Slide 1: Costa Fuego Copper-Gold Project PFS & Maiden Ore Reserve
Costa Fuego Copper-Gold Project ASX: HCH Preliminary Feasibility Study TSXV: HCH & Maiden Ore Reserve OTCQX: HHLKF www.hotchili.net.au 1 27th March 2025
Slide 2: Disclaimers
Disclaimers Disclaimer 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. This news release does not purport to be complete or contain al
Slide 3: Forward-Looking Statements
Forward-Looking Statements Forward Looking Statements Statements in this news release 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
Slide 4: Costa Fuego PFS Highlights
Costa Fuego PFS Highlights Strong financial results using 8% discount rate & long-term US$4.30/lb copper price and US$2,280/oz gold price Post-Tax NPV8% Post-Tax, Life of Mine Free Primary Production Annual Rate Cashflow (14 Years) US$1.20 B US$3.86 B 116 kt CuEq¹ Post-Tax IRR Payback Period 19% 95
Slide 5: Costa Fuego Copper-Gold Project, Chile
Costa Fuego Copper-Gold Project, Chile One of the Largest Scale, Lowest Elevation Copper Resources in the World (Not Controlled by a Major Miner) Maiden Reserve of 502Mt for Top Quartile Production Low-Risk, Coastal Poised for Up-Scale Coastal Production Hub Scale & Lowest Quartile Development & Adv
Slide 6: Corporate Overview
Corporate Capital Structure Investors By Type Overview Glencore 7.5% GS Group ASX/TSXV: HCH Stock Exchanges 5.7% OTCQX: HHLKF Blue Spec 5.5% Shares Outstanding 151.4 M Insiders Retail, 0.7% Options & Performance 49.3% 9.1 M Rights Institutional 31.4% A$19.0 M Cash (as of 31 December 2024) Market Cap
Slide 7: Low Elevation Advantage – Lowers Economic Hurdle
Low Elevation Advantage – Lowers Economic Hurdle Long-term Commitment to Risk-Reduction of Future Development Water Risk Removed ✓ Granted maritime concession with land access ✓ All water required for operations secured Power Line Risk Removed ✓ Secured electrical connection to grid ✓ Opportunity to
Slide 8: La Verde – Confirmation of a Significant Cu-Au Porphyry Discovery
La Verde – Confirmation of a Significant Cu-Au Porphyry Discovery Unified under single ownership after years of strategic consolidation La Verde Open Pit (Shallow copper oxide pit) Discovery Drillhole DKP002 (Completed Nov 2024, Announced 18 Dec 2024) 308 m @ 0.5% Cu, 0.3g/t Au from 46 m Incl. 202 m
Slide 9: Near Term Growth Potential - La Verde Project
Near Term Growth Potential - La Verde Project Located just 35 km from central processing facility at Productora • First-pass drill coverage now extends across an area measuring 1,000 m by 550 m • 27 RC holes for 8,162 m drilled to date. Results for 15 RC holes pending • Shallow porphyry mineralisati
Slide 10: 2024 PEA to 2025 PFS Performance
2024 PEA to 2025 PFS Performance Robust Project Definition & Material Differences Across Key Metrics PEA - US$ 1 100 M Post-Tax NPV8% +US$ 100 M PFS - US$ 1 200 M Post-Tax, LOM Free PEA - US$ 3 280 M Cashflow PFS - US$ 3 860 M +US$ 580 M PEA - 16 Years Project Life + 4 Years PFS – 20 Years Open Pit
Slide 11: Copper Price Scenarios
Copper Price Scenarios Summary of economic results at base case and selected lower and upper copper price, and comparison to 2024 PEA Copper Price Project Metric Units 2025 PFS - Lower 2025 PFS - Base 2025 PFS - Upper March 2025 Spot Price 2024 PEA (US$3.90/lb) (US$4.30/lb) (US$4.70/lb) (US$5.30/lb)
