FireFly Metals Ltd. — Capital/Financing Update 2008

Feb 21, 2008

ASX ANNOUNCEMENT 22nd February 2008

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Major airborne EM survey to commence in March

Marmota Energy Limited ACN: 119 270 816 ASX: MEU

11a Croydon Road Keswick South Australia

P: +61 8 8375 4300

F: +61 8 8375 3999

E: info@marmotaenergy.com.au

W: www.marmotaenergy.com.au

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr D J Calandro, who is a Member of the Australian Institute of Geoscientists. Mr Calandro 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 Calandro consents to the inclusion of the information in this report in the form and context in which it appears.

Airborne EM Surveys

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(Marmota earning 50% under Ambrosia JV Agreement with Monax Mining Limited)

(Marmota earning 70% under Farm in and JV Agreement with Monax Mining Limited)

A contract has been signed between Marmota Energy and Fugro Airborne Surveys for the acquisition of over 15,000 line kms of airborne electromagnetic (AEM) data.

These surveys are planned to start in late March 2008 utilising the Tempest Digital Time Domain

The surveys will target the identification of palaeodrainages related to Tertiary, Mesozoic and Permian sedimentary sequences. The Company believes these sequences are capable of hosting large tonnage, low operating cost sandstone/roll-front styles of uranium mineralisation.

Electromagnetic system. This has produced excellent data over other uranium projects in the region greatly aiding in the definition of drill targets. This contract is for one of the largest airborne EM surveys undertaken by a private company.

Phase 2 acquisition will occur on Marmota’s southern Tenements located on the Eyre Peninsula. This will acquire a further 7,500 line kms of AEM data over the Waddikee, Southern Eyre Peninsula and Eureka Bluff tenements, where other data show that palaeochannels are present. Previous company exploration drillhole data show that the channels also contain the right sedimentary ingredients to host uranium.

The initial phase (Figure 1) of the survey program will focus on Marmota’s Flagship Project ‘Ambrosia’, then continue on to other Marmota tenements. The survey will complete almost 8000 line kms of acquisition over Marmota’s northern block of tenements.

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Figure 1. Phase 1: Ambrosia, Mulgathing, Wynbring, Kimono Tank, Indooroopilly, and Phar Lap AEM survey plan.

Shallow auger drilling completed over the Southern Eyre Peninsula tenements by joint venture partner Monax Mining Limited intersected previously unidentified palaeochannels.

Several holes identified a 200m wide palaeochannel system with reduced organic material (lignites) within the channel fill. This result also confirms the presence of suitable environments for rollfront uranium mineralisation.

The AEM survey will reduce uncertainty, greatly improving target vectoring processes in preparation for drill testing on this tenement planned in the third quarter of 2008.

On the Waddikee tenement the purpose of the AEM survey is to map palaeodrainages throughout the tenement, particularly where they drain from areas of outcropping/sub -cropping radiogenic granites identified in historical exploration.

“the largest airborne EM surveys of its type undertaken”

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Southern Eyre Peninsula AEM survey plan.

When completed, these airborne EM surveys will offer full EM coverage for over 80% of Marmota’s project areas.

This will reduce exploration risk particularly in target assessment and ranking during drill test allocation processes.

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Mr Dom Calandro MANAGING DIRECTOR