FireFly Metals Ltd. — Capital/Financing Update 2011

Mar 3, 2011

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, 4 March, 2011

ASX RELEASE

Monax commences drilling at Waddikee Manganese Project, South Australia

HIGHLIGHTS

• RC/aircore drilling program commenced

• Ground magnetic surveying complete

• Two diamond drill holes planned at Jamieson Tank, scheduled for mid April

Monax is pleased to announce that RC/aircore drilling has commenced at its Waddikee Manganese Project on South Australia’s Eyre Peninsula.

The drilling program will comprise about 3600 metres, testing the southern extension of the Jamieson Tank prospect and four regional prospects.

Background

The Waddikee Project is located south of the township of Kimba on South Australia’s central Eyre Peninsula (Figure 1). The project is the subject of a farm-in agreement with OM (Manganese) Ltd (OMM), a wholly-owned subsidiary of OM Holdings Limited (ASX:OMH). OMM is required to fund A$2 million over four years to acquire a 60% participating interest for manganese and iron on the project.

Drilling to date by Monax at the Jamieson Tank ( hole prefix JTRC) and Polinga (PRC) prospects of the Waddikee Project has been highly encouraging.

Significant manganese results include:

• 2m @ 34% Mn (JTRC036 10-12m)

• 3m @ 19.8% Mn (JTRC057 18-21m)

• 3m @ 21.2% Mn (JTRC067 28-31m)

• 10m @ 17.5% Mn (JTRC069 26-36m) including

• 2m @ 26.7% Mn (26-28m)

• 5m @ 19.2% Mn (JTRC119 14-19m)

• 7m @ 17.1% Mn (JTRC121 22-29m)

• 4m @ 14% Mn (PRC003 25-29m) and 6m @16% Mn (PRC003 31-37m).

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Significant intersections of iron include:

• 17m @ 31.6% Fe (JTRC011 3-20m)

• 12m @ 33.8% Fe (JTRC012 18-30m)

• 17m @ 31.6% Fe (JTRC013 33-50m)

• 24m @ 28.4% Fe JTRC014 54-78m)

• 16m @ 29.1% Fe (JTRC021 7-23m)

• 17m @ 33.3% Fe (JTRC041 9-26m)

• 20m @ 33.8% Fe (JTRC042 20-40)

• 16m @ 34.6% Fe (JTRC043 43-59m)

• 12m @ 34.8% Fe (JTRC044 67-79m)

• 20m @ 32.1% Fe (JTRC054 5-25m) and 8m @ 25.9% Fe (JTRC054 31-39m)

• 7m @ 31.3% Fe (JTRC067 11-18m)

• 10m @ 28.0% Fe (JTRC065 22-32m)

• 6m @ 37.2% Fe (JTRC118 17-23)

• 8m @ 29.5% Fe (JTRC105 15-23m)

• 44m @ 34.6% Fe (PRC001 25-69m)

Jamieson Tank RC/aircore drilling

Monax has drilled 127 RC/aircore holes at the Jamieson Tank prospect, totalling 7200 metres (Figure 2). Drilling has shown the manganese units at Jamieson Tank are located on the eastern side of prominent north-northeast trending magnetic features, which are interpreted to represent iron rich units of the Hutchison Group metasediments. The drilling results and interpretations have been entered into a 3D model, which demonstrates clear evidence of multiple manganese horizons and continuity along strike. A simplified snapshot of this 3D model is given in Figure 3, showing the intersections of manganese and interpretations between drill holes.

The first phase of the current drilling program is designed to test the southern extension of manganese at the Jamieson Tank prospect. Follow geological mapping, rock chip and soil sampling along strike to the south, resulted in further discovery of manganese mineralisation. Mapping identified up to three separate horizons with rock chips from surface returning up to 46.5% Mn. A subsequent auger soil sampling program confirmed the anomalous manganese, with samples returning up to 12% Mn. The location of the planned drill holes in the southern Jamieson Tank area is shown in Figure 4, which also includes existing rock chip and soil samples.

Twenty-eight holes are planned for a total of 1680 metres. If successful this drilling could extend the zone of mineralisation at Jamieson Tank to approximately six kilometres.

