Hot Chili's La Verde Discovery Set to Transform Costa Fuego Copper-Gold Project with Major Resource Expansion

Near-Surface Enrichment Zone Presents Shallow Higher-Grade Starter Pit Potential

Ongoing shallow infill and step-out drilling at La Verde's high-grade core up-dip extension has delivered exceptional results, defining a significant near-surface enrichment zone. Reverse circulation hole DKP053 intersected 250 metres grading 0.50% copper equivalent (CuEq) from 64 metres depth, including 36 metres at 0.72% CuEq (0.59% Cu, 0.18g/t Au) from 82 metres. Similarly, DKP054 returned 124 metres at 0.46% CuEq from 42 metres depth, with a 26-metre internal high-grade interval grading 0.71% CuEq from 58 metres.

Consistent shallow higher-grade mineralisation across multiple holes—including DKP056 with 90 metres at 0.45% CuEq from 56 metres (30 metres at 0.62% CuEq) and DKP058 with 108 metres at 0.54% CuEq from 24 metres—supports a higher-grade starter pit opportunity for Costa Fuego. Results from nearby up-dip hole DKP052 are pending and may further reinforce this feature. Numerous intersections exceed 0.7% CuEq from shallow depths, enhancing project economics by enabling early cash flow from a higher-grade initial pit before transitioning to bulk tonnage mining.

Step-Out Diamond Drilling Expands La Verde’s Eastern and Western Flanks at Depth

Diamond drilling step-outs confirm substantial bulk tonnage extensions and ongoing expansion of La Verde's high-grade mineralised footprint at depth. Hole DKD049, a 175-metre step-out from previous top-grade intersection DKD039, returned 213 metres grading 0.44% CuEq from 504 metres, including 57.3 metres at 0.60% CuEq (0.51% Cu, 0.10g/t Au) from 535.8 metres. This confirms the eastern flank extends deeper and further than previously defined.

On the western flank, hole DKP028D extended a prior RC hole that ended in mineralisation, intersecting 258.9 metres at 0.42% CuEq from 358 metres depth, including 27.4 metres grading 0.76% CuEq (0.63% Cu, 0.16g/t Au) from 499.5 metres. These results indicate open mineralisation westward with potential for further extension. Combined eastern and western expansions systematically enlarge La Verde’s mineralised footprint laterally and vertically, reinforcing its status as a cornerstone asset.

Copper Equivalent Calculations and Metal Price Assumptions for La Verde Reporting

Hot Chili calculates copper equivalent (CuEq) grades for La Verde drill intersections using a standard formula incorporating copper, gold, molybdenum, and silver: CuEq% = ((Cu% × Cu price × Cu recovery) + (Mo ppm × Mo price × Mo recovery) + (Au ppm × Au price × Au recovery) + (Ag ppm × Ag price × Ag recovery)) ÷ (Cu price × Cu recovery). Metal prices applied are USD 4.50/lb for copper, USD 3,150/oz for gold, USD 20/lb for molybdenum, and USD 30/oz for silver. The announcement, dated 28 July 2026, does not specify the exact date these prices were set.

Recovery rates are based on the Cortadera deposit as a proxy due to similar mineralisation and metallurgical characteristics: 83% copper, 56% gold, 83% molybdenum, and 37% silver. All reported intersections are assumed fresh (unweathered) mineralisation. This methodology allows direct comparison with Cortadera and other regional porphyry deposits, though definitive metallurgical test work specific to La Verde is pending.

Enhanced Assay Turnaround with Second Accredited Laboratory Operating at Full Capacity

Hot Chili has improved assay processing by bringing a second accredited laboratory to full capacity, significantly reducing turnaround times. Results are pending for 21 drill holes: three diamond holes, three diamond tails, and 15 reverse circulation holes. This advancement resolves previous bottlenecks delaying drill result releases, enabling more frequent updates on exploration progress.

