Hot Chili : 17m Visual Copper Drill Intersection at Valentina

Announcement

14th June 2022

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17m Visual Drill Intersection Extends

High Grade Copper Zone by 120m at Valentina

Pink Cuprite at 35.3m depth in VALMET002

Highlights

Drilling has discovered a significant extension to the high grade Valentina copper deposit, part of the Company's low-altitude, Costa Fuego senior copper development in Chile

Diamond drill hole VALMET002 has intersected a shallow zone of copper sulphide and oxide mineralisation approximately 120m south of the Valentina underground mine workings

VALMET002 recorded a strong visual drilling intersection (results pending) comprising:

1. 17m visual estimate of interesting copper mineralisation from 22m depth

(malachite, copper clays, chalcopyrite, chalcocite and covellite)

1. Including 8m visual estimate of very interesting copper mineralisation from 28m depth
   (chalcocite, cuprite, chalcopyrite, covellite, malachite, copper clays)

Cuprite (88.8% Cu), covellite (66.5% Cu) and chalcocite (79.8% Cu) are all high grade copper ore minerals by molecular weight

Results pending for ten drill holes at Valentina with a further eight drill holes planned Las Losas port access and services negotiation progressing well, proposal received Update on PFS workstreams and further development study drill results expected soon

• Strong cash position of approximately $24 million, two drill rigs in operation and fully funded until mid-2023

1

Hot Chili Limited ACN 130 955 725	Contact
First Floor, 768 Canning Highway, Applecross, Western Australia 6153	Mr Christian Easterday
PO Box 1725, Applecross, Western Australia 6953	Managing Director
P: [phone] F: [phone]	E:[e-mail]
www.hotchili.net.au

onlyHot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) ("Hot Chili" or "Company") is pleased to report strong visual copper results from drilling at the high grade Valentina deposit, part of the Company's Costa Fuego, coastal range, copper-gold hub in Chile.

Two drill rigs are in operation at the Valentina and San Antonio high grade copper deposits, located 5km east f the Cortadera copper porphyry discovery.

Drilling at Valentina has successfully discovered a significant shallow visual copper zone approximately 120m south of the existing underground mine development in diamond drill hole

useVALMET-002.

VALMET-002 recorded a 17m intersection with a visual estimate of interesting copper mineralisation from 22m depth, comprising both oxide and sulphide mineralisation (malachite, copper clays, chalcopyrite, chalcocite and covellite). The result includes a zone of 8m with a visual estimate of very interesting copper mineralisation from 28m depth, comprising chalcocite, cuprite, chalcopyrite, covellite, malachite, copper clays.

Copper mineralisation in VALMET-002 is contained as fine dissemination and strong alteration in association personalwith 1vein abundance (quartz-pyrite-limonite). Visual estimates of sulphide and oxide minerals are not an

ccurate representation of final assay values and are provided for indicative purposes only.

Ten drill holes have been completed at Valentina and a further eight drill holes are planned. Drill results from VALMET-002 are expected to be released in the coming weeks.

ForUpon completion of drilling at Valentina and San Antonio, further drilling is planned to test several large growth targets including Santiago Z and extensional porphyry targets along strike from Cortadera.

Pre-feasibility studies (PFS) have been expanded to capture additional metallurgical testwork opportunities across all deposits at Costa Fuego and preliminary mine planning is being extended to allow the incorporation of new resource growth from drilling in 2022.

2

Hot Chili Limited ACN 130 955 725	Contact
First Floor, 768 Canning Highway, Applecross, Western Australia 6153	Mr Christian Easterday
PO Box 1725, Applecross, Western Australia 6953	Managing Director
P: [phone] F: [phone]	E:[e-mail]
www.hotchili.net.au

Hot Chili Limited ACN 130 955 725

First Floor, 768 Canning Highway, Applecross, Western Australia 6153 PO Box 1725, Applecross, Western Australia 6953

P: [phone] F: [phone]www.hotchili.net.au

Contact

Mr Christian Easterday Managing Director

E:[e-mail]

3

Investor & Public Relations (Canada)

Harbor Access

Email:[e-mail]

Email: [e-mail]

or visit Hot Chili's website atwww.hotchili.net.au

Email: [e-mail]

Investor & Public Relations (Australia)

ASX Investor

Tel: [phone]

Email: [e-mail]

Penelope Beattie

Company Secretary - Hot Chili

Christian Easterday Managing Director - Hot Chili

Tel: [phone]

Email: [e-mail]

useThis announcement is authorised by the Board of Directors for release to ASX. For more information please contact:

personalFor

onlyAn update on the company's Costa Fuego PFS as well as ongoing port negotiations is expected soon. Final development study drill results from Cortadera and Productora will be released once all results have been received.

The Company looks forward to an exciting period of drilling across numerous high grade and bulk t nnage growth options for incorporation into Costa Fuego's PFS.

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personalFigure 1 Location of Cortadera, Productora and San Antonio in relation to coastal range infrastructure of Hot Chili's combined Costa Fuego copper-gold project, located 600km north of Santiago in Chile

R ported on a 100% Basis - combining Mineral Resource estimates for the Cortadera, Productora and San Antonio deposits. Figures are rounded, reported to appropriate significant figures, and reported in accordance with CIM and NI 43-101. Metal rounded to nearest thousand, or if less, to the nearest hundred. Total Resource reported at +0.21% CuEq for open pit and +0.30% CuEq for underground. Refer to Announcement "Hot Chili Delivers Next Level of Growth" (31st March 2022) for JORC Table 1 information related to the Costa Fuego Mineral Resource estimates.

• Copper Equivalent (CuEq) reported for the resource were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne ×

ForCu ecovery)+(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). The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,700 USD/oz, Mo=14 USD/lb, and Ag=20 USD/oz. For Cortadera and San Antonio (Inferred + Indicated), the average metallurgical recoveries were Cu=83%, Au=56%, Mo=82%, and Ag=37%. For Productora (Inferred + Indicated), the average metallurgical recoveries were Cu=83%, Au=43% and Mo=42%. For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were Cu=83%, Au=51%, Mo=67% and Ag=23%.

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Hot Chili Limited ACN 130 955 725	Contact
First Floor, 768 Canning Highway, Applecross, Western Australia 6153	Mr Christian Easterday
PO Box 1725, Applecross, Western Australia 6953	Managing Director
P: [phone] F: [phone]	E:[e-mail]
www.hotchili.net.au

Table 1 Drill hole Details of Significant Visual DD Result at Valentina

Coordinates

Hole

Intersection

Interval

Copper

Gold

Silver

Molybdenum

Cu Eq

Hole_ID

Azim

Dip

North

East

RL

Depth

From

To

(m)

(%)

(g/t)

(ppm)

(ppm)

(%)

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VALMET002

6823435

342914

952

90

-60

70.3

hole complete, assays pending

Results pending for VALMET-002. Visual estimates of sulphide and oxide minerals are not an accurate representation of final assay values and are provided for indicative purposes only.

useDown-hole significant intercept widths are estimated to be at or around 70 per cent of true-widths of mineralisation personalFor

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Hot Chili Limited ACN 130 955 725	Contact
First Floor, 768 Canning Highway, Applecross, Western Australia 6153	Mr Christian Easterday
PO Box 1725, Applecross, Western Australia 6953	Managing Director
P: [phone] F: [phone]	E:[e-mail]
www.hotchili.net.au