Hot Chili: District-Scale Porphyry Cluster Potential Emerging at La Verde Cu-Au Discovery

Christian Easterday

Managing Director – Hot Chili

Tel:                +61 8 9315 9009

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Carol Marinkovich

Company Secretary – Hot Chili

Tel:                +61 8 9315 9009

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Graham Farrell

Investor & Public Relations

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Criteria

JORC Code explanation

Commentary

Sampling
techniques

• Nature and quality of sampling (e.g. cut 
  channels, random chips, or specific specialised
  industry standard measurement tools appropriate
  to the minerals under investigation, such as         down hole gamma sondes, or handheld XRF
  instruments, etc.). These examples should not be
  taken as limiting the broad meaning of sampling.

• Include reference to measures taken to ensure 
  sample representivity and the appropriate
  calibration of any measurement tools or systems
  used.

• Aspects of the determination of mineralisation
  that are Material to the Public Report.

• In cases where 'industry standard' work has    been done this would be relatively simple (e.g.   'reverse circulation drilling was used to obtain 1 m
  samples from which 3 kg was pulverised to
  produce a 30 g charge for fire assay'). In other
  cases more explanation may be required, such
  as where there is coarse gold that has inherent
  sampling problems. Unusual commodities or 
  mineralisation types (eg submarine nodules) may
  warrant disclosure of detailed information.

Drilling

All drilling undertaken by Hot Chili Limited ("HCH" or "the Company") is Reverse Circulation (RC).  Drilling has been carried out under Hot Chili (HCH)
supervision by an experienced drilling contractor (BlueSpec Drilling).

The RC drilling completed by HCH reached an average depth of approximately 320 meters.

RC drilling produced a 1m bulk sample and representative 2m samples (nominally a 12.5% split) were collected using a cone splitter, with sample
weights averaging 5 kg.

Geological logging was completed, and mineralised sample intervals were determined by the geologists to be submitted as 2m samples for RC.  In
RC intervals assessed as unmineralised, 4m composite (scoop) samples were collected for analysis.  If these 4m composite samples return results
with anomalous grade the corresponding original 2m split samples are then submitted to the laboratory for analysis.

Both RC samples were crushed and split at the laboratory, with up to 1kg pulverised, and a 50g pulp sample analysed by industry standard methods
- ICP-OES (33 element, 4 acid digest) and Au 30-gram fire assay.

Every 50th metre downhole was also assayed by ME-MS61 (48 element, 4 acid digest) for exploration targeting purposes.  

Sampling techniques used are deemed appropriate for exploration and resource estimation purposes for this style of deposit and mineralisation.

Historical Drilling: Existing drilling at the Domeyko project comprises eight Reverse Circulation (RC) holes drilled for a total of 2,299 m (drilled in 2010),
and twelve Diamond Core (DD) holes drilled for a total of 5,774 m (drilled between 2012 and 2014).

Available data pertaining to these campaigns of drilling is incomplete and unverifiable; as such HCH due diligence is continuing, and results of these
drill holes are considered to be of low confidence and not presently material.

Surface Geochemistry

A 400 m x 200 m grid spaced soil program has been undertaken by HCH across the broader project area, with infill soil sampling on a 200 m x 100
m grid over the La Verde open pit area, for a total of 1181 samples taken.

Soil samples at Domeyko were collected at a pre-determined sampling point by navigating to the WGS84 UTM co-ordinates with hand-held GPS,
then digging a hole 30 cm x 30 cm and 20 cm deep.

The first 10 to 15 cm of organic matter and soil were removed before residual soil was then placed through a 2mm sieve, with a ~500 g sample of the
fine fraction collected in a pre-labelled calico bag.

At each sampling point an excel spreadsheet was populated with the sample type e.g. Regolith, Colluvium or Alluvium.

All samples were tested by HCH personnel using an Olympus "Vanta" portable XRF and their magnetic susceptibility measured with an industry
standard KT-10 magsus meter. Each sample underwent subsequent multielement analysis by ALS laboratories.

