Morella : Mallina Drilling Program Complete

ASX Announcement

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6 June 2022

Drilling Program Completed at Mallina

Reverse Circulation (3 holes) and Diamond Core (4 holes) drill program completed for a total of 1,261m

Spodumene quartz intergrowths in aplite intrusions observed within chip and core samples being consolidated for independent laboratory analysis

Site program completed safely and without incident

Further exploration potential identified with future work planning underway

Overview

Morella Corporation Limited (ASX: 1MC "Morella" or "the Company") is pleased to announce that it has completed exploration drilling at the Mallina Lithium Project (tenement E47/2983).

Figure 1 - Mallina Lithium Project

Drilling Program

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.

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Morella Corporation Limited ASX Announcement 6 June 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.

Figure 2 - Diamond Core Drill Rig on drill hole M22_001_RCD

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. Completed drill hole data can be seen in Table 1 and drill collars seen in Figure 3.

Table 1 - Completed Drill Holes

	Hole ID		Easting		Northing		Elevation		Dip		Azimuth		RC		Core Diameter		EOH (m)
																			Diameter
	M22_001_RCD			609989			7670072			92			-75			060			5-1/2"			50.6mm (NQ2)		408.6
	M22_002_RC	609955		7670502		92		-75		060			5-1/2"	-	150.0
	M22_003_RCD	607350		7670720		93		-75		060			5-1/2"		50.6mm (NQ2)	462.5
	M22_004_D	610351		7670109		91		-60		270		-			63.5mm (HQ) &	59.7
								50.6mm (NQ2)
	M22_005_D			610282			7670127			91			-75			060			-			63.5mm (HQ) &		180.6
															50.6mm (NQ2)

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Morella Corporation Limited ASX Announcement 6 June 2022

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Figure 3 - March-May 2022 Drill Collars, relative to historical drilling

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 (refer to ASX Announcement Mallina Lithium Project Update released 28 October 2021), 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

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Morella Corporation Limited ASX Announcement 6 June 2022

the completed drilling program. The Co-funded Exploration Drilling Program is the flagship 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.

Contact for further information

Investors | Shareholders	Media
Alex Cheeseman	Michael Weir
Chief Executive Officer	Citadel Magnus
E:[e-mail]	M: 0402 347 032

This announcement has been authorised for release by the Board of Morella Corporation Limited.

About Morella Corporation Limited Morella is an exploration and resource development company focused on lithium and battery minerals. Morella is currently engaged in exploration and development activities with projects strategically located, in Tier 1 mining jurisdictions in both Australia and the United States of America. Morella will secure and develop raw materials to support the surging demand for battery minerals, critical in enabling the global transition to green energy.

Competent Person's Statement The information in this report that relates to Exploration Results is based on information compiled by Mr Stephen Barber, who is a Member of the Australasian Institute of Mining and Metallurgists and Exploration Manager of Altura Mining Limited. Mr Barber has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Barber consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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Morella Corporation Limited ASX Announcement 6 June 2022

JORC CODE, 2012 EDITION - TABLE 1

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation		Commentary
Sampling	•	Nature and quality of sampling (e.g. cut channels,		•	The Mallina project was sampled by collecting
techniques		random chips, or specific specialised industry standard			rock chip samples from reverse circulation or RC
		measurement tools appropriate to the minerals under			drilling and core samples from diamond drilling.
		investigation, such as down hole gamma sondes, or		•	Visual observation techniques were used for
		handheld XRF instruments, etc). These examples should
				sample collection.
		not be taken as limiting the broad meaning of
		sampling.		•	RC drill hole chip samples were collected in one-
	• Include reference to measures taken to ensure sample			meter intervals from the beginning to end of
			each hole. Each sample was split directly using a
		representivity and the appropriate calibration of any
				cone splitter into numbered calico bags. The
		measurement tools or systems used.
				remaining material for each interval was
	• Aspects of the determination of mineralisation that are
			collected directly into green bags that were
		Material to the Public Report.			placed near the drill rig for geological logging.
	•	In cases where 'industry standard' work has been done		•	All potential mineralised intervals were sampled.
		this would be relatively simple (e.g. 'reverse circulation		•	Mineralisation was initially determined visually
		drilling was used to obtain 1 m samples from which 3
				and confirmed by geological logging. These
		kg was pulverised to produce a 30 g charge for fire
				results will be quantified by mineralogical
		assay'). In other cases more explanation may be
				studies and geochemical assays.
		required, such as where there is coarse gold that has
		inherent sampling problems. Unusual commodities or
		mineralisation types (e.g. submarine nodules) may
		warrant disclosure of detailed information.
Drilling	•	Drill type (e.g. core, reverse circulation, open-hole		•	The RC drilling method was used for hole
techniques		hammer, rotary air blast, auger, Bangka, sonic, etc)			M22_002_RC; and the upper section of holes
		and details (e.g. core diameter, triple or standard tube,			M22_001_RCD and M22_003_RCD.
		depth of diamond tails, face-sampling bit or other type,		•	The RC drilling was completed by Strike Drilling
		whether core is oriented and if so, by what method,
				using a track mounted X350 rig (350psi),
		etc).
				supported by an Atlas Copco 10VRS compressor
					and B4 booster. The drill bit diameter was 5-1/2"
					RC Bit.
				• The diamond core drilling method was used for
					holes M22_004_D and M22_005_D. Diamond
					tails were drilled for holes M22_001_RCD and
					M22_003_RCD.
				• The diamond drilling was completed by Mt
					Magnet Drilling (MMD) using a HYDCO D650
					truck-mounted rig. The drill bit diameters used
					were - HQ (63.5mm) and NQ2 (50.6mm). The
					core was collected in standard tubes and was
					orientated.
Drill sample	•	Method of recording and assessing core and chip		•	No loss of sample recovery or quality was noted
recovery		sample recoveries and results assessed.			during drilling.
	•	Measures taken to maximise sample recovery and		•	Appropriate use of downhole pressure kept the
		ensure representative nature of the samples.			RC drill cuttings dry.
	•	Whether a relationship exists between sample recovery		•	Samples considered to be representative of the
		and grade and whether sample bias may have occurred			drilled intervals.
		due to preferential loss/gain of fine/coarse material.		•	Sample bias was not introduced during the
					drilling.
Logging	•	Whether core and chip samples have been geologically		•	RC holes were geologically logged by Rig
		and geotechnically logged to a level of detail to support

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