Morella Corporation Limited announced that it has completed exploration drilling at the Mallina Lithium Project (tenement E47/2983). The drilling program commenced in late March 2022, with the clearing of drill pads and establishment of a field camp. The reverse circulation (RC) drill contractor mobilised to the Mallina Project in the second week of April, after completing site and safety management protocols and inductions with RC drilling commencing on 18 April 2022.

Subsequently, the Diamond Core drill contractor arrived at the Project, completed relevant safety and site management protocols, and commenced core drilling on 22 April 2022. The planned program was designed with the dual objectives of intersecting hybrid dykes at Pegmatite 2 and Area C prospects at depth and testing for blind primary pegmatite sheets at depth. RC drilling concluded on 26 April 2022 and the core drilling concluded on 27 May 2022.

All drilling was completed safely and without incident. Three RC holes (430m) and four diamond core holes (831.4 m), including two core tail extensions were completed. Five drill sites were used for this program, including three RC drill sites (with two diamond core tails) and two diamond core sites from surface.

Fine grained spodumene quartz intergrowths within aplite intrusive intervals were observed in the drill core. The RC chips and drill core were logged on site by a geological team and samples have been prepared for mineralogical studies and geochemical assay work to be completed at an independent laboratory in Perth. All RC chips and core samples are currently being consolidated at Port Hedland ready for transportation to Perth.

Mineralised intervals will be reported as and when the results are made available to the Company. Future Works: While the Company commences the logistics efforts to transfer RC chips and core samples from Mallina to Perth in readiness for mineralogy and assay testing (the results of which are expected to take two- three months from commencement of work in Perth), the Mallina Lithium Project will be subject to further exploration efforts as part of Morella's program of work for selected tenements within the Sayona earn-in portfolio. Airborne geophysics is being scheduled as well as ground-based methods.

A successful geophysics campaign will be followed by further field work to identify and develop the next round of drilling targets at Mallina and other prospective tenements. The priority for Mallina specific geophysics will be the areas subject to historical drilling, areas of know lithium mineralisation. The results from this March-May 2022 campaign may determine the exploration pathway.

Co-funded Drilling: As previously advised Morella was awarded a co-funded grant for drill program completed at Mallina. The Company is entitled to claim up to a maximum amount of $150,000 against the direct drilling costs for the completed drilling program. The Co-funded Exploration Drilling Program is the program of the Exploration Incentive Scheme (EIS).

The Company will provide half-core samples to DMIRS as part of the project and will allow public access to drill core material after the expiry of the Confidentiality Period.