Long section view with locations of DKP084 and DKD100, relative to the La Verde porphyry copper-gold discovery2

Step-out drilling has confirmed the discovery of a second porphyry centre – La Verde South - near-doubling the growth potential of the La Verde copper-gold porphyry discovery.

The Company's rapidly emerging cornerstone asset is located 30 km south of its Costa Fuego copper-gold (Cu-Au) Project, located on Chile's coastal range at low elevation.

First step-out Reverse Circulation (RC) drill hole DKP084, located approximately 250 m to the south of La Verde's +0.4% Cu mineralisation footprint, has delivered:

148 m grading 0.44% CuEq1(0.39% Cu, 0.07 g/t Au) from 36 m

Including 44 m grading 0.56% CuEq (0.50% Cu, 0.06 g/t Au) from 138 m

First step-out Diamond (DD) drill hole DKD100, located a further 100 m to the south of DKP084, has visually recorded a 307 m down-hole interval of copper porphyry-style mineralisation3. Diamond drilling is continuing in mineralisation at 347 m and is currently planned to a depth of 500 m.

The maiden La Verde Mineral Resource Estimate (MRE), revised Costa Fuego Pre-Feasibility Study (PFS) and preparation of an Environmental Impact Assessment (EIA) submission all remain on track.

Four drill rigs operating at La Verde, with assay results pending for 25 drill holes (6 southern step-out and 19 resource definition drill holes).

PERTH, Australia, Oct. 19, 2026 /PRNewswire/ -- Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) ("Hot Chili" or the "Company") is pleased to announce the discovery of a second porphyry centre at its La Verde Cu-Au deposit (La Verde), located 30 km south of the planned central processing hub for the Company's Costa Fuego Cu-Au Project (Costa Fuego) in Chile's coastal Atacama region.

First step-out drilling has unlocked significant growth potential, with near-surface higher-grade copper mineralisation immediately south of, and along strike, from La Verde.

Christian Easterday, Managing Director of Hot Chili, said:

"We are very pleased with the results of our first step-out drilling to the south of La Verde. Drilling has confirmed a second porphyry centre, concealed beneath shallow Atacama gravels, with the potential to be of similar scale to La Verde.

These initial results provide yet another boost to Hot Chili's growth plans for its Costa Fuego copper hub in Chile.

Costa Fuego is already one of the top five independent copper developments by scale. The upcoming addition of a maiden MRE for La Verde, and now confirmation of a much larger discovery than first recognised, is a game changer for the Company."

First RC Step-out Drilling Delivers Broad Extension of Shallow Oxide Footprint

Step-out drill hole DKP084 was collared along strike, approximately 250 m south of La Verde's existing +0.4% Cu mineralisation footprint, which has been defined by over 40,000 m of RC and DD drilling to date. DKP084 returned a significant intersection of 148 m grading 0.44% CuEq (0.39% Cu, 0.07 g/t Au) from 36 m, including 44 m grading 0.56% CuEq (0.50% Cu, 0.06 g/t Au) from 138 m.

DKP084 was designed to follow-up and test for extensions south of previously reported RC drill hole DKP024, which recorded 114 m grading 0.4% CuEq (0.4% Cu) from 86 m, including 52 m grading 0.5% CuEq (0.5% Cu, 0.1 g/t Au) from 96 m (see announcement dated 19 May 2025).

The intersection in DKP084 is primarily oxide copper porphyry-style mineralisation, commencing immediately below shallow gravel cover.

First DD Step-out Drill Hole Confirms Second Porphyry Centre at La Verde South

Building on the initial RC drill results from DKP024 and DKP084, Hot Chili mobilised a diamond drill rig to test the potential for higher-grade copper porphyry-style sulphide mineralisation below the wide zone of oxide mineralisation.

Diamond drill hole DKD100 was collared a further 100 m to the south of DKP084, and like DKP084, has visually recorded a wide zone of copper porphyry-style oxide mineralisation (associated with copper clays, malachite and black copper oxide mineralogy) between 40 m and 172 m down hole depth.

