Hot Chili Limited (ASX: HCH) (TSXV:HCH) (OTCQB: HHLKF) ('Hot Chili' or 'Company') is pleased to announce that recent drill results from its Cortadera copper-gold discovery continue to expand the deposit ahead of a global resource upgrade for the Company's Costa Fuego coastal copper development in Chile. Three months of drilling results from the end of the Company's 2021 drilling campaign at Cortadera are being compiled and further announcements are expected.

Hot Chili's Managing Director, Christian Easterday, said 2022 is shaping up to be an exciting year following a very strong set of achievements in 2021. 'We commence the year with $34 million in treasury, 100 percent ownership of Cortadera, Glencore as a strategic investor and our Company now consolidated and dual-listed in Canada.

'It is pleasing to see further growth in Cortadera's open pit potential with these new drill results and we look forward to announcing further results soon. 'A resource upgrade this quarter and a combined pre-feasibility study in the third quarter will position Costa Fuego as a production front-runner in the senior copper development space this year. 'In addition, we have kicked off our next phase of growth, with first drilling well underway across the first of several large exploration targets we will be testing this year, all capable of materially lifting the scale and economics of Costa Fuego even further.'

New Drill Results Expand Shallow Resource Potential at Cortadera

Drilling in late 2021, focussed on expanding any remaining open flanks on each of Cortadera's three porphyries and completing required in-fill drill holes for upgrading resource classification. Initial results analysed from shallow Reverse Circulation (RC) drilling across Cuerpo 1 and Cuerpo 2 has confirmed wide intersections of copper-gold mineralisation from surface across both porphyries. Cuerpo 2 has recorded some of the highest grade copper results at Cortadera and the recent campaign to delineate the shallow mineralisation has proven successful. Expansion of the +0.4% CuEq mineralisation from surface was bolstered by several drillholes, particularly to the south and east of Cuerpo 2. So far, up to five drillholes have recorded significant intercepts of +0.3% CuEq mineralisation at a maximum of 36 m downhole with the majority from less than 10 m downhole. This material is predominately within the oxidised weathering zone and suggests that an expansion of the +0.4% Cu material laterally and vertically is likely at Cuerpo 2. In addition, several wide intersections of mineralisation were recorded across Cuerpo 1, further expanding the +0.3 CuEq* mineralisation extent.

2022 Drilling Campaign Underway

Hot Chili has commenced an initial 20,000m exploration drilling programme to test several prioritised, large copper-gold targets within its combined Costa Fuego landholding in Chile. RC drilling commenced in late December 2021 across the Productora central target, located immediately adjacent to the Productora resource and measuring 1.2km by 1.0km in dimension. Three of eight first-pass RC drill holes are complete, and several diamond hole extensions are planned once RC drill results are received. Additional targets located within the consolidated Costa Fuego landholdings (Productora, Santiago Z and El Fuego) are scheduled for drilling over the coming months. The Company has received regulatory approval for platform clearing at Santiago Z, which is planned to commence in the coming month. In addition, drilling is planned across multiple extensional targets located within the Cortadera landholding, outside of the Cortadera resource window. All priority targets have been selected based on their potential to add further bulk tonnage scale to the Costa Fuego development or alternatively provide higher grade ore sources for early production.

News Flow and Key Catalysts in 2022

Hot Chili is fully funded for 18 months to accelerate its growth and development plan for Costa Fuego.

The Company expects to provide further news flow over the coming weeks, including:

Further Cortadera drilling results being received, reviewed and compiled from 2021 resourcedrilling.

Development study updates related to advances in mining optimisations and metallurgical workstreams for the Costa Fuego combined Pre-feasibility study,

Corporate updates, and Exploration drilling updates as results are received Key Catalysts expected this year include:

1. Global Mineral Resource upgrade for Costa Fuego expected in Q1

2. Off-take agreement with Glencore (60% of first 8 years of production) expected in Q1

3. Pre-feasibility study for Costa Fuego expected in Q3

This announcement is authorised by the Board of Directors for release to ASX.

Contact:

Christian Easterday

Managing Director

Hot Chili

Tel: +61 8 9315 9009

Email: christian@hotchili.net.au

Penelope Beattie

Company Secretary

Hot Chili

Tel: +61 8 9315 9009

Email: Penelope@hotchili.net.au

ASX Investor

Investor & Public Relations

Australia

Email: eliza@asxinvestor.com.au

Harbor Access LLC

Investor & Public Relations

Canada

Email: Graham.Farrell@harboraccessllc.com

Email: jonathan.paterson@harboraccessllc.com

Website: www.hotchili.net.au

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