Regional RC/aircore drilling

Subsequent to the drilling at Jamieson Tank, four regional prospects including Polinga, Windyzell, Bunora West and Hodgins, are scheduled to be drill tested based on anomalous results from previous rock chip sampling, drilling and recent auger soil sampling. The location of the regional prospects is shown in Figure 5.

Polinga:

Anomalous manganese at Polinga was first identified in a roadside grader scraping in 2007. Surface rock chip sampling at Polinga returned results up to 41.8% Mn and was traced over a distance of approximately one kilometre. During 2008, Monax drilled four holes at Polinga, successfully intersecting manganese in drill hole PRC003. Drill hole PRC001 intersected significant iron mineralisation (44m @ 34.6% Fe). Restricted access at the time due to wheat crops prevented Monax adequately testing the manganiferous horizon. However, fifteen holes are now planned at Polinga for a total of 900m.

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Windyzell:

Investigation of historical calcrete and soil sample data across the tenement revealed a number of strong manganese anomalies, including those at Jamieson Tank and Polinga. At Windyzell (Figure 5), three manganese anomalies were revealed along strike to the east of a prominent north-south trending magnetic feature. This is interpreted to be a similar geological setting to what has been discovered at Jamieson Tank. Three auger soil sample traverses completed in 2010 revealed slightly anomalous results. Two separate traverses comprising 10 holes for a total of 600 metres will be drilled at Windyzell to investigate these anomalies.

Bunora West:

At Bunora West, a historical geochemical anomaly is coincident with a weak magnetic zone. Although there is no clear surface expression of manganese, three holes are planned to test this feature.

Hodgins:

Historical mapping and rock chip sampling by Monax at Hodgins reported samples up to 37% Mn. The surface expression of manganese at Hodgins comprises a relatively small patch of sub-crop and five holes are planned here.

Ground Magnetic Surveying

A program of ground magnetic surveying at Jamieson Tank, Windyzell, Bunora West and Hodgins was completed in January 2011. Exploration to date suggests that the manganese has a strong stratigraphic control and is intimately associated with the magnetic horizons. The ground surveying accurately determines the location of the magnetic anomalies and greatly assisted in the planning of the drill holes for the current program (e.g. Figure 4).

Jamieson Tank Diamond Drilling

Two large diameter (HQ) diamond drill holes are planned at Jamieson Tank to depths of 100-120 metres. The location of the diamond holes will be strategically placed to replicate the better intercepts from the existing and current RC/aircore drilling. The purpose of this diamond drilling is to provide stratigraphic, structural, petro-physical, geochemical and metallurgical control on the manganese mineralisation.

While RC/aircore drilling is a cost efficient process, the method pulverizes and homogenizes the sample. As a result, the rock relationships and physical sample for metallurgy are of little value. Large diameter diamond core will provide excellent sample to conduct extensive geological investigations. The location of the diamond holes will be decided upon completion of the RC/aircore drilling program in the southern Jamieson Tank area. Manganese samples from the diamond drilling will be submitted for laboratory metallurgical test work.

Monax Managing Director, Mr Gary Ferris, said: “We are excited about the commencement of this next round of exploration at Waddikee”.

“Monax is looking to expand on the manganese mineralisation identified at Jamieson Tank and develop some of the regional prospects,” he said.

“If we can successfully identify good manganese mineralisation at any of the regional prospects, this will greatly increase the overall prospectivity of the entire project”.

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Gary Ferris 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 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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Figure 1. Location of the Waddikee project, central Eyre Peninsula.

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Figure 2. Jamieson Tank prospect, showing the location of existing drilling.

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Figure 3. 3D view of Jamieson Tank drilling, including down hole lithology traces and interpreted sections. Map looking northwest.

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Figure 4. Proposed drill hole locations in the southern Jamieson Tank area, showing previous geological mapping, rock chip sampling, auger soil sampling and detailed ground magnetic survey.

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Figure 5. Waddikee project. Locations of the regional prospects including commodity focus. (Background: total magnetic intensity )

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