Hot Chili Announces PFS & Maiden(1) Mineral Reserve(2) for the Costa Fuego Cu-Au Project

CNW Group

Thu, Mar 27, 2025, 4:00 AM 20 min read

PERTH, Australia, March 27, 2025 /CNW/ - Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) ("Hot Chili" or the "Company") is pleased to announce the results of a Pre-Feasibility Study ("PFS"), prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") of the Canadian Securities Administrators, for its Costa Fuego copper-gold project (the "Costa Fuego Project" or "Costa Fuego"). All monetary amounts are expressed in United States dollars unless otherwise indicated.

PFS Highlights

Globally Meaningful Scale & Multi-Decade Mine Life

Project Life Extended to 20 Years
Average Annual Production Increased 116 ktpa Average CuEq⁴ Production Rate: Including 95 kt Cu and 48 koz Au during primary production (first 14 years)
Competitive Cost Position: Life of mine (LOM) average C1 Cash Cost⁵ of US$ 1.38/lb and All-in-Sustaining Cost of US$1.85/lb (both estimated net of by-product credits)
Increase in Total Copper and Gold Production: 1.5 Mt Cu (3.31 Blb Cu) and 780 koz Au produced over the LOM
Robust Financial Profile: Total LOM free cash flow of approximately US$3.86 Billion (post-tax, after operating costs, capital costs, and royalties)
Significant Risk Reduction: PFS prepared assuming ± 25% accuracy. An additional US$442 million of capital costs applied to significantly reduce key areas of risk, including changes in project scope and inflationary pressures

Strong Economics and Leverage to Rising Copper Price

Post-tax Net Present Value (NPV8%) of US$1.2 billion (approximately, within a range of US$786 million to US$1.62 Billion) and post-tax Internal Rate of Return (IRR) of 19% (approximately, within a range of 15% to 22%)
First Quartile Capital Intensity: Start-up Capital Cost of US$ 1.27 billion delivers a capital intensity of US$ 14,079/t of average annual CuEq. metal produced
Highly Leveraged to Copper Price: At current spot copper price of US$5.30/lb⁶, post-tax NPV8% increases to US$2.2 billion and post-tax IRR to 30%, respectively

Low-Risk, Coastal Copper Development with Advanced Permitting

Low Elevation and Over a Decade of Permitting Advance: One of only a few global copper development projects at low elevation with a water permit, and grid power
Preparing to submit Environmental Impact Assessment (EIA): Costa Fuego Stage-1 (EIA-1) based on current PFS-scale and definition

Maiden Mineral Reserve for Costa Fuego Lowers Operational Risk ^1,2

Probable Mineral Reserves of 502 Mt at 0.37% Cu, 0.10 g/t Au, 0.49 g/t Ag and 97 ppm Mo: Across sulphide concentrator, oxide leach and low-grade sulphide leach processing streams

Poised for Up-Scale Opportunity

La Verde Cu-Au Porphyry Discovery Adds Growth Engine: Major discovery confirmed (refer to announcement dated February 11, 2025) and providing a strong platform for significant potential front-end open pit mine life growth
Second EIA commenced: Integrating La Verde into the Costa Fuego Stage-2 (EIA-2) copper production hub has potential to materially enhance project economics ahead of completion of a planned Definitive Feasibility Study

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¹ Hot Chili previously released Ore Reserves for Productora declared according to JORC Code 2012, a component of Costa Fuego, in the ASX announcement 'Hot Chili Delivers PFS and Near Doubles Reserves at Productora' 2 March 2016. The mineral reserves disclosed in this news release represent the maiden Mineral Reserve estimates for the Cortadera, San Antonio and Alice deposits, and the first Mineral Reserve Estimates for the Productora and as a whole Costa Fuego that are reported in accordance with NI 43-101.

² Hot Chili is a dual listed entity and complies with the JORC 2012 code for the ASX for the reporting of Exploration Results, Mineral Resources and Ore Reserves. The company complies with CIM Definition Standards for Mineral Resources and Mineral Reserves (10 May 2014) that are incorporated by reference into NI 43-101 for the its reporting obligations in Canada as a result of having its shares listed on the TSX Venture Exchange. The terminology of Mineral Reserves (within the meaning of NI 43-101) and Ore Reserves (within the meaning of the JORC Code 2012) have equivalent meanings, and references to the Mineral Reserves within this announcement refer to Ore Reserves within the meaning of the JORC Code 2012.

