Hot Chili Limited · ASX:HCH

Hot Chili — Investor Presentation (December 2016)

34 slides from Hot Chili's investor presentation, Dec 8, 2016

1. Slide 1: Hunting Giants: Productora, Chile

   For personal use only Hunting Giants Productora, Chile December 2016

2. Slide 2: Disclaimer

   Disclaimer For personal use only This Presentation is provided on the basis that neither the Company nor its representatives make any warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the Presentation and nothing contained in the Pr

3. Slide 3: Corporate Summary and Board of Directors

   Corporate Summary Board of Directors For personal use only Murray Black Non Exec Chairman Christian Easterday Managing Director Michael Anderson Non Exec Director Allan Trench Non Exec Director Roberto de Andraca Adriasola Non Exec Director Capital Structure Issued Shares 543.1M Unlisted Options 11.

4. Slide 4: Opportunity Knocks Twice

   Opportunity Knocks Twice For personal use only View looking north across Productora 1. HCH share price is cheap compared to peers 2. HCH very leveraged to copper price rally 3. Advanced, large-scale copper project with PFS complete 4. One of the best located new copper developments globally- Chile,

5. Slide 5: Hot Chili Poised to Re-rate

   Hot Chili Poised to Re-rate  Hot Chili offers an option against the copper price- highly leveraged to copper rally For personal use only  Porphyry copper discovery phase has “company-maker” potential Alice porphyry Large IP Porphyry First 0.48 Mt Cu Resource 0.92 Mt Cu discovery Centres Detected R

6. Slide 6: Copper Price Forecast to Recover Toward the End of the Decade

   Copper Price Forecast to Recover Toward the End of the Decade For personal use only  Copper price rebound forecast to gather pace over coming years Global stocks of refined copper and annual average copper price Spot Copper Price Rebounding Now Source – Wood Mackenzie presentation “Copper- market f

7. Slide 7: Mine Production to Peak Around 2020 Without New Major Projects

   Mine Production to Peak Around 2020 Without New Major Projects For personal use only  New large copper projects required to meet projected future supply deficit  Electric car market growth forecast to add further copper demand pressure Mine production (forecasts after 5% disruption allowance) Sour

8. Slide 8: Mining Majors Positioning in Copper

   Mining Majors Positioning in Copper For personal use only Case Example  Current focus on greenfield copper discoveries in Americas and Australia  Cascabel is a recent potential Tier 1 copper porphyry discovery in Ecuador  Annual budget of >US$60M FY16 to FY18  Newcrest and BHPBilliton competing

9. Slide 9: Chile - The Home of Copper

   Chile- The Home of Copper For personal use only  Home to some of the world’s largest porphyry copper mines  Accounting for 33% of global copper production  Premier global mining jurisdiction Location of porphyry copper deposits across the globe Productora (Northern Chile Coastal Cordillera) Sourc

10. Slide 10: Productora - Chile's Next Coastal Copper Mine in the Making

    Productora- Chile’s next Coastal Copper Mine in the Making For personal use only  Location- Low altitude, coastal range- Not in the high Andes (~800m elevation, ~40km from coast)  Infrastructure Advantage- with access rights secured to establish key infrastructure (Water, Power)  PFS Complete- 10

11. Slide 11: Tier 1 Porphyry Copper Deposit? The Evidence Revealed

    Tier 1 Porphyry Copper Deposit? The Evidence Revealed For personal use only 1. Right location for Tier 1 copper deposit (130km spacing) 2. Discovery of Alice porphyry copper resource adjacent to planned central pit 3. Large scale surface alteration and geophysical porphyry footprint (several large s

12. Slide 12: Giant Copper Camp Porphyry Settings in Chile

    Major NW Trasverse Fault Giant Copper Camp Fault Porphyry Collahuasi (81Mt) Settings in Chile Cu deposit Chuquicamata (>130Mt) For personal use only 22° City/Town Sierra Gorda (3.8Mt,1.8Moz)  Chilean Tier 1 - +5Mt copper metal endowment Centinela (13.9Mt,13.4Moz) Antucoya (3.9Mt) ANTOFAGASTA  +5Mt

