Hot Chili Quarterly Report Period Ending June 30, 2025

Group 1: Exploration and Discovery - The La Verde copper-gold porphyry discovery has expanded significantly, with mineralization confirmed over 1 km in length and up to 750 m in width, remaining open laterally and at depth [6][14][16] - Recent drill results include significant intercepts such as 389 m grading 0.4% Cu and 0.1 g/t Au from 4 m depth (DKP030) and 286 m grading 0.3% Cu and 0.1 g/t Au from 4 m depth (DKP027) [6][20][14] - A phase-two expansion drilling program is planned to further explore higher-grade centers at depth, with regulatory applications for access already submitted [15][16] Group 2: Strategic Developments - The Costa Fuego Copper-Gold Project and Huasco Water Project have been registered for priority status by the Chilean Ministry of Economy, allowing for expedited administrative processes [2][29][31] - The company is advancing a strategic partnering process to secure qualified partners for funding and delivery of the Costa Fuego and Huasco Water projects, with BMO Capital Markets appointed as financial advisor [3][25][24] - New appointments to the board include Mr. Stuart Mathews as Non-Executive Chair and Mr. Alberto Cerda as Project Director, enhancing the leadership team's capabilities [7][34][32] Group 3: Financial Position and Expenditure - As of June 30, 2025, the company reported a cash position of A$5.2 million and expects an additional A$2.0 million from VAT reimbursements [26][27] - The operating expenditure for the quarter included A$3.3 million for exploration and evaluation, with A$1.7 million spent on exploration activities across La Verde and southern landholdings [27][28] - The company is exploring various funding opportunities, including royalties, streaming, and equity funding, to support its projects [28][10] Group 4: Technical Reports and Studies - An independent NI 43-101 technical report for the Costa Fuego Copper-Gold Project has been filed, confirming no material differences from previously announced PFS results [35] - The Pre-Feasibility Study (PFS) indicates that funding of approximately US$1.27 billion will be required to achieve the outcomes indicated, including reaching the Definitive Feasibility Study (DFS) [10][5][4]