Hot Chili arranges $14-million (Australian) financing

Executive Summary

• Hot Chili Ltd. announced a A$14 million non‑renounceable rights issue (2 new shares for every 13 held) at A$0.60 per share to fund its strategic partnering process and Phase 2 drilling at La Verde.
• The company highlighted significant La Verde drill results, including a 308 m interval grading 0.5 % Cu & 0.3 g/t Au and a 100 m interval grading 0.7 % Cu & 0.3 g/t Au, supporting a forthcoming maiden resource estimate.
• BMO Capital Markets has been appointed as financial adviser for the asset‑level partnering process, which could lead to multiple partnership transactions for Costa Fuego and Huasco Water projects.

Key Details

• Rights Issue Structure: Non‑renounceable entitlement offer; 2 fully paid ordinary shares per 13 existing shares; issue price A$0.60 per new share (3.4 % premium to last close, 4 % discount to 15‑day VWAP).
• Target Proceeds: Up to approximately A$14 million before costs.
• Record Date & Timetable: Record date 8 Aug 2025 (5 p.m. AWST); entitlement offer managed by Veritas Securities Ltd.; short‑fall facility available for additional shares; dates subject to change per ASX/TSX‑V rules.
• Use of Proceeds: Remove near‑term funding uncertainty; support completion of asset‑level strategic partnering process; fund Phase 2 diamond drilling at La Verde and enable a maiden resource estimate.
• Strategic Partnering Update: Ongoing assessment of several non‑binding, indicative proposals for Costa Fuego and Huasco Water; BMO Capital Markets appointed as financial adviser.
• La Verde Drilling – Phase 1 Summary (completed 10 Apr 2025): 31 RC holes, 9,600 m total; defined >0.2 % Cu footprint 1,000 × 750 m to 400 m depth, open laterally and at depth.
• Key Intercepts:
• 308 m @ 0.5 % Cu & 0.3 g/t Au from 46 m depth to end of hole (announced 18 Dec 2024).
• 100 m @ 0.7 % Cu & 0.3 g/t Au from 118 m depth.
• Future Drilling: Phase 2 diamond drilling planned to expand resource base and support potential open‑pit, higher‑grade mine life additions for Costa Fuego.
• Management Quote (Christian Easterday, Managing Director): Emphasized that the rights issue will fund a “significant upgrade” to copper‑gold resources and enable completion of the strategic partnering process amid strong commodity markets.

Notable Quotes

"Funding from the rights issue will facilitate another significant upgrade to the company's copper and gold resource base at a time of strong market conditions for both commodities." – Christian Easterday, Managing Director

All technical information reviewed by Christian Easterday, MAIG, qualified person under NI 43‑101.