Rock chip samples have been collected sporadically across the project areas by HCH geologists during geological mapping activities. These samples
have been taken from locations of interest as hand gathered float samples, or as fresh chips broken from outcrop with a hammer. In all cases a sample
of around 2kg has been taken in a calico bag, geologically described and the GPS location recorded.

Drilling
techniques

• Drill type (eg core, reverse circulation, open-hole
  hammer, rotary air blast, auger, Bangka, sonic,
  etc) and details (eg core diameter, triple or
  standard tube, depth of diamond tails, face
  -sampling bit or other type, whether core is
  oriented and if so, by what method, etc).

HCH drilling consisted of RC with face sampling bit (143 to 130mm diameter) ensuring minimal contamination during sample extraction.

2012 to 2014 DD drilling by Hudbay Minerals Inc. used HQ3 bits (61.1 mm internal diameter). Drill core was not oriented.

No information is available regarding the conduct of the 2010 RC drilling campaign.

Drill sample
recovery

• Method of recording and assessing core and     chip sample recoveries and results assessed.

• Measures taken to maximise sample recovery
  and ensure representative nature of the samples.

• Whether a relationship exists between sample 
  recovery and grade and whether sample bias
  may have occurred due to preferential loss/gain
  of fine/coarse material.

HCH Drilling: Drilling techniques to ensure adequate RC sample recovery and quality included the use of "booster" air pressure.  Air pressure used
for RC drilling was 700-800psi.

Logging of all samples followed established company procedures which included recording of qualitative fields to allow discernment of sample quality. 
This included (but was not limited to) recording: sample condition (wet, dry, moist), sample recovery (poor, moderate, good), sample method (RC:
scoop, cone).

The majority of HCH drilling had acceptable documented recovery and expectations on the ratio of wet and dry drilling were met, with no bias detected
between the differing sample conditions.

Historical Drilling: No information is available on historic RC drill sample recovery. Diamond core recovery was recorded in a provided spreadsheet,
which HCH has reviewed against the core photographs. Overall, good core recovery is observed.

At the current early project stage, it is unclear whether there is a relationship between sample recovery and grade.

Logging

• Whether core and chip samples have been
  geologically and geotechnically logged to a level
  of detail to support appropriate Mineral Resource
  estimation, mining studies and metallurgical
  studies.

• Whether logging is qualitative or quantitative in 
  nature. Core (or costean, channel, etc)   photography.

• The total length and percentage of the relevant 
  intersections logged.

HCH Drilling: Detailed descriptions of RC chips were logged qualitatively for lithological composition and texture, structures, veining, alteration, and
copper speciation. Visual percentage estimates were made for some minerals, including sulphides.

Geological logging was recorded in a systematic and consistent manner such that the data was able to be interrogated accurately using modern
mapping and 3D geological modelling software programs. Field logging templates were used to record details related to each drill hole.

Historical Drilling: Geological logs were provided as part of the data package for all drilling (DD and RC).

For DD, these logs have been reviewed against core photographs and are deemed to be of a reasonable standard for an early exploration target.

For RC, as chips and chip tray photographs are not available, no validation has been completed.

Sub-sampling
techniques
and sample
preparation

• If core, whether cut or sawn and whether     quarter, half or all core taken.

• If non-core, whether riffled, tube sampled, rotary 
  split, etc and whether sampled wet or dry.

• For all sample types, the nature, quality and 
  appropriateness of the sample preparation
  technique.

• Quality control procedures adopted for all sub-
  sampling stages to maximise representivity of
  samples.

•  Measures taken to ensure that the sampling is 
  representative of the in situ material collected,
  including for instance results for field 
  duplicate/second-half sampling.

• Whether sample sizes are appropriate to the 
  grain size of the material being sampled.

Drilling

RC drilling was sampled at two metre intervals by a fixed cone splitter with two nominal 12.5% samples taken: with the primary sample submitted to
the laboratory, and the second sample retained as a field duplicate sample. Cone splitting of RC drill samples occurred regardless of the sample
condition. RC drill sample weights range from 0.3kg to 17kg, but typically average 4kg.

