Last month, Exposto, 54, was found with 1.1kg of crystal methamphetamine stitched into the lining of a bag given to her by a man she knew via the internet.
Exposto was found not guilty but prosecutors immediately lodged an appeal.
She was then led off for detention at Kajang Prison, according to Nine News.
Exposto’s lawyers had claimed that their client was a victim of an internet scam and that she was handed a black backpack that she believed to be full of clothing.
They also believe that Exposto will have to return to court in three to four months’ time as the prosecutors must prepare records, which must then be processed and approved by a judge.
During this time, Exposto will not be allowed to leave Malaysia as her passport would remain impounded.
However, bail has been extended to Exposto.
The news report said she must post bail of RM30,000. She also has to find a permanent address in Malaysia and report to police once a week.
Earlier reports had said Exposto had been engaged in a long online romance.
She had travelled to Shanghai to see “Captain Daniel Smith”, who claimed to be a US serviceman.
But she did not succeed in meeting her supposed love interest while there.
Instead, she ended up being given a bag by a stranger, who asked her to take it to Melbourne.
When she arrived at Kuala Lumpur International Airport in December 2014 to change flights, she mistakenly went through immigration as she was unfamiliar with the airport.
She voluntarily offered her bags for customs inspection and the drugs were discovered.
Aussie grandma escapes death after court frees her of drug charge