Kosta Sakellariou supplied almost 1kg of cannabis and 540 MDMA pills and caps before he was caught by Strike Force Heyward.

The operation had been "investigating the supply of MDMA and cocaine from the Imperial Hotel in Tamworth".

At the time, Sakellariou was 19 and had no criminal history until his house was used to store MDMA and cannabis for a co-accused, and "the customer would come to the address to be supplied or [a co-accused] would collect the order to supply it himself," Judge Jonathan Williams detailed in sentencing.

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Sakellariou supplied 158 capsules of MDMA, and 385 pills "by way of a joint criminal enterprise", and when he was caught in December last year, he made "full admissions" to Oxley police.

Judge Williams told Tamworth District Court Sakellariou had a deprived background before he turned to drugs in his teens and later "started to stay at the Imperial Hotel because a friend worked there and he didn't have to pay board".

"Unfortunately he met the co-offender there," he said, before he was offered drugs to sell and "he went along with it".

"There's no doubt that the drug scene revealed by Strike Force Heyward is a very disturbing one.

"There's no doubt in my mind Mr Sakellariou played a subservient role in the overall situation ... and I would have to say at a time of his life when his personal circumstances were pretty desperate."

After a 25 per cent discount for his pleas, Judge Williams imposed a two-year-and-three-month sentence, with one year non-parole for supplying 1kg of cannabis leaf in Tamworth in late-2019; along with 124.99g of MDMA - just below the commercial supply quantity.

A commercial drug supply charge was dropped by the DPP after last week's guilty pleas, while a charge of exposing a child to a drug premises was taken into account.

Sakellariou told the court he had been unable to complete courses in prison, since he was bail refused in December last year, because too many inmates had signed up.

Reflecting on his drug dealing, he said he was "ashamed"; he had let family members down; "and I hurt other people" ... "by giving them a place to come get drugs".

"I lost 13kg, I didn't feel very well, it ended up getting me kicked out of my house," he said.

Sakellariou told the court he has limited contact with his family because almost "every adult in my family" takes drugs.

Crown prosecutor Brian Costello pushed for him to be released to go into the Balund-a rehabilitation program after he was previously assessed while bail refused.

But, Sakellariou argued he should have the chance to go into the community and participate in Tamworth's Rosalie House day program.

"I do believe I have the skills already to get a job; I just want to see if I can behave myself on the outside," he said.

"It's the first time I've been drug free, I'm pretty happy, and I don't want to go back."

Public defender Stuart Bouveng said his client had endured an "horrendous upbringing"; and the now 20-year-old told the court he wanted to be released to get a job, buy a car and live with his sister.

Mr Bouveng said Mr Sakellariou had "done enough time" in custody, and would benefit from extended parole.

"It wasn't sophisticated, it wasn't for the benefit of his pocket," he told the court, adding telephone intercepts revealed at "one point he was homeless".

"He's expressed contrition and remorse, he was young."

Mr Costello argued any release over the festive period "into a potentially uncertain address", without rehabilitation, was "really setting the offender to almost inevitably fail".

"His prospects of rehabilitation must remain quite guarded," he submitted, adding any release to the community "is risky".

On parole, Sakellariou will be supervised, have to undergo drug and alcohol counselling and other directions.

Several co-accused remain before the court.

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