Hot Chili Quarterly Report Period Ending 30 September, 2025

• Completion of Entitlement Offer to all eligible shareholders, raising A$14.1M (before costs) in early September 2025.
• Proceeds from the Entitlement Offer provide funding to deliver the following key milestones in the growth and development of Hot Chili's Costa Fuego copper-gold project (Costa Fuego), located in the coastal range of Chile:
  • Completion of the Company's asset-level, strategic partnering processes (Partnering Process) (as announced 5 August 2025), and
  • Commencement of phase-two diamond drilling at the La Verde copper-gold discovery (La Verde) is expected to facilitate a maiden mineral resource estimate.

Diamond Drilling Commences at La Verde Cu-Au Porphyry Discovery

• Diamond drilling commenced in late September 2025 with one drill rig in operation on a double-shift basis.
• Phase-two drilling follows the success of the Company's first-pass, 10,000m reverse circulation (RC) drill program, which confirmed a significant +0.2% Cu discovery footprint measuring 1,000 m by 750 m and extending up to 400 m vertical depth.
• Second phase of drilling at La Verde aims to significantly expand the initial shallow porphyry discovery with diamond drilling targeting depth extensions to higher grade centres.
• Impact modelling by Hot Chili has outlined potential for significant additional open pit material to be added to the front-end of Coast Fuego's 20 year mine schedule, providing both mine life growth and materially enhanced financial metrics to Hot Chili's March 2025 Pre-feasibility Study for Costa Fuego.
• Three diamond drill holes complete to date with results pending.

Regulatory Approval for Expansion Drilling at La Verde

• In early October 2025, the Company received approval¹ to expand drill coverage across La Verde. This will provide access to test lateral and along-strike extensions at La Verde, as well as first-pass drilling of three look alike targets to test potential for a district-scale copper porphyry cluster.

Strategic Partnering Process Advancing

• Ongoing asset-level Partnering Process, being led by BMO Capital Markets, to introduce one or more qualified partners with the financial, technical and operational capability to assist in funding and delivering of the Company's Costa Fuego and Huasco Water projects (as announced 5 August 2025).
• Significant additional interest received in Hot Chili's asset-level Partnering Process during the quarter.

A$13.8M Cash and no debt

Cautionary Statement – JORC Code (2012)

The Costa Fuego Copper-Gold Project is currently at the Pre-Feasibility Study ("PFS") stage. The production targets and forecast financial information contained in this report are based on technical and economic assessments that are preliminary in nature. While the PFS incorporates Indicated and Inferred Mineral Resources, there is a lower level of geological confidence associated with Inferred Mineral Resources, and no certainty that further exploration or development will result in the conversion of Inferred Mineral Resources to Indicated or Measured categories.

The PFS is not a definitive study and is based on a number of assumptions, including commodity prices, capital and operating costs, metallurgical recoveries, permitting, and other factors, which are subject to change. The outcomes of the PFS should not be used as the basis for a final investment decision. Further work, including additional drilling, metallurgical testing, and detailed engineering, is required before the Company can make a decision to proceed to development.

Of the Mineral Resources scheduled for extraction in the PFS production plan, more than 99% are classified as Indicated, with the remaining <1% as Inferred. The Company has concluded that it has reasonable grounds for disclosing a production target which includes a small amount of Inferred Mineral Resources, as permitted under the JORC Code. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target itself will be realised. The viability of the development scenario envisaged in the PFS does not depend on the inclusion of Inferred Mineral Resources. However, it is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Measured or Indicated Mineral Resource with continued drilling.

The Mineral Resources underpinning the production target in the PFS have been prepared by a Competent Person in accordance with the requirements of the JORC 2012. For full details on the Mineral Resource estimate, please refer to the ASX announcement of 27 March 2025.

To achieve the outcomes indicated in the PFS, including reaching Definitive Feasibility Study ("DFS"), mine construction and production stages, funding in the order of US$1.27 Billion will be required, including pre-production and working capital and assumed financing charges. Investors should note that that there is no certainty that Hot Chili will be able to raise that amount of funding when needed. One of the key assumptions is that the funding for the Project will be available when required and on acceptable terms. It is also possible that such funding may only be available on terms that may be dilutive to, or otherwise affect the value of, Hot Chili's existing shares. It is also possible that Hot Chili could pursue other value realisation strategies such as debt financing, a sale or partial sale of its interest in the Costa Fuego Copper Project and/or Huasco Water, sale of further royalties and/or streaming rights, sale of non-committed offtake rights, and sale of non-core assets.

The Company cautions that there is no certainty that the results or estimates contained in the PFS will be realised.

This Report contains forward-looking statements. Hot Chili has concluded that it has a reasonable basis for providing these forward-looking statements and believes it has a reasonable basis to expect it will be able to fund development of the Costa Fuego Copper Project. However, a number of factors could cause actual results or expectations to differ materially from the results expressed or implied in the forward-looking statements. Given the uncertainties involved, investors should not make any investment decisions based solely of the results of the PFS.

SUMMARY OF OPERATIONAL ACTIVITIES

Diamond Drilling Commences at La Verde Cu-Au Porphyry Discovery

Diamond drilling commenced on 22 September 2025 with one drill rig in operation on a double-shift basis. This second phase of drilling at La Verde aims to significantly expand the initial shallow porphyry discovery (Figure 1).

