Hot Chili (HCH) investor relations material

Strategic positioning and industry context

• Positioned as a top five independent copper development project globally, with a 1.5 billion ton coastal hub and a 30-year mine life, exceeding the annual metal production of former major Australian producers.

• Copper prices have surged from $4 to $7–$8 per pound in recent months, making copper the top metal market by value and driving renewed exploration and development activity.

• The project benefits from a low-elevation, coastal location near infrastructure, providing significant capital and operational advantages over high-altitude competitors and reduced permitting timelines.

• Institutional interest is growing, with major shareholders like Glencore, increasing ETF coverage, and a TSXV listing to access North American capital.

• The average timeline to bring a large copper project to production is about 21 years, highlighting the long-term commitment and strategic planning involved.

Project development and milestones

• Significant progress at Costa Fuego, including a major new porphyry discovery at La Verde, with over 29,000m of drilling defining a 1,000m x 800m x 800m mineralised footprint, open in all directions.

• La Verde is expected to provide a high-grade starter pit, potentially boosting front-end grades by 20–30% compared to previous pre-feasibility studies.

• Maiden Mineral Resource Estimate for La Verde is expected later in 2026, with integration into the Costa Fuego production hub and a revised PFS planned.

• First production is targeted for 2031, with an Environmental Impact Assessment (EIA) submission planned for Q2 next year.

• The project aims for 100,000–150,000 tons of copper equivalent production per year, with a mine life of 20–30 years and payback periods potentially reduced to 2.5 years.

Financial and operational outlook

• Costa Fuego’s PFS delivers a post-tax NPV8% of US$1.2B, IRR of 19%, and a payback period of 4.5 years at US$4.30/lb copper price, with updated economics potentially doubling NPVs and IRRs.

• Project demonstrates strong leverage to copper price, with every US$0.10/lb increase in copper price adding ~US$100M to NPV8%.

• The company holds the only maritime water license in the Huasco region, a strategic asset for both operations and potential monetization, with a staged, fully permitted seawater supply business showing a post-tax NPV8% of up to US$977M.

• $60 million is budgeted for development, EIA preparation, and drilling in the coming year, with a major resource milestone and pre-feasibility update expected by year-end.

• Costa Fuego ranks among the top five independent copper developers globally by life-of-mine annual CuEq production, with bottom quartile capital intensity and C1 cash costs.