independent consultant Wood and includes all drilling completed at Cortadera as at the 6th July, 2020.

Location

The Cortadera project is located 16km south of the regional mining centre of Vallenar in Region III of Chile, approximately half way between La Serena and Copiapo, and lies within the low altitude coastal range belt.

The project lies 14km off the main sealed Pan-American Highway connecting Vallenar to Coquimbo in the south. It is adjacent to a power line and rail corridor which connects the project to the Huasco Port (controlled
by CAP/ CMP, Hot Chili’s project partner), which is 85km to the west.

Ownership

Hot Chili (through its 100% subsidiary company Frontera SpA) controls an area measuring approximately 12.5km north-south by 5km east-west at the project through various 100% purchase option agreements with
private land holders.

Geology

The Cortadera Project is hosted in the Totoralillo Group, a thick volcano-sedimentary sequence comprising andesitic volcanic and minor calcic bioclastic rocks and intercalated sedimentary rocks.

An interpreted northwest-southeast trending fault corridor hosts the three, known porphyry-style mineralised centres at Cortadera (Cuerpo 1, 2, and 3). The colour anomaly and associated alteration extends along this
trend for at least 1.5 kilometres, with the structural corridor extending along strike, and potentially controlling additional porphyry-style intrusive centres and related alteration cells with associated mineralisation.

Based on the genetic understanding of the deposit and geological logging undertaken by Hot Chili, a 3D model of the multi-phase intrusions was developed using Leapfrog software. Wireframes for both +0.1% Cu and
lithology were constructed based on the observations of geometry, trends, and vein percentages logged in drill core as well as surface mapping. Weathering wireframes were constructed using logged information and
geochemistry ratios (Cu:S).

The earlier, better mineralised phases were modelled as they would have formed originally allowing for a good confidence to be gained in the original geometry and continuity of these well mineralised bodies before their continuity was interrupted by subsequent intrusive phases.

Mineralisation

The Cortadera deposit is characterised by early- and intra-mineralisation, porphyritic tonalitic to quartz dioritic intrusions and adjacent volcano-sedimentary wall-rocks that have been recrystallised to hornfels and skarn.
The hydrothermal alteration consists of moderate- to strong-phyllic (+ chloritic) alteration, characterised by quartz/ silica, sericite and lesser amounts of chlorite.

Vein systems at Cortadera are typical of those found within porphyry-style mineralised systems. Early quartz- rich veins observed at Cuerpo 1 and Cuerpo 2 exhibit unidirectional solidification textures (UST) that are
commonly associated with relatively high-temperatures during vein emplacement. Veins formed subsequent to UST veins comprise quartz rich A-veins (chalcopyrite- pyrite± magnetite), banded MAB veins (quartz-
magnetite-chalcopyrite-pyrite) and B-veins (molybdenite), cut by sericitic/ chlorite C-veins (pyrite-chalcopyrite),

D-veins (quartz-pyrite-sericite) and late calcite-bearing fractures. Anhydrite is locally present within some of the B and C veins.

Chalcopyrite also occurs as disseminations of variable intensity within the porphyritic host rocks, particularly in association with stockwork A veins. There is a very clear correlation between increased percentage of quartz-
bearing stockwork veining and sulphide content with elevated copper-gold grades.

Resource Estimation Inputs

Following execution of the Cortadera option agreement in February 2019, Hot Chili undertook a resource drill out focussed on extending and infilling previously defined mineralisation. Hot Chili drilling was successful in
improving geological understanding, growing the deposit size, and discovering a bulk-tonnage high grade zone at Cortadera. Drilling completed by Hot Chili between February 2019 and July 2020 comprised 32 RC holes and 11 RC-DD holes for a total of 10,126m of reverse circulation (RC) and 7,064.4m diamond drilling (DD). Drilling completed prior to Hot Chili securing the project, comprises 39 DD holes for 23,230.85 metres of
diamond drilling, with this earlier drilling successful in defining three mineralised porphyry orebodies (Cuerpo 1, 2 and 3).

Drill spacing is nominally 80 metres across strike by 80 metres along strike. The current drilling density provides sufficient information to support a robust geological and mineralisation interpretation as the basis for
Indicated and Inferred Mineral Resources for the majority of the drill defined deposit.

The Cortadera mineral resource estimation used a total drill inventory of 82 holes for a cumulative 40,421.25m (10,126m of RC and 30,295.25m of DD), with drill data collected during the period November 2011 to July 2020, using industry standard techniques for drilling and sample collection.

