Shallow High-Grade Cu-Au Results Continue at La Verde

The most recent news release dated February 16, 2026, reports continued high-grade copper-gold (Cu-Au) drilling results from the La Verde discovery, part of the Costa Fuego project in Chile. Key highlights include hole DKD035 returning 220m at 0.37% Cu (0.47% CuEq) from 38m depth, and DKD036 returning 150m at 0.37% Cu (0.52% CuEq) from 30m depth. These results have successfully defined a 400m x 400m higher-grade zone near the surface. Additionally, visual estimates from hole DKD039 suggest a 150m wide zone of strong chalcopyrite mineralisation, with assays pending. The company also confirmed that metallurgical test work using seawater shows recoveries consistent with the existing Costa Fuego PFS.

This news is materially positive as it provides the spatial definition required to integrate La Verde into the broader Costa Fuego mine plan as a high-grade "starter pit." - Spatial Definition: Defining a 400m x 400m high-grade core allows for more accurate resource modeling. This confirms that La Verde is not just a broad, low-grade system but has the internal continuity of higher grades needed to potentially shorten capital payback periods. - Financial De-risking: The news arrives immediately after the closure of an oversubscribed A$40 million private placement. The technical success at the drill bit validates the "accelerated growth" thesis sold to institutional investors, including Glencore. - Metallurgical Confirmation: Confirming that seawater processing is viable for La Verde mineralisation is critical. It ensures that the project can be integrated into the planned central processing hub without requiring distinct, costly processing modifications. - Strategic Value: La Verde is increasingly appearing to be the "game-changer" for Costa Fuego's economics, potentially improving the 19% IRR reported in the March 2025 PFS by providing higher-grade feed in the early years of production.

Hot Chili Limited is developing the Costa Fuego copper-gold hub in the coastal range of the Atacama Region, Chile. The project consists of the Cortadera, Productora, and San Antonio deposits. - Flagship Project: Costa Fuego. A March 2025 PFS outlined a 20-year mine life producing ~95ktpa copper and ~49kozpa gold. - Growth Discovery: La Verde, located 30km south of the planned hub, is being fast-tracked for integration to provide high-grade open-pit feed. - Water Asset: The company owns 80% of Huasco Water, which holds critical maritime concessions for seawater supply, a unique strategic advantage in water-stressed Chile.