Hot Chili Quarterly Report Period Ending 30 September, 2025 PERTH, Australia ,
PERTH, Australia, Oct. 30, 2025 /CNW/ -
Highlights
A$14.1M Entitlement Offer Fully Subscribed
Completion of Entitlement Offer to all eligible shareholders, raising A$14.1M (before costs) in early September 2025.
Proceeds from the Entitlement Offer provide funding to deliver the following key milestones in the growth and development of Hot Chili's Costa Fuego copper-gold project (Costa Fuego), located in the coastal range of Chile: Completion of the Company's asset-level, strategic partnering processes (Partnering Process) (as announced 5 August 2025), and Commencement of phase-two diamond drilling at the La Verde copper-gold discovery (La Verde) is expected to facilitate a maiden mineral resource estimate.
Diamond Drilling Commences at La Verde Cu-Au Porphyry Discovery
Diamond drilling commenced in late September 2025 with one drill rig in operation on a double-shift basis. Phase-two drilling follows the success of the Company's first-pass, 10,000m reverse circulation (RC) drill program, which confirmed a significant +0.2% Cu discovery footprint measuring 1,000 m by 750 m and extending up to 400 m vertical depth.
Second phase of drilling at La Verde aims to significantly expand the initial shallow porphyry discovery with diamond drilling targeting depth extensions to higher grade centres.
Impact modelling by Hot Chili has outlined potential for significant additional open pit material to be added to the front-end of Coast Fuego's 20 year mine schedule, providing both mine life growth and materially enhanced financial metrics to Hot Chili's March 2025 Pre-feasibility Study for Costa Fuego.
Three diamond drill holes complete to date with results pending.
Regulatory Approval for Expansion Drilling at La Verde
In early October 2025, the Company received approval1 to expand drill coverage across La Verde. This will provide access to test lateral and along-strike extensions at La Verde, as well as first-pass drilling of three look alike targets to test potential for a district-scale copper porphyry cluster.
____________________________________ 1 Regulatory approval refers to a Sectoral Permit, which is the appropriate regulatory authorisation for a project of this scale. A full DIA (Environmental Impact Declaration) would be processed in a next drilling stage following current regulations. Hot Chili remains fully committed to transparency and environmental responsibility in every stage of the project.
Strategic Partnering Process Advancing
Ongoing asset-level Partnering Process, being led by BMO Capital Markets, to introduce one or more qualified partners with the financial, technical and operational capability to assist in funding and delivering of the Company's Costa Fuego and Huasco Water projects (as announced 5 August 2025).
Significant additional interest received in Hot Chili's asset-level Partnering Process during the quarter.
A$13.8M Cash and no debt
This quarter saw the commencement of the Phase 2 drilling at La Verde, located 30km south of Costa Fuego in coastal Chile (CNW Group/Hot Chili Limited)
Cautionary Statement – JORC Code (2012)
The Costa Fuego Copper-Gold Project is currently at the Pre-Feasibility Study ("PFS") stage. The production targets and forecast financial information contained in this report are based on technical and economic assessments that are preliminary in nature. While the PFS incorporates Indicated and Inferred Mineral Resources, there is a lower level of geological confidence associated with Inferred Mineral Resources, and no certainty that further exploration or development will result in the conversion of Inferred Mineral Resources to Indicated or Measured categories.
The PFS is not a definitive study and is based on a number of assumptions, including commodity prices, capital and operating costs, metallurgical recoveries, permitting, and other factors, which are subject to change. The outcomes of the PFS should not be used as the basis for a final investment decision. Further work, including additional drilling, metallurgical testing, and detailed engineering, is required before the Company can make a decision to proceed to development.
Of the Mineral Resources scheduled for extraction in the PFS production plan, more than 99% are classified as Indicated, with the remaining <1% as Inferred. The Company has concluded that it has reasonable grounds for disclosing a production target which includes a small amount of Inferred Mineral Resources, as permitted under the JORC Code. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target itself will be realised. The viability of the development scenario envisaged in the PFS does not depend on the inclusion of Inferred Mineral Resources. However, it is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Measured or Indicated Mineral Resource with continued drilling.
The Mineral Resources underpinning the production target in the PFS have been prepared by a Competent Person in accordance with the requirements of the JORC 2012. For full details on the Mineral Resource estimate, please refer to the ASX announcement of 27 March 2025.
To achieve the outcomes indicated in the PFS, including reaching Definitive Feasibility Study ("DFS"), mine construction and production stages, funding in the order of US$1.27 Billion will be required, including pre-production and working capital and assumed financing charges. Investors should note that that there is no certainty that Hot Chili will be able to raise that amount of funding when needed. One of the key assumptions is that the funding for the Project will be available when required and on acceptable terms. It is also possible that such funding may only be available on terms that may be dilutive to, or otherwise affect the value of, Hot Chili's existing shares. It is also possible that Hot Chili could pursue other value realisation strategies such as debt financing, a sale or partial sale of its interest in the Costa Fuego Copper Project and/or Huasco Water, sale of further royalties and/or streaming rights, sale of non-committed offtake rights, and sale of non-core assets.
The Company cautions that there is no certainty that the results or estimates contained in the PFS will be realised.
This Report contains forward-looking statements. Hot Chili has concluded that it has a reasonable basis for providing these forward-looking statements and believes it has a reasonable basis to expect it will be able to fund development of the Costa Fuego Copper Project. However, a number of factors could cause actual results or expectations to differ materially from the results expressed or implied in the forward-looking statements. Given the uncertainties involved, investors should not make any investment decisions based solely of the results of the PFS.
SUMMARY OF OPERATIONAL ACTIVITIES
Diamond Drilling Commences at La Verde Cu-Au Porphyry Discovery
Diamond drilling commenced on 22 September 2025 with one drill rig in operation on a double-shift basis. This second phase of drilling at La Verde aims to significantly expand the initial shallow porphyry discovery (Figure 1).
Phase-two drilling follows the success of the Company's first-pass 10,000 m RC drill program, which confirmed a significant +0.2% Cu discovery footprint measuring 1,000 m by 750 m and extending up to 400 m vertical depth.