13. Slide 13: Living Next Door to Alice

    Living Next Door to Alice Advanced argrillic surface footprint in relation to detected porphyry centres For personal use only Soil Sulphur +0.2% Cu  Major 6km x 4km porphyry lithocap (advanced argillic alteration) lying immediately next to Productora Main Zone IP3 IP4  Sulphur endowment can be use

14. Slide 14: Productora has Potential to Get Much Bigger

    Productora has Potential to Get Much Bigger! For personal use only  3D modelling of near-surface IP porphyry targets indicate Productora has potential to grow its current resource base by several multiples Productora Copper Project (Resources, Pit Designs and IP Chargeability Porphyry Targets) Cent

15. Slide 15: Hot Chili Limited contact details

    For personal use only Hot Chili Limited ACN 130 955 725 ASX: HCH Level 1, 768 Canning Highway, Applecross, Western Australia 6153 P: +61 8 9315 9009 F: +61 8 9315 5004 www.hotchili.net.au

16. Slide 16: Technical Appendix

    Technical Appendix For personal use only Content  Structural setting of the Productora copper project  Alice porphyry copper deposit discovery at Productora  Surface geochemical footprint of Productora porphyry copper deposit  Productora footprint size benchmarked to other Tier 1 porphyry copper

17. Slide 17: Productora - The Right Location

    Productora- The Right Location For personal use only  Satellite Gravity highlights Productora’s ideal structural setting PRODUCTORA for a Tier 1 copper camp La Higuera Granitoid Ruta Cinco  Lying within a regional Granitoid NW transfer fault corridor against the East Atacama Fault Volcano- Zone se

18. Slide 18: Alice - Discovery Initiates Porphyry Exploration Phase

    Alice- Discovery Initiates Porphyry Exploration Phase For personal use only  Alice discovered next to Productora planned central pit in first ever exploration drilling outside the Main zone  Porphyry outcropping at surface- preserved major lithocap recognised  JORC compliant Resource of 17.9Mt@ 0

19. Slide 19: Alice - Small Deposit, Big Implications

    Alice- Small Deposit, Big Implications For personal use only Alice Plan View A Alice Copper Porphyry Resource Cross Section B A High grade copper B on western margin 26m@ 1.0% Cu 204m@ 0.6% Cu, 0.1g/t Au, (chalcocite zone) 48ppm Mo North including 26m@ 1.0% Cu, 0.2g/t Au, 30ppm Mo  High grade coppe

20. Slide 20: Alice Porphyry Copper Deposit

    Alice Porphyry Copper Deposit For personal use only PXP0001D, 169-170m, 1m@ 0.82% Cu, 0.03ppm Au, 149ppm Mo  Mineralisation hosted by High grade zones Qtz-Cpy (A) veins feldspar-crowded tonalitic porphyry Sheeted Qtz-Cpy (B) veins Bi-Chl (Dark Mica) veins  Multiple porphyry phases and vein generat

21. Slide 21: Shallow Level Porphyry Footprint

    Shallow Level Porphyry Footprint CASCABEL, Ecuador CASCABEL, Ecuador  Similar scale alteration Soil Bismuth Soil Tellurium For personal use only footprint as other known Tier 1 porphyry copper deposits  Bismuth and Tellurium indicate near-surface porphyry cluster at Productora 2km 2km PRODUCTORA,

22. Slide 22: Alteration Footprint Dimensions and Copper Endowment of Global Porphyry Deposits

    Alteration Footprint Dimensions and Copper Endowment of Various Global Porphyry Copper Deposits Size Matters GIANTS For personal use only  Large Alteration footprints = Large copper endowment Los Bronces, Chile - +200 Mt Cu Grasberg, Indonesia - 24 Mt Cu  Tier 1 porphyry copper deposits generally

23. Slide 23: Cadia, Productora and Cascabel porphyry comparison

    Cadia, Australia Productora , Chile Cascabel Porphyry (>8.4Mt Cu, >52Moz Au) Cadia Ridgeway (1.5Mt, 1Moz Au so far) Ecuador (? Mt Cu, Au) Alice and Chinamibcito Oxides Copper Big Cadia extensions North Aguinaga For personal use only America Tandayama Deposits Cadia Quarry Little Cadia form in Cadia