Slide 12: Strongly Leveraged to Copper Price
Strongly Leveraged to Copper Price For every US$0.10¢/lb increase in copper price above US$4.30/lb, NPV8% increases by ~US$100 M Sensitivity Analysis Sensitivity to Copper Price (Post-Tax NVP8% - ±40% Sensitivity Ranges) (Post-Tax NVP8% & IRR) Copper Revenue -734 2,838 (Price, Recovery, Grade) Disco
Slide 13: Leverage to Cu Price – Global Developer Peer Group
Leverage to Cu Price – Global Developer Peer Group Leverage Index – Ratio of % increase in Cu price to % increase in Post-tax NPV8% • Costa Fuego has one of the highest leverages to copper price outside the control of a major mining company • Larger production scale favors higher leverage to copper
Slide 14: Capital Intensity – South American Peer Group
Capital Intensity – South American Peer Group Cost Fuego’s Elevation Advantage - Capital Intensity of Annual Produced Copper Equivalent1 20,000 PFS/DFS Study Stage (25% accuracy or lower) 6,000 Elevation (metres above sea level) 18,000 Capital Intensity (US$/t CuEq PEA Study Stage (50% accuracy or l
Slide 15: Ratio of Post-tax NPV8%/Start-up Capital
Ratio of Post-tax NPV8%/Start-up Capital Peer Benchmark – Normalised at US$4.30/lb Cu 3.5 PFS/DFS Study Stage (25% accuracy or lower) 3.0 PEA Study Stage (50% accuracy or lower) Ratio of NPV 8%/Start-up Capital Escalones Cactus World Copper Ltd. Arizonian Sonoran 2.5 Canariaco Norte Santo Tomas Cost
Slide 16: Market Valuation of Measured & Indicated Copper Resources
Market Valuation of Measured & Indicated Copper Resources Peer Benchmark - Market Capitalisation / Measured & Indicated CuEq* Mineral Resources (US¢/lb) PFS/DFS Study Stage (25% accuracy or lower) PEA Study Stage (50% accuracy or lower) Marimaca 20.9 Market Cap. / lb M&I CuEq Increasing Market Valua
Slide 17: World's Largest Undeveloped Copper Mineral Resources
World's Largest Undeveloped Copper Mineral Resources Peer Benchmark – Projects Not Controlled by a Major Mining Company Average CuEq Grade of new supply 1 The Global Resource Peer Group of Mineral Resources were selected on the following basis: 22 of the largest global primary copper Mineral Resourc
Slide 18: Environment, Social and Governance Focus
Environment, Social and Governance Focus ESG Risk Mitigations for Costa Fuego for the Huasco Valley Committed to Responsible Development Strong Governance & ESG Oversight • Costa Fuego is low permeability, low recharge, and • Advancement in permitting, land and water rights can employ low cost and n
Slide 19: Social Licence To Operate
Social Licence To Operate Visibility, Accessibility and Continued Social Investment for the Huasco Valley Social Investment Positive community involvement is part of Hot Chili’s identity • Mental Health Program expanded to deliver support to over 150 local recipients • Land access provided to artisa
Slide 20: Investment Highlights
Investment Highlights Costa Fuego is a Large Scale, Low Elevation Primary Copper Development Project Located in Chile High-quality, Long-life, Low-cost Near-term Copper Development Project 1 • After-tax NPV8% of US$1.20 B and IRR of 19% based on an initial project life of 20 years1 • Competitive cos
Slide 21: The Investment Proposition
The Investment Proposition Costa Fuego: A large, advanced copper project with significant exploration leverage La Verde Deposit – Rapidly Expanding Cu-Au Porphyry Discovery • Third significant copper-gold discovery for Hot Chili confirmed in January 2025 Copper • 308 m @ 0.5% Cu, 0.3g/t Au from 46 m