Importantly, over half of Hot Chili's first pass drill holes ended in significant mineralisation at the capacity of RC drilling, leaving the porphyry discovery open at depth and laterally (Figure 2).
Phase-two diamond drilling will target depth extensions to three high-grade centres confirmed in Phase one (Figure 3).
Impact modelling by Hot Chili has outlined the potential for significant additional open pit material to be added to the front-end of Coast Fuego's 20 year mine schedule, providing both mine life growth and materially enhanced financial metrics to Hot Chili's March 2025 Pre-feasibility Study for Costa Fuego.
Three diamond drill holes are already complete, with all three drill holes visually recording wide intersections of porphyry-style copper mineralisation. Assay results are pending and results will be announced to ASX following receipt of assays.
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.
Regulatory Green Light Paves Way for La Verde Expansion Drilling
In early October, an application to expand drill coverage across La Verde was approved. In addition, baseline studies for a second Environmental Impact Assessment (EIA) are ongoing to ensure timely integration of La Verde into Costa Fuego's potential future mine plan.
This recent regulatory approval allows Hot Chili to continue expanding La Verde, providing access to test:
1. Further lateral and along-strike extensions to the La Verde footprint, and
2. Potential for La Verde to be part of a district-scale copper porphyry cluster, with three nearby look-alike targets set for first-pass drilling.
Drill platform clearing is planned to start ahead of the arrival of a second RC drill rig to accelerate phase two drilling at La Verde.
Figure 1. Plan view map of the La Verde porphyry system showing approved extensional collar locations (red points), planned (white traces) and completed DD drilling (black) compared with +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (Magenta) mineralisation interpolants from Phase one drilling. Conceptual open pit shells displayed for $US3.50/lb Cu (blue) and $US6.00/lb Cu (green) displayed as dashed lines. See announcement dated 25 September 2025 for JORC Table 1 additional technical information. (CNW Group/Hot Chili Limited)
Figure 2. NNW facing longitudinal section (A - A’) of the La Verde porphyry system showing planned diamond drill hole traces, and planned RC collars compared to +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (Magenta) mineralisation interpolants from returned assay results. Weathering profile displayed as top of fresh material (black line). Returned Cu grades graphed downhole along hole traces (grey). Conceptual open pit shells displayed for $US3.50/lb Cu (blue) and $US6.00/lb Cu (green) displayed as dashed lines. (CNW Group/Hot Chili Limited)
Figure 3. (Top) North facing cross section B - B’ (± 75m clipping), (Bottom) and North facing cross section C-C’ (± 75m clipping) through the La Verde porphyry system showing planned diamond and RC drill holes compared to +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (Magenta) mineralisation interpolants from returned assay results. Conceptual open pit shells displayed for $US3.50/lb Cu (blue) and $US6.00/lb Cu (green) displayed as dashed lines. (CNW Group/Hot Chili Limited)
Figure 4. Plan view showing the La Verde +0.2% Cu mineralisation interpolant in relation to regional magnetic destruction footprint (red dashed), local magnetic low features (white dashed), weakly magnetic anomalies (white line) and Fathom 3D geochemical probability models (purple isosurfaces). Left – shown overlain on reduced-to-the-pole (RTP) ground magnetics. Right – shown in relation to mapped gravel cover, interpreted regional structures and soil sample coverage. See announcement dated 29 May 2025 for JORC Table 1 additional technical information. (CNW Group/Hot Chili Limited)
Table 1 - Drill Holes Completed for Costa Fuego in Quarter 3 2025
| Prospect | Hole ID | North | East | RL | Depth | Azimuth | Dip | Results |
|---|---|---|---|---|---|---|---|---|
| La Verde | DKP032 | 6785967 | 324835 | 1202 | 570 | 270 | -60 | Pending |
SUMMARY OF CORPORATE ACTIVITIES
Strategic Partnering Process Advancing
Following completion of the Pre-feasibility Studies (PFS) for Costa Fuego and Huasco Water, Hot Chili initiated an asset-level strategic Partnering Process to introduce one or more qualified partners with the financial, technical and operational capability to assist in funding and delivering each project.
The Partnering Process continues to progress, with no material change to the status previously reported. The Company remains engaged in assessing a range of non-binding, indicative, incomplete and conditional proposals in relation to potential transactions for the projects. Investors are cautioned that there is no certainty the Partnering Process will result in a transaction or binding agreement.
The Company has received significant additional interest in its asset-level Partnering Process during the quarter.
BMO Capital Markets has been appointed as financial adviser in connection with the Partnering Process.
The Company will continue to update the market in accordance with its continuous disclosure obligations.
Hot Chili Raises A$14.1M Under Fully Subscribed Entitlements Offer
In August 2025 the Company announced it was undertaking a non-renounceable, pro rata Rights Issue (Entitlement Offer), offering eligible shareholders 2 new fully paid ordinary shares for every 13 held as of 8 August 2025, at A$0.60 per share.
The Entitlement Offer received strong demand from Australian, Canadian and international shareholders, closing on 2 September 2025, raising A$14.1M before costs.
Proceeds from the fully subscribed Entitlement Offer, in addition to existing treasury, will provide funding to be used for the completion of the Company's asset-level strategic Partnering Process, diamond drilling at La Verde and for general working capital.
Additional ASX Disclosure Information
ASX Listing Rule 5.3.2: There was no substantive mining production and development activities during the quarter.
ASX Listing Rule 5.3.3 - Schedule of Mineral Tenements as of 30 September 2025.
The schedule of Mineral Tenements and changes in interests is appended at the end of this activities report.
ASX Listing Rule 5.3.4: Reporting under a use of funds statement in a Prospectus does not apply to the Company currently.
ASX Listing Rule 5.3.5: Payments to related parties of the Company and their associates during the quarter per Section 6.1 of the Appendix 5B totalled $180,000. This is comprised of directors' salaries and superannuation of $180,000.
Health, Safety, Environment and Quality
Field operations during the quarter included geological reconnaissance activities, DD drilling, field mapping, and sampling exercises across the Company's Costa Fuego project landholdings, focussed on La Verde. Activities on new tenements are run from the Productora or Cortadera operations centres and their safety statistics are included under the figures for all projects.
There were no Lost Time Injuries (LTI) during the quarter.
