FireFly Metals Ltd. — Capital/Financing Update 2009

Aug 26, 2009

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 27[th] August, 2009

ASX RELEASE

Monax strikes agreement with OMM in $2 million farmin to Monax’s Waddikee manganese project in SA

Monax Mining Limited (ASX: MOX) is pleased to announce that OM (Manganese) Limited (OMM) – a wholly owned subsidiary of the ASX-listed diversified minerals and manganese producer, OM Holdings Limited (ASX: OMH) - has signed a Farmin Agreement for $2 million into Monax’s manganese prospective Waddikee tenement (EL3357) on South Australia’s Eyre Peninsula.

Farmin Agreement

Under the terms set out in the agreement, OMM has the right to earn a 60% interest in all ferrous minerals (manganese and iron ore) by funding expenditure to the value of $2 million over a 4 year period. OMM must expend a minimum of $250,000 in the first year before the right to withdraw. During the farmin period, Monax will remain exploration operator according to the program and budget mutually agreed between both parties. Monax retains the right to all non-ferrous minerals within the tenement, giving OMM the first right of refusal. Should OMM withdraw prior to expending $2 million, it will have earned no interest in the tenement. This agreement is conditional upon the completion of due diligence enquiries by OMM within 90 days.

Upon OMM earning its farmin interest, OMM and Monax will enter into a Joint Venture Agreement (JVA). Under the terms set out to be included in the JVA, Monax may elect to contribute in proportion to its 40% interest, or transfer a further 20% interest to OMM by OMM funding a further $2 million of expenditure. Should OMM make a decision to mine, Monax may elect to contribute in proportion to its remaining participating interest, or relinquish its interest and withdraw from the JVA in exchange for a net revenue FOB royalty at a rate of 1% for each 10% of participating interest retained at the time of OMM’s decision to mine.

Monax Chairman, Mr Robert Kennedy said, “The Company is delighted to have OMM as a partner on this project, which we consider to be our highest priority. The agreement will result in significant and timely advancements at Waddikee in the exploration for manganese and iron with the goal to define a mineable resource”.

“OMM has a demonstrated record in manganese exploration and production including maintaining and continuously improving product yield, metal recovery and cost performance at its Bootu Creek operation - vast expertise that can be brought to bear on the development of the Waddikee project,” Mr Kennedy said.

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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OMM, as a wholly owned subsidiary of OM Holdings Limited, controls 100% of the operating Bootu Creek Manganese Mine located 110 kilometres north of Tennant Creek in the Northern Territory. Bootu Creek has a Mineral Resource of 30.6 million tonnes at 24.1% Mn including an Ore Reserve of 22.4 million tonnes at 22.1% Mn ( as at 31[st] December, 2008;see OMH ASX ann. 5[th] March 2009)* .

Project status

Waddikee is located 45km north east along strike from Centrex Metals Limited’s Wilgerup hematite iron ore project and 55km west of OneSteel’s iron ore mines - Iron Duke, Iron Baron and Iron Monarch, on the eastern Eyre Peninsula, South Australia (Figure 1).

The Waddikee tenement comprises more than 80km strike length of the manganese (Mn) prospective host sequence, including banded iron formation (BIF), clearly evident as long curvi-linear highs within the 100m line spaced aeromagnetic data and gravity data (Figure 2). Figure 1. Waddikee Project, Eyre Peninsula, South Australia

Monax has defined a number of highly prospective areas comprising manganese mineralisation, based on detailed geophysics, mapping, rock chip sampling and drilling during 2008 ( see ASX ann. 19[th] Sept, 2008 ). Eight drill traverses at the Jamieson Tank prospect intersected manganese mineralisation, as well as one drill hole to the north at the Pollinga prospect. Laboratory scale beneficiation demonstrated that bulk samples from selected manganese intersections could be upgraded to 42.5% Mn, with up to 88% recovery ( see ASX ann. 18[th] Dec, 2008 ).

Based on this information, Monax believes that there is good potential to define other areas of manganese mineralisation as well as iron ore.

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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Figure 2. Detailed aeromagnetic (left) and gravity_1vd (right) data, illustrating manganese and iron prospects, Waddikee tenement, South Australia

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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@monaxmining.com.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

*The information in this report which relates to resources and reserves is based on information compiled by Mr Craig Reddell and Mark Laing, both full time employees of OM (Manganese) Ltd and who are Members of the Australasian Institute of Mining and Metallurgy, and modelled by Mr Robert Spiers a full time employee of Hellman and Schofield Pty Ltd and who is a Member of the Australian Institute of Geoscientists. Mr Reddell, Mr Laing and Mr Spiers have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify 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 Reddell, Mr Laing and Mr Spiers consent to the reporting of this information in the form and context in which it appears.