All HCH samples were submitted to Copiapó ALS Lab (Chile) for sample preparation before being transferred to ALS Lima (Peru) for multi-element
analysis and ALS Santiago (Chile) for Au and Cu overlimit analysis.

RC samples were weighed, dried and crushed to 70% passing 2 mm and then split using a rotary splitter to produce a 1kg sub-sample. The crushed
sub-sample was pulverised with 85% passing 75 μm using a LM2 mill and a 110 g pulp was then subsampled, 20 g for ICP and 90g for Au fire assay
analysis.

ALS method ME-ICP61 involves a 4-acid digestion (Hydrochloric-Nitric-Perchloric-Hydrofluoric) followed by ICP-AES determination.

Samples that returned Cu grades >10,000ppm were analysed by ALS "ore grade" method Cu-AA62, which is a 4-acid digestion, followed by AES
measurement to 0.001%Cu.

Samples determined by geologists to be either oxide or transitional were also analysed by Cu-AA05 method to determine copper solubility (by
sulphuric acid).

Pulp samples were analysed for gold by ALS method Au-AA23 (Au 30g FA-AA finish) and Au-GRA21 for Au overlimit (Au by fire assay and gravimetric
finish, 30g).  ALS method ME-MS61 is completed on pulps for every 50th metre downhole, it involves a 4-acid digestion (Hydrochloric-Nitric-Perchloric-
Hydrofluoric) followed by ICP-MS determination.

Field duplicates were collected for RC drill samples at a rate of 1 in 50 drill metres i.e. 1 in every 25 samples (when 2m sampling intervals observed).
The procedure involves placing a second sample bag on the cone splitter to collect a duplicate sample.

For historic drilling competed at La Verde no information is available on sub-sampling techniques, other than the sub-sampling being completed at 2
m intervals for DD and 1 m intervals from the bulk sample for RC.

Limited information is available regarding the sample preparation and assaying methodology of the DD and RC samples, it appears that multiple
methods have been used and compiled into the available assay tables without supporting documentation available for verification.

Surface Geochemistry

Each sample underwent multielement analysis by ALS laboratories.

ALS Soil sample preparation included drying samples at <60°C/140°F, then sieving samples to -180 micron (80 mesh). Each sample was then
analysed by ALS method ME-MS61 4-acid digestion followed by ICP-MS determination, with gold analysis by Au-ICP21 (30 g Fire Assay ICP-AES
finish).

Rock chip samples submitted to ALS were dried, crushed to a nominal 20mm size and split, with around 400g pulverised and a subsequent pulp sub-
sample analysed by ALS method ME-MS61 4-acid digestion followed by ICP-MS determination, with gold analysis by Au-ICP21 (30 g Fire Assay ICP-
AES finish).

Quality of
assay data
and
laboratory
tests

• The nature, quality and appropriateness of the 
  assaying and laboratory procedures used and
  whether the technique is considered partial or
  total.

• For geophysical tools, spectrometers, handheld 
  XRF instruments, etc, the parameters used in
  determining the analysis including instrument
  make and model, reading times, calibrations
  factors applied and their derivation, etc.

• Nature of quality control procedures adopted (eg
  standards, blanks, duplicates, external laboratory
  checks) and whether acceptable levels of
  accuracy (ie lack of bias) and precision have
  been established.

Drilling

All HCH drill samples were assayed by industry standard methods through accredited ALS laboratories in Chile and Peru. Typical analytical methods
are detailed in the previous section and are considered 'near total' techniques.

HCH undertakes several steps to ensure the quality control of assay results. These include, but are not limited to, the use of duplicates, certified
reference material (CRM) and blank media:

Routine 'standard' (mineralised pulp) Certified Reference Material (CRM) was inserted at a nominal rate of 1 in 25 samples.

Routine 'blank' material (unmineralised quartz) was inserted at a nominal rate of 3 in 100 samples at the logging geologist's discretion - with particular
weighting towards submitting blanks immediately following mineralised field samples.

