#Hot Chili Limited #Australia #La Verde #Costa Fuego #Perth

Hot Chili Limited's Quarterly Report Highlights

La Verde Project Overview

In the second quarter of 2026, Hot Chili Limited has showcased significant advancements in its La Verde copper-gold porphyry project located on the coast of Chile. This project is being hailed as a cornerstone asset in the broader Costa Fuego initiative, enhancing the company’s strategic positioning and growth potential.

Elevated Drilling Activities

The recent quarter saw an acceleration in drilling activities, with the initiation of a third drill rig in May. Results from this phase have been encouraging, highlighting the potential of La Verde as a key player in the copper-gold sector. Notable intersections include:

• - DKD044: 391.1m grading 0.51% CuEq, featuring significant sub-intervals that contributed to this exceptional total.
• - DKP053: 250m grading 0.50% CuEq, incorporating higher grades from shallower depths, demonstrating the rich mineralization potential.
• - DKP054: 124m grading 0.46% CuEq, including a critical stretch that reflects strong copper and gold content.

Financial Milestones and Future Outlook

To further bolster its operational capacity, Hot Chili has executed an amendment agreement with OR Royalties, securing $15 million in funding, giving a total royalty consideration of $30 million under the expanded agreement. This funding will enhance the financial viability of La Verde as it approaches a maiden mineral resource estimate, expected to be published later this year. The implications of this funding are significant, as they drive Hot Chili's initiatives toward advancing the full integration of La Verde with Costa Fuego’s development strategy.

Community Engagement and Environmental Commitments

In addition to advancing drilling operations, Hot Chili maintained a strong focus on community support amidst severe weather conditions in the region. The company's community team provided essential supplies to local residents affected by unprecedented rainfall events declared a state of emergency.

Hot Chili's commitment to environmental stewardship is reflected in its continuous monitoring and improvement of health, safety, and environmental practices across all sites. Following the successful acceleration of drilling activities, the company is well-positioned to unveil substantial operational advancements while adhering to environmental and community support commitments.

Strategic Developments and Future Plans

Looking ahead, Hot Chili is engaged in critical workstreams to advance toward a Pre-Feasibility Study (PFS), which will offer further clarity on the development strategy for Costa Fuego. This focused approach enhances the project's economics, streamlining execution risks, and identifying preferred pathways for mineral extraction.

As the global demand for copper increases, the La Verde project's ongoing development is timely and vital. The combination of robust drilling results, strategic funding, and community-focused initiatives underscores Hot Chili’s commitment to establishing a sustainable and economically viable mining operation at Costa Fuego. The company is set to continue its rigorous exploration and development efforts, positioning itself as a leader in the copper sector.