Wide & Shallow Copper-Gold Results Lift Cortadera’s Open Pit Potential

Christian Easterday

Tel: +61 8 9315 9009

Managing Director – Hot Chili

Email: christian@hotchili.net.au

Penelope Beattie

Tel: +61 8 9315 9009

Company Secretary – Hot Chili

Email: Penelope@hotchili.net.au

ASX Investor

Investor & Public Relations (Australia)

Email: eliza@asxinvestor.com.au

Harbor Access LLC

Email:Graham.Farrell@harboraccessllc.com

Investor & Public Relations (Canada)

Email:jonathan.paterson@harboraccessllc.com

Coordinates

Azim

Dip

Hole

Intersection

Interval

Copper

Gold

Silver

Molybdenum

Cu Eq

Hole_ID

Depth

North

East

RL

From

To

(m)

(% Cu)

(g/t Au)

(ppm Ag)

(ppm Mo)

(% Cu Eq)

CRP0148

6813870

335545

993

84

-61

252

0

252

252

0.3

0.1

0.6

4

0.4

including

0

156

156

0.4

0.2

0.8

5

0.4

or

including

90

122

32

0.5

0.2

0.9

2

0.6

CRP0149

6813791

335636

1009

10

-58

266

112

204

92

0.3

0.1

0.4

3

0.3

CRP0151

6813865

335540

992

169

-75

162

0

124

124

0.2

0.1

0.5

15

0.3

CRP0152

6813938

335679

982

180

-60

162

10

158

148

0.2

0.1

0.5

10

0.2

CRP0153

6813959

335619

977

31

-60

102

36

86

50

0.3

0.1

0.5

18

0.3

CRP0154

6813959

335619

977

321

-60

168

8

114

106

0.2

0.1

0.4

17

0.2

CRP0158

6813926

335491

977

200

-60

150

4

66

62

0.4

0.1

0.6

11

0.4

including

26

44

18

0.6

0.2

1

3

0.7

CRP0176

334831

6814172

953

143

-71

252

0

114

114

0.3

0.1

0.6

46.8

0.3

including

0

24

24

0.6

0.1

1.2

7.7

0.6

CRP0177

334735

6814270

976

10

-60

294

14

34

20

0.3

0.1

0.5

34

0.3

CRP0178

334834

6814171

953

210

-70

312

0

72

72

0.4

0.1

0.8

46

0.4

including

0

28

28

0.7

0.1

1.5

17

0.7

CRP0183

334935

6814283

960

257

-74

234

10

90

80

0.4

0.1

0.8

8

0.4

including

44

56

12

0.6

0.1

1.1

12

0.6

and

192

214

22

0.3

0

0.7

28

0.3

CRP0184

334814

6814328

957

199

-75

150

0

80

80

0.2

0.1

0.3

3

0.2

and

124

150

26

0.4

0.1

1.2

2

0.4

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 undertaken by Hot Chili Limited (“HCH” or “the Company”) includes both Diamond and Reverse Circulation (RC). Drilling has been carried out under Hot Chili (HCH) supervision by an experienced drilling contractor (BlueSpec Drilling).

The majority of DD drilling completed by HCH comprises RC pre-collars to an average depth of 300), followed by HQ3 DD core to an average depth of 660m, followed by NQ2 DD core at depths greater than approximately 660 metres.

Samples were obtained using both reverse circulation (RC) and diamond drilling (DD).

RC drilling produced a 1m bulk sample and representative 2m cone split 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.

HQ3 and NQ2 diamond core were drilled on a 3m run. The core was cut using a manual core-saw and half core samples were collected on 2m intervals.

Both RC and DD samples were crushed and split at the laboratory, with up to 1kg pulverised, and a 150g pulp sample analysed by industry standard methods - ICP-OES (33 element, 4 acid digest) and Au 30 gram fire assay.

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

Data compiled from historical drilling has been collated from documents supplied by SCM Carola.

All historical drilling was diamond core (DD) from surface. Historical diamond sampling was predominantly HQ3 half core. 99% of the sample data comprises 2m composited samples (taken at 2m intervals).

Assay techniques for legacy data comprise 30g fire assay for gold, and for copper, either 4-acid or 3-acid digest followed by either an ICP-OES, ICP-MS, ICP-AAS or HF-ICP-AES.

HCH has verified as much as possible the location, orientation, sampling methods, analytical techniques, and assay values of legacy data. HCH has completed a review of SCM Carola QA/QC data with no issues detected in that review.

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 (140 to130mm diameter) ensuring minimal contamination during sample extraction.