Routine field duplicates for RC samples were submitted at a rate of 1 in 25 samples.

Analytical laboratories provided their own routine quality controls within their own practices. No significant issues have been noted.

All results are checked in the acQuire™ database before being used, and analysed batches are continuously reviewed to ensure they are performing
within acceptable tolerance for the style of mineralisation.

HCH has not completed a comprehensive review of QA/QC data from historical drilling.

Surface Geochemistry

All soil samples collected at Domeyko were scanned using an Olympus "Vanta" portable XRF and tested for magnetic susceptibility with a portable
KT-10 meter.

Routine QA/QC standards are used at the beginning and end of each XRF campaign in addition to every 50 XRF measurements recorded.  Standards
have been selected to represent typical multi-element distribution for the style of deposit being analysed.

Routine comparison of soil sample XRF and assay results is completed at the end of each soil geochemical campaign.

Soil and rock chip samples were also submitted to ALS for multielement analysis by ME-MS61 method. This method provides 48 element analysis at
very low detection limits, suitable for mapping lithology from geochemistry. Analysis involves HNO₃-HClO₄-HF acid digestion, HCl leach, dissolving
nearly all minerals, this is paired with ICP-MS and ICP-AES analysis. This technique is appropriate for this type of sample and is considered total.

The analytical laboratories provided routine quality controls within their own practices. No significant issues have been noted. No company standards
or blanks are submitted by HCH.

All results are checked in the acQuire™ database before being used, and analysed batches are continuously reviewed to ensure they are performing
within acceptable tolerance for the style of mineralisation.

Verification
of sampling
and assaying

• The verification of significant intersections by
  either independent or alternative company
  personnel.

• The use of twinned holes.

• Documentation of primary data, data entry 
  procedures, data verification, data storage
  (physical and electronic) protocols.

• Discuss any adjustment to assay data.

All assay results have been compiled and verified to ensure veracity of assay results and the corresponding sample data. This includes a review of
QA/QC results to identify any issues prior to incorporation into the Company's geological database.

No adjustment has been made to assay data following electronic upload from original laboratory certificates to the database. Where samples returned
values below the detection limit, these assay values were set to half the lowest detection limit for that element.

The capture of drill logging data was managed by a computerised system and strict data validation steps were followed. The data is stored in a secure
acQuire™ database with modification access restricted to a dedicated database manager.

Documentation of primary data, data entry procedures, data verification and data storage protocols have all been validated through internal database
checks and by a third-party audit completed in 2022.

Visualisation and validation of drill data was also undertaken in 3D using multiple software packages - Datamine and Leapfrog with no errors detected.

Historical Drilling: No assays are being reported as the quality of supplied drill data cannot be verified.

One historic drillhole has been validated, returning comparable copper results. Further validation and twin holes are required. 

DD and RC sampling and assay results have been supplied as basic compiled spreadsheet format. The lack of information regarding sample chain
of custody procedures and analytical methods has limited the use of the data to exploration targeting until a future verification campaign with remaining
available core samples and/or twinning of existing holes.

No adjustment has been made any of the provided assay data.

Location of
data points

• Accuracy and quality of surveys used to locate 
  drill holes (collar and down-hole surveys),
  trenches, mine workings and other locations
  used in Mineral Resource estimation.

• Specification of the grid system used.

• Quality and adequacy of topographic control.

Drilling

The WGS84 UTM zone 19S coordinate system has been used.

HCH drill hole collar locations were surveyed on completion of each drill hole using a handheld Garmin GPS with an accuracy of +/-5 m. An
independent survey company was contracted to survey drill collar locations using a CHCNAV model i80 Geodetic GPS, dual frequency, Real Time
with 0.1cm accuracy.

Downhole surveys for HCH drilling were completed by the drilling contractor every 30m using an Axis Champ Navigator north seeking gyroscope tool
and Reflex GYRO north seeking gyroscope tool.

