Hot Chili Secures US$15 Million Via Amendment Agreement with OR Royalties Inc.

Hot Chili Limited (HCH) has secured an additional US$15 million in non-dilutive funding through an Amended and Restated Investment Agreement with OR Royalties Inc. The transaction grants OR Royalties a 1.12% CuEq Net Smelter Return (NSR) royalty on the La Verde Project. Total cumulative royalty consideration from OR Royalties is now US$30 million, combining this amendment with the original 2023 agreement. Proceeds are designated for the advancement of La Verde and the broader Costa Fuego district.

The royalty includes buyback provisions allowing reduction to 0.5% Cu / 2.5% Au NSR upon a Change of Control within four years, and a Right of First Offer (ROFO) for future royalty sales. La Verde remains a pre-resource asset with three active drill rigs and a maiden Mineral Resource Estimate (MRE) expected in the near future.

Hot Chili Limited (HCH) has secured a US$15 million royalty amendment, providing non-dilutive capital to accelerate drilling at its pre-resource La Verde project. This development follows a series of capital raises, including an A$14 million rights issue in August 2025 and an A$40 million private placement in February 2026, alongside consistent high-grade drill results. The market has already priced in the need for funding to advance the La Verde asset.

The agreement establishes a 1.12% CuEq net smelter return (NSR), a standard market rate for this stage of development. A buyback provision allows for the reduction of the royalty burden if a strategic partner or acquisition occurs, offering a clear path to mitigate long-term cash flow impact. The transaction validates management's ability to secure third-party confidence in the unquantified asset but does not alter the fundamental timeline or economics of the Costa Fuego project.

Hot Chili Limited is a copper-gold explorer and developer focused on the Costa Fuego project in Chile's Atacama region. The flagship project includes the Costa Fuego Cu-Au deposit, which holds a 798 Mt Indicated Resource, and the La Verde discovery, located approximately 30 km south of Costa Fuego.

A Preliminary Feasibility Study completed in March 2025 outlined a 20-year mine life, 116 ktpa CuEq production, and a post-tax NPV of US$1.20 billion at an 8% discount rate. La Verde is currently in the exploration phase, with drilling aimed at defining a high-grade starter pit that could enhance the front-end economics of the mine plan.