Hot Chili Strengthens Executive Team for Costa Fuego Development

Hot Chili Strengthens Executive Team for Costa Fuego Mine Development

Hot Chili Limited (ASX: HCH, TSXV: HCH, OTCQX: HHLKF) has made two strategic leadership appointments that significantly bolster the company's mine-building capabilities as it approaches the final stages of development for its Costa Fuego copper-gold project in Chile.

Mining Heavyweights Join Hot Chili's Leadership Team

In a decisive move to strengthen its development capabilities, Hot Chili has appointed Stuart Mathews as Non-Executive Chair and Alberto Cerda as Project Director. These appointments come at a critical inflection point as the company prepares to commence Definitive Feasibility Studies for both its Costa Fuego copper-gold project and Huasco Water project in Chile.

Stuart Mathews brings over 32 years of international mining experience to Hot Chili, most recently serving as Executive Vice President at Gold Fields, where he managed regional operations producing more than 1 million ounces of gold annually. His track record includes successfully delivering five mining projects from exploration through to full operations.

Alberto Cerda joins as Project Director with more than 40 years of experience in the Chilean mining industry. His impressive resume includes leadership roles with mining giants Newmont, Barrick, Antofagasta Minerals, Glencore, BHP Billiton, and CODELCO. Cerda's project development expertise spans some of Chile's most significant mining operations, including Los Pelambres, Lomas Bayas, Antamina, Collahuasi, and Spence.

"The Company welcomes these two key appointments at an important inflexion point in the Company's growth and looks forward to Stuart and Alberto's contribution and stewardship of Hot Chili's final stages of investment to deliver a new mid-tier copper-gold producer." – Hot Chili Board

Understanding Definitive Feasibility Studies

A Definitive Feasibility Study (DFS) represents the final and most detailed technical and economic assessment of a mining project before a company makes the decision to proceed with construction and development.

For investors, a DFS is particularly significant because it:

• Provides detailed capital and operating cost estimates with high accuracy (typically ±10-15%)
• Includes comprehensive engineering designs for all aspects of the project
• Outlines detailed production schedules and financial models
• Identifies and addresses key technical, environmental, and social risks
• Serves as the foundation document for securing project financing

Hot Chili's upcoming DFS for Costa Fuego will provide investors with the clearest picture yet of the project's economic potential and development timeline.

Strategic Significance of Costa Fuego

Hot Chili's flagship Costa Fuego copper-gold project holds particular strategic value due to its:

1. Advantageous Location: Situated at low elevation along Chile's coastal range, the project benefits from easier access and development conditions compared to high-altitude projects
2. Dual-Resource Development: The concurrent development of the Huasco Water project demonstrates Hot Chili's comprehensive approach to resource management
3. Chile's Mining Credentials: Chile remains the world's largest copper producer with well-established mining infrastructure and regulatory frameworks

The Hot Chili Costa Fuego development represents a significant opportunity in the copper sector, particularly as global copper demand continues to increase with the ongoing energy transition.

Why These Appointments Matter to Investors

These appointments clearly signal Hot Chili's transition from exploration to development and represent a significant de-risking step for investors. Here's why these appointments are particularly noteworthy:

The Importance of Copper in the Global Economy

Copper remains one of the most important industrial metals globally, with applications spanning electrical wiring, plumbing, telecommunications, and increasingly, renewable energy technologies. The metal's excellent conductivity, corrosion resistance, and recyclability make it a critical mineral for the global energy transition.

Key demand drivers for copper include:

• Electric Vehicles: Require up to four times more copper than conventional vehicles
• Renewable Energy: Wind and solar power installations use significantly more copper than conventional power generation
• Grid Infrastructure: Upgrading power grids to handle renewable energy requires substantial copper investment
• Construction: Continued urbanisation globally drives demand for copper in building applications

This growing demand environment provides a favourable backdrop for the Hot Chili Costa Fuego development, potentially supporting strong future pricing for the project's primary commodity.

Hot Chili's Path Forward

With these strategic appointments, Hot Chili is positioning itself to advance rapidly through the final stages of project development. The company's path forward now includes:

• Commencement of Definitive Feasibility Studies for Costa Fuego copper-gold project
• Parallel development of the Huasco Water project
• Leveraging the combined expertise of Mathews and Cerda to optimize project design and execution
• Transitioning from explorer to producer status in the mid-tier copper mining space

The appointment of executives with substantial mine-building experience suggests the company is increasingly confident in the technical and economic viability of the Hot Chili Costa Fuego development.

Why Investors Should Follow Hot Chili

Hot Chili now represents a compelling opportunity for investors interested in the copper sector for several reasons:

1. Development-Ready Asset: Costa Fuego is advancing toward construction decision
2. Strengthened Leadership: The company now has the technical expertise to deliver a major mining project
3. Strategic Commodity: Copper demand continues to grow with energy transition and electrification trends
4. Favourable Jurisdiction: Chile offers established mining infrastructure and regulations
5. Water Solution: The parallel Huasco Water project addresses a critical development constraint

Key Takeaway:
Hot Chili has positioned itself for the critical transition from explorer to producer by appointing two highly experienced mining executives with proven track records in project delivery. As copper demand continues to grow with global electrification, the company's Costa Fuego project in Chile represents a significant development opportunity now backed by world-class mine-building expertise.

Biographies of Hot Chili's New Leadership

Stuart Mathews – Non-Executive Chair

Stuart Mathews brings an impressive international mining background to Hot Chili, with more than 32 years' experience working across Australia, Mexico and New Zealand. After completing his Master of Science (Geology) from the University of Canterbury, New Zealand, Mathews progressed rapidly through geology roles to management positions.

His career includes:

• 15 years in project development and general operations management
• Five years as a C-level executive
• Successfully delivering five mining projects from exploration through to full operations
• Most recently serving as Executive Vice President – Australasia at Gold Fields
• Managing Gold Fields' regional mining portfolio producing over 1 million ounces of gold annually

Alberto Cerda – Project Director

Alberto Cerda is a Chilean mining engineer with over 40 years' experience in the national and international mining industry. His extensive experience includes oversight of:

• Mining reserves and production across underground and open pit operations
• Metallurgical processes
• Metal marketing
• Corporate governance
• Business operations

Cerda's career spans roles as Mine Manager, General Manager and Project Director across major mining projects including Los Pelambres, Lomas Bayas, Antamina, Collahuasi, Spence, Cerro Colorado and El Indio. Most recently, he led the Norte Abierto Joint Venture as Project Director for Newmont and Barrick in northern Chile.

The combination of Mathews' and Cerda's expertise positions Hot Chili with the leadership capability necessary to navigate the Hot Chili Costa Fuego development through its critical final stages toward production. Furthermore, their experience complements other successful mining companies such as those achieving significant gold sales and companies operating in the uranium market which face similar development challenges.

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