Historic drill hole collar co-ordinates were supplied in either PSAD or WGS coordinate system. Where necessary, a translation has been applied to
transform to WGS84 UTM zone 19S coordinate system. This translation is as follows:

               Coordinate Datum
                       PSAD-56
   Northing         Easting            RL
6814387.779  335434.643     970.49
              Coordinate Datum
                      WGS-84
   Northing        Easting             RL
6814009.615  335250.244  1003.611

Historic diamond drill holes have documented DGPS/ Total Station survey collar pickups, these are situated satisfactorily on the supplied DTEM and
commercial satellite imagery. Several holes have questionable locations on satellite imagery with no supporting documentation available to
satisfactorily resolve the error. Eight historic diamond drill collars were located by HCH and have been surveyed using the same method as HCH
drilling.  

Downhole surveys for historical drilling were completed every 10m by gyroscope. Exact specifications for the gyroscope tool are unknown. 

The topographic model used at Domeyko is deemed adequate for topographic control. Drillhole collar locations have been validated against the
topographic model.

Surface Geochemistry

Soil samples at Domeyko were collected at a pre-determined sampling point by navigating to the WGS84 UTM co-ordinates with hand-held GPS.

Rock chip samples have been collected at the discretion of the mapping geologist, sample locations have been recorded from handheld GPS set to
the WGS84 UTM datum.

Data spacing
and
distribution

• Data spacing for reporting of Exploration Results.

• Whether the data spacing and distribution is 
  sufficient to establish the degree of geological
  and grade continuity appropriate for the Mineral
  Resource and Ore Reserve estimation
  procedure(s) and classifications applied.

• Whether sample compositing has been applied.

Drilling

Drill spacing is not considered at this stage of the project.

Surface Geochemistry

A 400 x 200 m grid spacing soil program with a total of 1181 samples has been taken across the Domeyko leases. The soil sample lines were designed
on E-W grid with WGS84 UTM 19S point locations. This sample spacing is considered appropriate for first pass soil geochemical sampling.

Rock chips have been collected in a non-representative spacing, and do not reflect the character of the wider project area. This sampling cannot be
relied upon to imply geological or grade continuity.

Orientation
of data in
relation to
geological
structure

• Whether the orientation of sampling achieves 
  unbiased sampling of possible structures and the
  extent to which this is known, considering the
  deposit type.

• If the relationship between the drilling orientation 
  and the orientation of key mineralised structures
  is considered to have introduced a sampling bias,
  this should be assessed and reported if material.

The majority of drilling was oriented from -60° toward the east or west. In addition, some other drill orientations were used to ensure geological
representivity and to maximise the use of available drill platforms.

The orientation of drilling is considered appropriate for this style of mineralisation, and no sampling bias is inferred from drilling completed as. In
addition, copper-gold porphyry mineralisation is typically homogenous meaning a limited chance of bias is likely to be caused from drilling orientation

Sample
security

• The measures taken to ensure sample security.

For HCH data, a strict chain of custody procedures was adhered to.  All samples have the sample submission number/ticket inserted into each bulk
polyweave sample bag with the id number clearly visible. The sample bag is stapled together such that no sample material can spill out and no one
can tamper with the sample once it leaves Hot Chili custody.

The measures taken to ensure sample security for drilling completed by Hudbay Minerals Inc. are unknown.

Audits or
reviews

• The results of any audits or reviews of sampling 
  techniques and data.

None completed.

Criteria

JORC Code explanation

Commentary

Mineral
tenement and
land tenure
status

• Type, reference name/number, location and 
  ownership including agreements or material
  issues with third parties such as joint ventures, 
  partnerships, overriding royalties, native title
  interests, historical sites, wilderness or national
  park and environmental settings.

• The security of the tenure held at the time of 
  reporting along with any known impediments to
  obtaining a licence to operate in the area.