Phase-two drilling follows the success of the Company's first-pass 10,000 m RC drill program, which confirmed a significant +0.2% Cu discovery footprint measuring 1,000 m by 750 m and extending up to 400 m vertical depth.

Importantly, over half of Hot Chili's first pass drill holes ended in significant mineralisation at the capacity of RC drilling, leaving the porphyry discovery open at depth and laterally (Figure 2).

Phase-two diamond drilling will target depth extensions to three high-grade centres confirmed in Phase one (Figure 3).

Impact modelling by Hot Chili has outlined the potential for significant additional open pit material to be added to the front-end of Coast Fuego's 20 year mine schedule, providing both mine life growth and materially enhanced financial metrics to Hot Chili's March 2025 Pre-feasibility Study for Costa Fuego.

Three diamond drill holes are already complete, with all three drill holes visually recording wide intersections of porphyry-style copper mineralisation.  Assay results are pending and results will be announced to ASX following receipt of assays.

Note: Visual estimates of mineral abundance should never be considered a proxy or substitute for laboratory analyses where concentrations or grades are the factor of principal economic interest. Visual estimates also potentially provide no information regarding impurities or deleterious physical properties relevant to valuations.

Regulatory Green Light Paves Way for La Verde Expansion Drilling

In early October, an application to expand drill coverage across La Verde was approved. In addition, baseline studies for a second Environmental Impact Assessment (EIA) are ongoing to ensure timely integration of La Verde into Costa Fuego's potential future mine plan.

This recent regulatory approval allows Hot Chili to continue expanding La Verde, providing access to test:

1. Further lateral and along-strike extensions to the La Verde footprint, and
2. Potential for La Verde to be part of a district-scale copper porphyry cluster, with three nearby look-alike targets set for first-pass drilling.

Drill platform clearing is planned to start ahead of the arrival of a second RC drill rig to accelerate phase two drilling at La Verde.

Table 1 - Drill Holes Completed for Costa Fuego in Quarter 3 2025

SUMMARY OF CORPORATE ACTIVITIES

Strategic Partnering Process Advancing

Following completion of the Pre-feasibility Studies (PFS) for Costa Fuego and Huasco Water, Hot Chili initiated an asset-level strategic Partnering Process to introduce one or more qualified partners with the financial, technical and operational capability to assist in funding and delivering each project.

The Partnering Process continues to progress, with no material change to the status previously reported. The Company remains engaged in assessing a range of non-binding, indicative, incomplete and conditional proposals in relation to potential transactions for the projects. Investors are cautioned that there is no certainty the Partnering Process will result in a transaction or binding agreement.

The Company has received significant additional interest in its asset-level Partnering Process during the quarter.

BMO Capital Markets has been appointed as financial adviser in connection with the Partnering Process.

The Company will continue to update the market in accordance with its continuous disclosure obligations.

Hot Chili Raises A$14.1M Under Fully Subscribed Entitlements Offer

In August 2025 the Company announced it was undertaking a non-renounceable, pro rata Rights Issue (Entitlement Offer), offering eligible shareholders 2 new fully paid ordinary shares for every 13 held as of 8 August 2025, at A$0.60 per share.

The Entitlement Offer received strong demand from Australian, Canadian and international shareholders, closing on 2 September 2025, raising A$14.1M before costs.

Proceeds from the fully subscribed Entitlement Offer, in addition to existing treasury, will provide funding to be used for the completion of the Company's asset-level strategic Partnering Process, diamond drilling at La Verde and for general working capital.

Additional ASX Disclosure Information

ASX Listing Rule 5.3.2: There was no substantive mining production and development activities during the quarter.

ASX Listing Rule 5.3.3 - Schedule of Mineral Tenements as of 30 September 2025.

The schedule of Mineral Tenements and changes in interests is appended at the end of this activities report.

ASX Listing Rule 5.3.4: Reporting under a use of funds statement in a Prospectus does not apply to the Company currently.

ASX Listing Rule 5.3.5: Payments to related parties of the Company and their associates during the quarter per Section 6.1 of the Appendix 5B totalled $180,000. This is comprised of directors' salaries and superannuation of $180,000.

Health, Safety, Environment and Quality

Field operations during the quarter included geological reconnaissance activities, DD drilling, field mapping, and sampling exercises across the Company's Costa Fuego project landholdings, focussed on La Verde. Activities on new tenements are run from the Productora or Cortadera operations centres and their safety statistics are included under the figures for all projects.

There were no Lost Time Injuries (LTI) during the quarter.

Hot Chili's sustainability framework ensures an emphasis on business processes that target long-term economic, environmental and social value. The Company is dedicated to continual monitoring and improvement of health, safety and the environmental systems. There is no greater importance than ensuring the safety of our people and their families. 

Table 2. HSEQ Quarter 3 2025 Performance and Statistics

Tenement Changes During the Quarter

During the Quarter, Sociedad Minera La Frontera SpA (Frontera SpA) has claimed 2 mining exploration concessions (CF Sur 36 and CF Sur 37) and 2 mining exploitation concessions (Domeyko I 1/12 and Domeyko II 1/40), which are in the process of being constituted. 

The Company's existing tenements are detailed in the table below.

Table 3. Current Tenement Holdings in Chile as of 30 September 2025

Cortadera Project Tenements

Productora Project Tenements

Domeyko Project Tenements