Morella Advances Maiden Rubidium Resource Estimate at Mt Edon

Mt Edon Drilling Delivers Key Data for Resource Estimate

Morella Corporation (ASX:1MC) marked a pivotal milestone in the June 2026 quarter by completing its 2026 reverse circulation drilling program at the Mt Edon Rubidium-Lithium Project in Western Australia. The final assays, received from ALS Global Laboratories, confirmed broad and continuous rubidium mineralisation across the Sophie Prospect, including several coherent higher-grade zones with intercepts up to 0.95% Rb2O. This comprehensive dataset has enabled the company to commence preparation of its maiden JORC-compliant Mineral Resource Estimate (MRE), a crucial step toward defining the project's economic potential.

The drilling program notably improved geological understanding of the pegmatite system's geometry and grade distribution, with broad mineralised intervals extending up to 68 meters and consistent higher-grade zones embedded within. Extension drilling to the south of the Sophie Prospect further expanded the known mineralised footprint, highlighting promising exploration upside beyond the initial resource area. Multi-element geochemical analysis also reaffirmed the presence of lithium and other critical elements typical of fractionated LCT pegmatites, underscoring Mt Edon's broader critical minerals potential.

Metallurgical Studies and Technical Evaluation Progress

Alongside resource modelling, Morella advanced metallurgical evaluation in collaboration with Edith Cowan University. Planning is underway for the next phase of testwork aimed at assessing rubidium recovery pathways, which will inform future technical and economic studies. These efforts are integral to advancing Mt Edon toward development readiness.

Broader Portfolio and Joint Venture Interests Maintained

Beyond Mt Edon, Morella continued technical evaluation and target refinement across its Western Australian projects, including the Mallina Lithium and Dixon Well Projects. At Mallina, interpretation of a government co-funded gravity survey identified priority targets for follow-up, while Dixon Well remains an early-stage exploration asset for titanium and vanadium.

The company also actively managed its Morella–Elevra Joint Venture interests at Tabba Tabba, focusing on protecting tenure amid competing infrastructure and mining applications. Legal proceedings in the Western Australian Warden's Court are ongoing to safeguard the Joint Venture's rights and future development opportunities, reflecting Morella's commitment to balancing regional development with its strategic interests.

Corporate Strengthening and Legal Proceedings

In April, shareholders approved the remaining resolutions for a A$2.1 million placement completed in two tranches earlier in the year. The placement, priced at A$0.04 per share with free-attaching options exercisable at A$0.06, included participation from major shareholders such as Interra Resources and company directors. This capital injection has bolstered Morella's balance sheet, reduced liabilities, and enhanced funding flexibility to advance exploration and corporate initiatives.

Meanwhile, Federal Court proceedings related to the 2020 receivership of Altura Mining Limited, Morella's former name, continued to progress through the pre-trial phase. The company reports that these legal matters are not expected to materially impact its exploration or development activities.

US Lithium Brine Projects Maintained

Morella's Nevada lithium brine projects at Fish Lake Valley and North Big Smoky remained in care and maintenance during the quarter, with no field activities conducted. The company focused on administrative compliance and maintaining strategic optionality in this key US jurisdiction, while issuing shares to Lithium Corporation as part of portfolio restructuring.