The Domeyko landholding comprises the following permits:

License ID         Area (Ha)

INES 1/40                     200

ANTONIO 1/40             200

ANTONIO 1 1/56          280

ANTONIO 5 1/40          200

ANTONIO 9 1/40          193

ANTONIO 10 1/21          63

ANTONIO 19 1/30        128

ANTONIO 21 1/20          60

CERRO MOLY 1          300

CERRO MOLY 2          300

CERRO MOLY 3          300

CERRO MOLY 4          300

PRIMO 1 1/6                  36

LORENA 1 AL 2               2

EMILIO 1 1/8                  38

EMILIO 3 1/9                  45

SANTIAGUITO 5 1/24  114

MERCEDITA 1 AL 7       22

CAZURRO 1                200

CAZURRO 2                200

CAZURRO 3                300

CAZURRO 4                300

CAZURRO 5                100

CAZURRO 6                200

CAZURRO 7                200

CAZURRO 8                200

DOMINOCEROS 1/20   20

Exploration
done by other
parties

• Acknowledgment and appraisal of exploration by
  other parties.

Previous exploration across the Domeyko project includes:

•  Cominco Resources – Seven RC holes of unknown length completed, soil sampling. No data available

•  BHP and Teck Cominco – Geological mapping and soil sampling. No data available

•  Rio Tinto – site visit and project appraisal. Report supplied to HCH

•  International Copper Corporation – geological mapping, trenching, rock chip sampling, final report available without raw data

•  Hudbay Minerals Inc – geological mapping, 116 rock chip samples taken (no data available), 3.4 km² of ground magnetic surveys, 67.2 line km of
   Titan IP/MT surveys (final images and reports supplied to HCH)

Geology

• Deposit type, geological setting and style of mineralisation.

Surface mapping is ongoing across the Domeyko project, which will increase understanding of the individual prospects contained within.

The copper mineralisation at the La Verde prospect is associated with multiple porphyry intrusions, with historical mining activity confined to a zone of
overlying supergene copper oxides. The relationship between this supergene zone and the suspected primary porphyry mineralisation is not yet
understood.

These porphyries have intruded into, and the vein systems cut through, the Cretaceous Bandurrias and Chañarcillo Formations (variously stratified
agglomerates, volcanic breccias, dacitic tuffs and limestones). Most of the western portion of the project area is overlain by eroded Atacama Gravel
sequences, with elongate fingers of the gravels extending across to the eastern boundary.

Drillhole Information

• A summary of all information material to the understanding of the
  exploration results including a tabulation of the following information for all
  Material drill holes:

• easting and northing of the drill hole collar

• elevation or RL (Reduced Level – elevation
  above sea level in metres) of the drill hole collar

• dip and azimuth of the hole

• down hole length and interception depth

• hole length.

• If the exclusion of this information is justified on
  the basis that the information is not Material and
  this exclusion does not detract from the
  understanding of the report, the Competent
  Person should clearly explain why this is the
  case.

The coordinates and orientations for HCH holes at La Verde are tabulated below:

