Drilling Confirms Large, Higher-Grade Core from Near-Surface at La Verde

Rhea-AI Summary

Hot Chili (OTCQX: HHLKF) on Dec 10, 2025 reported further drilling success at the La Verde Cu-Au discovery, 30 km south of the Costa Fuego hub.

Key results: DKP005D diamond tail returned 47 m @ 0.57% Cu, 0.12 g/t Au from 247.5 m and 28 m @ 0.49% Cu, 0.15 g/t Au from 316 m. Including the tail, DKP005 now records 317 m @ 0.38% Cu, 0.10 g/t Au from 32–349 m. Prior hole DKD032 recorded 529 m @ 0.41% Cu, 0.21 g/t Au including 148 m @ 0.60% Cu, 0.30 g/t Au.

About 2,900 m of drilling is complete; assays are pending for six diamond holes. Company highlights potential up-dip, near-surface higher-grade core that could strengthen Costa Fuego's starter pit and project economics.

Positive

• DKP005D extension: 47 m @ 0.57% Cu, 0.12 g/t Au
• Second DKP005D interval: 28 m @ 0.49% Cu, 0.15 g/t Au
• DKP005 composite: 317 m @ 0.38% Cu, 0.10 g/t Au
• DKD032 earlier result: 529 m @ 0.41% Cu, 0.21 g/t Au
• 2,900 m of drilling completed to date

Negative

• 22 m non-mineralised dyke interrupting DKP005D continuity
• Assays pending for six diamond drillholes, creating near-term data uncertainty
• Exploration targets are conceptual; no Mineral Resource has been estimated

Key Figures

Drill intercept 47 m at 0.57% Cu, 0.12 g/t Au Diamond drillhole DKP005D from 247.5 m depth

Drill intercept 28 m at 0.49% Cu, 0.15 g/t Au Diamond drillhole DKP005D from 316 m depth

Program drilling 2,900 m Phase two drilling completed with assays pending for six holes

Composite interval 317 m at 0.38% Cu, 0.10 g/t Au DKP005 from 32 m to 349 m depth including dyke

Major intercept 529 m at 0.41% Cu, 0.21 g/t Au Diamond drillhole DKD032 from 41 m depth

Higher-grade zone 148 m at 0.60% Cu, 0.30 g/t Au Within DKD032 from 70 m depth

Conceptual Cu price US$3.50/lb Cu Lower Cu price input for conceptual open pit shells

Conceptual Cu price US$6.00/lb Cu Higher Cu price input for conceptual open pit shells

Market Reality Check

$0.9336 Last Close

Volume Volume 36,290 is modestly above the 20-day average of 29,938. normal

Technical Price 0.8533 is trading above the 200-day MA of 0.46 and above the 52-week high of 0.8029.

Peers on Argus

Peers show mixed moves: one copper peer up 7.69%, others flat to down, indicating today’s setup appears stock-specific rather than a broad copper sector swing.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 24	Annual meeting	Neutral	-5.4%	2025 AGM logistics and participation details with no direct project update.
Oct 09	Drilling approval	Positive	+10.0%	Regulatory approval enabling expanded La Verde drilling with phase-two program underway.
Sep 05	Equity financing	Positive	+12.0%	Fully subscribed entitlement offer raising funds for Costa Fuego and La Verde drilling.
Jul 29	Quarterly update	Positive	+1.0%	Quarterly report highlighting La Verde expansion, strong intercepts, and solid cash position.

Pattern Detected

Positive operational and financing news has often aligned with upward price moves, while neutral corporate events have occasionally seen negative reactions.

Recent Company History

Over recent months, Hot Chili reported progress at La Verde and Costa Fuego alongside capital raising and corporate updates. The entitlement offer raised A$14.1M at A$0.60 per share to fund Costa Fuego and phase-two La Verde drilling. La Verde drilling has outlined mineralization over 1 km x 750 m with notable long intercepts, while regulatory approvals on Oct 9, 2025 enabled expansion drilling. Against this backdrop, the latest confirmation of a higher-grade core at La Verde continues the project’s exploration and growth narrative.

