FireFly Metals Ltd. - Capital/Financing Update 2012

Exploration Office Ware h ouse I, 5 Bu t ler Blvd Bu r bridgeBusi n essPark Adel a ide Airport SA 5950 Postal Address PO Box 247 E xport Park SA 5950

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Tel: +61 8 8 3 75 3900 Fax: +61 8 8 3 75 3999 www. m onaxminin g .com.au

ABN: 96 110 336 733

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For Imme d iate Relea s e Wednesd a y, 19 Dec e mber 2012

ASX RELEASE Monax signs agreement with ASX-listed Falcon Minerals for copper-gold targets in northern South Australia

HIGHLIGHTS

Monax Mining’s wholly-owned subsidiary, Monax Alliance, signs Option to Purchase Agreement with Falcon Minerals for two tenements in the Algebuckina area in northern South Australia.
The tenements will form part of Monax’s maiden Designated Project under its Strategic Alliance with Chilean major, Antofagasta plc.
Designated Project (DP) also includes three other Monax Alliance tenements which comprises the Algebuckina DP.

 Project focussed on copper-gold targets.

Monax Alliance Pty Ltd (“Allia n ce”) today announced it had signed an O ption to P urchase agreemen t with min e rals exploration com p any Falco n Minerals Limited (A S X:FCN) (“Falcon”) for two of its teneme n ts in the Al g ebuckina r egion in n o rthern Sou t h Australi a (Figure 1).

Alliance is a wholly o w ned subsi d iary of Monax Mining Limited (A S X:MOX) a nd was established as the op e rational v e hicle of a Strategic A lliance be t ween Monax and m a jor Chilea n copper producer, Antofagas t a plc, thr o ugh its s ubsidiary A ntofagast a Minerals Adelaide Pty Ltd (“AMA”).

Under the terms of t h e Strategi c Alliance, w hich com m enced in N ovember 2 011, AM A will provide U S $1 million to Alliance over two y e ars for tar g et-genera t ion within S outh Australia. Alliance is targeting properties c o ntaining b a se and pr e cious met a ls.

The Falc o n tenements adjoin three tenements al r eady hel d by Allia n ce as pa r t of its Algebucki n a Design a ted Proje c t (DP), w h ich is loc a ted about 1000km n orth north - west of Adelaide (Figure 1). The Algeb u ckina DP w ill now comprises five tenemen t s covering an area totalling 3,108km[2] (s e e Table below for ten e ment details).

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T enement N o.	Name	H older	Area (k m2)
EL 4350	Mt Margaret	F alcon	499
EL 4536	Mt Charles	F alcon	907
EL 4990	Old Umbum	Al liance	540
EL 5093	Alg ebuckina	Al liance	323
EL 5094	Dou glas Creek	Al liance	839

Background

Alliance undertook a review of the copper potential of the Pe a ke and D e nison Inli e r of the northern G awler Cra t on, including a revie w of histor i cal company explora t ion and a detailed assessme n t of the available geo p hysical d a ta sets.

Based on this revie w , Alliance approach e d Perth-based Falco n to undertake explor a tion on Exploratio n Licences (EL) 4350 a nd 4536.

The geology of the P eake and Denison Inlier has si m ilarities to the miner a lised sequ e nces in the Olary Block in South Austr a lia, and t h e eastern successio n of the Mt Isa Inlier i n northwestern Queensland.

Previous e xploration on the Fal c on tenements has ou t lined two p otential co p per-gold t a rgets at Davenport Creek (E L 4536) a n d Spring H ill (EL 43 5 0) (see Figure 2). Previous drilling at Davenport Creek ret u rned wide s pread ano m alous co p per (>0.1 % Cu), with a best res u lt of 3m @ 2.75% from 330 m associat e d with ma g netite-he m atite-chalc o pyrite-bor n ite brecci a s within basement rocks (not e downhole length, tru e width unk n own).

Geophysi c al modelli n g by Falco n on the S p ring Hill ta r get, show s two steep l y dipping, e longate to pipe-lik e bodies with densitie s ranging from 3.1 to 3.3 g/cc, a nd coincid e nt offset m agnetic anomalies (Figure 3).

The geop h ysical mo d elling indi c ates a di a meter of 1 .3km and a depth t o the source of the gravity an o maly of 1 6 0m below the surfac e . These f e atures ha v e not bee n adequate l y tested by previous drilling.

Alliance is planning t o undertak e a detailed gravity sur v ey over s e lected are a s and a decision to drill will be made afte r interpreta t ion and m o delling of t h e newly a c quired gra v ity data.

Terms of the Option Agreement with Falcon Minerals Upon pay m ent of US $ 25,000 by Alliance to Falcon aft e r the execution of th e Option Agreement by the pa r ties (“Effe c tive Date”) , Falcon will grant to A lliance th e sole and exclusive o ption to purchase E L’s 4350 a nd 4536 (“ O ption”).

The Optio n may be e x ercised b y Alliance p a ying each of the follo w ing amou n ts to Falc o n, on or before the correspon d ing dates a s follows:

Amount	Date
US$50,000	First anniversar y of the Eff ective Date .
US$75,000	Seco nd anniver sary of the EffectiveD ate.
US$250,00 0	Third anniversa ry of the Ef fective Date .

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If Alliance makes a d ecision to mine on t h e tenements (whethe r before or after the O ption is exercised), it will pay Falcon a further US$10 million.

Gary Ferr i s Managing Director, Monax Mining Ph: (08) 8375 3900 Email: inf o @monaxmining.com. a u

Duncan Gordo n Inv e stor Relati o ns Ph: 0404 006 4 44

The information in this report th a t relates to Expl o ration Results, M ineral Resource s or Ore Reserve s is based on inf o rmation compile d by Mr G M Ferris, who is a Member of the A u stralasian Instit u te of Mining and M etallurgy. Mr F e rris is employed full time by the C ompany as Man a ging Director and, has a minimum of five ye a rs relevant experience in the style of mineralisati o n and type of d eposit under co n sideration and q ualifies as a Competent Per s on as defined i n the 2004 editi o n of the “Austr a lasian Code for Reporting of Ex p loration Results, Mineral Resour c es and Ore Reserves” Mr F e rris consents to t h e inclusion of th e information in this report in the fo r m and context in which it appears.

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Figure 1.Monax Alliance Algebuckina Designated Project location

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