ASX Announcement Monday 8th February 2021

Cortadera Acquisition Nears Completion

Hot Chili Limited (ASX code HCH) (“Hot Chili” or “Company”) is pleased to announce that the Company has moved to the final stage of its 100% acquisition of the world-class Cortadera copper-gold discovery in Chile.

An instalment of US$10 million has been satisfied to acquire Cortadera from private Chilean mining group SCM Carola. This brings total payments by Hot Chili to US$17 million since the deal to acquire Cortadera was announced in February 2019.

The Company now has only one remaining payment of US$15 million due in mid-July 2022.

Early payment of the US$10 million instalment to SCM Carola, which was due in mid-July this year, provides Hot Chili with over 18 months to focus on the growth of Cortadera’s maiden resource before the final acquisition payment is due.

The Company has accelerated its activities with the commencement of a fully funded 40,000m drill programme and scoping studies designed to incorporate Cortadera as the centre piece of Hot Chili’s combined large-scale Cost Fuego copper development.

Hot Chili’s Managing Director, Christian Easterday, said that SCM Carola were pleased with the early payment and remained a key partner in the success of Cortadera.

“In less than two years we have transformed Cortadera from a small privately-held discovery in Chile to a leading global copper resource.
“Coming off the back of our first resource of 1.7Mt copper metal and 1.9Moz gold, announced in October 2020, Cortadera now represents one of the lowest cost recent acquisitions in the copper sector.

“This equates to less than US 1 cent per pound of copper added in resource against the total purchase price of US$32 million and is set to further reduce with additional resource growth this year.

“I look forward to a very exciting year ahead for our shareholders as we take Cortadera to the next level.”

Further updates on multiple work streams across Costa Fuego 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