Slide 22: Costa Fuego PFS & Maiden Mineral Reserve Technical Information
Costa Fuego Copper-Gold Project Preliminary Feasibility Study & ASX: HCH TSXV: HCH Maiden Mineral Reserve OTCQX: HHLKF Technical Information www.hotchili.net.au HOT CHILI LIMITED 22 22 www.hotchili.net.au 1 PFS – Base Copper Price (US$4.30/lb)
Slide 23: Costa Fuego Project Layout
Costa Fuego Project Layout Proximity of Costa Fuego mining areas offers strategic advantages • Projects located at low elevation (average 740 m) on the Chilean coastal range • Proposed centralised processing facilities, including: • 20.7 Mtpa Sulphide Concentrator • 4 ktpa Cathode SX-EW • Raw sea wa
Slide 24: Costa Fuego Mineral Reserve
Costa Fuego Mineral Reserve Robust maiden Probable Mineral Reserve built from derisked Mineral Resources • Mineral Reserve envisages conventional open Costa Fuego Mineral Reserve Estimate (March 2025) pit, truck and shovel operation from four mining Grade Contained Metal Tonnes Cu Au Ag Mo Cu Au Ag
Slide 25: Costa Fuego Mineral Resource
Costa Fuego Mineral Resource Fit for Purpose, PFS-ready Resources • 2024 Mineral Resource update increased Costa Fuego Mineral Resource Estimate (February 2024) Grade Contained Metal Indicated CuEq metal by 6%. Tonnes CuEq* Cu Au Ag Mo CuEq1 Cu Au Ag Mo • Over 85% of Costa Fuego Mineral Resource Cla
Slide 26: Production Feed Sources
Production Feed Sources Schedule flexibility lowers operational risk Productora & Alice Cortadera Production Feed San Antonio Low Grade Concentrator Oxide Leach Sulphide Leach • Sulphide concentrator, oxide heap leaching, and low-grade sulphide dump leaching processing feed • PFS design open pit she
Slide 27: Mining Phases
Mining Phases Costa Fuego open pits target near surface, high-grade feed Productora and Alice Open Pits Cortadera Open Pits and Block Cave Stage 2 Stage 3 N N Stage 1 Stage 3 Stage 2 Stage 1 Stage 5 Block Cave Stage 4 Underground Development Productora Main Cuerpo 3 Cuerpo 1 Cuerpo 2 Productora Nort
Slide 28: Mine Production Schedule
Mine Production Schedule Costa Fuego Project derisked by upfront open pit mining • Production commences in open pits 160,000 4.0 Open-Pit Mining before shifting to underground feed 140,000 3.5 Underground Mining in year 11 120,000 3.0 3.0 Stockpile Processing 3.0 • Open pit average waste to ore stri
Slide 29: Production and Revenue Breakdown
Production and Revenue Breakdown Production underpinned by 100% Indicated Resources, 85% of Total Revenue from Copper1 LOM Revenue Revenue Production Feed1 Units Total % of Total Contribution2 (US$M) Sulphide Concentrator Mt 438 Copper in Concentrate 13 160 76% • 88% of Total Production Feed CuEq3 %
Slide 30: Processing – Copper Production Profile
Processing – Copper Production Profile +95 kt Annual Average Copper Production Maintained over 14 years Concentrator Schedule – Production Feed Total Copper Metal Produced 140 30 0.7% 0.6% CuEq Grade (%) 25 Tonnes (Mt) 20 0.5% 120 0.4% 14-Year Primary Production Rate 95 ktpa 15 0.3% 100 10 0.2% Cu P
Slide 31: Processing – Copper Equivalent Production Profile
Processing – Copper Equivalent1 Production Profile 116 kt Annual Average Copper Equivalent1 Production Maintained over 14 years Total Copper Equivalent1 Metal Produced Total Revenue by Metal 160 6%, Copper Cathode 8%, 140 Molybdenum 14-Year Primary Production Rate 116 ktpa CuEq1 120 0%, Silver Cu Pr
