Hot Chili (HCH) Corporate presentation summary

Strategic project highlights

• Costa Fuego is positioned as a top global copper-gold development with a new porphyry discovery and strategic water assets in Chile's Huasco Valley.

• The project benefits from low elevation (average 740 m), proximity to port (60 km), and access to existing infrastructure, reducing development risk and capital intensity.

• Costa Fuego's mineral resources total 798 Mt at 0.45% CuEq (indicated) and 203 Mt at 0.31% CuEq (inferred), with reserves of 502 Mt at 0.37% Cu, 0.10 g/t Au, and 0.49 g/t Ag.

• The La Verde porphyry discovery, 35 km from the central processing hub, has rapidly expanded with significant high-grade, near-surface intersections and ongoing drilling.

• The district hosts multiple untested porphyry targets, with regulatory approval for further exploration.

Financial and operational performance

• Pre-feasibility study (PFS) shows a post-tax NPV8% of US$1.2B, IRR of 19%, and a 4.5-year payback at US$4.30/lb copper and US$2,280/oz gold.

• Life-of-mine free cash flow is projected at US$3.86B, with annual production of 116 kt CuEq over 14 years and a 20-year mine life.

• C1 cash cost is US$1.38/lb Cu (net of by-product credits), placing the project in the bottom quartile for capital intensity among global peers.

• Project NPV increases by approximately US$100M for every US$0.10/lb increase in copper price above US$4.30/lb, highlighting strong leverage to copper price.

• Market valuation remains below peer group averages despite top-five production scale and near-term development status.

Water infrastructure and strategic assets

• The Huasco Water Project offers a multi-decade, multi-user seawater and desalinated water supply, with a post-tax NPV8% of US$122M (seawater) and US$977M (desalinated water).

• Stage 1 provides 500 L/s seawater supply to Costa Fuego, with a 4.5-year payback and robust profitability index.

• Stage 2 and 3 expand to 2,300 L/s desalinated water, targeting over 4,000 L/s of identified demand in the region.

• Only active maritime license in the Huasco Valley region, providing a strategic advantage for water supply to mining and industrial clients.