Huasco Water A Water Supply Business for the Growth and Development of the Southern Atacama, Chile

A NEW WATER SUPPLIER IS COMING ASX: HCH OTCQX: HHLKF Huasco Water TSXV: HCH

A Water Supply Business for the Growth and Development of the Southern Atacama, Chile

Huasco Water Huasco Water plans to construct a multi-user water network in Southern Atacama region of Chile³

• New Joint Venture water company established. Hot Chili (80% interest) & CMP¹ (20% interest)
• Long lead-time items secured, including a granted maritime water concession to extract seawater and a permit for coastal

land access

• Transfer of all water assets to Huasco Water

in-progress

• International Engineering firm ILF appointed to complete regional Water Supply Business Case Study² (PFS-Engineering) with targeted completion in H1 2025
• Water off-taker and joint infrastructure

partnership discussions advancing

Proposed Sea Water Pipeline Route

Hot Chili’s Water Business is the potential Proposed Desalinated Water Pipeline Route

solution to unlocking copper supply in 1 CMP refers to Compañía Minera del Pacífico www.hotchili.net.au the Atacama 2 Will be referred to as “the PFS” or “the Study” through this presentation 3 See Announcement ‘Hot Chili Launches New Water Company - Huasco Water’ dated 08 July 2024

Project Team

An integrated team brings vision and expertise to the Huasco Water Project

Executive Director Executive Director Executive Sponsor HW Board

Claudia Monreal Christian Easterday Jose Silva

Project Consultant Delivery Director HW Management

Martin Ridley Grant King Charles Marcus Consult.

Lead Lead Lead Lead Marcelo Hernando Christian Easterday Jose Silva Jose Silva

Engineering Advisory Legal Advisory Environment Andrew Newbery Alvaro Hernandez Cristobal Julia Paillahuinte Gowling WLG

Legal Advisory Engineering Consultancy

Juan Francisco Sanchez ILF Valdivia Legal

Marine Consultancy Finance, Investor & Customer & Market Regulatory &

PRDW

Partner Relations Engagement Stakeholder Engineering

Huasco Water Employee

External Consultant/Advisor

Huasco Water – Conceptual Basis of Study¹

Proposed three-stage approach² aligned with Costa Fuego development plan

Basis of Study -

Stage 1¹: Establishment of sea water intake, principal

Stage 2 Network¹

pipeline route and infrastructure connection to supply minimum 600 L/s seawater to Costa Fuego.

Potential Stage 2¹: Baseline modular desalination plant, desalination pipeline and supply to Los Colorados, Nueva Union projects and nearby communities Potential Stage 3¹: Desalination upgrade and extension to higher Andean projects for 2050 and beyond

Potential Customers Considered in 1 Study			Basis of Study - Water Demand (L/s)1
			Preliminary Feasibility Study		Scoping Study3
			Stage 1 - Year 1	Stage 2 - Year 3	Stage 3 - Year 23+
Seawater	Costa Fuego		600	600	-
	Seawater Total		600	600	-
Desalinated Water	Huasco Valley Communities		-	100	100
	CMP		-	200	200
	Nueva Union	Relincho	-	740	1,340
		La Fortuna	-	100	100
	ATEX		-	-	400
	Other			165	165
	Desalinated Water Total		-	1,305	2,305

Proposed Sea Water Pipeline Route Proposed Desalinated Water Pipeline Route

1 Conceptual water demands and timeframes are for the purposes of the Huasco Water PFS-level Engineering Study only. They do not represent a forecast of actual water supply or demand, nor do they imply that potential customers will go into production and would enter into water offtake agreements with Huasco Water.

2 Further detail of staged approach included in Appendix slides 9 to 11 3 Stage 3 study work will only be completed at a Scoping Study level, reflecting an appropriate level of investment to inform decisions which remain on a 20+ year time-frame

Conceptual Development Roadmap¹

Conceptual roadmap ensures alignment and synergies between Huasco Water and Costa Fuego

Completed Present Year 1 Year 2 Year 3 Year 4

Preliminary Environmental Concept Stage 1 Construction Commissioning and Feasibility Study Impact Assessment & Investment revenue generation Study Release (EIA) Submission Decision

Customer Engagement Customer Negotiations

Investor Engagement – Preliminary Feasibility Study Investor Engagement - Final Investment Decision (FID)

Set-Up SPV²

Concept Front End Financial Analysis Preliminary Feasibility Study Feasibility Study Study Engineering Design

Adjust Maritime Concession for Desalination

Intake and Initial Seawater Transmission Second Maritime Concession Application for Expansion of Future Capacity Construction

Regulatory & Community Stakeholder engagement Regulatory & Community Stakeholder Regulatory & Community Stakeholder engagement EIA Ongoing engagement FID

www.hotchili.net.au 1 All dates are preliminary in nature and subject to change 2 SPV refers to Special Purpose Vehicle

Huasco Water: PFS Progress¹

PFS on-track for completion in H1 2025, with critical workstreams progressing across three key areas

• Initial Engineering trade-off Study complete, with analyses determining most viable solution based on cost and deliverability
• Recommendations from the trade-off are being reviewed for consistency

Engineering

with the Costa Fuego PFS, being developed in parallel

• Transfer of water assets to Huasco Water nearing completion
• Secondary concession application² progressing, expected by Q1 2026

Regulatory and Stakeholder • Preliminary environmental studies and archaeological surveys being completed at the maritime concession