Market Pulse Summary

This announcement details further phase-two drilling success at La Verde, with long Cu-Au intercepts and confirmation of a higher-grade core from near surface. It builds on earlier results such as 529 m at 0.41% Cu and financing via a fully subscribed A$14.1M entitlement offer to advance Costa Fuego. Investors may watch upcoming assay releases, updates to conceptual open-pit studies using US$3.50 and US$6.00 Cu price shells, and future drilling milestones.

Key Terms

porphyry technical

"strong copper porphyry style mineralisation from near-surface"

A porphyry is a type of large, underground mineral deposit that contains valuable metals such as copper, gold, or molybdenum, often spread over a wide area. Think of it as a giant underground treasure chest, where the metals are embedded in rock formations. These deposits are important to investors because they can be the source of significant resource extraction projects with the potential for substantial economic returns.

reverse circulation (rc) technical

"a 200 m diamond tail extension of earlier Reverse Circulation (RC) drillhole DKP005"

Reverse circulation (RC) is a drilling method used in mineral exploration where rock fragments are pushed up an inner tube by compressed air, bringing samples to the surface quickly and with less contamination than older techniques. For investors, RC matters because it delivers faster, more reliable samples that help geologists estimate whether a deposit is worth developing, lowering exploration risk and helping companies make clearer, earlier decisions about resource value.

diamond drilling technical

"Phase two diamond drilling at La Verde"

Diamond drilling is a method that uses a rotating drill with industrial diamonds on the bit to cut and retrieve cylindrical rock samples (cores) that preserve the sequence of underground layers. For investors, these cores act like a geological “biopsy,” providing direct, verifiable information about mineral presence, grade and continuity—data that underpins resource estimates, project valuation, drilling risk and financing decisions.

cut-off grade technical

"Significant intercepts for La Verde are calculated above a nominal cut-off grade of 0.2% Cu."

The cut-off grade is the minimum concentration of a mineral in rock that makes extraction and processing economically worthwhile; material below that level is treated as waste. It sets the boundary between ore and waste and directly affects reported reserves, projected mine life, and expected profits. Think of it like deciding which fruit on a tree is worth picking after accounting for the time and cost to harvest — raising or lowering that threshold can change how much “good” product a project appears to have.

exploration targets technical

"represent Exploration Targets as defined in the 2012 Edition of the 'Australasian Code..."

Exploration targets are specific geographic areas or rock formations that geologists identify as promising places to look for minerals, oil, gas, or other resources; they are like marked spots on a treasure map that deserve closer inspection. For investors, they matter because they show where a company plans to spend money looking for new value — offering upside if discoveries are made but carrying high uncertainty until further work (drilling, sampling, or testing) confirms anything of economic value.

jorc code regulatory

"as defined in the 2012 Edition of the 'Australasian Code ... (JORC Code)."

The JORC Code is a professional standard for reporting mineral exploration results, mineral resources, and ore reserves so that geological and economic statements about a mining project are transparent and consistent. Think of it as an independent checklist and labeling system that requires qualified experts to document how estimates were made, making company claims verifiable and comparable. Investors use JORC-compliant reports to assess how reliable a mine’s reported size and potential value are before committing funds.

ni 43-101 regulatory

"qualified person within the meaning of NI43-101."

A Canadian regulatory standard that sets the rules for how mining and exploration companies must report mineral resources and reserves, requiring technical reports prepared or signed off by an independent, certified expert. It matters to investors because it creates a consistent, transparent “inspection report” for mining projects, making it easier to compare prospects, judge the reliability of claims, and assess geological and financial risk before investing.

conceptual open pit shells technical

"Conceptual open pit shells represent Exploration Targets as defined..."