Hot Chili's sustainability framework ensures an emphasis on business processes that target long-term economic, environmental and social value. The Company is dedicated to continual monitoring and improvement of health, safety and the environmental systems. There is no greater importance than ensuring the safety of our people and their families.
Table 2. HSEQ Quarter 3 2025 Performance and Statistics
| Deposit | Productora | Cortadera | All Projects | |||
|---|---|---|---|---|---|---|
| Timeframe | Q3 2025 | Cum.² 2019 | Q3 2025 | Cum.² 2019 | Q3 2025 | Cum.² 2019 |
| LTI events | 0 | 0 | 0 | 6 | 0 | 8 |
| NLTI events | 0 | 4 | 0 | 6 | 0 | 11 |
| Days lost | 0 | 0 | 0 | 152 | 0 | 263 |
| LTIFR index | 0 | 0 | 0 | 20 | 0 | 17 |
| ISR index | 0 | 0 | 0 | 498 | 0 | 573 |
| IFR Index | 0 | 38 | 0 | 39 | 0 | 41 |
| Thousands of man-hours | 4.7 | 104 | 4.5 | 305 | 12.9 | 459 |
| Incidents on materials and assets | 0 | 1 | 0 | 0 | 0 | 1 |
| Environmental incidents | 0 | 0 | 0 | 0 | 0 | 0 |
| Headcount¹ | 18 | 12 | 11 | 29 | 40 | 49 |
Notes: HSEQ is the acronym for Health, Safety, Environment and Quality. LTIFR per million-manhours. Safety performance is reported on a monthly basis to the National Mine Safety Authority on a standard E-100 form;
(1) Average monthly headcount (2) Cumulative statistics since April 2019.
Tenement Changes During the Quarter
During the Quarter, Sociedad Minera La Frontera SpA (Frontera SpA) has claimed 2 mining exploration concessions (CF Sur 36 and CF Sur 37) and 2 mining exploitation concessions (Domeyko I 1/12 and Domeyko II 1/40), which are in the process of being constituted.
The Company's existing tenements are detailed in the table below.
Table 3. Current Tenement Holdings in Chile as of 30 September 2025
Cortadera Project Tenements
| Cortadera Project | ||||
|---|---|---|---|---|
| N° | License ID | HCH % Held | HCH % Earning | Area (ha) Agreement Details |
| 1 | ALCENIA 1/10 | 100% SMEA SpA | 50 | |
| 2 | AMALIA 942 A 1/6 | 100% Frontera SpA | 53 | |
| 3 | ATACAMITA 1/82 | 100% Frontera SpA | 82 | |
| 4 | CORROTEO 1 1/260 | 100% Frontera SpA | 260 | |
| 5 | CORROTEO 5 1/261 | 100% Frontera SpA | 261 | |
| 6 | CORTADERA 1 1/200 | 100% Frontera SpA | 200 | |
| 7 | CORTADERA 1/40 | 100% Frontera SpA | 374 | |
| 8 | CORTADERA 2 1/200 | 100% Frontera SpA | 200 | |
| 9 | CORTADERA 41 | 100% Frontera SpA | 1 | |
| 10 | CORTADERA 42 | 100% Frontera SpA | 1 | |
| 11 | LAS CANAS 1/15 | 100% Frontera SpA | 146 | |
| 12 | LAS CANAS 16 | 100% Frontera SpA | 1 | |
| 13 | LAS CANAS ESTE 2003 1/30 | 100% Frontera SpA | 300 | |
| 14 | MAGDALENITA 1/20 | 100% Frontera SpA | 100 | |
| 15 | PAULINA 10 B 1/16 | 100% Frontera SpA | 136 | |
| 16 | PAULINA 11 B 1/30 | 100% Frontera SpA | 249 | |
| 17 | PAULINA 12 B 1/30 | 100% Frontera SpA | 294 | |
| 18 | PAULINA 13 B 1/30 | 100% Frontera SpA | 264 | |
| 19 | PAULINA 14 B 1/30 | 100% Frontera SpA | 265 | |
| 20 | PAULINA 15 B 1/30 | 100% Frontera SpA | 200 | |
| 21 | PAULINA 22 A 1/30 | 100% Frontera SpA | 300 | |
| 22 | PAULINA 24 1/24 | 100% Frontera SpA | 183 | |
| 23 | PAULINA 25 A 1/19 | 100% Frontera SpA | 156 | |
| 24 | PAULINA 26 A 1/30 | 100% Frontera SpA | 294 |
| 25 | PAULINA 27A 1/30 | 100% Frontera SpA | 300 | |
| 26 | PURISIMA 1/8 (1/2 Y 5/6) | 100% Frontera SpA | 20 | NSR 1.5% |
| 27 | CF 1 | 100% Frontera SpA | 300 | |
| 28 | CF 2 | 100% Frontera SpA | 300 | |
| 29 | CF 3 | 100% Frontera SpA | 300 | |
| 30 | CF 4 | 100% Frontera SpA | 300 | |
| 31 | CF 5 | 100% Frontera SpA | 200 | |
| 32 | CF 6 | 100% Frontera SpA | 200 | |
| 33 | CF 7 | 100% Frontera SpA | 100 | |
| 34 | CF 8 | 100% Frontera SpA | 200 | |
| 35 | CF 9 | 100% Frontera SpA | 100 | |
| 36 | CF 10 | 100% Frontera SpA | 200 | |
| 37 | CF 11 | 100% Frontera SpA | 200 | |
| 38 | CHAPULIN COLORADO 1/3 | 100% Frontera SpA | 3 | |
| 39 | CHILIS 1 | 100% Frontera SpA | 200 | |
| 40 | CHILIS 3 | 100% Frontera SpA | 100 | |
| 41 | CHILIS 4 | 100% Frontera SpA | 200 | |
