FireFly Metals Ltd. — Capital/Financing Update 2011

Feb 8, 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 9 February, 2011

ASX RELEASE

Punt Hill Project Update

HIGHLIGHTS

• Gravity survey recommences, scheduled for completion by late February – early March

• Age dates confirm Punt Hill mineralisation as part of the same Iron-Oxide Copper-Gold event as Olympic Dam deposit

Monax is pleased to announce a project update on the gravity survey and the results of a scientific geochronology study (age dating) at its Punt Hill project. The gravity survey has recommenced and is approximately 45% complete, whilst a geochronology study confirms that alteration and mineralisation at Punt Hill is part of the same Iron-Oxide Copper-Gold (IOCG) event on the Gawler Craton, responsible for the world class Olympic Dam deposit. This research was completed as part of the PIRSA ‘PACE Geochronology’ program.

Punt Hill Project Update

The Punt Hill project is located in the heart of the IOCG Province, adjacent to the Carrapateena deposit (Figure 1). Drilling by Monax has defined an extremely large alteration and mineralisation system and potential remains for the discovery of large IOCG deposits at Punt Hill. Significant intersections include:

• GHDD6 – 159m @ 0.47% Cu, 0.12g/t Au, 5.3g/t Ag, 0.48% Zn & 0.12% Pb (from 846m) including: o 17m @ 1.1% Cu, 8.5g/t Ag & 1.2% Zn (from 853m)

• GHDD4 – 122m @ 0.47% Cu, 0.1 g/t Au, 6.6 g/t Ag & 0.38% Zn (from 840m) including: o 15m @ 0.96 Cu, 0.13 g/t Au, 10.5 g/t Ag & 0.52% Zn (from 840m)

• GHDD1 – 126m @ 0.4% Cu (from 837m) including: o 17m @ 0.41% REE* (from 788m)

• 14m @ 0.7% Cu (from 846m)

• 14m @ 1.1% Cu, 0.25 g/t Au & 4.5 g/t Ag (from 940m)

• GHDD2 – 154m @ 0.35% Cu, 0.09 g/t Au, 4.7 g/t Ag & 0.37% Zn (from 897m)

• GHDD3 – 76m @ 0.22% Cu & 2.2 g/t Ag (from 826m) including: o 22m @ 0.28% REE* (from 788m)

• WDDD1 – 70m @ 0.41% Cu (from 683m) including:

• 18m @ 0.42% REE* (from 648m)

Monax Mining Limited

o 28m @ 0.82% Cu & 10g/t Ag (from 683m)

• WPDD1 – 60m @ 0.13% Cu & 0.03 g/t Au (from 788m)

*Rare Earth Elements Lanthanum + Cerium

Monax has entered into a farm-in agreement with Antofagasta PLC ("Antofagasta"), through its wholly-owned subsidiary Antofagasta Minerals S.A. 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. The agreement commits Antofagasta to spend a minimum of US$1.5 million on the Punt Hill project within the first two years.

Currently, a large gravity survey is being undertaken on EL 4642 (Punt Hill) and EL 4548 (Yeltacowie) to complement existing data (Figure 2). Gravity surveying is the primary tool used for targeting the drilling. The current survey will add 8050 gravity stations and is due for completion in late February to early March, resulting in a total coverage comprising 14,650 stations. The data will be processed and significant anomalies modelled, followed by screening using electrical geophysical methods and priority targets will be selected for drill testing.

Geochronology – Punt Hill

The following information summarises available geochronological data from the current IOCG deposits. (Ma = million years)

Olympic Dam is an IOCG breccia complex dated at ~1590 Ma. Prominent Hill is a hematitedominant IOCG deposit interpreted to be ~1585 Ma. While mineralisation at Carrapateena has not been directly dated, the similarity in style to Olympic Dam suggests emplacement at ~1590 Ma. Dating of the Hillside deposit provided ages between ~1580 and ~1565 Ma, suggesting that the mineralisation event here is part of the same event as Olympic Dam.

Monax has dated the age of three rock types from the Punt Hill project (Figure 3), showing conclusively that alteration and mineralisation it is part of the Olympic Dam IOCG event:

1. Granite at the base of drill hole GHDD1 recorded an age of 1853±9 Ma, which represents the Donington Suite granite. This is the same granite which hosts Carrapateena.

2. Sediments directly above the granite in drill hole GHDD2 yielded an age of 1842±13 Ma indicating that the source to this sediment is derived locally from weathering of the Donington Suite granite.

3. Age dating of a sample of the skarn alteration from drill hole PDDD2 yielded an age of 1577±15 Ma. Petrological studies have demonstrated that the mineralisation at Punt Hill, including copper, gold, silver, zinc, lead and rare earth elements (La+Ce), is intimately associated with this skarn alteration. Figure 4 shows representative samples of drill core, clearly demonstrating the relationship between skarn alteration and sulphide mineralisation.

Monax is excited about the results which confirm the skarn alteration and mineralisation event occurred at ~1580 Ma. This is an important result as it confirms that the Punt Hill belongs to the geological event that resulted in the formation of the Olympic Dam deposit and other IOCG deposits within the IOCG Province.

Monax Mining Limited

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.

Monax would like to acknowledge PIRSA and Anthony Reid for this scientific investigation under the PACE Geochronology program.

Monax Mining Limited

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Figure 1. IOCG Province on the eastern margin of the Gawler Craton, showing the location of the Punt Hill project.

Monax Mining Limited

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Figure 2. New gravity data over existing processed gravity data, showing exploration

targets .

Monax Mining Limited

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Figure 3. Schematic section through drill holes from the Punt Hill project showing the relative location and ages of the geochronology samples .

Monax Mining Limited

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Figure 4. Representative samples of drill core demonstrating the relationship between skarn alteration and sulphide mineralisation, dated at 1577±15 Ma.

Monax Mining Limited