Conceptual open pit shells are simplified three-dimensional outlines used by geologists and engineers to show which portions of a mineral deposit could be economically mined from the surface under a set of price and cost assumptions. Think of them as tentative “cookie-cutter” shapes that separate likely mineable rock from waste, helping investors see the portion of a resource that might realistically generate revenue and guiding early value estimates and project planning.

AI-generated analysis. Not financial advice.

Higher-grade, Cu-Au starter pit for Costa Fuego materialising

Highlights

• Two diamond drill holes have visually recorded wide intersections of strong copper porphyry style mineralisation from near-surface- outlining a potentially significant up-dip expansion to La Verde's gold-rich, higher-grade core, results pending
• In addition, latest assay results from Phase two drilling at La Verde (DKP005D) have expanded higher-grade copper and gold across the eastern flank of the discovery
• Diamond drillhole DKP005D, a 200 m diamond tail extension of earlier Reverse Circulation (RC) drillhole DKP005, recorded an additional:
  • 47 m at 0.57% Cu and 0.12 g/t Au from 247.5 m depth (original end of hole), and
  • 28 m at 0.49% Cu and 0.15 g/t Au from 316 m depth
• 2,900m of drilling complete, with assays pending for six diamond drillholes, all of which intersected broad widths of copper porphyry style mineralisation 

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

"The convergence of mineralisation into a single higher-grade core at La Verde, extending from near surface, is a material development for Hot Chili.

Addition of a higher-grade starter pit would significantly strengthen the front-end of Costa Fuego's 20-year mine schedule and be a game changer for scale and economics.

Costa Fuego is rapidly shaping as a low-risk, coastal contender to adjacent major copper developments in the Huasco Region and Vicuña District of the high Andes.

Low elevation, access to near-surface higher-grades, secured rights for non-continental water supply and low capital intensity - remove many of the significant challenges facing our high Andean neighbours."

PERTH, Australia, Dec. 10, 2025 /PRNewswire/ - Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) ("Hot Chili" or the "Company") is pleased to provide another drilling update from its La Verde copper–gold (Cu-Au) discovery, located 30 km south of the Company's Costa Fuego Copper-Gold (Cu-Au) Project ("Costa Fuego" or "the Project") planned central processing hub in Chile's coastal Atacama region.

Latest drill results from the Company's Phase two diamond drilling programme continue to confirm significant expansions and convergence of a single higher-grade core from near surface at La Verde.

Latest assay results, from the Company's second diamond drillhole DKP005D, have extended higher-grade Cu-Au mineralisation by approximately 60m along the eastern flank of the discovery. The drillhole was a 200 m diamond tail extension to earlier RC drillhole DKP005, delivering 47 m at 0.57% Cu and 0.12 g/t Au extended from the end of DKP005 (earlier RC hole), before intersecting a non-mineralised dyke over 22 m downhole, and then recording a second significant drill result of 28 m at 0.49% Cu and 0.15 g/t Au (Figure 2).

Including the new diamond tail extension, DKP005 now records 317 m grading 0.38% Cu and 0.1 g/t Au from 32 m to 349 m depth including the 22 m non-mineralised dyke (previously DKP005 recorded 200 m grading 0.4% Cu and 0.1 g/t Au from 48 m to end-of-hole).

Recently completed diamond drillholes DKD035 and DKD036 have visually recorded wide intersections of strong copper porphyry style mineralisation from shallow depth directly above La Verde's Au-rich higher-grade copper core.

Diamond drillhole DKD035 intersected a large zone of porphyry style mineralisation from surface to end of hole depth at 278.5 m.  DKP035 is located up-dip of the recently reported diamond drillhole DKD032 (see Announcement "First Diamond Drillhole Confirms Gold-Rich Major Copper Discovery in Coastal Chile" dated 27th Nov 2025), which recorded 529 m grading 0.41% Cu and 0.21 g/t Au from 41m depth, including 148 m grading 0.60% Cu and 0.30 g/t Au from 70 m depth.