³ S&P Market Intelligence. The Global Developer Peer Group of project studies were selected on the following basis: Global primary copper projects (not controlled by a major mining company), with net by-product credits where applicable, reporting studies of average annual life-of-mine copper production of greater than 40 kt, which have been published within the last 5 years.

⁴ The copper-equivalent (CuEq) annual production rate was based on the combined processing feed (across all sources) and used long-term commodity prices of: Copper US$ 4.30/lb, Gold US$ 2,280/oz, Molybdenum US$ 20/lb, and Silver US$25/oz; and estimated metallurgical recoveries for the production feed to the following processes: Concentrator (86% Cu, 54% Au, 37% Ag, 70% Mo), Oxide Leach (65% Cu only), & Low-grade Sulphide Leach (39% Cu only).

⁵ See page Announcement page 3 for full non-IFRS measures disclaimer.

⁶Copper price – Fast markets quote 26/03/2025. High of $5.37/lb closing price $5.24/lb

Hot Chili's Managing Director Mr. Christian Easterday commented,

"We are very pleased to deliver our PFS for Costa Fuego on-time and within guidance.

The study provides a strong basis for our final stage of development and places Costa Fuego within an elite grouping of copper developments globally.

With both copper and gold prices at record highs, our PFS has demonstrated two of the most critical factors in assessing the likelihood of meaningful, near-term copper supply – top quartile production capacity and lowest quartile capital intensity.

Importantly, exploration success at our recently confirmed La Verde Cu-Au porphyry discovery represents a highly prospective further growth opportunity for Hot Chili.

Our next steps for Costa Fuego are two-pronged:

rapid acceleration of drilling and environmental activity at La Verde to lay foundations for integrating material resource and mine life growth, and
commencement of a Definitive Feasibility Study and submission of our stage-1 EIA to keep the project on-track for first production before the end of the decade.

With cash of approximately A$19 million as at 31^st December 2024 and both of our key assets (Costa Fuego and Huasco Water) at PFS level study, we are well positioned to pursue potential strategic partnership and sponsorship funding discussions.

We look forward to providing further updates on drilling (La Verde) and development (Huasco Water) activities, in addition to further changes to our Board of Directors and Management group which aim to further strengthen our capability at this critical inflexion point in the Company's history".

Pre-Feasibility Study Overview

The Costa Fuego PFS outlines a copper-gold project delivering an annual copper equivalent metal production profile of 90 kt for the 20-year processing life (including over 116 kt for the first 14 years). Project economics are strongly leveraged to further resource growth and copper price appreciation.

The Costa Fuego Project combines four mineral deposits within three discrete mining areas comprising porphyry-hosted copper-gold-molybdenum, iron-oxide copper-gold-molybdenum and high-grade skarn-hosted copper mineralisations. The current Mineral Resource for Costa Fuego with an effective date of February 26, 2024 is reported as 2.76 Mt of contained copper¹ and all mining areas are contained within a tight 20 km radius. Costa Fuego benefits from a favourable elevation at 740 m above sea level, is proximal to port facilities (~60 km) and has access to existing infrastructure.

The Costa Fuego Project's proximity to the regional centre and capital of the Huasco Province, Vallenar (population 52 000), ensures that an experienced and capable local workforce would be available, and no camp build would be required.

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¹ Refer to the table below for full Mineral Resource disclosure.

Mining and Processing

Mining of oxide and sulphide processing feed utilises both open-pit and underground (block cave) bulk mining methodologies. Early mining is concentrated at the Productora open-pit, where high-grade, near-surface feed is front-ended to aid in the payback of construction capital and to fund development of the underground block cave at Cortadera.

Processing plant feed is mined at relatively low-cost due to competitive ore to waste strip ratios (1:1.5 for the open pits).

Copper in sulphide is predominantly chalcopyrite-hosted, readily recovered by a conventional crush-grind-float methodology to produce a clean, marketable concentrate with very low levels of deleterious elements. Substantial credit is added with the presence of gold and silver in copper concentrate, as well as a separate molybdenum concentrate.

The sulphide concentrator, located near the Productora-Alice mining area, is designed for a nominal throughput of 20.7 Mtpa and capable of averaging 21.7 Mtpa across the project life.

