FireFly Metals Ltd. — Capital/Financing Update 2007

Jul 12, 2007

Exploration Office 11A Croydon Rd Keswick SA 5035

ABN 96 110 336 73 3

Tel +61 8 8375 3900 Fax +61 8 8375 3999 www.monaxmining.com.au

ASX RELEASE

For Immediate Release 13 July 2007

PUNT HILL AND REGIONAL EXPLORATION UPDATE

EXPLORATION HIGHLIGHTS

• Our drilling program has located four large four separate IOCG style alteration systems, up to 8km by 2km in extent, within the Punt Hill tenement., Monax is confident of delineating high grade, potentially economic zones within the existing mineralised systems. Mineralised zones within Punt Hill appear to be controlled by a NW trending fault.

• Monax is trialing less expensive down hole and surface geophysical techniques to aid in defining high grade mineralisation. Enough drill holes exist within prospective targets for induced polarization (IP) surveys to significantly improve the targeting of high grade zones within our mineralized IOCG systems.

• The potential of IOCGU, gold only and sandstone-hosted uranium mineralisation on our Ambrosia project is still regarded by Monax to be high. We anticipate that exploration for uranium on this tenement in the near future will be undertaken by Marmota Energy Limited.

• Regional PACE sponsored drilling is set to commence at Mount Hope on southern Eyre Peninsula where we believe there is strong potential for gold and nickel and major VHMS copper/zinc systems hosted in the newly discovered Archaean greenstones.

PUNT HILL EXPLORATION DETAILS

GROUNDHOG PROSPECT Monax Mining Limited is pleased to announce the completion of the current drilling program at its Punt Hill IOCG project north of Port Augusta, South Australia.

The fifth step out drill hole at the Groundhog prospect, GHHD5 was placed approximately 500m to the south-east of GHDD4, targeting a cross cutting north-east fault.

Basement was intersected at 673m in Gawler Range Volcanics which became increasingly hematite-chlorite altered downhole. Patches of bornite were observed at 773m and at 798m. At 884m the hole entered highly altered sediments to the end of hole at 914m with trace pyrite and chalcopyrite.

Exploration Office 11A Croydon Rd Keswick SA 5035

Tel +61 8 8375 3900 Fax +61 8 8375 3999

ABN 96 110 336 73 3

www.monaxmining.com.au

RESULTS OF THE STEP OUT DRILL PROGRAM

An additional seven drill holes have been completed as part of the step out drill program from previously drill holes at the Groundhog, Prairie Dog, Woodchuck and Hoary targets.

• An additional four holes have been drilled at the Groundhog Prospect. GHDD2 was drilled 200 m to the northeast and GHDD3 200 m to the southwest. These two holes have confirmed the lateral extent of intense IOCG alteration at the Groundhog target over a distance of 400m. Assays are pending.

• The third step out drill hole at GHDD4 was placed approximately 200m to the southeast of GHDD1. The main mineralised interval in GHDD4 occurs between 840m and 935m with consistent chalcopyrite and pyrite disseminated through the core. Some disseminated bornite is visible in the top 16m of this zone. Assays are pending.

• A follow up hole PDDD2 was drilled to the west of PDDD1 to test the interpreted dense basement rocks. Basement was intersected at 832.3m in brecciated, hematite altered Gawler Range Volcanics to 860m. The hole then passed into brecciated and hematite-carbonate altered sediments with abundant fluorite. Several veins of bornite and steely hematite occur between 876 and 883m passing into intermittently, disseminated pyrite and chalcopyrite mineralisation to the end of hole at 1116m. Assays are pending.

• A second drill hole was completed at the Woodchuck prospect approximately 450m tp the north east of WDDD1. Basement consisted of highly altered sediments overlain by Gawler Range Volcanics. Minor patches of disseminated bornite and chalcopyrite occur within the target zone. Assays are pending.

• An angled hole HODD2 was completed at the Hoary prospect. The first drill hole HODD1 (742670mE, 6497965mN) intersected 111m of hematite breccia. The angled hole was designed to intersect basement at the eastern edge of the residual gravity anomaly.