24. Slide 24: IP/MT Survey Detects Large Porphyry Cluster

    IP/MT Survey Detects Large Porphyry Cluster For personal use only Low chargeability surface lithocap  Cutting Edge IP/MT IP3 geophysical survey IP4 completed in late 2015 IP2 Alice Ext  Detection of six IP2 & Alice (6,822,600mN) IP1 shallow porphyry IP1 (6,822,000mN) targets beneath lithocap surfa

25. Slide 25: Geochemistry & IP Combined

    Geochemistry & IP Combined Relationship with sulphide alteration developed For personal use only  Mineralogical modelling shows an outer halo of pyrite at Alice (chargeable high) with the chalcopyrite rich zone showing relatively low chargeability Alice Porphyry Resource Section 6,822,600mN (IP Cha

26. Slide 26: Porphyry Target IP1

    Porphyry Target IP1 For personal use only  The largest target identified in the IP survey, displays a chargeable halo that is approximately 1km in diameter  Dimensions of the centre of the chargeable halo are approximately 500m in width, 500m in depth extent and up to 800m in strike extent Drillho

27. Slide 27: Porphyry Target IP2

    Porphyry Target IP2 For personal use only  Lies approximately 1km west of Alice, porphyry copper target exposed close to surface  Very strong chargeable halo surrounding a chargeable low which extends over approximately 400m in width, 500m in depth extent and up to 500m in strike extent Porphyry L

28. Slide 28: MT Survey Confirms Large Porphyry System at Depth

    MT Survey Confirms Large Porphyry System at Depth For personal use only  Very strong NNE trending chargeability anomaly continues to >1km depth below surface MT Depth Slice MT Depth Slice 500m RL Porphyry 0m RL IP Targets Central Pit Central Pit Design Design 2km 2km Exploration targets and results

29. Slide 29: Dating Studies Provide Missing Link

    Dating Studies Provide Missing Link For personal use only  New studies confirm the same age date for breccia hosted and porphyry hosted copper mineralisation  1.5Mt of copper metal (Main Zone Resource) interpreted to be sourced from the main porphyry copper system IP2 IP1 Alice (IP5) Porphyry IP T

30. Slide 30: Qualifying Statements

    Qualifying Statements For personal use only Mineral Resource and Ore Reserve Confirmation The information in this presentation that relates to Mineral Resources and Ore Reserve estimates on the Productora copper project was previously reported in the ASX announcement “Hot Chili Delivers PFS and Near

31. Slide 31: Productora JORC Compliant Mineral Resource

    Productora JORC Compliant Mineral Resource Productora Project Higher Grade Resource, March 2016 For personal use only Grade Contained Metal Tonnage Cu Au Mo Copper Gold Molybdenum Deposit Classification (Mt) (%) (g/t) (ppm) (tonnes) (ounces) (tonnes) Indicated 166.8 0.50 0.11 151 841,000 572,000 25,

32. Slide 32: Competent Person's Statement

    Competent Person’s Statement For personal use only Exploration Results Exploration information in this Presentation is based upon work undertaken by Mr Christian Easterday, the Managing Director and a full- time employee of Hot Chili Limited whom is a Member of the Australasian Institute of Geoscien

33. Slide 33: Appendix 1: Global porphyry deposit endowment data

    Cadia Australia 3260 0.25 0.41 8.4 43.0 4.5 26 8.4 43 >9 >8.4 >52 Source: http://www.newcrest.com.au/media/resource_reserves/3a._NCM_150216_Resources_and_Reserves_Statement_(Market_Release).pdf Source: http://www.newcrest.com.au/our-business/operations/cadia-nsw/ Candelari Chile 726.7 0.67 0.16 4.8

34. Slide 34: Hot Chili Limited contact details

    For personal use only Hot Chili Limited ACN 130 955 725 ASX: HCH Level 1, 768 Canning Highway, Applecross, Western Australia 6153 P: +61 8 9315 9009 F: +61 8 9315 5004 www.hotchili.net.au

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