HCH DD drilling uses NQ2 bits (50.5mm internal diameter) and HQ3 bits (61.24mm internal diameter). DD core was oriented using a Reflex ACT III RD tool. At the end of each run, the low side of the core was marked by the drillers and this was used at the site for marking the whole drill core with a reference line.

Historical DD drilling used HQ bits (61.24mm internal). Historical drill core was not oriented.

Drill sample recovery

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

Core recovery was measured and recorded continuously from the start of core drilling to the end of the hole for each drill hole. The end of each 3m length run was marked by a

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.

core block which provided the depth, the core drilled and the core recovered. Generally, the core recovery was >99%

All DD drilling utilised HQ3 and NQ2 core with sampling undertaken via half core cutting and 2m sample intervals.

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, split; DD core: half, quarter, whole).

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 DD core recovery has not been quantitatively assessed. However, inspection of core photography has been undertaken, with good core recovery observed, and no material issues noted.

Methods taken to maximise historical sample recovery, quality and condition are unknown, however it is noted that the drill method (HQ3 DD) is consistent with best practice for sample recovery. No analysis of historical samples weights, sample condition or recovery has been undertaken.

Twin analysis of RC and DD drilling has identified a slight sample bias. RC samples appear to display a negative bias for assay results, meaning that RC samples appear to under call the assay grades. This is not yet fully understood or confirmed, and requires further analysis and investigation with future twin holes.

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 and diamond core 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 historical data from SCM Carola. These logs have been reviewed and are deemed to be of an appropriate standard. HCH has also completed a verification and re-logging programme of historical diamond drill core and has aligned the codification of both generations of geological data to one unified coding system.

Core reconstruction and orientation was completed where possible prior to structural and geotechnical observations being recorded. The depth and reliability of each orientation mark is also recorded.

All logging information is uploaded into an acQuire™ database which ensures validation criteria are met upon upload.

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.

HQ3 (85mm) and NQ2 (63.5mm) diamond core was sawn in half, with half core collected in a bag and submitted to the laboratory for analysis, the other half was retained in the tray and stored. All DD core was sampled at 2m intervals.

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 0.6kg to 17kg, but typically average 5kg.

All HCH samples were submitted to ALS Coquimbo (Chile) for multi-element analysis. The sample preparation included:

DD half core and 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-

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.

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- ICP21; a 30g lead-collection Fire Assay, followed by ICP- OES to a detection limit of 0.001ppm Au.

Historical half DD core was routinely sampled on 2m intervals. All samples were submitted to accredited laboratories- ACTLAB, ACME Labs (now Bureau Veritas), ALS Global and Andes Analytical Assay.

Typical analysis methods used for historical samples included;

For copper and multi-element; either 4-acid or 3-acid digest followed by either an ICP-MS, ICP-AAS, or a HF digest with ICP-AES. E.g. ACTLAB method 3ACID-AAS, ALS method Cu-AA61, Andes Analytical Assay method (4A-AAS1E01 or ICP_AES_HH22).

Gold grades were analysed for Fire Analysis (30g charge).

E.g. ACTLABS method FA-AAS, ALS method Au-AA23, Andes Analytical Assay method AEF_AAS1EE9.

HCH has verified historical sampling methods, analytical techniques, and assay values with no material issues identified.

Field duplicates were collected for RC drill samples at a rate of 1 in 50 drill meters ie. 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.

Field duplicates for DD samples were submitted at a rate of 1 in 50 drill metres (ie. 1 in 25 samples). The procedure involves cutting the half core and the lab (instructed by Hot Chili) collected a second coarse duplicate sample after the initial crushing process of the original sample. Crushed samples were split into two halves, with one half flagged as the original sample and the other half flagged as the duplicate sample.

Review of duplicate results indicates that there is good correlation between the primary and duplicate assay values, implying that the selected sample size is reasonable for this style of mineralisation.

The selected sample sizes and sample preparation techniques are considered appropriate for this style of mineralisation, both for exploration purposes and MRE.

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.

All HCH drill samples were assayed by industry standard methods through accredited laboratories in Chile. 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.

Blank certified material is inserted every 100 samples (Coarse unmineralised quartz) at the logging geologist’s discretion- with particular weighting towards submitting blanks immediately following mineralised field samples. Routine field duplicates for RC and DD 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. Any QC failures require the batch to be re-analysed prior to acceptance into the database.

No umpire laboratory checks have been undertaken by HCH. It is a recommendation of the MRE that umpire checks be completed.