| 42 | CHILIS 5 | 100% Frontera SpA | 200 | |
| 43 | CHILIS 6 | 100% Frontera SpA | 200 | |
| 44 | CHILIS 7 | 100% Frontera SpA | 200 | |
| 45 | CHILIS 8 | 100% Frontera SpA | 200 | |
| 46 | CHILIS 9 | 100% Frontera SpA | 300 | |
| 47 | CHILIS 10 1/38 | 100% Frontera SpA | 190 | |
| 48 | CHILIS 11 | 100% Frontera SpA | 200 | |
| 49 | CHILIS 12 1/60 | 100% Frontera SpA | 300 | |
| 50 | CHILIS 13 | 100% Frontera SpA | 300 | |
| 51 | CHILIS 14 | 100% Frontera SpA | 300 | |
| 52 | CHILIS 15 | 100% Frontera SpA | 300 | |
| 53 | CHILIS 16 | 100% Frontera SpA | 300 | |
| 54 | CHILIS 17 | 100% Frontera SpA | 300 | |
| 55 | CHILIS 18 | 100% Frontera SpA | 300 | |
| 56 | CORTADERA 1 | 100% Frontera SpA | 200 | |
| 57 | CORTADERA 2 | 100% Frontera SpA | 200 | |
| 58 | CORTADERA 3 | 100% Frontera SpA | 200 | |
| 59 | CORTADERA 4 | 100% Frontera SpA | 200 | |
| 60 | CORTADERA 5 | 100% Frontera SpA | 200 | |
| 61 | CORTADERA 6 1/60 | 100% Frontera SpA | 265 | |
| 62 | CORTADERA 7 1/20 | 100% Frontera SpA | 93 | |
| 63 | CRISTINA 1/40 | 100% SMEA SpA | 40 | |
| 64 | DIABLITO 1/5 | 100% SMEA SpA | 25 | |
| 65 | DONA FELIPA 1/10 | 100% Frontera SpA | 50 | |
| 66 | DORO 1 | 100% Frontera SpA | 200 | |
| 67 | DORO 2 | 100% Frontera SpA | 200 | |
| 68 | DORO 3 | 100% Frontera SpA | 300 | |
| 69 | FALLA MAIPO 2 1/10 | 100% Frontera SpA | 99 | |
| 70 | FALLA MAIPO 3 1/8 | 100% Frontera SpA | 72 | |
| 71 | FALLA MAIPO 4 1/26 | 100% Frontera SpA | 26 | |
| 72 | MINORI 1 | 100% SMEA SpA | 300 | |
| 73 | MINORI 2 | 100% SMEA SpA | 300 | |
| 74 | MINORI 3 | 100% SMEA SpA | 300 | |
| 75 | MINORI 4 | 100% SMEA SpA | 300 | |
| 76 | PORFIADA B | 100% Frontera SpA | 200 | |
| 77 | PORFIADA D | 100% Frontera SpA | 300 | |
| 78 | PORFIADA G | 100% Frontera SpA | 200 | |
| 79 | PORFIADA I | 100% Frontera SpA | 300 | |
| 80 | PORFIADA II | 100% Frontera SpA | 300 | |
| 81 | PORFIADA III | 100% Frontera SpA | 300 | |
| 82 | PORFIADA IV | 100% Frontera SpA | 300 | |
| 83 | PORFIADA V | 100% Frontera SpA | 200 | |
| 84 | PORFIADA VI | 100% Frontera SpA | 100 | |
| 85 | PORFIADA X | 100% Frontera SpA | 200 | |
| 86 | SAN ANTONIO 1 | 100% Frontera SpA | 200 | |
| 87 | SAN ANTONIO 2 | 100% Frontera SpA | 200 | |
| 88 | SAN ANTONIO 3 | 100% Frontera SpA | 300 | |
| 89 | SAN ANTONIO 4 | 100% Frontera SpA | 300 | |
| 90 | SAN ANTONIO 5 | 100% Frontera SpA | 300 | |
| 91 | SOLAR 1 | 100% Frontera SpA | 300 | |
| 92 | SOLAR 2 | 100% Frontera SpA | 300 | |
| 93 | SOLAR 3 | 100% Frontera SpA | 300 | |
| 94 | SOLAR 4 | 100% Frontera SpA | 300 | |
| 95 | SOLAR 5 | 100% Frontera SpA | 300 | |
| 96 | SOLAR 6 | 100% Frontera SpA | 300 | |
| 97 | SOLAR 7 | 100% Frontera SpA | 300 | |
| 98 | SOLAR 8 | 100% Frontera SpA | 300 |
| 99 | SOLAR 9 | 100% Frontera SpA | 300 |
| 100 | SOLAR 10 | 100% Frontera SpA | 300 |
| 101 | SOLEDAD 1 | 100% Frontera SpA | 300 |
| 102 | SOLEDAD 2 | 100% Frontera SpA | 300 |
| 103 | SOLEDAD 3 | 100% Frontera SpA | 300 |
| 104 | SOLEDAD 4 | 100% Frontera SpA | 300 |
| TOTAL | 22.653 |
Note. Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited
Productora Project Tenements
| Productora Project | ||||
|---|---|---|---|---|
| N° | License ID | HCH % Held | HCH % Earning | Area (ha) Agreement Details |
| 1 | ALGA 7 A 1/32 | 80% SMEA SpA | 89 | |
| 2 | ALGA VI 4 | 100% SMEA SpA | 2 | |
| 3 | ALGA VI 5/24 | 80% SMEA SpA | 66 | |
| 4 | ARENA 1 1/6 | 80% SMEA SpA | 40 | |
| 5 | ARENA 2 1/17 | 80% SMEA SpA | 113 | |
| 6 | AURO HUASCO 1A 1/8 | 80% SMEA SpA | 35 | |
| 7 | CABRITO-CABRITO 1/9 | 80% SMEA SpA | 50 | |
| 8 | CACHIYUYITO 1 1/20 | 80% SMEA SpA | 100 | |
| 9 | CACHIYUYITO 2 1/60 | 80% SMEA SpA | 300 | |
| 10 | CACHIYUYITO 3 1/60 | 80% SMEA SpA | 300 | |
| 11 | CARMEN I, 1/50 | 80% SMEA SpA | 222 | |
| 12 | CARMEN II, 1/60 | 80% SMEA SpA | 274 | |
| 13 | CF 12 | 100% Frontera SpA | 100 | |
| 14 | CF 13 | 100% Frontera SpA | 200 | |
| 15 | CF 14 | 100% Frontera SpA | 300 | |
| 16 | CHICA | 80% SMEA SpA | 1 | |
| 17 | CHOAPA 1/10 | 80% SMEA SpA | 50 | |