Diamond drillhole DKD036 was drilled from the same collar location as DKD035 and has confirmed strong lateral continuity of this up-dip potential (Figure 3 and 4).

All eight diamond drillholes completed to date have recorded wide intersections of copper porphyry-style mineralisation. Assay results for the remaining drill holes are pending.

The Company looks forward to providing further updates on the results from drilling activities at La Verde.  

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

For more information please contact:

Christian Easterday Managing Director & CEO – Hot Chili	Tel:       +61 8 9315 9009 Email:   admin@hotchili.net.au
Carol Marinkovich Company Secretary – Hot Chili	Tel:       +61 8 9315 9009 Email:   cosec@hotchili.net.au
Graham Farrell Investor & Public Relations	Email:   graham@hotchili.net.au

or visit Hot Chili's website at www.hotchili.net.au

1asl = above sea level

Table 1. New Significant Drilling Intersections from La Verde

Hole ID	Coordinates			Azim.	Dip	Hole Depth	Intersection		Interval	Copper	Gold	Silver	Molybdenum.
	North	East	RL				From	To	(m)	(% Cu)	(g/t Au)	(ppm Ag)	(ppm Mo)
DKP005	6,785,789	324,564	1,124	90	-60	441.2	32	349	317	0.38	0.10	0.9	23
(incl. new DD tail results from DKP005D)						Incl	68	102	34	0.50	0.16	1.2	10
						And incl	236	294	58	0.55	0.12	1.1	39
						And incl	316	344	28	0.49	0.15	1.0	19
							412	421	9	0.32	0.06	0.4	92

Notes to Table 1: Significant intercepts for La Verde are calculated above a nominal cut-off grade of 0.2% Cu. Where appropriate, significant intersections may contain up to 30m down-hole distance of internal dilution (less than 0.2% Cu). Significant intersections are separated where internal dilution is greater than 30m down-hole distance. The selection of 0.2% Cu for significant intersection cut-off grade is aligned with marginal economic cut-off grade for bulk tonnage polymetallic copper deposits of similar grade in Chile and elsewhere in the world.

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. Assay results are pending and will be reported in accordance with the JORC Code (2012) and NI 43-101.

1 See Page 8 of this announcement for detail on the US$3.50 Cu and US$6.00 Cu conceptual open pit shells (Exploration Targets). Any potential tonnage 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.

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 NI43-101.

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.

The information in this announcement relating to previously reported Exploration Results for La Verde was previously reported in the Company's announcements 'Hot Chili Confirms Major Cu-Au Porphyry Discovery at La Verde', 'Hot Chili Announces Latest Drill Results for La Verde, Doubling Porphyry Discovery Footprint', 'District-Scale Porphyry Cluster Potential Emerging at La Verde Cu-Au Discovery' and 'First Diamond Drillhole Confirms Gold-Rich Major Copper Discovery in Coastal Chile' released to ASX on 26 February 2024, 19 May 2025, 29 May 2025 and 27 November 2025 respectively, which are available to view on the Company's website at www.hotchili.net.au/investors/investor-centre/market-announcements. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements.

Disclaimer

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this announcement.

Forward Looking Statements

This announcement contains certain statements that are "forward-looking information" within the meaning of Canadian securities legislation and Australian securities legislation (each, a "forward-looking statement"). Forward-looking statements reflect the Company's current expectations, forecasts, and projections with respect to future events, many of which are beyond the Company's control, and are based on certain assumptions. No assurance can be given that these expectations, forecasts, or projections will prove to be correct, and such forward-looking statements included in this announcement should not be unduly relied upon. Forward-looking information is by its nature prospective and requires the Company to make certain assumptions and is subject to inherent risks and uncertainties. All statements other than statements of historical fact are forward-looking statements. The use of any of the words "estimate", "expansion", "expectations", "may", "plan", "potential", "project", "reinforce", "unfold", "large-scale", "could", "should", "will", "would", variants of these words and similar expressions are intended to identify forward-looking statements.

