FireFly Metals Ltd. — Capital/Financing Update 2011

Oct 23, 2011

ABN: 96 110 336 733

Exploration Office Warehouse I, 5 Butler Blvd BurbridgeBusinessPark 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

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For Immediate Release Monday, 24 October, 2011

ASX RELEASE

Drilling commences at Monax’s flagship Punt Hill Copper-Gold project in S.A.

HIGHLIGHTS

• Monax has started drilling key targets at its Punt Hill Copper-Gold project adjacent to OZ Minerals’ Carrapateena project in northern South Australia.

• Four drill holes planned to test prominent gravity targets.

Monax Mining Limited (ASX:MOX) today announced it had commenced drilling at its flagship Punt Hill Copper-Gold project located within the Olympic Iron-Oxide Copper-Gold (IOCG) Province in South Australia (Figure 1; Plate 1).

Four holes, totalling 3200 metres, are planned to test high-priority gravity targets. Three of the four holes will be drilled on EL 4548 (Yeltacowie) where the basement is interpreted to be much shallower than previous drilling on EL 4642 (Punt Hill). The geophysical modelling and limited historical drilling suggests the targets are between 250 and 450m depth below the surface on EL 4548.

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Plate 1: Drilling at Target 11, Punt Hill copper-gold project.

Monax Mining Limited

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The drilling program is funded as part of Monax’s farm-in agreement with major Chilean mining company, Antofagasta PLC ("Antofagasta"), through its wholly-owned subsidiary Antofagasta Minerals S.A.

Antofagasta is listed on the London Stock Exchange and a constituent of the FTSE-100 Index, with interests also in transport and water distribution. Currently, Antofagasta's activities are primarily concentrated in Chile where it owns and operates four copper mines: Los Pelambres, Esperanza, El Tesoro and Michilla. Total production in 2011 is expected to be 620,000-640,000 tonnes of copper, 10,600 tonnes of molybdenum and 200,000-215,000 ounces of gold. Antofagasta also has exploration and evaluation or feasibility programmes in North America, Latin America, Europe, Asia and Africa. The Punt Hill farm-in agreement with Monax represents Antofagasta’s first investment in Australia.

Under the agreement, Antofagasta can earn a 51% interest in the Punt Hill project by committing US$4 million over four years. Once Antofagasta has obtained this 51% interest, Monax has the ability to remain at 49% by co-funding exploration or development costs, or can elect to have its interest diluted.

Antofagasta can earn a further 19% equity in the project by expending a further US$5 million on exploration and development of the project tenements. If a development decision is made, Antofagasta will pay Monax a success fee of US$10 million. Antofagasta must spend a minimum of US$1.5 million on the Punt Hill project within the first two years.

“Monax and Antofagasta are extremely pleased to be back exploring the Punt Hill copper-gold project”, Monax Mining Managing Director said today.

“This coincides with a time of exciting new developments within the Olympic IOCG Province, particularly the recent confirmation of BHP-B’s plan to significantly expand its Olympic Dam operations, OZ Minerals’ drill out of Carrapateena deposit, the recent deal between Rio Tinto and Tasman Resources over the Vulcan prospect and Rex Minerals’ Hillside project” he said.

“The Olympic IOCG Province is world class and remains vastly underexplored”.

Mr Ferris said “drilling is expected to take about 50 days to complete with results expected in late 2011 or early 2012”.

Monax Mining Limited

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Figure 1. Geological setting and location of Punt Hill project.

Monax Mining Limited

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Punt Hill Project background

Drilling by Monax in 2007-2008, lead to the discovery of significant mineralisation over large intervals, particularly at the Groundhog prospect (Table 1). The company believes that the results place the exploration project at the forefront in the Olympic IOCG Province behind the known deposits of Olympic Dam, Carrapateena, Prominent Hill and Hillside.

Table 1. Summary of significant drill hole results Punt Hill project.

Drillhole	Depth	Interval	Copper	Gold	Silver	Zinc	REE
WPDD1	788-848m	60m	0.13%	0.03 g/t
WDDD1	648-666m	18m					0.42%
	683-753m	70m	0.41%
	including	28m	0.82%		10g/t
GHDD1	788-805m	17m					0.41%
	837-963m	126m	0.40%			0.24%
	including	14m	0.70%
	and	14m	1.00%	0.25 g/t	4.5 g/t
GHDD2	897-1051m	154m	0.35%	0.09 g/t	4.7 g/t	0.37%
GHDD3	826-902m	76m	0.22%		2.2 g/t
	including	22m					0.28%
GHDD4	840-962m	122m	0.47%	0.1 g/t	6.6 g/t	0.38%
	including	48m	0.69%	0.11 g/t	8.75 g/t	0.48%
	and	15m	0.96%	0.13 g/t	10.5 g/t	0.52%
GHDD6	846-1005m	159m	0.47%	0.12 g/t	5.3 g/t	0.48%
	including	17m	1.10%		8.5 g/t	1.20%
PDDD1	754-782m	29m	0.12%
	811-821m	11m	0.22%
	888-900m	13m	0.55%
	985-997m	13m	0.33%
PDDD2	856-1014m	152m				0.32%
	876-975m	99m	0.24%
	Including	1m	7.58%	0.03 g/t	144 g/t

