Morella Corporation Limited announced that key environment, social and governance related workstreams in support of the Company's maiden drilling program at the Mallina Lithium Project have been completed. Morella is now focused on mobilising staff, equipment and contractors to the Project ahead of commencement of drilling at the end of March. The Mallina Lithium Project "the Project" is located 120 kilometres southwest of Port Hedland along the North West Coastal Highway.

Located in the Pilbara region, a globally recognised lithium mining and exploration province, the Project area is serviced with primary roads, export infrastructure and access to skilled, mining-centric labour. Previous exploration activities at the Project, from 2016-2020, included RC drilling, soil and rock chip sampling, mapping and mineralogical study work targeting five identified pegmatite intrusions. Mineralogical studies have confirmed the presence of recrystallised spodumene mineralisation in surface outcrops and it is interpreted that potential primary spodumene-bearing pegmatite sheets exist near-surface.

The Company's initial 2022 RC and diamond core drilling program is targeting these sub-surface primary pegmatites. With strong lithium prices and a favourable outlook for the commodity, Morella is pushing ahead with its exploration program at Mallina and embarking on an early-stage exploration effort in the Murchison. Over the period 28 February to 3 March 2022, Morella conducted a Heritage Survey with the Traditional Owners of select areas in the Mallina tenement.

The Heritage Survey was coordinated by Mr. Phil Czerwinski, an anthropologist and archaeologist who was proposed by the Traditional Owners to conduct the Survey. Morella representatives, Mr. Czerwinski and the Traditional Owners systematically walked and cleared all priority access corridors and proposed drill locations. Initial reports on the ground were that no sites or artefacts of significance were identified.

Morella anticipates the formal report to be issued by the Traditional Owners within the fortnight. On 10 March 2022, the Company was formally notified by the Department of Mines, Industry Regulation and Safety that its program of works for utilising ground disturbing equipment had been approved. The works approval, along with completion of the Heritage Survey, allows the Company to start clearing and ultimately drilling at the identified areas at the Mallina Lithium Project.

Morella has executed contracts for both Reverse Circulation and Diamond Core drilling and will begin mobilising equipment to site at the end of March 2022. Morella expects the drilling program to run for five to six weeks. Following the commencement of the Earn-in Agreement with Sayona Mining Limited, the Company has undertaken a strategic review of the tenements subject to the Earn-in.

Following an internal review and analysis by an Independent Geologists, Morella has notified Sayona that the Red Rock tenement was exercised out of the Earn-in and all responsibility returned to Sayona with effect 1 March 2022. Following the Earn-in tenement review, Morella has started exploring the Murchison-based tenements subject to the Earn-in. Based upon historical exploration data, the tenements are prospective for lithium-bearing pegmatites.

Morella has commissioned an Independent Geological Consultant to conduct a mapping and sampling program during March 2022. Morella will conduct site visits in the coming weeks to assess local infrastructure and support services in anticipation that the planned mapping work identifies further exploration opportunities. Morella is excited by the opportunity to explore for potential lithium-bearing pegmatites in the Murchison region.