FireFly Metals Ltd. — Capital/Financing Update 2010

Jan 11, 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 Tuesday 12 January 2010

ASX RELEASE

Monax Signs Option Deal to Acquire Prospective Bauxite Tenements, Cape York Peninsula, Queensland

HIGHLIGHTS

• Monax signs Option Deal with Delminco Pty Ltd for 5 EPM Applications covering approximately 1358km[2] on Cape York Peninsula, premier bauxite area within Australia

• Monax applies for three tenements within prospective bauxite area

• Exploration to commence upon grant of tenements

Monax Mining Limited (ASX:MOX) is pleased to announce the signing of an Option Deal with Delminco Pty Ltd (Delminco) for five EPM Applications within the highly prospective Cape York Peninsula. Under the terms of the agreement, Monax will pay a $50,000 (non-refundable) Option Fee which provides Monax the rights to explore the tenements for a period of one year. At the completion of the twelve month option period, if Monax wishes to purchase the tenement outright it will make a final payment of $500,000 to Delminco.

Bauxite is a naturally occurring material from which alumina (Al2O3) and aluminium metal are produced. Australia is a major supplier of bauxite accounting for approximately 33% of global production in 2007.

Monax believes this project offers the Company significant exposure to a commodity which is considered to have excellent growth capacity with demand for bauxite estimated to increase significantly as supply and quality decreases from other sources including Indonesia. The Cape York Peninsula is considered to represent the premier bauxite province in the world, with two major mining operations at Weipa (Rio Tinto) and Aurukun (Chalco Australia Ltd – a subsidiary of Chinalco). Cape Alumina’s Pisolite Hills deposit also located on the Cape York Peninsula is due to commence production in 2013/14.

Included within the Option Deal are five current tenement applications (see Table 1), which cover an area of approximately 1358 km[2] (Figure 1). All five tenements are currently being advertised, which is the first stage of the granting process. Monax has also submitted three EPM Applications covering an area of approximately 644 km[2] (see Figure 1), taking the total project area to approximately 2002 km[2] .

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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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	Table 1: Tenement details for Monax Cape York Bauxite Project	Table 1: Tenement details for Monax Cape York Bauxite Project	Table 1: Tenement details for Monax Cape York Bauxite Project	Table 1: Tenement details for Monax Cape York Bauxite Project
Tenement	Tenement Name	Status	Tenement Holder	Sub-blocks	Area (km2)
EPM 16963	Pretender Creek C	Application	Delminco Pty Ltd	98	274
EPM 16964	Pretender Creek D	Application	Delminco Pty Ltd	50	140
EPM 17005	Kendall River B	Application	Delminco Pty Ltd	100	280
EPM 17006	Archer River	Application	Delminco Pty Ltd	100	280
EPM 17715	Pretender Creek E	Application	Delminco Pty Ltd	96	269
EPM 18304	Pretender Creek	Application	Monax Mining Ltd	41	115
EPM 18403	Holroyd River South	Application	Monax Mining Ltd	94	263
EPM 18404	Holroyd River North	Application	Monax Mining Ltd	95	266

Bauxite occurs throughout the Cape York Peninsula within bauxitic lateritic weathering profiles preserved as topographic highs between major drainage divides. Exploration for bauxite has shown that these topographic highs are also characterised by anomalous radiometric responses greatly assisting in exploration for potential bauxite resources.

An assessment of the tenement applications has shown extensive areas of topographic highs which are clearly seen on satellite imagery. Figure 2 shows a detailed view of EPM 18304 showing 3 areas of topographic highs which potentially contain bauxite. Figure 3 is a radiometric image showing elevated total counts corresponding to topographic highs, covering an area of approximately 25km[2] . Plate 1 shows an aerial view within EPM 18304 showing areas of topographic highs characterised by orange colouration due to bauxitic weathering profile. Plate 2 shows a sample of bauxite with characteristic bauxite pisolites from EPM 18304 area (collected by previous tenement holder).

Monax is planning a rapid exploration program when tenements are granted comprising hand auger sampling across all areas to assess the depth of the bauxite or weathering profile.

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.

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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 1: Location of Delminco EPM Applications on Cape York Peninsula, Northern Queensland

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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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Figure 2: EPM 18304 (Monax’s new EPM Application) showing topographic highs which

represent areas of potential bauxite

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Figure 3: EPM 18304 showing regional radiometric data (total count) – highlighting topographic highs

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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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Plate 1: Aeriel view of area within EPM 18304 showing topographic high on left and back zone of photo with characteristic orange colour. White zone in foreground represents topographic low zone where the bauxitic profile has been eroded (photo courtesy S Foster)

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Plate 2: Sample of bauxite showing charateristic pisolites within clay matrix from within EPM 18304 (photo courtesy S Foster)

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