Samples have been analysed by certified laboratories in Chile by standard analytical techniques including:

• Copper, silver and molybdenum were analysed by 4-acid digestion (Hydrochloric-Nitric- Perchloric- Hydrofluoric) followed by ICP-OES (Inductively Coupled Plasma – Optical Emission Spectrometry) or AAS (Atomic Absorption Spectrometry) determination

• Cu results > 10,000 ppm were analysed by “ore grade” method Cu‐AA62 (upper limit 40% Cu)

• Samples within the oxide and transitional domains (as determined by geologists logging) were analysed for “soluble copper” (upper limit 10% Cu) to detect the leachability of copper oxide minerals within these domains

• Gold was analysed by 30 or 50-gram lead-collection Fire Assay, followed by ICP-OES or AAS

Further detail on analytical techniques for each drilling campaign can be found within JORC Code Table 1.

Cortadera is likely to be processed under the same processing regime as the Productora deposit (which has had considerable metallurgical test work and a Pre-feasibility study completed), and as such it was considered
appropriate to consider the elements of copper, gold, molybdenum and silver as economically material for resource classification and reporting.

The verification of input data included the use of company QA/QC blanks and reference material, field and laboratory duplicates, umpire laboratory checks and independent sample and assay verification. The Competent Person has assessed the drillhole database validation work and QAQC undertaken by Hot Chilli and was satisfied that the input data could be relied upon for the estimation of Indicated and Inferred Mineral
Resources.

The Mineral Resource estimation process included:
• Drilling results being composited; 2m lengths
• Statistical analysis of the composites was performed in appropriate geological domains
• Variography and top-cut analysis was performed on mineralisation, weathering and orientation domains as appropriate
• Top cuts were applied to the composites as appropriate
• The grade model was estimated via ordinary block kriging within estimation domains constrained by mineralisation and lithological domains
• Owing to the lack of density data for the oxide and transitional, fresh density data was used for these domains – and discounted by 10% for transitional, and 20% for oxide

A range of criteria were considered in determining the resource classification, including:
• Geological and grade continuity between drillholes
• Drillhole spacing
• Proposed high-tonnage mining method
• Wireframes were constructed to define the limits of Indicated and Inferred material
• This was combined with an open pit shell and underground stope shapes
• Where significant extrapolation occurred, or the material was outside the open pit shell or underground stope shapes the mineralisation remains unclassified
• The lack of density information for oxide and transitional material means that these domains have been classified as Inferred only

Mineral Resource Statement
A cut-off grade of 0.25% CuEq has been used for the Mineral Resource statement. This is In line with other large-scale copper-gold miners and developers who have published Mineral Resource statements in recent
years. Hot Chili has determined that this value also agrees with a calculation based on first principles including long term market forecast metal prices (USD 3.00/ lb Cu, USD1,550/oz Au, USD12/ lb for Mo, USD18/ oz Ag), it assumes clean concentrate and metal recoveries based on preliminary metallurgical and mineralogical work for Cortadera.

Explanatory Notes on the Productora Mineral Resource Estimate
A Productora Mineral Resource (including Alice) was reported in the 2 March, 2016 ASX announcement “Hot Chili Delivers PFS and Near Doubles Reserves at Productora”. The 2016 Mineral Resource was reported using
a Cu>0.25% to define “high grade” material and a 0.1%<Cu%0.25 to define “low grade” material. Using economic and metallurgical recovery data generated by Hot Chili during the subsequent mining study phases.

The existing Mineral Resource model has now been re-reported using the 2016 resource models with a new CuEq>0.25% cut-off grade to align it with Hot Chili’s other Mineral Resource for Cortadera. The “low grade”
material has now been omitted for reporting purposes.

The change in reporting protocol for the high grade material has resulted in more tonnes and metal for Cu, Au and Mo but at marginally lower Cu, Au and Mo grades as expected. The resultant change in the reported Productora Mineral Resource from 2016 to 2020 is not considered material.

CuEq recovery parameters and cost parameters for Cu, Au and Mo elements have been by defined by Hot Chili for the Productora, South Mantos and Alice areas and the oxidation phase materials (oxide, transitional
and fresh). Application of the formulae to the model for reporting purposes has been reviewed by AMC Consultants.

This Mineral Resource was audited by independent consultant AMC Consultants and includes all drilling completed at Productora as of the 17th of August, 2015.

Location
The Productora project is located 16km south of the regional mining centre of Vallenar in Region III of Chile, approximately half way between La Serena and Copiapo, and lies within the low altitude coastal range belt.

The project lies 5km off the main sealed Pan-American Highway connecting Vallenar to La Serena in the south. It is adjacent to a power line and rail corridor which connects the project to the Huasco Port (controlled by CAP/
CMP, Hot Chili’s project partner), which is 40km to the west.

