FireFly Metals Ltd. — Capital/Financing Update 2007

Oct 1, 2007

N E W S • R E L E A S E •

For Immediate Release

Tuesday 2 October, 2007

MONAX PLANS $15M SPINOUT OF URANIUM – ASSETS INTO NEW EXPLORER MARMOTA

A capital raising of up to A$15 million has been proposed by Monax Mining Limited (Monax, ASX code “MOX”)) for the spinout of the Company’s uranium assets into a new explorer, Marmota Energy Limited (Marmota).

The size of the Marmota Initial Public Offer (IPO) – flagged previously by Monax in August – was detailed today when the Company announced a prospectus had been lodged with ASIC and the ASX.

Prior to the planned ASX listing of the Marmota IPO, Monax will seek shareholder approval for the proposal at a meeting scheduled in Adelaide for 8[th] November 2007.

“The Marmota IPO assembles into one vehicle, the untapped uranium exploration potential of Monax’s tenement base,” Monax’s Managing Director, Mr Michael Schwarz, said today.

“Marmota will have interests in vast uranium exploration licence areas covering more than 7,000 square kilometres in the highly prospective Gawler Craton and Curnamona provinces of South Australia,” Mr Schwarz said.

“If fully subscribed, Monax will emerge as a cornerstone investor in Marmota with a 25.7% stake.”

The proposed Marmota IPO will offer up to 60 million 25 cent shares to raise up to $15 million, with a minimum total subscription of $7.5 million.

Successful applicants will receive a 1 for 3 free option to subscribe for an additional Marmota share at an exercise price of 25 cents by 30 June 2008.

Eligible Shareholders in Monax (that is, you are registered as a Shareholder of Monax as at the Record Date, being 5[th] October 2007) will receive priority to apply for up to 20 million shares in the IPO via a Priority Offer.

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Mr Schwarz said that under ASX requirements, Monax would circulate to its shareholders, a copy of an Independent Expert’s report on the proposed transaction and float. The report found the proposal to be fair and reasonable.

Marmota will be headed by highly experienced former South Australian Chief Geophysicist, Mr Domenic Calandro as Managing Director.

Mr Calandro is the former Chief Mineral Geophysicist for the SA Government and has 13 years experience in the management, processing, and provision of geophysical data and information as a critical tool in successful uranium exploration.

He has significant geoscience expertise, with experience advising mineral explorers on appropriate geophysical methods and tools in the reduction of exploration risk for a variety of commodities.

Mr Calandro is credited with being largely responsible for driving programs which in the past decade, have reduced exploration risk in South Australia and attracted new exploration investment, including through the highly successful PACE initiative.

Monax’s uranium assets being vended into Marmota cover a range of potential uranium mineralisation styles in Tertiary palaeochannels, sedimentary basin settings, hard rock and unconformity style exploration projects throughout South Australia.

All of the Gawler Craton and Curnamona tenements were secured by Monax prior to the ‘land grab’ which has characterised South Australia’s current exploration boom.

MEDIA CONTACT:

Dom Calandro Marmota Energy (08) 8375 3900 Michael Schwarz Monax Mining (08) 8375 3900 Kevin Skinner Field Public Relations (08) 8234 9555 / 0414 822 631 Duncan Gordon Investor Relations 0404 006 444

issued through FIELD PUBLIC RELATIONS PTY LTD ABN 74 008 222 311 231 South Road, MILE END SA 5031 Ph: 08 8234 9555 Fax: 08 8234 9566 admin@fieldpr.com.au