| 18 | CUENCA A 1/51 | 80% SMEA SpA | 255 | |
| 19 | CUENCA B 1/28 | 80% SMEA SpA | 139 | |
| 20 | CUENCA C 1/51 | 80% SMEA SpA | 255 | |
| 21 | CUENCA D | 80% SMEA SpA | 3 | |
| 22 | CUENCA E | 80% SMEA SpA | 1 | |
| 23 | ELEONOR RIGBY 1/10 | 100% Frontera SpA | 100 | |
| 24 | ELQUI 1/14 | 80% SMEA SpA | 61 | |
| 25 | ESPERANZA 1/5 | 80% SMEA SpA | 11 | |
| 26 | FRAN 1 1/60 | 80% SMEA SpA | 220 | |
| 27 | FRAN 12 1/40 | 80% SMEA SpA | 200 | |
| 28 | FRAN 13 1/40 | 80% SMEA SpA | 200 | |
| 29 | FRAN 14 1/40 | 80% SMEA SpA | 200 | |
| 30 | FRAN 15 1/60 | 80% SMEA SpA | 300 | |
| 31 | FRAN 18, 1/60 | 80% SMEA SpA | 273 | |
| 32 | FRAN 2 1/20 | 80% SMEA SpA | 100 | |
| 33 | FRAN 21, 1/46 | 80% SMEA SpA | 226 | |
| 34 | FRAN 3 1/20 | 80% SMEA SpA | 100 | |
| 35 | FRAN 4 1/20 | 80% SMEA SpA | 100 | |
| 36 | FRAN 5 1/20 | 80% SMEA SpA | 100 | |
| 37 | FRAN 6 1/26 | 80% SMEA SpA | 130 | |
| 38 | FRAN 7 1/37 | 80% SMEA SpA | 176 | |
| 39 | FRAN 8 1/30 | 80% SMEA SpA | 120 | |
| 40 | JULI 10, 1/60 | 80% SMEA SpA | 300 | |
| 41 | JULI 11, 1/60 | 80% SMEA SpA | 300 | |
| 42 | JULI 12, 1/42 | 80% SMEA SpA | 210 | |
| 43 | JULI 13, 1/20 | 80% SMEA SpA | 100 | |
| 44 | JULI 14, 1/50 | 80% SMEA SpA | 250 | |
| 45 | JULI 15, 1/55 | 80% SMEA SpA | 275 | |
| 46 | JULI 16 1/60 | 80% SMEA SpA | 300 | |
| 47 | JULI 17 1/20 | 80% SMEA SpA | 100 | |
| 48 | JULI 19 | 80% SMEA SpA | 300 | |
| 49 | JULI 20 | 80% SMEA SpA | 300 | |
| 50 | JULI 21 1/60 | 80% SMEA SpA | 300 | |
| 51 | JULI 22 | 80% SMEA SpA | 300 | |
| 52 | JULI 23 1/60 | 80% SMEA SpA | 300 | |
| 53 | JULI 24 1/60 | 80% SMEA SpA | 300 | |
| 54 | JULI 25 | 80% SMEA SpA | 300 | |
| 55 | JULI 27 B, 1/10 | 80% SMEA SpA | 48 | |
| 56 | JULI 27, 1/30 | 80% SMEA SpA | 146 | |
| 57 | JULI 28, 1/60 | 80% SMEA SpA | 300 | |
| 58 | JULI 9, 1/60 | 80% SMEA SpA | 300 | |
| 59 | JULIETA 10, 1/60 | 80% SMEA SpA | 300 | |
| 60 | JULIETA 11 | 80% SMEA SpA | 300 |
| 61 | JULIETA 12 | 80% SMEA SpA | 300 | |
| 62 | JULIETA 13 1/60 | 80% SMEA SpA | 298 | |
| 63 | JULIETA 14 1/60 | 80% SMEA SpA | 269 | |
| 64 | JULIETA 15 1/40 | 80% SMEA SpA | 200 | |
| 65 | JULIETA 16 | 80% SMEA SpA | 200 | |
| 66 | JULIETA 17 | 80% SMEA SpA | 200 | |
| 67 | JULIETA 18 1/40 | 80% SMEA SpA | 200 | |
| 68 | JULIETA 5 | 80% SMEA SpA | 200 | |
| 69 | JULIETA 6 | 80% SMEA SpA | 200 | |
| 70 | JULIETA 7 | 80% SMEA SpA | 100 | |
| 71 | JULIETA 8 | 80% SMEA SpA | 100 | |
| 72 | JULIETA 9 | 80% SMEA SpA | 100 | |
| 73 | JULITA ¼ | 80% SMEA SpA | 4 | |
| 74 | LEONA 2A 1/4 | 80% SMEA SpA | 10 | |
| 75 | LIMARI 1/15 | 80% SMEA SpA | 66 | |
| 76 | LOA 1/6 | 80% SMEA SpA | 30 | |
| 77 | MAIPO 1/10 | 80% SMEA SpA | 50 | |
| 78 | MONTOSA 1/4 | 80% SMEA SpA | 35 | NSR 3% |
| 79 | ORO INDIO 1A 1/20 | 80% SMEA SpA | 82 | |
| 80 | PEGGY SUE 1/10 | 100% Frontera SpA | 100 | |
| 81 | PRODUCTORA 1/16 | 80% SMEA SpA | 75 | |
| 82 | SUERTE 1/7 | 100% SMEA SpA | 21 | |
| 83 | SUERTE II 1/15 | 100% SMEA SpA | 15 | |
| 84 | TOLTEN 1/14 | 80% SMEA SpA | 70 | |
| 85 | URANIO 1/70 | 0 % | 350 | 25-year Lease Agreement US$250,000 per year (average for the 25 year term); plus 2% NSR all but gold; 4% NSR gold; 5% NSR non-metallic |
| 86 | ZAPA 1 1/10 | 80% SMEA SpA | 100 | |
| 87 | ZAPA 1/6 | 80% SMEA SpA | 6 | GSR 1% |
| 88 | ZAPA 3 1/23 | 80% SMEA SpA | 92 | |
| 89 | ZAPA 5A 1/16 | 80% SMEA SpA | 80 | |
| 90 | ZAPA 7 1/24 | 80% SMEA SpA | 120 | |
| 91 | SIERRA SOLIS 1 | 100% SMEA SpA | 200 | |
| 92 | SIERRA SOLIS 2 | 100% SMEA SpA | 300 | |
| 93 | SIERRA SOLIS 3 | 100% SMEA SpA | 300 | |
| 94 | SIERRA SOLIS 4 | 100% SMEA SpA | 200 | |
| 95 | SIERRA SOLIS 5 | 100% SMEA SpA | 300 | |
| 96 | SIERRA SOLIS 6 | 100% SMEA SpA | 300 | |
| 97 | SIERRA SOLIS 7 | 100% SMEA SpA | 300 | |
| 98 | SIERRA SOLIS 8 | 100% SMEA SpA | 300 | |
| TOTAL | 16.714 |
Note. SMEA SpA is subsidiary company - 80% owned by Hot Chili Limited, 20% owned by CMP (Compañía Minera del Pacífico) Note. Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited.