Ownership
Hot Chili (through its 80% owned subsidiary company Sociedad Minera El Aguila (SMEA SpA)) controls an area measuring approximately 12.5km north-south by 5km east-west. Compania Minera Pacifica (CMP-
Chile’s largest iron ore and steel producer) owns the remaining 20% interest in SMEA and is Hot Chili’s joint venture partner at Productora.

Geology

The Productora Project is hosted in the (lower Cretaceous) Bandurrias Group, a thick volcano-sedimentary sequence comprising intermediate to felsic volcanic rocks and intercalated sedimentary rocks. Dioritic dykes
intrude the volcano-sedimentary sequence at Productora, typically along west- to northwest-trending late faults, and probably represent sub-volcanic feeders to an overlying andesitic sequence not represented in the project area.

The host volcanic and sedimentary sequence dips gently (15-30o) west to west-northwest and is transected by several major north- to northeast-trending faults zones, including the Productora fault zone, which coincides
with the main mineralised trend. These faults are likely sympathetic to the nominally parallel but distal Atacama fault system. In the Productora deposit, these major fault zones are commonly associated with extensive
tectonic breccia (damage zones) that host copper-gold-molybdenum mineralisation. Later faults cross-cut and offset the volcano-sedimentary sequence together with the Productora (and sub-parallel) major faults. Late
faults generally show a west to north-westerly strike and while generally narrow, are locally up to 20m wide.

The volcano-sedimentary sequence at Productora is extensively altered, particularly along major faults and associated damage zones, and a distinctive alteration zonation is evident. The distribution of alteration mineral assemblages and spatial zonation suggest a gentle northerly plunge for the Productora mineral system, disrupted locally via vertical and strike-slip movements across late faults. These late faults appear to be trans-
tensional and nominally normal to the distal Atacama fault system.

Mineralisation – Productora deposit

Mineralisation in the Productora deposit comprises two contrasting styles. The predominant style is characterised by narrow, N to NE trending tourmaline-cemented breccia bodies. Sub-vertical feeder stocks,
of 2-5m width at depth, increase with elevation, to wider high-grade mineralisation zones. These wider brecciated zones vary in orientation with central lodes tending to be sub-vertical with an upper flex in wider
mineralised zones to dip approximately 70° towards the west, also flanking shallower eastern and western lodes dip moderately west and east respectively. There are also some locally steeply east dipping lodes e.g.,
Habanero. In likely structurally conducive dilation zones, these discrete breccia zones hydraulically propagate outward and can commonly coalesce to become larger zones of hydrothermal damage. These larger damage
zones are most probably defined by a combination of structural and intra-lithological controls. Drilling at deeper levels at Productora have demonstrated thinning breccia lodes, with some ductile features, that continue to a greater depth.

Mineralisation – Alice deposit

The Alice mineralisation is shallower than the Productora mineralisation, in terms of genetic emplacement, and has a single porphyry body in close proximity to a lithocap.

The lithocap is physically disconnected from (the assumed) coeval porphyry, by a fault. The lithocap overprints the regional volcanic stratigraphy, and is comprised of a number of advance argillic alteration types, including; quartz alunite, quartz pyrophyllite, alunite dominant and pyrophyllite dominant zones.

Within the mineralisation, there appears to be a distinct difference between chalcopyrite-dominant and pyrite- dominant areas. Zones within the chalcopyrite dominant domains (i.e. low pyrite: chalcopyrite ratio) correlate
with intense A-veins and B-veins, and higher copper grades. Copper mineralisation appears both within veining and disseminated within the groundmass proximal to veining.

Late albite (+/- epidote +/-sericite) appears to have overprinted / removed chalcopyrite (Cu, S) and biotite. It appears to locally reduce the amount of pyrite in the quartz vein network. This can also be observed in the
sodium and sulphur chemistry in the Alice drilling; both correlate with domains of much lower- to no significant copper grades.

Project Status

The Productora deposit underwent a major resource drill out in 2013 which resulted in “Productora Resource Revision 2” Mineral Resource. Following this, a limited drilling programme in 2014 was undertaken focussed
on extending or testing near-resource extensions and targets, as well as upgrading resource confidence in areas of Inferred mineralisation. This programme resulted in the addition of 14,055m (12,864m of reverse
circulation “RC” and 1,191m diamond drilling). The Productora deposit now contains a total drill inventory of 893 holes for a cumulative 245,327m (212,692m of RC and 32,636m of diamond drilling).

The Alice deposit was discovered during exploration drilling in 2014. Further drilling was undertaken by Hot Chili during 2014 and a resource development infill programme was completed in June, 2015. This consisted
of 31 drill holes; 29 RC holes (2 with diamond tails), and also another 2 dedicated twin diamond drill holes for a cumulative 9,593m (9,005m of RC and 588m diamond drilling).