Slide 32: Processing Flowsheet
Processing Flowsheet Flotation, Oxide Heap Leach and Low-Grade Sulphide Dump Leach Flotation Circuit Leach Circuit Sulphide Feed Rougher Scavenger Flotation Flotation Primary Cyclone Cyclone yratory Crusher Pe le Primary Crusher Rougher Cyclone Cleaner SA Mill Flotation Pe le all Mills Tailings Prim
Slide 33: Sulphide Concentrator
Sulphide Concentrator Extensive Recovery Testwork Completed, Clean Concentrate1, Variable Throughput Rates Metal Recoveries Variable Throughput Rates % of Average Recovery to Concentrator Number of % of Deposit Production Concentrate (%) Number Production (Mtpa) Tests Deposit Feed of Tests Cu Au Mo
Slide 34: Leach Circuit
Leach Circuit Extensive testwork completed since PEA, with improved oxide heap leach recoveries Oxide Low Grade Sulphide Heap Leach Recovery by Area Dump Leach Recovery by Area Copper % of Copper % of Column Column Deposit Recovery Production Deposit Recovery to Production Samples Samples to Cathode
Slide 35: Costa Fuego Technical Risk Mitigations
Costa Fuego Technical Risk Mitigations Ongoing Technical Workstreams Reducing Risk Across Costa Fuego Tailings Storage Facility Underground Mining • Seepage control implementation • PFS-level geotechnical review • Geotechnical and Seismic risk by global caving expert management • Conservative draw h
Slide 36: Costa Fuego Project Layout
Costa Fuego Project Layout Centralised and compact footprint, benefitting from existing infrastructure Productora - Alice • Centralised sulphide concentrator, oxide heap leach, low-grade sulphide dump leach and SX-EW plant facilities at Productora • Waste rock disposed adjacent to open pits or withi
Slide 37: Financial Model Assumptions
Financial Model Assumptions Long-term Copper and Gold Price Assumptions in Line with NBF 25-Bank Forecast Long-term Metal Price Assumptions Long-term Exchange Rate Assumptions Variable Units Price Currency Rate Copper Price US$/lb 4.30 AUD:USD 0.72 Gold Price US$/oz 2,280 USD:CLP 690 Silver Price US
Slide 38: PFS Highlights Robust Economics
PFS Highlights Robust Economics Strong financial results using 8% discount rate & long-term US$4.30/lb copper price and US$2,280/oz gold price Project Metric Units Value Cash Flow Summary US$M Financial Measures Total Revenue 17 280 Cu NPV8% US$M 1 710 Total Operating Cost - 8 650 Pre-tax US$4.30/lb
Slide 39: Undiscounted Cashflows
Undiscounted Cashflows Project Generates US$17.3 Billion Revenue & US$3.9 Billion Free Cashflow over LOM First Cave Expansion Payback Production Commences 1,500 Achieved First Open Pit 4,000 Production 1,000 3,000 Stockpile Feed Cumulative Free Cashflow (US$M) Annual Cashflows (US$M) Construction 2,
Slide 40: Capital Cost Details
Capital Cost Details Including 16% contingency on all Capital Costs Start-up Capex Total US$M Expansion Capex Construction Directs Directs Sulphide Leach 41 Bulk Earthworks and Drainage 9 Processing Upgrade 80 Site Services 3 Cortadera Infrastructure 61 Sulphide Process 394 Rope Conveyor 172 Oxide P
Slide 41: Capital Cost Profile
Capital Cost Profile Start-up Capital - US$1,270 M Early Derisking of Critical Project Components Costa Fuego Open Pit Mining Construction Commences Commences RopeCon construction 800 700 600 Payback Achieved First Cave Production 500 Expansion Capital – US$1,350 M US$M 400 300 200 100 0 Year 1 2 3