Significantly, below this oxide zone, DKD100 has also visually recorded a wide zone of porphyry-style sulphide mineralisation (associated with disseminated chalcopyrite and porphyry-style A, B and C veining) between 172 m and 347 m down hole depth (current depth of hole). DKD100 is continuing and currently planned to a depth of 500 m.

Drilling is continuing with two drill rigs (one DD and one RC) testing La Verde South, while the remaining two drill rigs (one DD and one RC) continue infill drilling La Verde ahead of the Company's planned completion of a maiden MRE.

Core photo from DKD100 (259 – 261 m downhole) with vein-hosted and disseminated chalcopyrite and pyrite mineralisation in strongly veined tonalite host rock1

Further drill results are expected to be released shortly from La Verde and the newly discovered La Verde South porphyry centre.

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

Figure 1. Location of La Verde in relation to Costa Fuego, coastal range Chile

Table 1. New significant drilling intersections from La Verde

Table 2. Mineral abundance details for DKD100

Figure 2. Plan view map of La Verde showing recent drill hole result and +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (magenta) mineralisation interpolants prior to inclusion of DKP084. Drilled holes with pending assays are shown in black. Position of A – A' long section (front page figure) annotated with white dashed lines. Conceptual open pit shells1 displayed for $US3.50/lb Cu (short dash) and $US6.00/lb Cu (long dash) displayed as dashed lines. Returned Cu grades shown on traces, results reported including CuEq2, visual estimate from DKD100 shown3.

Figure 3. Plan view slice at 950 mRL (+- 150 m) with La Verde showing geological model. Collar locations for existing drillholes (black outline where assays have been received, red outline where assays are pending) and planned drillholes (blue outline) are included. Conceptual open pit shells1 displayed for $US3.50/lb Cu (short dash) and $US6.00/lb Cu (long dash) displayed as dashed lines. Returned Cu grades shown on traces, results reported including CuEq2, visual estimate from DKD100 shown3.

Qualifying Statements

Conceptual Open Pit Shells

Conceptual open pit shells represent Exploration Targets as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (JORC Code). They are based on completed exploration activities reported in the announcement released 19 May 2025 ('Hot Chili Announces Latest Drill Results for La Verde, Doubling Porphyry Discovery Footprint').

The conceptual open pit shells were generated using copper (Cu) prices of US$3.50/lb Cu and US$6.00/lb Cu on a series of nested Cu grade shells. Other input parameters informing the conceptual open-pit shells (pit slope angles, mining cost, processing cost, etc.) were derived from values reported in the March 2025 Costa Fuego Pre-Feasibility Study and are considered appropriate for the style of mineralisation encountered at the La Verde Cu-Au porphyry discovery.

Any potential quantity and grade of the Exploration Target shown is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource within the target area, and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

Further exploration activities are detailed in this announcement and include (but may not necessarily be limited to) a program of diamond drillholes aiming to extend the mineralised footprint at La Verde. Drilling commenced on 22 September 2025, with the length of the program dependent on a number of considerations including (but not limited to) the results of the exploration activities and regulatory applications and approvals.

Qualified Person – NI 43-101

The technical information in this announcement has been reviewed and approved by Mr Christian Easterday, MAIG, Hot Chili's Managing Director and a qualified person within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects. For further information, please refer to the Company's technical report titled "Costa Fuego Project, NI 43-101 Technical Report Preliminary Feasibility Study", with an effective date of 27 March 2025, a copy of which is available for review under the Company's issuer profile on SEDAR+ (www.sedarplus.ca).

Competent Person – JORC

The information in this announcement that relates to Exploration Results and Exploration Targets for the La Verde project is based upon information compiled by Mr Christian Easterday, the Managing Director and a full-time employee of Hot Chili Limited, who is a Member of the Australasian Institute of Geoscientists (AIG). Mr Easterday has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity which he is undertaking to qualify as a 'Competent Person' as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (JORC Code). Mr Easterday consents to the inclusion in this announcement of the matters based on their information in the form and context in which it appears.