FireFly Metals Ltd. — Capital/Financing Update 2010

Mar 25, 2010

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 Friday, 26 March 2010

ASX RELEASE

Monax Signs Option Deal Over Four Queensland Gold Mining Leases

HIGHLIGHTS

• Monax signs Option Deal over four gold Mining Leases located in the Percyvale region, northern Queensland

• Previous rock chip sampling reported gold up to 608 g/t at Percy West Mining Lease and 197 g/t at Union Mining Lease

• Previous drilling at Union Lease reported intersections up to 5m @ 12.5 g/t gold and 2m @ 24 g/t gold

• Historic grade of mining at Union mine was 1.17 oz/t gold and 1.96 oz/t silver

• Historic grade of mining at Homeward Bound was 6.36 oz/t gold

Monax Mining Limited (ASX:MOX) is pleased to announce it has signed an Option Agreement over four granted gold Mining Leases in the Percyvale area, northern Queensland (Figure 1). The Mining Leases are located within the Etheridge Goldfield, which also contains the Kidston Gold Mine and significant goldfields at Forsayth and Georgetown.

The Option Agreement signals a new strategic push by Monax into northern Queensland and complements the recent addition of bauxite tenements on Cape York. Details of the four leases are listed below:

Lease No.	Name	Expiry Date	Size (hectares)
ML 3366	Union	31 July 2016	23.6
ML 30199	Percy West	30 June 2016	32
ML 30139	Josephine	31 October 2014	6.36
ML 30103	Homeward Bound	30 September 2013	2.63

ML 3366 – Union

ML 3366 is located approximately 10km northwest of Percyvale Homestead (Figure 1) and was historically the largest mine in the region. The Union Lease covers three lines of lode, the Union, Cranky Dick and Walkers, with only the Union reef worked to any great extent. The Union Mine was developed to a depth of 152m with a historical sample from a stope reporting 96.5 oz/t gold.

The records show total recorded production of 4,173 tonnes of ore producing 4,729oz of bullion gold and 195oz gold, 8216oz silver and 59.7t of copper. Recent exploration by Kidston Gold Mines Ltd comprised costeaning and drilling targeting oxide ore for the gold plant at the Kidston Gold Mine. Table 1 shows the best results from the Kidston costeaning program, the highest assays including:

• 32m @ 4.52 g/t Au (costean UC03)

• 8m @ 2.27 g/t Au (costean UC04)

• 14m @ 2.58 g/t Au (costean UC04)

Based on the promising costean results, Kidston drilled 12 holes for 1152m with the best intersections reported:

• 2m @ 34.4 g/t Au (hole PVRC2 44-46m)

• 2m @ 9.85 g/t Au (hole PVRC3 52-54m)

• 6m @ 4.77 g/t Au (hole PVRC8 6-12m)

• 2m @ 3.4 g/t Au (hole PVRC7 52-54m)

• Table 2 outlines all intersections >1 g/t Au.

Rock chip sampling by InterMet Resources (InterMet) in 2008 reported some spectacular results including:

• 184 g/t Au, 973 g/t Ag & 22.4% Cu

• 114 g/t Au, 845 g/t Ag & 15.8% Cu

• 167 g/t Au & 1730 g/t Ag

• 88.1 g/t Au, 1970 g/t Ag & 12.3% Cu

• 63.7 g/t Au, 1110 g/t Ag & 28.8% Cu.

InterMet completed 5 holes at the Union Mining Lease with the best result reported being 5m @ 12.5 g/t Au including 1m @ 59.9 g/t Au in hole URC002. All significant intersections from the InterMet drilling program are shown in Table 3.

Monax is planning to test the Cranky Dick and Walkers reefs as well as following up on rich ore from holes URC002 and URC005, which intersected sulphide rich ore. Monax will also undertake a small program of induced polarisation (IP) to define potential sulphide rich zones within the eastern part of the Lease.

ML 30199 – Percy West

ML 30199 is located approximately 5.5km southwest of Percyvale Homestead (Figure 1). Mineralisation is hosted by quartz veins within a highly altered rhyolite intruded into granodiorite. Previous rock chip sampling reported gold up to 608 g/t. Plate 1 shows gold found on ML 30199.

Within the main mineralised zone, altered rhyolite has been intruded into a regional granodiorite along a northwest trending structural zone. Figure 3 shows a summary of anomalous rock chip samples and drill hole locations. Rock chip sampling shows the high-grade nature of mineralisation with gold values up to 608 g/t reported from old workings.

Figure 4 shows a detailed view of the geology. Drilling by Eltin Minerals showed that the mineralisation is located at the contact between the rhyolite and the granodiorite and that alteration and mineralisation within this contact zone can potentially be up to 20m wide. The best results from Eltin Minerals drilling program include:

• 5m @ 1.0 g/t Au in hole PW1

• 3m @ 2.2 g/t Au i hole PW6

• 2m @ 4.4 g/t Au in hole PW8

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InterMet Resources drilled 5 holes at Percy West (see Figure 4) with the best results reported:

• 1m @ 1.99 g/t Au (hole PWRC002 63-64m)

• 1m @ 2.14 g/t Au (hole PWRC002 97-98m)

• 1m @ 2.3 g/t Au (hole PWRC004 65-66m)

Figure 4 shows the InterMet and Eltin drilling programs at Percy West and demonstrates that the reef was not fully tested with most of the holes failing to intersect the main line of lode.

Monax is planning a drilling program aimed at fully testing the reef as well as testing outcropping reefs on the northern side of the ridge.