Assessment of historical QA/QC data was undertaken as part of the MRE. CRM and duplicate assay data were reviewed with no significant issues identified. Umpire laboratory checks were undertaken on historical drilling, however the results of this have not yet been assessed. Historical assay data comprised approximately 10% QA/QC data.

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 DD sample intervals were visually verified using high quality core photography, with selected samples taken within mineralised intervals for petrographic and mineragraphic microscopy.

All assay results have been compiled and verified by an independent database consultant 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 for the purposes of MRE.

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 access restricted to an external 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 as part of the Cortadera MRE.

Visualisation and validation of drill data was also undertaken in 3D through the use of multiple software packages- Surpac, Datamine and Leapfrog with no errors detected.

Twinned drilling was completed by HCH, to compare the results of RC samples to historical HQ DD samples. Four sets of twin drill holes were completed, with no appreciable assay variance observed between the different drilling and associated sampling methodologies.

A slight negative bias was observed for RC samples in select intervals, however overall, the twin hole assay results correlated well for both techniques. This supports the use of both RC or DD samples as being representative and appropriate for mineral exploration and resource estimation for this style of mineralisation.

Hot Chili has undertaken quarter core duplicate sampling across selected intervals of historical half DD core and its own DD core to test assay repeatability and to provide metallurgical samples.

An analysis of field duplicate samples was undertaken, with results from duplicates returned within acceptable range for this type of mineralisation and for classification of the MRE. The comparison showed no evidence of bias, with a robust correlation achieved between duplicate samples.

All retained core and pulp samples are stored in a secured site and are available for verification if required.

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.

The WGS84 UTM zone 19S coordinate system was used for all undertakings.

Drill hole collar locations were surveyed on completion of each drill hole using a handheld Garmin GPS with an accuracy of +/-5 m. On completion of each HCH drill campaign 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.

Drill collar survey methods used by SCM Carola are unknown, however all collars were located by HCH and have been surveyed using the same method as HCH drilling.

Downhole surveys for HCH drilling were completed by the drilling contractor every 30m using an Axis Champ Navigator north seeking gyroscope tool. Downhole surveys for historical drilling were completed every 10m by gyroscope. Exact specifications for the gyroscope tool are unknown.

Some drill holes could not be surveyed due to downhole blockages, these holes used planned survey or compass bearing/ dip measurements for survey control, and the majority of these holes lie outside of the resource area.

The topographic model used at Cortadera is deemed adequate for topographic control. It comprises a high resolution topographical elevation model as supplied by SCM Carola.

Validation of the final topographical model used for resource estimation was completed via visual validation against: high resolution drone orthophotography, drill collars, and known infrastructure (roads, tenement pegs etc.)

Topography at the project ranges from ~900m to 1050m ASL.

PSAD56 zone 19S coordinate system was used for all historical undertakings, with all data since converted to WGS84 zone 19S.

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.

Drill spacing is nominally 80 metres across strike by 80 metres along strike. In total there were 82 drillholes used to inform the Cortadera geological model, of which 72 were contained within the mineralisation wireframe used to constrain the MRE.

The current drilling density provides sufficient information to support a robust geological and mineralisation interpretation as the basis for Indicated and Inferred Mineral Resources for the majority of the drill defined deposit.

The mineralisation is still open laterally and at depth and further drilling is planned to explore these zones in 2021 and beyond.

Compositing of drillhole samples was undertaken on 2 metre intervals, and in some cases 4 metre intervals in unmineralised areas.

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 spacing and location of drilling at Cortadera is variable, ranging from 80m to 300m. The selected drill spacing and orientation over the resource area ensures that drilling is optimised to intersect perpendicular to mineralisation.

The majority of drilling was oriented from -60 to -80° toward northeast, with some scissor holes drilled to the southwest. 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 part of the MRE. In addition, copper-gold porphyry mineralisation is typically fairly homogenous meaning a limited chance of bias likely to be caused from drilling orientation.

The coordinates and orientations for all of the historical Cortadera drill holes have been reported to ASX in Table 1, Section 2 of the Company’s previous drilling announcements, most recently 10th July 2020.

Sample security

The measures taken to ensure sample security.

HCH has strict chain of custody procedures that are 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’s custody.

Measures taken to ensure sample security during historical drilling are unknown. All retained core and pulp samples are currently stored in a secured warehouse facility and are available for verification if required.

Audits or reviews

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

As part of the Cortadera MRE WoodPLC have conducted an independent review of the drill database. This review has

found the data to be accurate and acceptable for MRE purposes.