Slide 42: Operating Cost Details
Operating Cost Details Operating Cost Total Cash Costs Life of Mine Life of Operating Costs Unit Details (US$M) (Net of byproduct revenue) (US$/lb Cu) Mine Mining Cost Average US$/t mined 2.61 Mining Costs 2 717 C1 1.33 Open Pit US$/t mined 2.32 Processing Costs 3 565 Total Cash Cost 2.32 Undergroun
Slide 43: Operating Cost Profile
Operating Cost Profile 74% of Cash Costs Related to Mining and Processing 600 500 400 US$M 300 200 100 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Year Mining Cost Processing Costs G&A Costs Selling Costs Royalties 43 G&A = General and Administration. By-Product Credits include gold, sil
Slide 44: Cost and Production Profile
Cost and Production Profile Competitive Total Cash Cost of US$1.56/lb Copper (net of royalties and by-product credits) 160 3.50 140 3.31 120 3.00 Total Cash Cost (US$/lb Cu) 2.91 2.79 100 CuEq Tonnes (kt) 2.60 2.50 80 60 2.00 1.97 1.99 1.81 40 1.66 1.58 1.57 1.59 1.55 1.50 1.49 1.50 1.40 1.38 20 1.3
Slide 45: Preliminary Feasibility Study Appendices
Costa Fuego Copper-Gold Project Preliminary Feasibility Study Appendices www.hotchili.net.au HOT CHILI LIMITED 45 45
Slide 46: Board Members
Board Members Christian Easterday Fiona Van Maanen Managing Director & Chief Independent Non-Executive Executive Officer Director Roberto de Andraca Mark Jamieson Adriasola1 Non-Executive Director Non-Executive Director (Glencore Nominee) 1 Chilean National, resides in Chile 46
Slide 47: Management
Management José Ignacio Silva1 Grant King Carol Marinkovich Andrea Aravena1 Kirsty Sheerin Executive Vice President – Chief Operating Officer Company Secretary Geology Manager – Chile Resource Development Chile Manager Ryan Finkelstein Marcelo Hernando1 Cristobal Julia1 Chief Financial Officer Engin
Slide 48: Key Consultants
Key Consultants Dr Steve Garwin Elizabeth Haren Dr John Beeson Chief Technical Advisor Independent Resource Lead Structural Geologist Consultant The Costa Fuego PFS was compiled by Wood Australia Pty Ltd, with support from experienced and reputable independent Qualified Persons (QPs) and Key Consult
Slide 49: 25-Bank Consensus Forecast
25-Bank Consensus Forecast Provided by National Bank Financial – Feb 2025 Copper Price (US$/lb) Broker 2025 2026 2027 2028 Long Term Estimate Estimate Estimate Estimate Barclays $4.40 $4.80 $5.00 n.a. $5.00 6.0 Bell Potter $4.37 $4.60 n.a. n.a. $4.70 BMO $4.09 $4.20 $4.42 $4.54 $4.31 5.5 Canaccord $
Slide 50: Water Fundamentals for Copper in Chile
Water Fundamentals for Copper in Chile Seawater and elevation advantage – low cost and security of supply Operational expenditures by altitude, 2028 Water stress in Chile, Share of copper Fresh water supply and demand Sources of water used in Chilean mining forecast, $ per metric ton of payable meta
Slide 51: ESG - Our People
ESG - Our People Hot Chili values and embraces diversity As an Australian company, operating in Chile and with North American stakeholders, our Board and Employees represent the places where we work International Team Gender Diversity • 67% of Company Employees are Chilean • omen represent 28% of HC
Slide 52: Concentrate Specification