The angled hole was drilled to a depth of 1142.8m. Basement was intersected after 961.34m of angled drilling (or approximately 832m vertical depth) and consisted of weakly altered Gawler Range Volcanics passing into altered Hiltaba Suite granite. At 1074.8m of angled drilling the drill hole passed into a ~25m thick mineralised zone consisting of highly altered (steely hematite, amphibole, chlorite) sediments with disseminated bornite and chalcopyrite mineralisation at the contact with granite. Assays are pending.

Exploration Office 11A Croydon Rd Keswick SA 5035

ABN 96 110 336 73 3

Tel +61 8 8375 3900 Fax +61 8 8375 3999 www.monaxmining.com.au

PUNT HILL – EXPLORATION STRATEGY

As part of its ongoing exploration program to improve the targeting of high grade IOCG mineralisation, Monax is trialing a combination of downhole and surface IP surveys over the major prospects. Induced polarization surveys (IP) have the ability to detect disseminated sulphide mineralisation of the type targeted within the Punt Hill tenement. At least two holes have been drilled into each high priority target. The down hole geophysical surveys will allow Monax to identify both the expected geophysical response of the mineralised target zone and also predict the source of any false anomalies in the overlying cover rocks. Following confirmation of the method of being able to “see” potential mineralised basement, detailed surface (IP) geophysical surveys will then be used to test for geophysically anomalous zones indicative of higher grade mineralisation.

Drilling will then recommence to test zones indicated by the detailed survey as having high potential for economic mineralisation.

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735000 mE 736000 mE 737000 mE 738000 mE 739000 mE
NNDD1NNDD1NNDD1NNDD1
GHDD2GHDD2GHDD2GHDD2
GHDD1GHDD1GHDD1GHDD1
GHDD4GHDD4GHDD4GHDD4
GHDD3GHDD3GHDD3GHDD3
GDHH5GDHH5GDHH5GDHH5
WDDD2WDDD2WDDD2WDDD2
WDDD1WDDD1WDDD1WDDD1
0 1 2
kilometres Interpreted Fault
735000 mE 736000 mE 737000 mE 738000 mE 739000 mE
6506000 mN
6505000 mN
6505000 mN
6504000 mN
6504000 mN
6503000 mN
6503000 mN
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Residual gravity image of the Groundhog and Woodchuck gravity features showing drill holes completed to date

Exploration Office 11A Croydon Rd Keswick SA 5035

ABN 96 110 336 73 3

Tel +61 8 8375 3900 Fax +61 8 8375 3999 www.monaxmining.com.au

INFILL GRAVITY TO DEFINE NEW DRILL TARGETS

In addition to downhole and surface IP surveys of exisiting targets, detailed infill gravity surveys are due to commence over as yet untested regional gravity anomalies at Hoary south, Punxsutawney Phil, Woodforde Hill and Shore Hill to gain greater definition of these gravity anomalies and aid in determining drill hole sites.

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Residual gravity image, Punt Hill

Exploration Office 11A Croydon Rd Keswick SA 5035

ABN 96 110 336 73 3

Tel +61 8 8375 3900 Fax +61 8 8375 3999 www.monaxmining.com.au

MATTAWEARA

This project lies within the Olympic Dam structural corridor with excellent gravity/magnetic semicoincident anomalies and appears to represent a good IOCGU target relatively nearby to Punt Hill. Drilling the anomaly is consistent with our strategic focus and we could apply our knowledge from Punt Hill to undertake more effective drilling here.

• On the 21[st] of June the drill rig moved to the Mattaweara test a target, which was previously drilled by Havilah but they terminated the drill hole before basement at 602m.

• The hole intersected basement at 788m in a steely hematite breccia with variable zones of remnant layering. At 803m the drill hole passed into less brecciated banded iron formation to the end of hole at 913 m.

• We believe the banded iron formation is the source of the semicoincident gravity and magnetic feature in the Mattaweara tenement.