Hole ID  East     North      RL      Azi Dip Hole Depth

DKP001 324551 6786082 1153   89  -59    390

DKP002 324837 6785976 1192 270  -60    354

DKP003 324840 6785971 1192 117  -59    282

DKP004 324423 6785836 1095   90  -60    120

DKP005 324564 6785789 1124   91  -60    248

DKP006 324727 6785721 1131 110  -60 199.5

DKP007 324742 6785854 1147 270  -60    204

DKP008 324748 6785855 1150    5   -60    324

DKP009 324552 6786075 1153 131  -60    354

DKP010 324742 6785851 1147 209  -60    276

DKP011 324429 6786096 1159   91  -60    326

DKP012 324839 6785977 1192 300  -60    306

DKP013 324839 6785971 1192 244  -60    437

DKP014 324747 6785852 1150 299  -61    444

DKP015 324434 6786096 1160 130  -60    313

DKP016 324416 6785947 1110 111   -60    360

DKP017 324685 6786094 1184   97  -61    336

DKP018 324428 6785834 1094   97  -60    145

DKP019 324720 6785721 1130 253  -61 279.5

DKP020 324588 6785751 1125 273  -60    144

DKP021 324319 6785616 1177   75  -60    402

DKP022 324415 6785528 1184   78  -60    288

DKP023 324326 6785423 1182   90  -60    402

DKP024 324416 6785423 1186 110  -60    402

DKP025 324415 6785313 1187 270 -75    276

DKP026 324312 6785870 1098 105 -60    147

DKP027 324906 6785755 1139 299 -60    402

DKP028 324758 6785617 1136 300 -60    432

DKP029 324758 6785615 1136 265 -60    366

DKP030 324774 6785770 1132 275 -60    393

DKP031 324564 6785789 1129 279 -60    279

The coordinates and orientations for all holes drilled by previous owners (where information was available) are tabulated below:

Hole ID            East     North      RL    Azi  Dip Hole Depth

DCH001-001   324610 6786359 1132 117  -56      250

DCH001-002   325488 6785703 1169 166  -61      250

DCH001-003   325557 6785770 1179 125  -55      250

DCH001-004   325297 6785746 1155 266  -75 700.95

DCH001-005   324799 6785171 1174   34  -70      150

DCH001-006   324671 6786105 1185 270  -84 533.35

DCH001-007   324058 6786138 1105   71  -52      400

DCH001-006A 324671 6786105 1185 270  -85      634

DCH001-008   324618 6785893 1139 270  -58      900

DCH001-009   324030 6785840 1139 100  -50   406.6

DCH001-010   324440 6785434 1188 270  -58 598.35

DCH001-011   324840 6786221 1176 270  -56 700.75

RC-01             324848 6786349 1197 260  -75      306

RC-02             324599 6785162 1205 270  -60      242

RC-03             324903 6785757 1136 270  -80      300

RC-04             326212 6785560 1210 240  -75      306

RC-05             324794 6785470 1147 270  -75      218

RC-06             324919 6785170 1166 240  -70      251

RC-07             325944 6780670 1268 270  -80      276

RC-08             326394 6780670 1283 270  -80      400

Note that all drillhole collars from previous owners were provided in the PSAD_56 co-ordinate system. A translation has been applied by HCH to
transform to WGS_84_19S.

Data
aggregation
methods

• In reporting Exploration Results, weighting
  averaging techniques, maximum and/or minimum
  grade truncations (eg cutting of high grades) and
  cut-off grades are usually Material and should be
  stated.

• Where aggregate intercepts incorporate short
  lengths of high-grade results and longer lengths
  of low grade results, the procedure used for such
  aggregation should be stated and some typical
  examples of such aggregations should be shown
   in detail.

• The assumptions used for any reporting of metal
  equivalent values should be clearly stated

In reported exploration results, length weighted averages are used for any non-uniform intersection sample lengths. Length weighted average is (sum
product of interval x corresponding interval assay grade), divided by sum of interval lengths and rounded to one decimal place.

Significant intercepts for La Verde are calculated above a nominal cut-off grade of 0.2% Cu. Where appropriate, significant intersections may contain
up to 30m down-hole distance of internal dilution (less than 0.2% Cu). Significant intersections are separated where internal dilution is greater than 30m
down-hole distance. The selection of 0.2% Cu for significant intersection cut-off grade is aligned with marginal economic cut-off grade for bulk tonnage
polymetallic copper deposits of similar grade in Chile and elsewhere in the world.

No top cuts have been considered in reporting of grade results, nor was it deemed necessary for the reporting of significant intersections.

Relationship
between
mineralisation
widths and
intercept
lengths

• These relationships are particularly important in
  the reporting of Exploration Results.

• If the geometry of the mineralisation with respect
  to the drill hole angle is known, its nature should
  be reported.

• If it is not known and only the down hole lengths
  are reported, there should be a clear statement
  to this effect (eg 'down hole length, true width not
  known').

The relationship of mineralisation widths to the intercepts for historic drilling is unknown.

Diagrams

• Appropriate maps and sections (with scales) and
  tabulations of intercepts should be included for
  any significant discovery being reported These
  should include, but not be limited to a plan view
  of drill hole collar locations and appropriate
  sectional views.

