Hot Chili begins diamond drilling at La Verde

Executive Summary

• Hot Chili Ltd. has begun Phase 2 diamond drilling at the La Verde Cu‑Au porphyry discovery in Chile (started Sept. 22, 2025).
• The program uses one drill rig on a double‑shift basis to extend depth and lateral continuity of three near‑surface high‑grade zones identified earlier.
• Impact modelling suggests the additional material could extend the front‑end of the Costa Fuego 20‑year mine plan, enhancing life‑of‑mine and financial metrics in the March 2025 prefeasibility study.

Key Details

• Location: La Verde discovery, ~30 km south of Costa Fuego processing hub, Atacama Region, Chile.
• Drilling Start Date: 22 Sept 2025; one diamond‑drill rig operating double‑shift.
• Phase 2 Objective: Expand the shallow porphyry footprint discovered in Phase 1 RC program (≥0.2 % Cu over a 1,000 m × 750 m area to 400 m depth).
• Previous Results: First‑pass RC drilling confirmed >0.2 % Cu footprint; >50 % of holes intersected significant mineralization, leaving the system open at depth and laterally.
• High‑Grade Targets: Three spatially distinct high‑grade zones near surface (refer to May 19 2025 announcement) will be targeted for deeper extension.
• Potential Impact: Modelling indicates possible addition of substantial open‑pit ore to the front end of Costa Fuego’s 20‑year schedule, improving mine life and financial metrics in the March 2025 prefeasibility study.
• Regulatory Status: Applications for additional drill access are in final approval stages; will enable testing of lateral extensions and nearby look‑alike targets.
• Future Updates: Company will release further drilling results as they become available.

Notable Quotes

(No direct quotes were provided in the release.)