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Mattaweara location diagram

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Mattaweara magnetics overlain by residual gravity contours

• Minor pyrite and chalcopyrite were identified associated with quartz veining.

Exploration Office 11A Croydon Rd Keswick SA 5035

ABN 96 110 336 73 3

Tel +61 8 8375 3900 Fax +61 8 8375 3999 www.monaxmining.com.au

Mt Hope - Exploration Summary

This project area lies within a belt of Archaean greenstones similar to those that host the gold and nickel rich deposits in the Eastern Goldfields of Western Australia. Monax also recognizes that the area has good potential for base metals similar to the mineral-rich Canadian Abitibi belt. Drilling by Lynch Mining just to north of the tenement has confirmed the mineral potential of this area.

Monax completed airmag and gravity survey over the area, producing excellent data, used for determining drill targets.

The project was awarded a PACE-sponsored drilling program in recognition of the ability of the program to greatly improve the geological understanding of the area and enhance mineral prospectivity of this part of the Gawler Craton.

Auger Drilling Program

• A PACE funded auger drilling program is due to commence on the 16[th] of July 2007 which will target combined gravity and magnetic features which are interpreted to be Archaean volcanic/sediment packages with the potential to host VHMS (Pb/Zn/Cu) and magmatic Ni/Cu deposits.

• The drilling program is designed to obtain detailed geological and geochemical information in closely spaced traverses across the geophysical targets. This will allow subsequent targeting of geochemically anomalous stratigraphy along strike and at depth.

• Ten traverses of approximately fifty holes each are planned for a total of approximately 500 holes.

• The drilling will take between 4-8 weeks depending of the speed of drilling and the depth of cover.

MONAX EXPLORATION STRATEGY

Our Company has a clear exploration focus to:

• Have success in discovering Olympic Dam style copper-uranium-gold mineralisation on our flagship project at Punt Hill, approximately 25 km south of the Carrapateena discovery.

• Test for copper-uranium-gold mineralisation, gold only mineralisation and sandstone-hosted uranium from drill ready targets on our high priority Ambrosia project.

• Test for Archaean greenstone style nickel and gold mineralisation in our other high priority Moorlands-Mt Hope tenements.

Exploration Office 11A Croydon Rd Keswick SA 5035

ABN 96 110 336 73 3

Tel +61 8 8375 3900 Fax +61 8 8375 3999 www.monaxmining.com.au

Olympic Dam style IOCGU deposits are our key focus and that drives our exploration program at Punt Hill. The Company was drawn to this area because of the ideal geological setting similar to that at Prominent Hill, Olympic Dam and Carrapateena.

Our exploration has produced a number of outstanding geophysical anomalies and the drill testing of these regional targets has been highly successful. We have defined large zones of alteration with significant copper mineralization with uranium above background levels in some drillholes., From this program we have defined our priority mineralized systems and have tested the influence of geological structure on mineralization.

Our current aim is to drill out a key deposit and to do this more effectively we will undertake as a matter of priority, a program of downhole and surface IP. These surveys have the potential to help define the presence of a larger orebody and the direction it might lie from any one drillhole.

To ensure that we have best knowledge of all the geophysical anomalies on the Punt Hill tenement we will complete infill gravity surveys or a number of targets located by the regional surveys in the northern area.

For further information please contact:

Michael Schwarz, Managing Director on 08 83753900 or email: info@monaxmining.com.au

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr M P Schwarz, who is a Member of the Australian Institute of Geoscientists. Mr Schwarz is employed full time by the Company as Managing Director and, has a minimum of five years relevant experience in the style of mineralisation and type of deposit under consideration and qualifies as a Competent Person as defined in the 2004 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” Mr Schwarz consents to the inclusion of the information in this report in the form and context in which it appears.

Exploration Office 11A Croydon Rd Keswick SA 5035

ABN 96 110 336 73 3

Tel +61 8 8375 3900 Fax +61 8 8375 3999 www.monaxmining.com.au

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Proposed Auger Drilling
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Location of proposed drill holes defined by green circles