Morella Corporation Limited advises further results from geophysical exploration activities completed at the Fish Lake Valley Lithium Project in Nevada, USA. From July to August 2022, Morella completed a second phase of magnetotelluric ("MT") surveying over the northern part of the Project area. A composite cross section (looking north east) of the four MT survey lines completed to date.

The MT survey was designed to be complementary to a previous MT survey conducted in the southern portion of the Project area in December 2021 to April 2022. MT survey data was acquired by US-based Zonge International Inc. ("Zonge") during July 2022 using the `Zen' EMAP system, with 2D resistivity inversion modelling of the MT survey data using CGG Geotools, completed by Perth-based Resource Potentials in August 2022. 2D resistivity inversion modelling of the MT survey data produced a distinct, very high conductivity (<2 Ohmm) anomaly in the west, within a broader high conductivity (<4 Ohmm) anomaly zone, which may be caused by lithium bearing brines at 300m depth and near a vertical fault (it is also possible the high conductivities are in part, associated with increased clay content).

The MT inversion modelling results also show a shallow, very high conductivity (<1 Ohmm) layer is present from surface and extending to approximately 30m depth below surface, which may be caused be a shallow layer of lithium sediments with very saline groundwater at or just beneath the ground surface.