Drilling Confirms Large, Higher-Grade Core from Near-Surface at La Verde

The most recent news, dated December 10, 2025, reports that ongoing drilling at the La Verde copper-gold discovery has confirmed a large, higher-grade core of mineralization extending from near-surface. The results suggest that previously separate higher-grade zones are converging into a single, larger body.

Key drill intercepts include: - DKP005 (composite hole including an extension): 317m at 0.38% Copper (Cu) and 0.1 g/t Gold (Au) from 32m depth. - The extension, DKP005D, returned intercepts of 47m at 0.57% Cu and 0.12 g/t Au.

The company's Managing Director, Christian Easterday, stated this development is "material" and that the addition of a higher-grade starter pit at La Verde would be a "game changer for scale and economics" for the larger Costa Fuego project by strengthening the front-end of its 20-year mine schedule. Assays for six additional diamond drillholes are pending.

The December 10th news is a material and positive development that builds on a consistent stream of successful exploration results from the La Verde target throughout 2025. This news is not just an incremental update; it provides a crucial geological interpretation that has direct and significant economic implications.

• Progression of Discovery: The company's exploration at La Verde has systematically advanced from an initial discovery (December 2024, February 2025) to defining a significant footprint (May 2025), and then to confirming high-grade potential with deeper diamond drilling (November 2025). The latest release confirms the convergence of these high-grade zones into a single core and its extension to near-surface.
• Economic Implications: The Costa Fuego Pre-Feasibility Study (PFS) from March 2025 defined a large, long-life asset but with a substantial initial capex of US$1.27 billion and a post-tax IRR of 19%. A key method to improve project economics is to mine higher-grade, easily accessible ore at the beginning of the mine life. This latest news directly points to that possibility. A "higher-grade starter pit" could significantly increase early-stage cash flows, shorten the capital payback period, and improve the project's overall NPV and IRR, making it more attractive to potential strategic partners.
• De-risking and Confirmation: This news strongly supports the company's thesis that La Verde can be a valuable satellite deposit for Costa Fuego. It turns the conceptual upside mentioned in the PFS into a more tangible and defined target. The CEO's "game changer" comment, while promotional, is grounded in the reality of what a high-grade starter pit means for mine economics. The market's positive reaction to La Verde news since April, which has driven the stock from A$0.34 to over A$1.00, indicates that this is the story investors are focused on. This release provides further validation for that rerating.

In the context of the historical news, this announcement is a key milestone. It elevates La Verde from a promising discovery to a potential value driver that could materially enhance the entire Costa Fuego project.

Hot Chili Limited is an ASX and TSXV-listed copper exploration and development company focused on its assets in Chile. Its flagship project is Costa Fuego, a large-scale, low-elevation copper-gold development hub. A March 2025 Pre-Feasibility Study (PFS) outlined a 20-year mine life with an average annual production of 95,000 tonnes of copper and 48,000 ounces of gold over the first 14 years. The company's current focus is on advancing the nearby La Verde discovery, which has the potential to be integrated as a high-grade satellite deposit, materially enhancing Costa Fuego's economics. The company also holds an 80% interest in the adjacent Huasco Water project.