• Significant interest from regional near-mine developers and non-mining customers for future desalinated water offtake

Customer and Market Engagement

• Positive engagement with the local community, who see fresh water supply as fundamental to the region

1 Further detail on PFS scope and trade-off studies are available in the Appendix slides 12 - 14 2 See announcement ‘Hot Chili Submits Second Maritime Concession Application’ dated 12 April 2024

Risks & Mitigations

Key risks are being managed and the overall Project risk profile is decreasing

Risks Mitigations

Leveraging local and global experts within the Huasco Water team who Stakeholder Complexity understand needs of stakeholder groups

Second concession has been moved to a prioritized approval process, Suitability of Maritime Concession expected completion by Q1 2026

Site of planned desalination plant controlled by a potential client, pipeline easement secured, Huasco Water team has proven track Environmental Approvals

record of securing easements

Early engagement has been overwhelmingly positive, with strong Sufficient Third-Party Offtakers understanding of potential to reduce CAPEX hurdles, decrease timeline

to development, and significantly increase Project NPV

All Huasco Water approvals required for the Costa Fuego Project are Impact on Costa Fuego already secured, so proposed Stages 2 and 3 of Huasco Water will not

delay Costa Fuego

Appendix

Basis of Study: Stage 1 – Costa Fuego Seawater Supply¹

• The focus of Stage 1 is to quickly and economically Basis of Study -

establish the foundational elements of the water Stage 1 Network¹

network, including seawater intake, primary seawater pipeline to Costa Fuego, and critical infrastructure

• This stage is not dependent on the establishment of a desalination plant and aligns with the Costa Fuego development timeline, establishing positive

cashflow in around two years from project initiation

• At Year 1, Huasco Water anticipates supplying 600 L/s of seawater to the Costa Fuego Project for mineral processing

N

• It will also present the opportunity to provide raw Proposed Sea Water Pipeline Route

sea water to supply local communities for localised desalination plants

Basis of Study: Stage 2 – Initial Desalination Plan¹

• Stage 2 proposes to establish a baseline modular desalination plant and desalination pipeline to Stage 2 Network¹ Los Colorados, Nueva Union projects and communities in the nearby vicinity by Year 3, subject to customer agreements
• A key decision point for this stage is the potential route to Nueva Union projects, which is currently under review for the PFS
• Environmental, archaeological and community impact studies are in progress for both potential routes as a mitigation
• Total production at this stage is assumed to be 600 L/s seawater supply for Costa Fuego and up to ~1,300 L/s desalinated water supply for other offtakers

Basis of Study: Stage 3 – Expanded Desalination Plan¹

• Stage 3 is proposed as an extension and upgrade to the Stage 2 desalination network, with extensions to

Stage 3 Network¹

potentially supply Valeriano and Encierro

• The timing of this proposed stage fits with the 20year renewal maintenance required on Stage 1 and 2, thereby reducing the impact of the costs of renewal
• Total conceptual demand for this stage is assumed to be 600 L/s seawater supply for Costa Fuego and up to ~2,300 L/s desalinated water supply for other potential off-takers
• Stage 3 studies will only be completed at a Scoping Study level, reflecting an appropriate level of investment to inform decisions which remain on a 20+ year time-frame

PFS Scope Summary

The focus of the PFS is to inform key design criteria, cost modelling, and financial analysis

PFS Objectives and Summary PFS Stage Key Scope Item:

The objective of the Huasco Water PFS is to provide information at a sufficient confidence level to

• Marine Works (Seawater Intake and Discharge) PRDW

enable Huasco Water and investment partners to decide whether the project should progress to a

• Seawater pipelines

Feasibility Study. A key outcome is to have the required information to engage construction partners,

• Desalination plant

community stakeholders and regulatory authorities for the next stage of the project.

• Desalinated water distribution system (desalinated water supply and pipes to points of

Initial studies have been split into two main stages, an initial trade off Study, followed by the PFS consumption)

delivery stage. The PFS for Huasco Water will consider the first two stages of the project, seawater to

• Global implementation strategy

Costa Fuego and initial desalinated supply at the confidence levels expected from a PFS-level study. The third stage which extends the network will only be completed at a Scoping Study level, reflecting an appropriate level of investment to inform decisions which remain on a 20+ year time-frame.

Planning of PFS

• Trade off Study: Q3 2024 (complete)

About ILF

• PFS: H1 2025 (in progress)

ILF is an international engineering and consulting group that supports its clients to successfully identify, prepare and execute industrial and infrastructure projects. With over 3,000 highly qualified employees in more than 45 offices across six continents and a strong local presence in Chile. Dependencies Of the 600 L/s anticipated seawater supply for Costa Fuego, 30 L/s will be desalinated. Of this, In desalination, ILF has a deep knowledge of sea water reverse osmosis (SWRO) systems and pretreatment technologies, such as ultrafiltration, gravity vs pressurized media filtration, dissolved air 10 L/s will be reserved for the Huasco Valley Community in the area. Note that the desalination flotation, etc., knowledge acquired in the development of more than 100 projects around the world, and distribution is within the scope of the Costa Fuego Mining PFS being completed by Wood seven of them in Chile. Engineering.

In addition, ILF has extensive project experience – successful processing and development of more than 60 large-scale international projects in the area of water transmission, over four decades. In Chile, ILF has successfully developed around ten of these projects for the country's main mining and sanitation companies.

Commencing in July 2024, the PFS is expected to be completed in H1 2025