Morella Corporation Limited announced that it has completed Phase 1 of a Passive Seismic Survey (PSS) on the Fish Lake Valley Lithium Project in Nevada, USA ("the Project"). Additional geophysical survey work has been planned and will commence in the coming week. Morella has engaged US based geology and mining services group Rangefront Mining Services ("Rangefront") to undertake field activities and data collection, the collected data then processed and interpreted by Perth based geophysical consulting group Resource Potentials Pty Ltd. ("Resource Potentials").

Fish Lake Valley is 60km to the west, southwest of the town of Tonopah and equidistant (approximately 280km) to the major Nevada cities of Las Vegas and Reno, with Tesla's Nevada Gigafactory located 37km from Reno. Morella's project area covers the entire Fish Lake Valley salt playa and is located in a well-known, highly prospective lithium region of the USA. The Phase 1 PSS has provided indications of rift basin sediment thickness, layering and possible fault-bounded sub-basin structures.

The completion of a Phase 2 PSS and integration of the two data sets will allow for a greater understanding of the entire Project area basin, sub-basins, fault structures, depth and volume potential. This geophysical understanding of the sub-surface structure of the Project will form the development of a future drilling program that will target potential lithium-bearing brine reservoirs. Over the coming weeks, Morella intends to: Deploy field personnel to Fish Lake Valley to complete the Phase 2 PSS data collection.

Whilst in the field, conduct calibration and possible extension-line data collection. After data collection/exchange to Resource Potentials, analyse, interpret and 3D model the entire project area. Further, the Phase 1 PSS has supported the planning of additional geophysical exploration in the form of a magnetotelluric ("MT") survey.

A MT survey will help determine layering of electrically conductive and resistive features at depth, and whether any interpreted conductive zones in sub-basins may contain lithium bearing brine. US-based MT survey contractors are being engaged at present, with a target survey timeline of March-April 2022. Resource Potentials will be engaged to analyse the MT data and integrate results into the Project's sub-surface model.