ML 30103 – Homeward Bound

The Homeward Bound Lease is located approximately 13km west-southwest of Percyvale Homestead (Figure 1) and covers an area of old workings. The ore at Homeward Bound was very rich and averaged 6.39 oz/t in the oxide zone and 4.82 oz/t in the upper sulphide zone (de Havelland, 1989). The ore was also rich in silver (69.7 oz/t), copper (up to 7%) and lead (up to 5%), within the upper sulphide zone (de Havelland, 1989). The workings are scattered over 1km in length. Between 1890 - 1903, a total of 159.5 tonnes of ore yielded 1015.68 ozs of gold (grade of 6.36 oz/t).

Monax is planning to drill deep holes along strike and under the workings to test for further high-grade zones.

ML 30139 – Josephine

The Josephine ML is located approximately 9km south-southwest from Percyvale Homestead and covers an outcropping gossan. Previous rock chip sampling reported gold between 0.53 to 10.5 g/t, with samples also reporting anomalous copper (up to 1.2%), lead (up to 0.8%) and silver (59 g/t max).

ML 30319 is located near the old Josephine Mine, mined by Eltin Minerals. The mineralised zone within the mine was a relatively flat-lying vein (Figure 5). Monax will undertake exploratory drilling under the surface gossan to check for similar flat-lying veins. Monax will also take a bulk surface sample and test for recoverable gold from the gossan.

Option Deal

Under the terms of the Option Agreement, Monax will pay a non-refundable Option Fee of $16,000 to the lease holder and this allows Monax nine months to explore the Leases. He Leases are currently held by the Landowner of Percyvale Station. At the completion of the nine month Option period, if Monax wishes to purchase the Mining Leases outright, Monax will pay the following:

• Union ML $220,000 (plus GST)

• Percy West ML $80,000 (plus GST)

• • Josephine ML $40,000 (plus GST) • Homeward Bound ML $40,000 (plus GST)

Commenting on the Option Deal, Managing Director Gary Ferris said “Monax has been reviewing a number of projects and this group of projects offer the potential to assess the Leases for a small highgrade gold operation, which could be developed reasonably quickly and provide a cash-flow to support Company exploration programs elsewhere. The attraction to these Leases is the high-grade nature of the ore and the fact that these Leases have not been extensively tested at depth. Previous prospectors and miners were mostly interested in the easily obtainable oxide ore located above the water table”.

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Gary Ferris Managing Director Monax Mining Limited

For further information please contact:

Gary Ferris Managing Director, Duncan Gordon Monax Mining Investor Relations Ph: (08) 8375 3900 Ph: 0404 006 444 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 G M Ferris, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Ferris 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 Ferris consents to the inclusion of the information in this report in the form and context in which it appears

Reference

de Havelland, D.W., 1989. Gold and Ghosts, Volume 4. Hesperian Press, Carlisle, Western Australia.

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Figure 1: Location of four Mining Leases within Percyvale area, northern Queensland.

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Figure 2: Detailed view of ML 3366 (Union) showing location of previous exploration including rock chip sampling, costeans and drilling.

Table 1: Summary of results from Kidston Gold Mines costeaning program on ML 3366

Costean	From (m)	To (m)	Length (m)	Au (g/t)
UC01	80	84	4	1.2
UC03	62	94	32	4.52
	96	98	2	0.23
UC04	32	36	4	0.59
	56	64	8	2.27
	128	130	2	4.4
	140	154	14	2.58
	164	166	2	3.15
	128	172	44	1.21
UC06	28	30	2	2.4
UC07	66	70	4	0.53
UC08	8	16	8	0.34
	40	84	44	0.47

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Table 2: Summary of Kidston Gold Mines drilling on ML 3366 (Union)

Drill Hole	Interval (m)	Length (m)	Result (g/t Au)
PVRC2	44-46	2	24.3
PVRC3	6-8	2	1.66
	52-54	2	9.85
PVRC4	72-74	2	1.61
	88-90	2	1.07
PVRC5	0-2	2	1.87
	18-20	2	1.02
	22-24	2	1.19
PVRC6	18-20	2	2.2
PVRC7	28-30	2	1.95
	52-54	2	3.4
	68-74	6	1.12
Includes	68-70	2	1.07
and	72-74	2	2.25
PVRC8	6-12	6	4.77
PVRC9	32-34	2	2.1
PVRC10	6-8	2	1.31
PVRC11	16-18	2	2.6

Table 3: Summary of InterMet Resources drilling on ML 3366 (Union) (Source: ASX

Release 13 June 2008)

Drill Hole	Sample No.	Interval (m)	Result (g/t Au)
URC002	24783	88-89	59.9
URC002	24784	89-90	1.1
URC002	24785	90-91	0.29
URC002	24786	91-92	0.32
URC002	24787	92-93	0.14
URC002	24793	98-99	2.23
URC002	24794	99-100	10.9
URC002	24795	100-101	1.7
URC002	24796	101-102	3.97
URC002	24797	102-103	2.43
URC002	24798	103-104	0.53
URC003	24899	100-101	1.2
URC004	249993	92-93	0.86
URC005	25095	94-95	0.62
URC005	25096	95-96	12.4
URC005	25097	96-97	0.99
URC005	25098	97-98	0.4

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Figure 3: General view of ML 30199 (Percy West) showing rock chip and drill hole locations.

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Figure 4: Detailed view of geology and drilling at Percy West (ML 30199) (Source: ITT ASX Release 13 June 2008)

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Plate 1: Gold within quartz from ML 30133 (Percy West) (sample collected by Leaseholder Allyn Zabel)

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Figure 5: Drilling profile from Josephine Mine showing dip of mineralisation (length of mineralised section 125m – grid 25m spacing) – Blue squares .03-.05 g/t Au; cyan 0.5 – 1 g/t Au; green 1-3 g/t Au; red 3-5 g/t Au; magenta 5-999 g/t Au – NOTE: THIS SECTION IS NOT WITHIN ML 30139.

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