Hot Chili Limited announced the commencement of the next phase of the Company's 30,000m resource growth focused drill programme for the Costa Fuego Copper-Gold Project ("Costa Fuego" or "the Project"), located in the coastal range of the Atacama Region, Chile. A total of 47 Reverse Circulation (RC) drill holes for 11,500m have been completed since the Company's resource growth focused drill programme commenced in late July 2023. Drilling aims to test multiple resource growth opportunities, which may allow Hot Chili to consider an up-lift in the Pre-feasibility study scale for Costa Fuego.

The first phase of drilling in H2 2023 focused on resource extensional potential at Cortadera and first-pass drilling across new satellite targets. The second phase of drilling commenced on 12th January with one diamond drill rig operating on a 24-hour basis (double-shift). First-Pass Exploration Drill Results Returned.

Assay results have been received for first-pass drilling undertaken in late 2023 across three new satellite targets within the Costa Fuego landholding: Marsellesa, Cordillera and Corroteo. A total of 6 RC drill holes for 1,450m were completed across the historical Cordillera copper mine footprint, located approximately 1km west of Marsellesa. Hot Chili's exploration team is currently assessing the new drill results on each of these satellite exploration targets in preparation for potential follow-up drilling and exploration work programmes.

Resource Upgrade Being Finalised. The Company is in the final stages of completing an upgrade to its mineral resource for Costa Fuego based on all drilling completed since February 2022. The resource upgrade is expected to be released in first quarter 2024.

The Company also looks forward to providing further updates on development study and water supply concept study advances this quarter. The scientific and technical information in this new release, has been reviewed and approved by Mr. Christian Easterday, MAIG, Hot Chili's Managing Director and Chief Executive Officer, and a qualified person within the meaning of NI 43-101. 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).

These standards differ from the requirements of the U.S. Securities and Exchange Commission ("SEC") and resource information contained in this news release may not be comparable to similar information disclosed by domestic United States companies subject to the SEC's reporting and disclosure requirements. In this news release, forward-looking statements relate, among other things, to: prospects, projections and success of the Company and its projects; the ability of the Company to expand mineral resources beyond current mineral resource estimates; the ability of the Company To expand mineral resources beyond current mineral resources beyond current mineral resource estimate; the ability of the Company's mineral resource estimates; the ability to expand mineral resources beyond current Mineral resource estimates; the Company's mineral resource is expected to be announced in first quarter of 2024.