FireFly Metals Ltd. — Capital/Financing Update 2008

Dec 17, 2008

Exploration Office Warehouse I, 5 Butler Blvd Burbridge Business Park Adelaide Airport SA 5950 Postal Address PO Box 247 Export Park SA 5950

ABN: 96 110 336 733

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

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For Immediate Release Thursday 18[th] December, 2008

ASX RELEASE

HIGHLY ENCOURAGING MANGANESE BENEFICIATION RESULTS – WADDIKEE PROJECT, SOUTH AUSTRALIA

HIGHLIGHTS

• Preliminary beneficiation studies confirm potential for raising the manganese content to 42% Mn – with recovery levels up to 88%

• Spiral testing of bulk sample underway

• Bulk sample from Pollinga prospect submitted for beneficiation test work

Monax Mining Limited (ASX: MOX) is pleased to announce preliminary results from manganese beneficiation test work on representative samples from its 100% owned Waddikee tenement on the Eyre Peninsula, South Australia (Figure 1). The studies were carried out on two homogenised bulk samples from Monax’s maiden drilling program at the Jamieson Tank Prospect.

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Figure 1. Waddikee tenement location

Exploration Office Warehouse I, 5 Butler Blvd Burbridge Business Park Adelaide Airport SA 5950 Postal Address PO Box 247 Export Park SA 5950 Tel: +61 8 8375 3900 Fax: +61 8 8375 3999 www.monaxmining.com.au

ABN: 96 110 336 733

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During May and June 2008, Monax completed a reverse circulation (RC) percussion drilling program comprising eight traverses (44 holes) at the Jamieson Tank Prospect (Figure 2) and 4 separate holes at the Pollinga Prospect. Assay results confirmed the presence of manganese mineralisation in all eight traverses at the Jamieson Tank Prospect and in one drill hole at the Pollinga Prospect.

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Figure 2. Drill traverse locations at the Jamieson Tank prospect on first vertical derivative of the Total Magnetic Intensity

Exploration Office Warehouse I, 5 Butler Blvd Burbridge Business Park Adelaide Airport SA 5950 Postal Address PO Box 247 Export Park SA 5950

ABN: 96 110 336 733

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

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Representative samples from JTRC036 (8 to 13 metres) (623609mE, 6297159mN) and JTRC034 (14 to 21 metres) (624046mE, 6298466mN) were tested to determine their mineralogy using X-ray diffraction (XRD). Quantitative results from the XRD demonstrated that the predominant manganese oxide mineral is Cryptomelane (KMn8O16), with associated Quartz (SiO2), Kaolin (Al2Si2O5(OH)4) and Goethite (FeO(OH)). Samples JTRC036 and JTRC034 were also tested according to sieve screen sizing, with preliminary results indicating that the majority of the manganese is distributed within the coarser fractions (>0.2mm or 20µm) and that a significant amount of silica is lost to the fine fraction (<0.2mm or 20µm). It should be noted that the sample returned from the RC drilling method consisted of a finely ground powder which may affect the screen size optimisation results.

Subsequent to screen size optimisation, representative samples from JTRC036 and JTRC034 were passed through a heavy liquid separation (HLS) media. The heavy liquid (s.g = 3.32) effectively separates light minerals such as quartz and kaolin from the heavy manganese and iron minerals (e.g. Cryptomelane) which have a considerably higher density (s.g = 3.4 - 4.8). The heavy liquid separation was conducted under controlled laboratory conditions and does not necessarily reflect the outcome from a plant operation.

Preliminary heavy liquid beneficiation studies reveal that the manganese content can be raised to 42% Mn with 80% recovery for sample JTRC036, and to 34% Mn with 88% recovery for sample JTRC034. A summary of the results is provided in Table 1.

Table 1. Preliminary assays from bulk head sample and beneficiated heavy liquid separate (HLS) including recovery.

(HLS)includingrecovery.	(HLS)includingrecovery.
Sample		Assays Mn % Fe % SiO2 P % Al2O3% % S %	Recovery MnO %
JTRC036 (8m to 13m)	sayHead As	0.052 0.027 20.3 7.7 44.3 6.01	80.96
	HLS Upgrade	42.5 8.2 5.0 0.049 0.031 6.51
JTRC034 (14m to 21m)	AssayHead	18.7 14.2 33.8 0.068 0.126 7.38	88.20
	HLS Upgrade	34.7 16.0 5.5 0.052 0.155 5.86

Spiral test work on the bulk sample from JTRC036 is underway, and a further sample from the Pollinga Prospect (PRC003 - 25 to 37 metres) has been submitted for beneficiation test work. A full account of the results will be released when then entire beneficiation test work has been completed.

Monax is highly encouraged by these preliminary beneficiation results. Significant scope remains for further manganese mineralisation at Jamieson Tank between drill traverses, at depth and along strike to the north and south.

Exploration Office Warehouse I, 5 Butler Blvd Burbridge Business Park Adelaide Airport SA 5950 Postal Address PO Box 247 Export Park SA 5950

ABN: 96 110 336 733

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

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Michael Schwarz Managing Director Monax Mining Limited

For further information please contact: Michael Schwarz, Managing Director, Monax Mining Ph: (08) 8375 3900 Email: info@monaxmin ng.coi m.au

Duncan Gordon Investor Relations Ph: 0404 006 444

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

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