Oxide and low-grade sulphide ore is processed on heap and dump-leach facilities at Productora, respectively, with testwork confirming strong recoveries using a hyperchloride leach solution. Copper is extracted from solution through an SX-EW plant. The heap leach pad is designed to accept 4 Mtpa, with the SX-EW facility producing a maximum of 12 ktpa of copper cathode.

Permitting and Stakeholder Engagement

Environmental surveys and other studies required for project permitting are well advanced, with submission of an environmental impact assessment for the Costa Fuego Project planned for 2025.

Growth and Opportunity

Significant opportunity still exists to add to the Costa Fuego Project, with the recent discovery of copper-gold porphyry mineralisation at La Verde located 50 km by road from the processing facility at Productora. Additional growth opportunities are being investigated at the recently consolidated Domeyko tenement package, with field reconnaissance completed at a number of priority targets.

High-value development optimisations are still being investigated across mining and processing, including an opportunity to monetise cobalt and increase overall copper and gold recovery through inclusion of a pyrite concentrate circuit, and the investigation of a single open-pit scenario at Cortadera removing the requirement for the underground block cave.

Mineral Resource Estimate

The Costa Fuego Mineral Resource ( "MRE" ) is reported in accordance with the Joint Ore Reserves Committee Code (2012) and the Canadian Institute of Mining, Metallurgy and Petroleum ( "CIM" ) Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definition, as required by NI 43-101.

Indicated Mineral Resources for the Costa Fuego Project total 798 Mt @ 0.45% CuEq¹ (0.37% Cu, 0.10 g/t Au, 0.50 g/t Ag, and 85 ppm Mo)¹. The MRE has an effective date of February 26, 2024, and was reported within open pit and block cave shapes generated considering reasonable prospect of eventual economic extraction ( "RPEEE" ).

Drilling across Costa Fuego has been completed over 15 years, beginning with Productora and Alice in 2010, followed by San Antonio in 2018 and then Cortadera in 2019. The Costa Fuego MRE are informed by approximately 76 400 m of diamond drilling and 284 000 m of reverse circulation drilling across the four mineral deposits.

Estimation of the main grade variables (copper, gold, silver, and molybdenum) was completed using categorical indicator kriging, ordinary block kriging and inverse distance interpolation within either manually interpreted mineralisation domains or software-guided grade interpolants, and sometimes a combination of both methodologies. Mineral Resources were classified as either Indicated or Inferred, based on a range of criteria, including but not limited to, geological and grade continuity between drill holes, drill hole spacing, mineralisation type, and data quality.

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¹ Mineral Resources are inclusive of Mineral Reserves

Costa Fuego Mineral Resource Estimate (February 26, 2024)
		Grade					Contained Metal
Classification	Tonnes	CuEq*	Cu	Au	Ag	Mo	CuEq*	Cu	Au	Ag	Mo
Classification	(Mt)	( %)	( %)	(g/t)	(g/t)	(ppm)	(kt)	(kt)	(koz)	(koz)	(kt)
Indicated	798	0.45	0.37	0.10	0.50	85	3 620	2 910	2 640	12 800	68
M+I Total	798	0.45	0.37	0.10	0.50	85	3 620	2 910	2 640	12 800	68
Inferred	203	0.31	0.25	0.06	0.36	61	640	516	416	2 330	13

¹ Mineral Resources are reported on a 100% Basis - combining Mineral Resource estimates for the Cortadera, Productora, Alice and San Antonio deposits. All figures are rounded, reported to appropriate significant figures and reported in accordance with the Joint Ore Reserves Committee Code (2012) and NI 43-101. Mineral Resource estimation practices are in accordance with CIM Estimation of Mineral Resource and Mineral Reserve Best Practice Guidelines (29 November 2019) and reported in accordance CIM Definition Standards for Mineral Resources and Mineral Reserves (10 May 2014) that are incorporated by reference into NI 43-101.

² Mineral Resources are inclusive of the Mineral Reserve

³ The Productora deposit is 100% owned by Chilean incorporated company Sociedad Minera El Aguila SpA (SMEA). SMEA is a joint venture (JV) company – 80% owned by Sociedad Minera El Corazón SpA (a 100% subsidiary of Hot Chili), and 20% owned by Compañía Minera del Pacífico S.A (CMP).

