Hot Chili Delivers More Copper-Gold at La Verde

Hot Chili Limited has released drilling results from the La Verde copper-gold porphyry discovery, located 30 km south of the planned Costa Fuego hub in Chile. The company has added a fourth rig to its operations, which are now running six shifts per day ahead of the maiden La Verde Mineral Resource Estimate.

Key intercepts from the latest drilling campaign include:

• DKD060 returned 472 m grading 0.41% CuEq from 49 m, including 105.8 m grading 0.70% CuEq from 397 m and a nested 32.6 m grading 0.90% CuEq from 438 m. Assays are still pending for the final 142.7 m, from 630 m to the end of the hole at 772.7 m.
• DKP058 extended a prior interval to 182 m grading 0.50% CuEq from 24 m.
• DKP052 returned 272 m grading 0.40% CuEq from 82 m, including 42 m at 0.50%, 16 m at 0.64%, and 28 m at 0.60% CuEq.
• DKP045D intersected multiple zones, including 16 m at 0.42% CuEq from surface and 147 m at 0.35% CuEq from 310 m.
• DKP051 pre-collar returned 12 m at 0.45% CuEq from 68 m.

Assays remain pending for 18 holes, comprising one diamond hole, one diamond tail, and 16 RC holes. The company maintains its timeline for a maiden Mineral Resource Estimate later in 2026, followed by a revised Costa Fuego Pre-Feasibility Study, with an Environmental Impact Assessment submission targeted for Q2 2027.

Hot Chili Limited (HCH) is a pre-production explorer and developer, with its La Verde project still in the pre-resource stage. Consequently, drill results remain the primary driver of market interest, as the company’s financial outlook is largely forward-looking. The only current financial reference is the claim that integrating La Verde will improve the scale and economics of the Costa Fuego project.

The relevant market anchor is drill result DKD039, published on 8 April 2026, which reported 725 m at 0.42% CuEq, including 62 m at 1.03% CuEq. Following that announcement, the stock rose from approximately A$1.30 to a high of A$2.05 in June 2026. It subsequently corrected to A$1.45 in July before recovering to A$1.78 by 21 August 2026, suggesting the market has already priced in La Verde as a major discovery.

Against this embedded expectation, the DKD060 result is broadly in line with previous performance. It represents a good porphyry intercept with a strong high-grade core but does not constitute a clear step-change over DKD039. While the result confirms continuity and provides support for the upcoming maiden resource, it does not materially de-risk or transform the investment thesis on its own.

Hot Chili Limited (HCH) is listed on the ASX and TSXV under the ticker HCH, with an OTCQX ticker of HHLKF. The company’s primary asset is the Costa Fuego copper-gold project, located in Chile’s Atacama coastal belt. The project comprises the Productora, Cortadera, Alice, and San Antonio deposits. Additionally, La Verde represents a newer copper-gold porphyry discovery situated approximately 30 km south of the planned Costa Fuego processing hub.

A Mineral Resource statement dated March 2025 outlines 798 Mt of Measured and Indicated resources grading 0.45% CuEq, alongside 203 Mt of Inferred resources at 0.31% CuEq. The March 2025 Preliminary Feasibility Study (PFS) projected post-tax net present value (NPV) of US$1.20 billion and a post-tax internal rate of return (IRR) of 19%. The study indicated initial capital expenditure of US$1.27 billion and C1 cash costs of US$1.38/lb Cu, net of by-product credits.

Huasco Water, an 80%-owned seawater desalination business, is intended to supply water to the Costa Fuego project. Glencore holds a notable shareholding of approximately 7.5% in the company.

Fiscal 2025 financials reported revenue of only A$483,670 from interest income, resulting in a net loss of A$11.59 million. Cash holdings stood at A$5.19 million as of 30 June 2025. Context from the June 2026 quarterly report, which is not part of today’s release, indicates cash was A$25 million at 30 June 2026 with no debt. Prior to that period, the company raised A$40 million via placement in February 2026 and secured a further US$15 million royalty payment from OR Royalties in July 2026.