Domeyko Project Tenements
| Domeyko Project | |||||
|---|---|---|---|---|---|
| N° | License ID | HCH % Held | HCH % Earning | Area (ha) | Agreement Details |
| 1 | ANTONIO 1 1/56 | 100% Frontera SpA | 280 | ||
| 2 | ANTONIO 1/40 | 100% Frontera SpA | 200 | ||
| 3 | ANTONIO 10 1/21 | 100% Frontera SpA | 63 | ||
| 4 | ANTONIO 19 1/30 | 100% Frontera SpA | 128 | ||
| 5 | ANTONIO 21 1/20 | 100% Frontera SpA | 60 | ||
| 6 | ANTONIO 36 1/15 | 100% Frontera SpA | 74 | ||
| 7 | ANTONIO 5 1/40 | 100% Frontera SpA | 200 | ||
| 8 | ANTONIO 9 1/40 | 100% Frontera SpA | 193 | ||
| 9 | CAZURRO 1 | 100% Frontera SpA | 200 | ||
| 10 | CAZURRO 2 | 100% Frontera SpA | 200 | ||
| 11 | CAZURRO 3 | 100% Frontera SpA | 300 | ||
| 12 | CAZURRO 4 | 100% Frontera SpA | 300 | ||
| 13 | CAZURRO 5 | 100% Frontera SpA | 100 | ||
| 14 | CAZURRO 6 | 100% Frontera SpA | 200 | ||
| 15 | CAZURRO 7 | 100% Frontera SpA | 200 | ||
| 16 | CAZURRO 8 | 100% Frontera SpA | 200 | ||
| 17 | CERRO MOLY 1 | 100% Frontera SpA | 300 | ||
| 18 | CERRO MOLY 2 | 100% Frontera SpA | 300 | ||
| 19 | CERRO MOLY 3 | 100% Frontera SpA | 300 | ||
| 20 | CERRO MOLY 4 | 100% Frontera SpA | 300 | ||
| 21 | CAZURRO 3 1/60 | 100% Frontera SpA | 300 | ||
| 22 | CAZURRO 4 1/60 | 100% Frontera SpA | 300 | ||
| 23 | CAZURRO 7 1/40 | 100% Frontera SpA | 200 | ||
| 24 | EMILIO 1 1/8 | 100% Frontera SpA | 38 | ||
| 25 | EMILIO 3 1/9 | 100% Frontera SpA | 45 |
| 26 | INES 1/40 | 100% Frontera SpA | 200 | ||
| 27 | LORENA 1/2 | 100% Frontera SpA | 2 | ||
| 28 | MERCEDITA 1/7 | 100% Frontera SpA | 22 | ||
| 29 | PRIMO 1 1/6 | 100% Frontera SpA | 36 | ||
| 30 | SANTIAGUITO 5 1/24 | 100% Frontera SpA | 114 | ||
| 31 | DOMINOCEROS 1/20 (1/4) | 100% Frontera SpA | 20 | 100% HCH Dominoceros Purchase Option Agreement US$320,000 (already satisfied) US$680,000 payable by October 25th 2025 US$1000,000 payable by October 25th 2026 US$6.890,000 payable by October 25th 2027 | |
| 32 | CF SUR 1 | 100% Frontera SpA | 300 | ||
| 33 | CF SUR 2 | 100% Frontera SpA | 300 | ||
| 34 | CF SUR 3 | 100% Frontera SpA | 300 | ||
| 35 | CF SUR 4 | 100% Frontera SpA | 300 | ||
| 36 | CF SUR 5 | 100% Frontera SpA | 200 | ||
| 37 | CF SUR 6 | 100% Frontera SpA | 300 | ||
| 38 | CF SUR 7 | 100% Frontera SpA | 300 | ||
| 39 | CF SUR 8 | 100% Frontera SpA | 300 | ||
| 40 | CF SUR 9 | 100% Frontera SpA | 200 | ||
| 41 | CF SUR 10 | 100% Frontera SpA | 200 | ||
| 42 | CF SUR 11 | 100% Frontera SpA | 300 | ||
| 43 | CF SUR 12 | 100% Frontera SpA | 300 | ||
| 44 | CF SUR 13 | 100% Frontera SpA | 300 | ||
| 45 | CF SUR 14 | 100% Frontera SpA | 300 | ||
| 46 | CF SUR 15 | 100% Frontera SpA | 200 | ||
| 47 | CF SUR 16 | 100% Frontera SpA | 300 | ||
| 48 | CF SUR 17 | 100% Frontera SpA | 300 | ||
| 49 | CF SUR 18 | 100% Frontera SpA | 300 | ||
| 50 | CF SUR 19 | 100% Frontera SpA | 300 | ||
| 51 | CF SUR 20 | 100% Frontera SpA | 300 | ||
| 52 | CF SUR 21 | 100% Frontera SpA | 300 | ||
| 53 | CF SUR 22 | 100% Frontera SpA | 300 | ||
| 54 | CF SUR 23 | 100% Frontera SpA | 200 | ||
| 55 | CF SUR 24 | 100% Frontera SpA | 200 | ||
| 56 | CF SUR 25 | 100% Frontera SpA | 300 | ||
| 57 | CF SUR 26 | 100% Frontera SpA | 300 | ||
| 58 | CF SUR 27 | 100% Frontera SpA | 300 | ||
| 59 | CF SUR 28 | 100% Frontera SpA | 200 | ||
| 60 | CF SUR 29 | 100% Frontera SpA | 300 | ||
| 61 | CF SUR 30 | 100% Frontera SpA | 200 | ||
| 62 | CF SUR 31 | 100% Frontera SpA | 300 | ||
| 63 | CF SUR 32 | 100% Frontera SpA | 300 | ||
| 64 | CF SUR 33 | 100% Frontera SpA | 300 | ||
| 65 | CF SUR 34 | 100% Frontera SpA | 300 | ||
| 66 | CF SUR 35 | 100% Frontera SpA | 300 | ||
| 67 | CF SUR 36 | 100% Frontera SpA | 200 | ||
| 68 | CF SUR 37 | 100% Frontera SpA | 200 | ||
| 69 | DOMEYKO I 1/12 | 100% Frontera SpA | 60 | ||
| 70 | DOMEYKO II 1/40 | 100% Frontera SpA | 200 | ||
