Valentina Mine Confirmed Strike Extension

AUSTRALIA - Hot Chili Limited reported the highest-grade drill intersection recorded to date. First assays returned from drilling across the historical Valentina high grade copper mine in Chile, confirm a significant 120m strike extension to the deposit, recording 8m grading 5.9% CuEq (5.7% copper (Cu), 24.1g/t silver (Ag)) from 27m downhole in reverse circulation (RC) drill hole VAP0009.

Valentina and its neighboring San Antonio satellite copper deposit (Inferred resource of 4.2Mt grading 1.2% CuEq (1.1% Cu, 2.1g/t Ag) for 48kt Cu and 287koz Ag, reported March 2022) are located immediately to the east of Cortadera, the centre-piece of the Company’s Costa Fuego, coastal range, copper-gold hub in Chile.

Both deposits represent shallow high grade open pit opportunities, with the potential to provide front-end ore sources and make a positive material impact on the payback period and overall project economics of the Costa Fuego copper-gold development.

Hot Chili’s recently completed phase-one drilling program at Valentina primarily focussed on proving continuity of the mineralized trend along strike of the successful 2018 drill campaign. Of the nine holes as part of a phase-one program, four drill holes recorded significant intersections. Best drill intersections include: 8m grading 5.9% CuEq (5.7% Cu, 24.1g/t Ag) from 27m depth and 2m grading 1.9% CuEq (1.8% Cu, 11g/t Ag) from 46m depth (VAP0009); and 7m grading 2.0% CuEq (1.9% Cu, 11g/t Ag) from 163m depth (VAP0004).

Drilling confirms continuity of the mineralized Valentina structure 120m south of current underground workings, in an area previously masked at-surface by a shallow horizon of Atacama gravels.

Mineralization is interpreted to be fault-hosted, dipping steeply towards the east within a sequence of volcanic-sedimentary units, similar to the deposit setting of the neighboring San Antonio resource. Copper grades between 27m and 35m depth in VAP0009 were associated with both copper sulphide (2-5 % chalcopyrite) and oxide mineralization.

Importantly, the result in RC drill hole VAP0009 is complimented by a twin Diamond Drill (DD) hole (VALMET0002 drilled for metallurgical test work), which recorded a much wider 17m visual intersection of copper sulphide and oxide mineralization .

Assay results for VALMET0002 are expected to be received shortly following additional test work requirements and delays in receiving ore grade analysis results. A second-phase of seventeen shallow RC drill holes has been recently completed at Valentina with results expected to be received soon.

Thirteen RC and three DD drill holes have been completed at the San Antonio high-grade copper resource to upgrade its categorization from Inferred to Indicated, ahead of a planned resource upgrade for Costa Fuego in late 2022. RC drill holes have in-filled and extended the mineralized trend along interpreted high-grade plunging shoots, with most of the drill holes supporting the current interpretation of structure and mineralization at San Antonio.

Diamond drillholes will provide material for metallurgical testwork, key to the inclusion of the San Antonio Resource in the Costa Fuego combined prefeasibility study (PFS) due in Q1 2023. Assay results from San Antonio drilling are also expected to be received soon.

First drilling is now underway across the Santiago Z porphyry target, one of several large-scale targets planned for testing this year.

The Company looks forward to next drilling results from Valentina and San Antonio, and an exciting period of exploration drilling across its consolidated, coastal range, landholdings.