Hot Chili Limited - Quarterly Report, Period Ending 30 September 2026

Hot Chili Limited (HCH) released its quarterly report on 30 October 2026, covering drilling results from the third quarter of 2026, subsequent La Verde South step-out results, financing, project development, and cash position. The report serves as a compilation of operational details, the completion of the Phase 2 programme, and a financial update, with the main drill numbers largely restating assays previously released between August and 19 October 2026.

Key reported intervals include:

• La Verde South, DKP084: 148 m at 0.44% CuEq (0.39% Cu, 0.07 g/t Au) from 36 m, including 44 m at 0.56% CuEq (0.50% Cu, 0.06 g/t Au) from 138 m. Primarily oxide copper porphyry-style mineralisation below shallow gravel cover.
• La Verde South, DKD100: visually recorded 307 m downhole interval of copper porphyry-style mineralisation, with oxide from 40 m to 172 m and sulphide from 172 m to 347 m; assays pending.
• DKP063: 398 m at 0.45% CuEq (0.35% Cu, 0.12 g/t Au) from surface, including 62 m at 0.91% CuEq (0.70% Cu, 0.30 g/t Au) from 20 m, including 34 m at 1.00% CuEq (0.80% Cu, 0.27 g/t Au) from 42 m.
• DKD060: 472 m at 0.41% CuEq (0.34% Cu, 0.08 g/t Au) from 49 m, including 105.8 m at 0.70% CuEq (0.58% Cu, 0.15 g/t Au) from 397 m and 32.6 m at 0.90% CuEq (0.75% Cu, 0.19 g/t Au) from 438 m. A deeper interval returned 123.1 m at 0.30% CuEq from 642.1 m, including 2.3 m at 4.63% Cu from 655.5 m.
• DKP064: 126 m at 0.45% CuEq (0.38% Cu, 0.08 g/t Au) from 54 m, including 26 m at 0.70% CuEq from 108 m; second interval 74 m at 0.35% CuEq from 276 m.
• DKP078: 240 m at 0.43% CuEq (0.30% Cu, 0.17 g/t Au) from 36 m, including 54 m at 0.60% CuEq from 46 m and 42 m at 0.50% CuEq from 188 m.
• DKP067: 112 m at 0.47% CuEq (0.40% Cu, 0.10 g/t Au) from 42 m, including 26 m at 0.70% CuEq from 62 m.
• DKP075: 188 m at 0.56% CuEq (0.44% Cu, 0.16 g/t Au) from 24 m, including 42 m at 0.70% CuEq from 96 m, plus a deeper 29 m at 0.50% CuEq from 304 m.
• Additional Q3 table results included DKP072: 160 m at 0.37% CuEq from 12 m; DKP082: 158 m at 0.36% CuEq from surface; DKP077: 44 m at 0.33% CuEq from 230 m; DKP079: 54 m at 0.30% CuEq from 156 m; DKP080: 16 m at 0.24% CuEq from surface; DKP081: 30 m at 0.35% CuEq from surface.

Operationally, Hot Chili Limited has completed Phase 2 drilling of 40,000 m, bringing total La Verde drilling to 50,000 m. Assays are currently pending for 35 holes, comprising 24 infill and 11 southern step-out holes. The company now describes the La Verde footprint as 1,400 m x 780 m x 800 m across two porphyry centres.

Financially, the company reported cash of A$29.3 million at 30 September 2026 with no debt, following A$20.4 million in net proceeds from the amended OR Royalties arrangement. The maiden La Verde Mineral Resource Estimate (MRE), revised Costa Fuego Pre-Feasibility Study (PFS), and Environmental Impact Assessment (EIA) submissions remain targeted for later 2026 or the second quarter of 2027. The headline La Verde South result reported in this quarterly was previously announced on 19 October 2026.

Hot Chili Limited (HCH) is a copper-gold developer with an existing 798 Mt Indicated resource at Costa Fuego, a completed PFS, and a market capitalisation of roughly A$253 million at A$1.25 per share. La Verde is a pre-resource discovery that could materially expand the Costa Fuego development case, but it is not yet in the resource or mine plan.

Phase 2 drilling is complete, with total drilling reaching 50,000 m, and the footprint has been extended across two porphyry centres. Cash stands at A$29.3 million with no debt. The project development, EIA and PFS workstreams are progressing. The La Verde South assay and DKD100 visual are included, but the DKP084 assay was already announced on 19 October 2026.

There is no maiden La Verde MRE, no revised Costa Fuego PFS, no metallurgical results specific to La Verde South oxide material, no resource conversion of the southern step-out, and no binding strategic partnership.

The stock re-rated strongly from A$0.83 in late October 2025 to A$2.05 in June 2026 on the La Verde discovery. It has since round-tripped to A$1.25, down about 39% from the high and below the A$1.65 February placement price. The 19 October La Verde South release did not lift the stock; it fell from A$1.45 on 19 October to A$1.25 by 30 October. The market is no longer paying for repeated confirmation of the same La Verde South assay. It is waiting for the maiden MRE, the revised PFS and further southern assay results.

Against the embedded expectation, this quarterly report does not change the perceived scale, grade or odds of the system. It is a routine consolidation of previously released information. The La Verde South discovery is encouraging but remains a one-hole assay plus a visual estimate. The equity story is unchanged until the pending assays and MRE arrive.

Hot Chili Limited is an ASX/TSXV/OTCQX-listed copper-gold exploration and development company focused on the coastal Atacama region of Chile. Its flagship asset is the Costa Fuego copper-gold project, which comprises the Cortadera, Productora, Alice and San Antonio deposits. The 2025 Preliminary Feasibility Study defined a 798 Mt Indicated resource at 0.45% CuEq and 203 Mt Inferred at 0.31% CuEq. The study outlined a post-tax NPV of US$1.20 billion at 8%, an IRR of 19%, start-up capital of US$1.27 billion, and average production of about 116 kt CuEq per year. First production is targeted for 2031, with a final investment decision expected in 2029.

La Verde is a newer copper-gold porphyry discovery located about 30 km south of the planned Costa Fuego processing hub. The project is pre-resource, having completed 50,000 m of drilling across two porphyry centres, with a maiden MRE targeted for later in 2026. The release describes a 1,400 m x 780 m x 800 m footprint, though the southern centre is currently supported by one assayed RC hole and one visual DD hole, with 35 holes pending.

The company also owns 80% of Huasco Water, a permitted seawater desalination project intended to supply Costa Fuego and the Huasco Valley. As of 30 September 2026, the company held A$29.3 million in cash with no debt. Major shareholders include Glencore, Blue Spec and GS Group. The market capitalisation is about A$253 million at A$1.25 per share, based on 202.7 million shares outstanding.