| 71 | KRETA ¼ | 100% Frontera SpA | 16 | The mining concession is included in SanAntonio Purchase Option Agreement | |
| 72 | MARI 1 | 100% Frontera SpA | 300 | ||
| 73 | MARI 1/12 | 100% Frontera SpA | 64 | The mining concession is included in San Antonio Purchase Option Agreement | |
| 74 | MARI 6 | 100% Frontera SpA | 300 | ||
| 75 | MARI 8 | 100% Frontera SpA | 300 | ||
| TOTAL | 16.715 |
Note. Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited.
El Fuego Project Tenements
| San Antonio Project | ||||
|---|---|---|---|---|
| N° | License ID | HCH % Held | HCH % Earning | Area (ha) Agreement Details |
| 1 | MERCEDES 1/3 | 100% Frontera SpA | 50 | |
| 2 | PORFIADA A 1/33 | 100% Frontera SpA | 160 | |
| 3 | PORFIADA C 1/60 | 100% Frontera SpA | 300 | |
| 4 | PORFIADA E 1/20 | 100% Frontera SpA | 100 | |
| 5 | PORFIADA F 1/50 | 100% Frontera SpA | 240 | |
| 6 | PORFIADA IX 1/60 | 100% Frontera SpA | 300 | |
| 7 | PORFIADA VII 1/60 | 100% Frontera SpA | 270 | |
| 8 | PORFIADA VIII 1/60 | 100% Frontera SpA | 300 | |
| 9 | PRIMA 1 | 100% Frontera SpA | 1 | |
| 10 | PRIMA 2 | 100% Frontera SpA | 2 | |
| 11 | ROMERO 1/31 | 100% Frontera SpA | 31 | |
| 12 | SAN ANTONIO 1/5 | 100% Frontera SpA | 25 | |
| 13 | SAN JUAN SUR 1/5 | 100% Frontera SpA | 10 | |
| 14 | SAN JUAN SUR 6/23 | 100% Frontera SpA | 90 |
| 15 | SANTIAGO Z 1/30 | 100% Frontera SpA | 300 |
| 16 | SANTIAGO 1/4 Y 20 | 100% Frontera SpA | 75 |
| 17 | SANTIAGO 15/19 | 100% Frontera SpA | 25 |
| 18 | SANTIAGO 21/36 | 100% Frontera SpA | 76 |
| 19 | SANTIAGO 37/43 | 100% Frontera SpA | 26 |
| 20 | SANTIAGO A, 1/26 | 100% Frontera SpA | 244 |
| 21 | SANTIAGO B, 1/20 | 100% Frontera SpA | 200 |
| 22 | SANTIAGO C, 1/30 | 100% Frontera SpA | 300 |
| 23 | SANTIAGO D, 1/30 | 100% Frontera SpA | 300 |
| 24 | SANTIAGO E, 1/30 | 100% Frontera SpA | 300 |
| TOTAL | 3.725 |
Note. Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited.
| Cordillera Project | |||||
|---|---|---|---|---|---|
| N° | License ID | HCH % Held | HCH % Earning | Area (ha) Agreement Details | |
| 1 | ALBORADA III 1/35 | 100% Frontera SpA | 162 | 100% HCH Purchase Option Agreement USD 100,000 already paid US$200,000 payable by November 14th 2025 US$3,700,000 payable by November 14th 2027 NSR 1% for underground mining and 1,5% for open-pit mining | |
| 2 | ALBORADA IV 1/20 | 100% Frontera SpA | 54 | ||
| 3 | ALBORADA VII 1/25 | 100% Frontera SpA | 95 | ||
| 4 | CAT IX 1/30 | 100% Frontera SpA | 150 | ||
| 5 | CATITA IX 1/20 | 100% Frontera SpA | 100 | ||
| 6 | CATITA XII 1/13 | 100% Frontera SpA | 61 | ||
| 7 | CORDILLERA 1/5 | 100% Frontera SpA | 20 | ||
| 8 | HERREROS 1/14 | 100% Frontera SpA | 28 | ||
| 9 | MINA HERREROS III 1/6 | 100% Frontera SpA | 18 | ||
| 10 | MINA HERREROS IV 1/10 | 100% Frontera SpA | 23 | ||
| 11 | PORSIACA 1/20 | 100% Frontera SpA | 20 | ||
| 12 | QUEBRADA 1/10 | 100% Frontera SpA | 28 | ||
| 13 | VETA 1/17 | 100% Frontera SpA | 17 | ||
| TOTAL | 776 |
Note. Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited.
Qualifying Statements
The scientific and technical information relating to the Company's Costa Fuego project in this report has been derived from or is based on the Costa Fuego Copper project pre-feasibility study (the "Costa Fuego PFS" or 2025 PFS), which has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") and Joint Ore Reserves Committee of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (the "JORC Code") and reviewed and approved by the "Qualified Persons" as defined under NI 43- 101 and "Competent Persons" as defined under the JORC Code, as set out below. The 2025 PFS was compiled by the Qualified Persons and Competent Persons listed below based on information available up to the effective date of the PFS. Additional details of responsibilities are provided at page 48 of presentation "Costa Fuego Preliminary Feasibility Study March 2025" released on 27 March 2025.
