Lecture on Hot Chili Limited's Copper Development Project

Introduction

• Speaker: Christian East, CEO and Managing Director of Hot Chili Limited
• Location: Chilean Coastline, North of Santiago
• Project Focus: Costa Fuego Copper-Gold Hub
• Project Status: One of the largest undeveloped projects being positioned for production by the end of this decade

Recent Activities

Conferences and Roadshows

• BMO Conference:
  • High attendance, significant for networking in the mining sector
  • Hot Chili Limited invited despite its current market cap
• PDAC Conference:
  • Opportunity for further engagement with the North American market
  • Speaking engagements planned
• Asia Visit:
  • Focus on relationship building and infrastructure meetings in Japan

Project Developments

Resource Upsizing

• Drilling Results:
  • Infill drilling to enhance geotechnical, metallurgical, and hydrogeological understanding
  • 85% of resources now measured and indicated
• Current Resource Estimates:
  • 800 million tons measured and indicated
  • Additional 200 million tons indicated
  • Total approximately 1 billion tons
  • 3.6 million tons of contained copper and over 3 million ounces of gold

Feasibility and Development Plans

• PFS and BFS Stages:
  • Pre-feasibility to be delivered later this year
  • Bankable feasibility study planned for next year

Project Scale and Strategy

• Project Design:
  • Combined open-pit and underground mining
  • 100,000 tons per annum production capacity
• Capital and Operational Costs:
  • Low capital and operating costs due to favorable location (low elevation, access to seawater)
  • $1.33 per pound operating cost

Strategic Positioning

Market Potential

• Copper Market Dynamics:
  • High incentive price for copper development
  • Positioned as one of few large projects outside major mining companies

Infrastructure and Water Strategy

• Water Supply Challenges:
  • Water scarcity in Atacama necessitates desalination
  • Hot Chili possesses key water extraction licenses
• Potential for Multi-User Water Network:
  • Government support for shared infrastructure
  • Significant cost and time savings

Financing and Growth Strategy

• Funding Strategies:
  • Options to minimize equity dilution
  • Potential royalty and streaming agreements
• Exploration and Growth:
  • Ongoing drilling and geophysical exploration
  • Potential regional consolidation to expand resources

Challenges and Considerations

• Market Conditions:
  • Depressed equity markets necessitate strategic financing
• Long-Term Planning:
  • Environmental impact assessments and permitting
  • Consideration for future project scaling in design

Conclusion

• Vision and Future Steps:
  • Aim to become a key player in copper production
  • Continued focus on financing, infrastructure partnerships, and sustainable development