FireFly Metals Ltd. — Capital/Financing Update 2010

Mar 23, 2010

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ASX
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ANNOUNCEMENT

24[th] March 2010

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Marmota achieves full earn-in on Melton copper-gold project, South Australia

• Marmota Energy has achieved a 50% share of the mineral rights on the highly prospective Melton copper-gold project on South Australia’s Yorke Peninsula.

Marmota Energy Limited ACN: 119 270 816 ASX: MEU

Exploration Office: Unit I, 5 Butler Blvd

Burbridge Business Park, SA 5950

P: +61 8 8375 4300

F: +61 8 8375 3999

E: info@marmotaenergy.com.au

W: www.marmotaenergy.com.au

• Drilling currently underway, testing the first three of five largescale IOCG targets.

Melton copper – gold project

Marmota Energy Limited earning 50% under Melton JV Agreement with Monax Mining Limited (ASX: MOX)

Marmota Energy Limited (‘the Company’) is pleased to announce that it has moved to a 50% share of the Melton copper- gold project (‘the project’) on the northern Yorke Peninsula in South Australia. Marmota has satisfied the total earnin commitment on the project ahead of schedule as part of its agreement with Monax Mining Limited. Drilling is currently underway on the Marmota tenements to test the first large-scale IOCG target (‘Miranda’) indentified by the Company’s high-resolution geophysical surveys. Drilling is progressing well and is expected to be completed within 10 weeks.

The information in this report that relates to MELTON Exploration Results, Mineral Resources or Ore Reserves is based on information PROJECT 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.

Figure 1. Melton project location diagram

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Melton Copper Gold Project

Marmota Energy Limited (ASX: MEU) earning 50% under Melton JV Agreement with Monax Mining Limited (ASX: MOX)

Marmota Energy is currently undertaking the drill testing of three large scale anomalies at its Melton ironoxide copper gold (IOCG) project in South Australia. The Melton project is located on the northern Yorke Peninsula and contains a 15km section of the highly prospective Pine Point Fault Zone (PPFZ – see Figure 2).

Reprocessing of recently acquired high-resolution aeromagnetic data over the Melton project has outlined five significant magnetic anomalies, of which three in particular have been interpreted to be associated with the PPFZ (Figure 3). The reprocessed data has highlighted the strong magnetic signatures of these anomalies, as well as delineating the prominent north-south trending structural grain together with northeast-southwest and northwest-southeast trending cross-structures.

Drilling at Rex Minerals’ neighbouring Hillside discovery has highlighted the correlation between magnetite and copper mineralisation. The reprocessed aeromagnetic data is the first step in developing a drilling program and the addition of detailed gravity data has provided a better understanding of the geology of the region.

Data from the surface gravity survey has been processed and, together with the high-resolution magnetic survey has assisted in targeting interpreted potential mineralised zones within the regional targets. Marmota’s drilling program is targeting zones of coincident magnetic and gravity anomalies, as well as independent gravity and magnetic targets. This will provide a clearer understanding of what each feature represents and assist in the design of future drilling programs.

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Figure 2. New high resolution magnetic data over the entire Melton project, with potential target zones defined (in red hash).

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MIRANDA TARGET
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Figure 3. Reprocessed total magnetic intensity, covering the first three of five anomalies on the Melton project.

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Outline of
corresponding
‘Miranda’ magnetic
anomaly
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Figure 4. Reprocessed gravity data (red - white: high gravity response), over the Miranda target area with coincident magnetic anomaly location outlined in black dashed line.

Figure 4 shows the newly acquired gravity data over the high-priority Miranda target. The Miranda target represents the strongest gravity anomaly and is up to 4km in length, with the magnetic feature also exhibiting a significant gravity response.

Ten drill holes are planned as part of this maiden program to test the Miranda, Melton and North White Cliffs targets. Phase one drilling is expected to take approximately 10 weeks to complete.

Marmota has completed access agreements with landholders within the target areas, paving the way for the timely execution of its exploration programs.

As part of the Company’s joint venture with Monax Mining, Marmota is the operator of the project and has now achieved its full earn in requirement at the Melton project. Monax may elect to preserve its equity interest by contributing to the current exploration program.

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Mr Dom Calandro MANAGING DIRECTOR

24 March 2010