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.
PFS Technical Report
For readers to fully understand the information in this report, they should read the PFS Technical Report available on SEDAR+ (www.sedarplus.ca) and at www.hotchili.net.au in its entirety titled "Costa Fuego Project, Chile, Preliminary Feasibility Study NI 43-101 Technical Report" dated 9 May 2025 with an effective date of 27 March 2025, including all qualifications, assumptions, limitations and exclusions. The PFS Technical Report is intended to be read as a whole, and sections should not be read or relied upon out of context. The technical information in this report is subject to the assumptions and qualifications to be contained in the PFS Technical Report. The PFS Technical Report replaces and supersedes the technical report titled "Costa Fuego Copper Project – NI 43-101 Technical Report Mineral Resource Estimate Update" dated 8 April 2024, with an effective date of 26 February 2024 (the "2024 PEA").
Qualified Persons – NI 43-101
The PFS was compiled by Wood Australia Pty Ltd with contributions from a team of independent "Qualified Persons" within the meaning of NI 43 -101. The scientific and technical information contained in this report pertaining to Costa Fuego has been reviewed and verified by the following independent qualified persons within the meaning of NI 43-101:
Ms Elizabeth Haren (FAUSIMM (CP) & MAIG) of Haren Consulting – Mineral Resource Estimate Mr Dean David (FAUSIMM (CP)) of Wood Pty Ltd – Metallurgy Mr Piers Wendlandt (PE) of Wood Pty Ltd – Market Studies and Contracts, Economic Analysis Mr David Cuello (MAUSIMM) of GMT Servicios de Ingeniería – Geotechnical Mr Jeffrey Stevens (Pr. Eng, MSAIMM) of Wood Pty Ltd – Infrastructure and Capital Cost Mr Luis Bernal (Comisión Minera (PC) Registered Member) of Process Mineral Consulting – Leaching Mr Anton von Wielligh (FAUSIMM) of ABGM Consulting Pty Ltd – Mine Planning and Scheduling Mr Edmundo LaPorte (PE, PEng, CPEng, SME Registered Member) of High River Services - Environmental
The above independent Qualified Persons have verified the information disclosed herein, including the sampling, preparation, security, and analytical procedures underlying such information.
Competent Persons – JORC
The information in this report that relates to Mineral Resources, Exploration Results, and Ore Reserves for the Costa Fuego Project is based on information compiled by:
Ms Elizabeth Haren (FAUSIMM (CP) & MAIG) who is a full-time employee of Haren Consulting – Mineral Resource Estimate Mr Dean David (FAUSIMM (CP)) who is a full-time employee of Wood Pty Ltd – Metallurgy Mr Piers Wendlandt (PE) who is a full-time employee of Wood Pty Ltd – Market Studies and Contracts, Economic Analysis Mr David Cuello (MAUSIMM) who is a full-time employee of GMT Servicios de Ingeniería – Geotechnical Mr Jeffrey Stevens (Pr. Eng, MSAIMM) who is a full-time employee of Wood Pty Ltd – Infrastructure and Capital Cost Mr Luis Bernal (Comisión Minera (PC) Registered Member) who is a full-time employee of Process Mineral Consulting – Leaching Mr Anton von Wielligh (FAUSIMM) who is a full-time employee of ABGM Consulting Pty Ltd – Mine Planning and Scheduling Mr Edmundo LaPorte (PE, PEng, CPEng, SME Registered Member) who is a full-time employee of High River Services – Environmental Mr Christian Easterday (MAIG), who is the Managing Director and is a full-time employee of Hot Chili Limited – Exploration Results
Ms Haren, Mr David, Mr Wendlandt, Mr Cuello, Mr Stevens, Mr Bernal, Mr LaPorte, Mr Easterday, and Mr von Wielligh each have sufficient experience, which is relevant to the style of mineralisation and types of deposits under consideration and to the activities undertaken, to qualify as a Competent Person as defined in the JORC Code and as Qualified Persons under NI43-101.
Disclaimer
This report has been prepared by management of Hot Chili Limited ("Hot Chili" or the "Company") and does not represent a recommendation to buy or sell securities of the Company. Investors should always consult their investment advisors prior to making any investment decisions. This report does not purport to be complete or contain all of the information that may be material to the current or future business, operations, financial condition or prospects of the Company and Hot Chili makes no representation or warranty, express or implied, as to the accuracy or completeness of the information contained in this report. Certain information contained herein is based on, or derived from, information obtained from independent third-party sources, publicly available reports and other trade and industry sources. Hot Chili believes that such information is accurate and that the sources from which it has been obtained are reliable; however, Hot Chili has not independently verified such information and does not assume any responsibility for the accuracy or completeness of such information. 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 news release.
Cautionary Note for U.S. Investors Concerning Mineral Resources
NI 43-101 is a rule of the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning material mineral projects. Technical disclosure contained in this report has been prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Classification System. These standards differ from the requirements of the U.S. Securities and Exchange Commission (SEC) and technical information contained in this report may not be comparable to similar information disclosed by domestic United States companies subject to the SEC's reporting and disclosure requirements.
All amounts in this report are in U.S. dollars unless otherwise noted.
Forward Looking Statements
Statements in this report that are not historical facts are "forward-looking information" or "forward-looking statements" within the meaning of Canadian securities legislation and Australian securities legislation (each, a "forward-looking statement"). The use of any of the words, "estimate", "expect", "may", "might", "opportunity", "plan", "potential", "project", "proposed", "should", "will", "would" and similar expressions are intended to identify forward-looking statements. Statements concerning mineral resource and mineral reserve estimates may also be deemed to constitute forward-looking statements to the extent that they involve estimates of the mineralisation that may be encountered if the Costa Fuego Project is developed.
In this report, forward-looking statements relate, among other things, to: the potential of the La Verde discovery; regulatory applications and approvals; 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 report 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