Concentrate Specification Defined by five Locked-Cycle Tests Copper-Gold-Silver-Molybdenum Copper-Gold-Silver-Molybdenum Concentrate Assays Concentrate Assays Element Unit Value Element Unit Value Cu % 26 Mn ppm 98 Au ppm 5 Na ppm 2,392 Mo ppm 7,411 Ni ppm 82 Ag ppm 24 P ppm 154 Co ppm 263 Pb ppm 13
Slide 53: Notes to Mineral Resource Disclosure – Costa Fuego
Notes to Mineral Resource Disclosure – Costa Fuego Costa Fuego Project Mineral Resource Estimate, 26 February 2024 1 Mineral Resources are reported on a 100% Basis - combining Mineral Resource estimates for the Cortadera, Productora, Alice and San Antonio deposits. All figures are rounded, reported
Slide 54: Notes to Mineral Reserve Disclosure – Costa Fuego
Notes to Mineral Reserve Disclosure – Costa Fuego Costa Fuego Project Mineral Reserve, 27 March 2025 1Mineral Reserves are reported on a 100% Basis - combining Mineral Reserve estimates for the Cortadera, Productora, Alice and San Antonio deposits, and have an effective date of 27 March 2025. 2An Or
Slide 55: Global Project Resource Group Benchmarking Data
Global Project Resource Group Benchmarking Data Class Mt Cu% Cu Mt Cu Mlbs Au g/t Au Mg Au Moz Ag g/t Ag Mg Ag Moz Mo ppm Mo Mt Mo Mlbs CuEq% CuEq Mt Mea 527 0.33 1.74 3,830 0.35 184 6 1.66 874 28 178 0.09 207 0.63 3.30 Pebble Ind 5,929 0.41 24.30 53,580 0.34 2016 65 1.66 9841 316 246 1.46 3,214 0.7
Slide 56: Global Project Resource Group (cont.)
Global Project Resource Group (cont.) Benchmarking Data Class Mt Cu% Cu Mt Cu Mlbs Au g/t Au Mg Au Moz Ag g/t Ag Mg Ag Moz Mo ppm Mo Mt Mo Mlbs CuEq% CuEq Mt MI Total 798 0.37 2.95 6,510 0.10 80 2.6 0.50 399 13 85 0.07 150 0.45 3.63 Fuego Costa Inf Total 203 0.25 0.51 1,119 0.06 12 0.4 0.36 73 2 61
Slide 57: Global Resource Peer Group
Global Resource Peer Group Resource benchmarking data Project Units Costa Fuego Marimaca Warintza Caravel Kharmagtai Escalones Casino Canariaco Norte Cascabel Vizcachitas Los Azules Cactus Santo Tomas Arizona Marimaca Solaris Caravel Xanadu Mines World Copper Western Copper Alta Copper Los Andes McE
Slide 58: Global Developer and Market Peer Group
Global Developer and Market Peer Group Resource benchmarking data Mantos Canariaco Moonlight- Project Units Costa Fuego Caravel Kharmagtai Filo del Sol Escalones Santo Domingo Casino Mantoverde Copper World Cascabel Josemaria Vizcachitas Los Azules Cactus Santo Tomas Copper Creek Berg Blancos Norte
Slide 59: Global Developer and Market Peer Group (continued)
Global Developer and Market Peer Group (continued) Reference data – hyperlinks Index Company Project Hyperlink 1 Hot Chili Ltd Costa Fuego https://www.hotchili.net.au/wp-content/uploads/2024/04/NI43-101_Mineral_Resource_Estimate_20240408.pdf 2 Capstone Copper Mantos Blancos https://capstonecopper.co
Slide 60: Qualifying Statements
Qualifying Statements The technical information in this presentation has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 – Standards of isclosure for Mineral Projects (“NI 43-101”) Joint Ore Reserves Committee of the Australasian Code for Repor
Slide 61: Narrated Overview of Costa Fuego
Narrated Hot Chili Limited ACN 130 955 725 Mr Christian Easterday Overview of First Floor, 768 Canning Managing Director Costa Fuego Highway, Applecross, Western E: admin@hotchili.net.au Australia 6153 PO Box 1725, Applecross, Western Australia 6953 Graham Farrell Investor & Public Relations (Canada