The forward-looking statements within this announcement are based on information currently available and what management believes are reasonable assumptions. Forward-looking statements speak only as of the date of this announcement.

In this announcement, forward-looking statements relate, among other things, to: the potential of the La Verde discovery; regulatory applications and approvals; the timing and results of future economic studies; and the Company's future exploration and other business plans.

Forward-looking statements involve known and unknown risks, uncertainties, and other factors, which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. A number of factors could cause actual results to differ materially from a conclusion, forecast or projection contained in the forward-looking statements in this announcement, including, but not limited to, the following material factors: the ability of drilling and other exploration activities to accurately predict mineralisation; operational risks; risks related to the cost estimates of exploration; sovereign risks associated with the Company's operations in Chile; changes in estimates of mineral resources or mineral reserves of properties where the Company holds interests; recruiting qualified personnel and retaining key personnel; future financial needs and availability of adequate financing; fluctuations in mineral prices; market volatility; exchange rate fluctuations; ability to exploit successful discoveries; the production at or performance of properties where the Company holds interests; ability to retain title to mining concessions; environmental risks; financial failure or default of joint venture partners, contractors or service providers; competition risks; economic and market conditions; and other risks and uncertainties described elsewhere in this announcement and elsewhere in the Company's public disclosure record.

Although the forward-looking statements contained in this announcement are based upon assumptions which the Company believes to be reasonable, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this announcement, the Company has made assumptions regarding: future commodity prices and demand; availability of skilled labour; timing and amount of capital expenditures; future currency exchange and interest rates; the impact of increasing competition; general conditions in economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; future tax rates; future operating costs; availability of future sources of funding; ability to obtain financing; and assumptions underlying estimates related to adjusted funds from operations. The Company has included the above summary of assumptions and risks related to forward-looking information provided in this announcement to provide investors with a more complete perspective on the Company's future operations, and such information may not be appropriate for other purposes. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom.

For additional information with respect to these and other factors and assumptions underlying the forward-looking statements made herein, please refer to the public disclosure record of the Company, including the Company's most recent Annual Report, which is available on SEDAR+ (www.sedarplus.ca) under the Company's issuer profile. New factors emerge from time to time, and it is not possible for management to predict all those factors or to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement.

The forward-looking statements contained in this announcement are expressly qualified by the foregoing cautionary statements and are made as of the date of this announcement. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking statement to reflect events or circumstances after the date of this announcement or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise. Investors should read this entire announcement and consult their own professional advisors to ascertain and assess the income tax and legal risks and other aspects of an investment in the Company.

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SOURCE Hot Chili Limited

FAQ

What did Hot Chili (HHLKF) announce about La Verde on December 10, 2025?

Hot Chili reported new diamond drill results at La Verde, including DKP005D returning 47 m @ 0.57% Cu, 0.12 g/t Au and 28 m @ 0.49% Cu, 0.15 g/t Au, and noted 2,900 m drilled with assays pending for six holes.

What are the composite results for DKP005 at La Verde (HHLKF)?

Including the diamond tail, DKP005 records 317 m @ 0.38% Cu and 0.10 g/t Au from 32–349 m.

How might La Verde drill results affect Costa Fuego's project economics for HHLKF?

The company says near-surface convergence into a higher-grade core could add a starter pit and strengthen Costa Fuego's front-end economics, though assays and further studies are required.

How much drilling has Hot Chili completed at La Verde and are more assays expected?

About 2,900 m of drilling is complete and assay results are pending for six diamond drillholes.

What notable prior La Verde intercept did Hot Chili reference alongside the Dec 10, 2025 update?

The company referenced DKD032 which returned 529 m @ 0.41% Cu, 0.21 g/t Au including 148 m @ 0.60% Cu, 0.30 g/t Au from 70 m.