Refer to figures in the announcement.

Balanced
reporting

• Where comprehensive reporting of all
  Exploration Results is not practicable,
  representative reporting of both low and high
  grades and/or widths should be practiced to
  avoid misleading reporting of Exploration
  Results.

The coordinates and orientations for all HCH drill holes at La Verde have been reported either in the announcement text or Table 1.

No historical drilling information has been verified to the satisfaction of the company.

All drill hole locations are reported as supplied to the company.           

Other
substantive
exploration
data

• Other exploration data, if meaningful and
  material, should be reported including (but not
  limited to): geological observations; geophysical 
  survey results; geochemical survey results; bulk
  samples – size and method of treatment;
  metallurgical test results; bulk density,
  groundwater, geotechnical and rock
  characteristics; potential deleterious or
  contaminating substances.

A ground magnetic survey was conducted in June and July 2024 by Argali Geofisica Chile E.I.R.L. (Argali) on behalf of Hot Chili Limited. The survey
was conducted on north-south lines with a spacing of 100 m for a total of 1791 km. Readings were acquired as a continuous profile once every 1 second
or an approximate station spacing of approximately 0.5 to 1.5 m. The survey was competed in WGS84, Zone 19S and has been visualised as a pole
reduced magnetic map (RTP). A 3D magnetic inversion model was created by Terry Hoshke on behalf of Hot Chili Limited in April 2025 using the 2024
surface ground magnetic data.

Available historical data from previous exploration includes surface mapping, surface geochemical surveys and geophysical surveys (Ground magnetics
and Induced Polarisation surveys).

Historic surface geochemical sampling programs of both rock chip and soil samples have been undertaken over the project, however, the inconsistent
distribution, presence of extensive later cover sequences and questionable QA/QC status of the data has led the company to consider the results
unreliable.

A Titan-24 IP/MT survey was conducted in April and June 2008 by Quantec Geoscience Ltd. on behalf of Hudbay Minerals Inc. (as then subsidiary
Minera Quebrada de Oro S.A.). The survey was conducted in two grids of 300 m separated east-west oriented lines of 100 m spaced stations, reflecting
the separated tenement holdings at that time. Seven section lines were acquired in the western grid, and twenty one section lines in the eastern grid.

MAPING Ltda. of Santiago was contracted by Hudbay during June 2012 to complete a ground magnetometry survey over three separate areas. The
larger area covered the La Verde mine area with 65 east-west oriented, 25 m spaced lines. A smaller area over the San Antonio deposit was covered
with seven east-west lines at a 50 m spacing. Further to the south, in the area referred to by the company as Panacea, a similar size area was covered
by eight east-west 50 m spaced lines. Magnetometry data on all lines was acquired at 1 second intervals, equivalent to a lateral spacing of approximately 1.4 m.

3D geochemical modelling completed independently by Fathom Geophysics in April 2025 following the geochemical element zoning models for the
Yerington porphyry copper deposit in Nevada (Halley et al., 2015)

Halley, S., Dilles, J.H, and Tosdal, R.M., 2015, Footprints: Hydrothermal alteration and geochemical dispersion around porphyry copper deposits,
Society of Economic Geologists Newsletter v. 100, p 1, 12-17.

Cohen, J.F., 2011, Mineralogy and geochemistry of alteration at the Ann-Mason copper deposit, Nevada: Comparison of large-scale ore exploration
techniques to mineral chemistry: M.Sc. thesis, Corvallis, Oregon, Oregon State University, 112 p.

Further work

• The nature and scale of planned further work (eg
  tests for lateral extensions or depth extensions or
  large-scale step-out drilling).

• Diagrams clearly highlighting the areas of
  possible extensions, including the main
  geological interpretations and future drilling
  areas, provided this information is not
  commercially sensitive.

Additional work currently being across the Domeyko Project includes (but is not limited to) detailed litho-structural mapping, additional extensional and
infill soil geochemistry, twinning of existing drillholes and further exploration drilling.