Accelerated assay turnaround is critical as Hot Chili targets a maiden Mineral Resource Estimate for La Verde later in 2026 and a revised Pre-Feasibility Study thereafter. Next drill results are expected soon, following improved assay processing and remedial efforts after recent heavy rains in the Atacama. Dual-laboratory capacity positions Hot Chili to deliver consistent drilling and technical updates to investors.

Costa Fuego Project Integration and Environmental Impact Assessment Timeline

Multiple technical workstreams are advancing to integrate La Verde into Costa Fuego’s production strategy and mine plan. Hydrogeological, geotechnical, metallurgical, mine engineering, and environmental studies support the deposit’s incorporation into the planned central processing hub. This integrated approach maximises economies of scale and operational synergies across the multi-deposit project.

Hot Chili’s timeline includes a maiden Mineral Resource Estimate for La Verde in late 2026, followed by a revised Pre-Feasibility Study incorporating La Verde, and culminating with an Environmental Impact Assessment submission in Q2 2027. This progression from resource definition to feasibility and permitting reflects a disciplined path toward development readiness. The board expects La Verde’s integration to transform Costa Fuego’s financial metrics and global ranking, with the combined project already among the world’s top five independent copper developments by scale.

La Verde Strengthens Costa Fuego’s Position as a Top-Five Global Copper Development

Hot Chili highlights La Verde as a transformative porphyry discovery elevating Costa Fuego’s global standing among independent copper projects. The deposit’s high-grade starter pit and substantial bulk tonnage extensions position Costa Fuego to compete globally on scale, mine life, and capital efficiency.

Located 30 kilometres south of Costa Fuego’s central processing hub in Chile’s Atacama region, La Verde offers operational proximity enabling cost-effective ore transport and processing integration. This supports Hot Chili’s strategy to develop Costa Fuego as a multi-deposit, long-life copper operation, enhancing investor confidence and market valuation compared to single-deposit mines.

Mineralisation Style and Metallurgical Amenability Validated Across La Verde and Cortadera

Preliminary metallurgical test work at La Verde indicates mineralisation compatible with processing methods used at the Cortadera deposit. Using Cortadera as a proxy for recovery assumptions is justified by similar mineralisation styles and metallurgical behaviour. This suggests La Verde ore can be efficiently processed through a shared central facility without requiring costly new infrastructure.

While detailed metallurgical results at La Verde are not disclosed, initial amenability studies support proxy recovery assumptions. Further comprehensive testing—including locked-cycle leach and flotation tests—will be conducted as La Verde advances toward resource estimation and pre-feasibility evaluation, refining recovery and processing flowsheets.

Geological Continuity and Footprint Expansion Bolster Resource Classification Confidence

Recent drilling results confirm geological continuity and systematic expansion of La Verde’s mineralised footprint. Near-surface holes (DKP053, DKP054, DKP056, DKP058) define the enrichment zone for the higher-grade starter pit, while step-out holes (DKD049, DKP028D) extend mineralisation east, west, and deeper. This spatial data supports resource classification under the JORC Code into Indicated and Inferred categories.

With assay results pending for 21 additional drill holes, data density will increase, potentially upgrading resource classifications. The combined shallow infill and deeper step-out drilling exemplify best practices for porphyry copper exploration, positioning Hot Chili to deliver a robust maiden resource estimate.

Investor Outlook and Upcoming Catalysts for Hot Chili and La Verde

Hot Chili’s board anticipates increased news flow driven by faster assay turnaround following recent remedial work after heavy rains in the Atacama. Upcoming drill results from La Verde and assays for 21 pending holes represent near-term catalysts. Key milestones include the maiden Mineral Resource Estimate for La Verde expected later in 2026, a revised Pre-Feasibility Study integrating La Verde, and the Environmental Impact Assessment submission in Q2 2027.

These milestones mark critical steps toward permitting and financing a large-scale copper project. The board emphasizes La Verde’s transformative impact on Costa Fuego’s economics—potentially lowering capital costs per tonne, improving ore grade, extending mine life, and boosting cash flow. Investors should monitor ongoing drilling updates, the maiden resource release, and guidance on the revised Pre-Feasibility Study to assess Costa Fuego’s development potential.