Morella Corporation Limited provided a drilling update on the Mallina Lithium Project (tenement E47/2983). Mallina is located 110 kilometres southwest of Port Hedland and is accessible via the Northwest Coastal Highway in Western Australia. In 2021, Morella executed an earn-in agreement with ASX-listed Sayona Mining Limited, for the right to earn a 51% interest in the lithium rights of Sayona's Pilbara and Gascoyne lithium portfolio.

Historical Drilling: Between 2017 and 2018, Reverse Circulation (RC) drilling was completed by Sayona, with 48 holes drilled for 3,568m, delivering 653 RC drill chip samples for analysis. The drill program targeted five discrete identified pegmatite zones. 2022 Drilling Program Results: During 2022 a 5-hole, 1,261m drill program including 2 core tail extensions was completed by Morella, with the objective of targeting theorised tertiary covered pegmatite-ore sheets.

Thicker and more consistent pegmatite intrusions do not outcrop at Mallina, however based on mapped surface expressions and drilling interpretation, the Company believes that thicker intersections of pegmatite intrusions can be found at depth. Three (3) RC holes (430m total length) and four diamond core holes (831.4m total length), including two core tail extensions were completed in the 2022 program. Five (5) drill sites were established for the program, including three (3) RC drill sites (with two diamond core tails) and two diamond core sites from surface.

Importantly, the standout result from hole M22_004_D (which was drilled down dip) confirms the previous successful work completed by Sayona, intercepting 16.4m @ 1.24% Li2O from 4.6m and 1.0m @ 1.18% Li2O from 46m, with the next round of drilling to test strike and depth extensions of this zone. Morella was awarded a co-funded grant for the drill program recently 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. Future Exploration Program: A detailed surface grid soil sampling accompanied by geological mapping and rock chips to follow-up highly anomalous Lithium and Rubidium from soil and rock chip geochemistry; Review and refine existing aeromagnetic and radiometric data to support surface geochemical anomalies; Additional RC and diamond drilling to test thicker intercepts of spodumene-bearing pegmatites to test thickness, direction and dip of the pegmatites.