⁴ The Cortadera deposit is controlled by a Chilean incorporated company Sociedad Minera La Frontera SpA (Frontera). Frontera is a subsidiary company – 100% owned by Sociedad Minera El Corazón SpA, which is a 100% subsidiary of Hot Chili.

⁵ The San Antonio deposit is controlled through Frontera (100% owned by Sociedad Minera El Corazón SpA, which is a 100% subsidiary of Hot Chili Liited) and Frontera is party to an Option Agreement pursuant to which it can earn a 100% interest in the property.

⁶ The Mineral Resource Estimates (MRE) in the tables above form coherent bodies of mineralisation that are considered amenable to a combination of open pit and underground extraction methods based on the following parameters: Base Case Metal Prices: Copper US$ 3.00/lb, Gold US$ 1,700/oz, Molybdenum US$ 14/lb, and Silver US$20/oz.

⁷ All MRE were assessed for Reasonable Prospects of Eventual Economic Extraction (RPEEE) using both Open Pit and Block Cave Extraction mining methods at Cortadera and Open Pit mining methods at the Productora, Alice and San Antonio deposits.

⁸ Metallurgical recovery averages for each deposit consider Indicated + Inferred material and are weighted to combine sulphide flotation and oxide leaching performance. Process recoveries: Cortadera – Weighted recoveries of 82% Cu, 55% Au, 81% Mo and 36% Ag. CuEq(%) = Cu(%) + 0.55 x Au(g/t) + 0.00046 x Mo(ppm) + 0.0043 x Ag(g/t). San Antonio - Weighted recoveries of 85% Cu, 66% Au, 80% Mo and 63% Ag. CuEq(%) = Cu(%) + 0.64 x Au(g/t) + 0.00044 x Mo(ppm) + 0.0072 x Ag(g/t) Alice - Weighted recoveries of 81% Cu, 47% Au, 52% Mo and 37% Ag. CuEq(%) = Cu(%) + 0.48 x Au(g/t) + 0.00030 x Mo(ppm) + 0.0044 x Ag(g/t). Productora – Weighted recoveries of 84% Cu, 47% Au, 48% Mo and 18% Ag. CuEq(%) = Cu(%) + 0.46 x Au(g/t) + 0.00026 x Mo(ppm) + 0.0021 x Ag(g/t). Costa Fuego – Recoveries of 83% Cu, 53% Au, 71% Mo and 26% Ag. CuEq(%) = Cu(%) + 0.53 x Au(g/t) + 0.00040 x Mo(ppm) + 0.0030 x Ag(g/t)

⁹ Copper Equivalent (CuEq) grades are calculated based on the formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery) + (Mo ppm × Mo price per g/t × Mo_recovery) + (Au ppm × Au price per g/t × Au_recovery) + (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne × Cu recovery). The base case cut-off grade for Mineral Resources considered amenable to open pit extraction methods at the Cortadera, Productora, Alice and San Antonio deposits is 0.20% CuEq, while the cut-off grade for Mineral Resources considered amenable to underground extraction methods at the Cortadera deposit is 0.27% CuEq. It is the Company's opinion that all the elements included in the CuEq calculation have a reasonable potential to be recovered and sold.

¹⁰ Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. The MRE include Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorised as Mineral Reserves. It is reasonably expected that the majority of Inferred mineral resources could be upgraded to Measured or Indicated Mineral Resources with continued exploration.

¹¹ The effective date of the MRE is 26 February 2024. The MRE were previously reported in Hot Chili's technical report entitled "Costa Fuego Copper Project – NI 43-101 Technical Report Mineral Resource Estimate Update" dated April 8, 2024 with an effective date of February 26, 2024 (the "2024 MRE"). Hot Chili confirms it is not aware of any new information or data that materially affects the information included in the 2024 PEA and all material assumptions and technical parameters stated for the MRE in the 2024 PEA continue to apply and have not materially changed.

¹² Hot Chili Limited is not aware of political, environmental, or other risks that could materially affect the potential development of the Mineral Resources other than as disclosed in the 2024 PEA. A detailed list of Costa Fuego Project risks is included in Chapter 25.12 of the 2024 PEA.