Resource Estimation

The Productora Deposit is resource update was based on:
• Additional drilling undertaken by Hot Chili since the previous Resource Report cut-off (December 2013) to 1st June, 2015. This consisted of an additional 46 new RC holes, 7 RC tail and 5 diamond tail
extensions from pre-existing RC holes for a cumulative 14,055mm (12,864m of RC and 1,191m diamond drilling).
• A total drilling inventory of 893 holes for a cumulative 245,327m (212,692m RC, 32,636m diamond) available for use in resource estimation for the Productora deposit. (Note; This is a redefined count
from the previous resource report, as previously this accounted for some minor non-Productora exploration drilling).
• The pre-existing nominal 40m x 80m drill coverage across the majority of the Productora resource.
• The Alice Deposit is resource was based on:
• Drilling undertaken by Hot Chili during 2014 and to the 1st June, 2015. This consisted of 31 RC holes, 29 RC holes, 2 with diamond tails, and another 2 dedicated twin diamond drill holes for a cumulative 9,593m (9,005m of RC and 588m diamond drilling).
• While the resource was drilled by a variety of drilling angles, the drilling provided a nominal 50m x 80m drill coverage across most of the Alice resource.

Alice has low Au and Mo content, but as it is likely to be processed under the same processing regime as the Productora deposit; it was considered appropriate to consider those elements as economically material for
resource classification and reporting.

Samples have been analysed by certified laboratories in Chile by standard analytical techniques including:

• Copper, silver and molybdenum were analysed by 4-acid digestion (Hydrochloric-Nitric- Perchloric- Hydrofluoric) followed by ICP-OES (Inductively Coupled Plasma – Optical Emission Spectrometry) or
AAS (Atomic Absorption Spectrometry) determination

• Cu results > 10,000 ppm were analysed by “ore grade” method Cu‐AA62 (upper limit 40% Cu)

• Gold was analysed by 30 or 50-gram lead-collection Fire Assay, followed by ICP-OES or AAS finish

Further detail on analytical techniques for each drilling campaign can be found within JORC Code Table 1.

Productora has had considerable metallurgical test work and a Pre-feasibility study completed, and as such it was considered appropriate to consider the elements of copper, gold, and molybdenum as economically
material for resource classification and reporting.

The verification of input data included:

• The use of company QA/QC blanks and reference material
• Field and laboratory duplicates
• Umpire laboratory checks
• Independent sample and assay verification
• The resource estimation process included:
• Drilling results being composited; 1m lengths for Productora, 2m for Alice
• Statistical analysis of the composites was performed in appropriate geological domains
• Variography and top-cut analysis was performed on appropriate mineralisation, weathering and orientation domains as appropriate
• Top cuts were applied to the composites as appropriate
• The grade model was estimated via ordinary block kriging within estimation domains constrained by mineralisation, weathering and geological orientation.
• Density for Productora, was estimated via inverse distance within similar domains used for the grade estimation. Following a detailed review, appropriate density values were assigned for Alice.
• A range of criteria was considered in determining the resource classification, including:
• Drill data density
• Sample / assay confidence
• Geological confidence in the interpretations and, similarly, geological continuity
• Grade continuity of the mineralisation
• Estimation method and resulting estimation output variables

• Estimation performance through validation, and
• Prospect for eventual economic extraction

Mineral Resource Statement
A cut-off grade of 0.25% CuEq has been used for the Mineral Resource statement. This is In line with other large-scale copper-gold miners and developers who have published Mineral Resource statements in recent
years. Hot Chili has determined that this value also agrees with a calculation based on first principles including long term market forecast metal prices (USD3.00/ lb Cu, USD1,550/oz Au, USD12/ lb for Mo), it assumes clean concentrate and metal recoveries based on metallurgical and mineralogical work for Productora.

Qualifying Statements

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 Mineral Resources
The information in this report that relates to Mineral Resources for the Cortadera 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 2. JORC Code Table 1 for Cortadera

The following table provides a summary of important assessment and reporting criteria used in the Productora project Preliminary Feasibility Study, and for the reporting of Mineral Resource and Ore Reserves in accordance with the Table 1 checklist in the Australasian Code for the Reporting of Exploration Results, Minerals Resources and Ore Reserves (The JORC Code, 2012 Edition).

The follow list provides the names and the sections for Competent Person responsibilities:

Section 1, 2 and 3: C. Easterday – M.AIG (Hot Chili Limited), E. Haren – MAusIMM (Wood).

Section 1 Sampling Techniques and Data