The mineralisation discovered at Punt Hill is a high temperature calc-silicate skarn, comprising minerals such as chalcocite, bornite, chalcopyrite, gold, silver, zinc, lead, and rare earth elements (REE Lanthanum and Cerium). Geological investigation at the Punt Hill project has confirmed that the mineralisation is of the same age and geological event as the other known IOCG deposits including Olympic Dam, Carrapateena, Prominent Hill and Hillside.

Native Title and Cultural Heritage

During the past six months, Monax has negotiated, signed and registered a Part 9B Native Title Mining Agreement with the Kokatha Uwankara Native Title Claimants.

A cultural heritage survey was completed successfully on August 13[th] and 14[th] , paving the way for six sites to be drill tested.

Monax Mining Limited

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Geophysics and Drilling

A comprehensive gravity survey over the entire project was completed earlier this year (Figure 2). Extensive processing and modelling has been undertaken on the data to gain maximum benefit for drill testing. A number of specific geological criteria were applied resulting in the ranking of targets which both Monax and Antofagasta believe warrant drill testing. During this current exploration program, Targets 4, 5, 6 and 11 will be drill tested.

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Figure 2. Bouguer Gravity over the Punt Hill Copper-Gold project.

Monax Mining Limited

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Target 4 and 5

Targets 4 and 5 on EL 4548 are located in a broad area of high amplitude gravity response demonstrating a general NW-SE trend (Figure 2). Both anomalies have coincident moderate amplitude magnetic responses. The area is bound to the NE and SW by NW-SE trending structures and is truncated on the north by a large E-W fault. Dimensions of the highest amplitude gravity shell for Target 4 in the 3D model is 1.5km x 1km extending to 2km depth. Target 5 is a NW trending 2km x 500m body extending to 1km depth (Figure 3).

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Figure 3. 3D gravity model showing planned drill holes to test Targets 4 and 5.

Target 6

Target 6 on EL 4548 is a discrete gravity anomaly in a surrounding area of low gravity response (Figure 2). This anomaly has a highly favourable complex structural setting with interpreted NWSE, NE-SW and N trending faults. Target 6 does not have an associated magnetic response and is interpreted to represent a hematite dominant breccia pipe. Dimensions of the highest amplitude gravity shell for Target 6 in the 3D model is 1km x 1km x 1km deep (Figure 4).

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Figure 4. 3D gravity model showing planned drill hole to test Target 6.

Monax Mining Limited

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Target 11

Target 11 on EL 4642 is part of the Groundhog Gravity Trend discovered by Monax in 2007-2008 (Figure 2). This anomaly is strongly influenced by prominent NW-SE and NE-SW trending faults. This drill hole is planned to test the shallower NW extension of skarn mineralisation already discovered at Groundhog, Prairie Dog, Woodchuck, Whistlepig and Hoary prospects. Dimensions of the highest amplitude gravity shell for Target 11 in the 3D model is 500m x 500m x 1km deep (Figure 5).

The new geophysical modelling is strongly supported by the previous drilling results at Groundhog and Prairie Dog. The projections of drill holes GHDD06, PDDD01 and PDDD02 in the 3D gravity model in Figure 5 directly penetrate the associated high amplitude gravity shells. This provides a high level of confidence for Target 11. A successful result in this drill hole will extend the zone of anomalous alteration and mineralisation associated with the Groundhog Gravity Trend to approximately 16km in length. It will also provide the basis to warrant testing a high amplitude gravity feature further to the NE of Prairie Dog.

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Figure 5. 3D gravity model showing planned drill hole to test Target 11.

Monax is delighted that drilling has recommenced at its flagship project and believes that this project has potential to provide significant benefits for the Company’s shareholders. Together with Antofagasta, Monax have outlined some great targets to drill. The combination of a project in a world class mineral province and the backing of a major international copper producer funding exploration provide significant upside for all of Monax’s stakeholders.

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.

Monax Mining Limited

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