Mineral Reserve Estimate

The Costa Fuego Project at PFS stage envisages conventional open pit, truck and shovel operation from four mineral deposits (Alice, Cortadera, Productora, and San Antonio) and underground block caving from a single mine area (Cortadera, below Cuerpo 3 open pit). Ore would be processed either via heap leach (oxide only), concentrator (transitional and fresh only), or low-grade dump leach (all material classifications).

The Probable Mineral Reserve is based on Indicated Mineral Resources within resource block models regularised to 5 m * x 10 m (y) x 5 m (z). Only Indicated blocks have been considered for the Mineral Reserve, with metal grades for Inferred Resource blocks coded to zero before the first stage of model optimisation.

Dilution and ore loss is captured within the mineral resource block model due to regularisation to the singular mining unit ( "SMU" ). This is considered appropriate for the large-scale mineralised systems that comprise the majority of the Costa Fuego Mineral Reserve.

Mineral Reserve evaluation was completed using a series of open pit optimisation created using Net Smelter Return ( "NSR" ) cut-offs which were subsequently engineered into mining design stages.

Costa Fuego Mineral Reserve Estimate (March 27, 2025)
		Grade				Contained Metal
	Tonnes	Cu	Au	Ag	Mo	Cu			Au		Ag		Mo
	(Mt)	( %)	(g/t)	(g/t)	(ppm)	(kt)			(koz)		(koz)		(kt)
Open Pit
Concentrator
Proven	-	-	-	-	-		-	-			-		-
Probable	293	0.36	0.08	0.37	113		1 043	728			3 517		33
Total	293	0.36	0.08	0.37	113		1 043	728			3 517		33

Heap Leach
Proven	-	-	-	-	-		-	-			-		-
Probable	41	0.35	0.07	0.43	35		142	96			563		1
Total	41	0.35	0.07	0.43	35		142	96			563		1

Dump Leach
Proven	-	-	-	-	-		-	-			-		-
Probable	22	0.13	0.03	0.23	41		29	20			168		1
Total	22	0.13	0.03	0.23	41		29	20			168		1

Combined
Proven	-	-	-	-	-		-	-		-		-
Probable	356	0.34	0.07	0.37	98		1 213	844		4 248		35
Total	356	0.34	0.07	0.37	98		1 213	844		4 248		35

Underground
Concentrator
Proven	-	-	-	-	-		-	-		-		-
Probable	146	0.44	0.16	0.79	93		645	734		3 704		14
Total	146	0.44	0.16	0.79	93		645	734		3 704		14

Combined (Open Pit and Underground)
Proven	-	-	-	-	-		-	-		-		-
Probable	502	0.37	0.10	0.49	97		1 858	1 578		7 951		49
Total	502	0.37	0.10	0.49	97		1 858	1 578		7 951		49

¹Mineral Reserves are reported on a 100% Basis - combining Mineral Reserve estimates for the Cortadera, Productora, Alice and San Antonio deposits, and have an effective date of 27 March 2025.

²An Ore Reserve (declared in accordance with JORC Code 2012) was previously reported at Productora, a component of Costa Fuego, on 2nd March 2016 on the ASX. The Company was not subject to the requirements of NI 43-101 at that time.

³Mineral Reserve estimation practices are in accordance with CIM Estimation of Mineral Resource and Mineral Reserve Best Practice Guidelines (29 November 2019) and reported in accordance CIM Definition Standards for Mineral Resources and Mineral Reserves (10 May 2014) that are incorporated by reference into NI 43-101.

⁴The Mineral Reserve reported above was not additive to the Mineral Resource. The Mineral Reserve is based on the 26 February 2024 Mineral Resource.

⁵Tonnages and grades are rounded to two significant figures. All figures are rounded, reported to appropriate significant figures and reported in accordance with the Joint Ore Reserves Committee Code (2012) and NI 43-101. As each number is rounded individually, the table may show apparent inconsistencies between the sum of rounded components and the corresponding rounded total.

⁶Mineral Reserves are reported using long-term metal prices of US$4.30/lb Cu, US$2,280/oz Au, US$27/oz Ag, US$20/lb Mo.

⁷The Mineral Reserve tonnages and grades are estimated and reported as delivered to plant (the point where material is delivered to the processing facility) and is therefore inclusive of ore loss and dilution.

