FireFly Metals Ltd. — Capital/Financing Update 2012

Aug 19, 2012

Exploration Office Warehouse I, 5 Butler Blvd BurbridgeBusinessPark 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 Monday, 20 August 2012

ASX RELEASE

Drilling Commenced at Monax’s Punt Hill Copper-Gold Project

HIGHLIGHTS

• Drilling commenced at Monax’s Punt Hill Copper-Gold Project

• Aboriginal heritage clearance completed in late July

• Targeting large copper-rich skarn system discovered in 2006-2007

• US$2.5 million budget approved by major Chilean-based copper mining company, Antofagasta

• $60,000 PACE funding received from South Australian Government for the project

Monax Mining Limited (ASX: MOX) (‘Monax’ or ‘Company’) has announced that a significant diamond drilling program has commenced at its Punt Hill Copper-Gold Project in northern South Australia (Figure 1).

The Monax | Antofagasta Minerals Adelaide Pty Ltd (“Antofagasta”) Technical Committee has met regularly over the past nine months to plan the second phase of exploration as part of the Antofagasta farm-in. As a result, a US$2.5 million exploration budget has been approved for the project and will be funded by Antofagasta.

An Aboriginal heritage clearance has also recently been completed to facilitate the drilling.

In addition to Monax’s 2011 drilling program, further advancements in the Project have included:

• a detailed petrological study and strategic targeting session involving Antofagasta and Monax geologists;

• a $60,000 PACE grant from the South Australian Government;

• refined geophysical processing, and;

• inversion modelling to assist with drill site selection.

Fourteen drill site locations have now been identified to facilitate an investigation of the significant alteration and mineralisation system discovered by Monax in 2006-2007.

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Figure 1. Punt Hill Project location

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2012 Diamond Drilling Program

The current drilling program is designed to explore a greater area surrounding the Groundhog and Prairie Dog prospects, where Monax made significant discoveries during drilling in 2006-2007 (Table 1). The location of proposed drill holes is shown in Figure 2.

Drilling to date indicates the skarn style alteration and mineralisation system is well in excess of 10km in length and may extend as much as 5km in width, from the Hoary prospect in the south, through Whistle Pig, Woodchuck, Groundhog, Prairie Dog and Otcheck prospects to the north. This is similar in size to the alteration and mineralisation footprint of the giant Olympic Dam deposit.

During the current program, a further 7-8 diamond drill holes are planned to further evaluate a highly-prospective area, which Monax believes is extremely under-explored. The drilling aims to define both the dimensions of the system and discover high grade mineralisation.

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Figure 2. Proposed drill hole locations (red dots) and existing prospects (yellow) on Bouguer Gravity_UC1kR image .

Monax Mining Managing Director, Mr Gary Ferris, said, “We are excited to be back aggressively exploring at our flagship Punt Hill Project with partner company Antofagasta. The project is located in the heart of a world-class mineral district, and recent activities by our competitors in the area - such as majors BHP Billiton and Rio Tinto - demonstrate the potential value of our real estate”.

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“Mineralised intersections drilled by the Company in 2006-2007 still rank the highest of any projects behind the four known major deposits”.

“We believe that a company-changing discovery could potentially only be one drill hole away, and for that reason we need to continue to persist with our exploration efforts”.

“History demonstrates that patience, persistence and good geology are the key ingredients to success in this iron oxide copper-gold (IOCG) province.”

Punt Hill Project

The Punt Hill project is located within the highly prospective Olympic IOCG province on the eastern margin of the Gawler Craton. This province is host to the Olympic Dam and Prominent Hill mines, as well as the recently discovered Carrapateena and Hillside deposits (Figure 3).

Under its farm-in agreement with Monax, Antofagasta can earn a 51% interest in the Punt Hill Project by investing a total of US$4 million over four years.

The Chilean major has already reached its required initial US$1.5 million expenditure within the defined two year period.

Antofagasta can earn a further 19% equity in the project by expending an additional minimum amount of US$5 million by preparing and delivering to Monax a Scoping Study on any project or projects within the Punt Hill mining project tenements. If a development decision is made, Antofagasta will pay Monax a success fee of US$10 million.

26 holes to date have been drilled at the Punt Hill Project for a total of 22,255m.

Table 1. Significant drill hole intersections – Punt Hill Project.

Prospect	Drillhole	Depth	Interval	Copper	Gold	Silver	Zinc	REE
Whistle Pig	WPDD1	788-848m	60m	0.13%	0.03 g/t
Woodchuck	WDDD1	648-666m	18m					0.42%
		683-753m	70m	0.41%
		including	28m	0.82%		10g/t
Groundhog	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	888-1050m	162m	0.34%
		including	28m	0.70%
	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	1.1%		8.5 g/t	1.2%
Prairie Dog	PDDD1	754-782m	29m	0.12%
		811-821m	11m	0.22%
		888-900m	13m	0.55%
		985-997m	13m	0.33%
	PDDD2	856-1014m	158m				0.32%
		876-975m	99m	0.24%
		including	1m	7.58%	0.3g/t	144g/t

Note: all holes drilled vertical, basement units interpreted to be flay-lying representing true widths.

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Figure 3. Olympic IOCG Province, Gawler Craton, South Australia, showing location of the Company’s Punt Hill Project and other IOCG deposits.

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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