⁸The Productora deposit is 100% owned by Chilean incorporated company Sociedad Minera El Aguila SpA (SMEA). SMEA is a joint venture (JV) company – 80% owned by Sociedad Minera El Corazón SpA (a 100% subsidiary of Hot Chili), and 20% owned by Compañía Minera del Pacífico S.A (CMP).

⁹The Cortadera deposit is controlled by a Chilean incorporated company Sociedad Minera La Frontera SpA (Frontera). Frontera is a subsidiary company – 100% owned by Sociedad Minera El Corazón SpA, which is a 100% subsidiary of Hot Chili.

¹⁰The San Antonio deposit is controlled through Frontera (100% owned by Sociedad Minera El Corazón SpA, which is a 100% subsidiary of Hot Chili) and Frontera is party to an Option Agreement pursuant to which it can earn a 100% interest in the property.

¹¹The Mineral Reserve Estimate as of 27 March 2025 for Costa Fuego was prepared by Anton von Wielligh, Fellow with the AUSIMM (FAUSIMM). Mr. von Wielligh fulfils the requirements to be a "Qualified Person" within the meaning of NI 43-101 and is the Competent Person under JORC for the Mineral Reserve.

¹²Hot Chili Limited is not aware of political, environmental, or other risks that could materially affect the potential development of the Mineral Reserves other than those that will be disclosed in a technical report for the PFS. A detailed list of Costa Fuego Project risks is also included in Chapter 25.12 of the 2024 PEA.

National instrument 43-101

An independent technical report for the PFS, prepared in accordance with NI 43-101 will be available under the Company's SEDAR profile and website within the next 45 days.

Qualified Persons

The PFS was compiled by Wood Australia Pty Ltd with contributions from a team of independent Qualified Persons within the meaning of NI 43 -101. The scientific and technical information contained in this news release pertaining to Costa Fuego has been reviewed and verified by the following independent qualified persons within the meaning of NI 43-101:

Ms Elizabeth Haren (FAUSIMM (CP) & MAIG) of Haren Consulting – Mineral Resource Estimate
Mr Dean David (FAUSIMM (CP)) of Wood Pty Ltd – Metallurgy
Mr Piers Wendlandt (PE) of Wood Pty Ltd – Market Studies and Contracts, Economic Analysis
Mr David Cuello (MAUSIMM) of GMT Servicios de Ingeniería – Geotechnical
Mr Jeffrey Stevens (Pr. Eng, MSAIMM) of Wood Pty Ltd – Infrastructure and Capital Cost
Mr Luis Bernal (Comisión Minera (PC) Registered Member) of Process Mineral Consulting – Leaching
Mr Anton von Wielligh (FAUSIMM) of ABGM Consulting Pty Ltd – Mine Planning and Scheduling
Mr Edmundo LaPorte (PE, PEng, CPEng, SME Registered Member) of High River Services - Environmental
The above independent Qualified Persons have verified the information disclosed herein, including the sampling, preparation, security, and analytical procedures underlying such information.

A corporate presentation outlining the results of the PFS is being filed concurrently with this news release.

The Company will be hosting webinars on Monday 31^stMarch 10.00 am EST (for North American audience) to brief shareholders and investors on the outcomes of the Costa Fuego and Huasco Water PFS.

Hot Chili's Chief Executive Officer Christian Easterday, Executive Vice President Jose Ignacio Silva, Chief Operating Officer Grant King and Chief Financial Officer Ryan Finkelstein will be hosting the call, which will also include a Q&A session.

The following links will provide access to the Costa Fuego investor briefing webinar:

Register Here for North American Webinar

Monday 31^stMarch at 10.00 am EST

After registering, you will receive a confirmation email containing information about joining the webinar.

This announcement is authorised by the Board of Directors for release to ASX and TSXV.

Hot Chili's Managing Director and Chief Executive Officer Mr Christian Easterday is responsible for this announcement and has provided sign-off for release to the ASX and TSXV.

For more information please contact:

Christian Easterday

Managing Director – Hot Chili

Tel: +61 8 9315 9009

Email: admin@hotchili.net.au

Carol Marinkovich

Company Secretary – Hot Chili

Tel: +61 8 9315 9009

Email: admin@hotchili.net.au

Graham Farrell

Investor & Public Relations (Canada)

Email: graham@hotchili.net.au