FireFly Metals Ltd. - Capital/Financing Update 2012

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 Monday, 16 April, 2012

ASX RELEASE

Monax identifies coarse flake graphite on Waddikee Project

HIGHLIGHTS

Reconnaissance sampling shows coarse graphite with flakes up to 2mm present at Waddikee.
Coarse flake size confirmed by petrology.
Samples currently being assayed.
Monax is embarking on an accelerated graphite exploration program.

Monax Mining Limited (ASX: MOX) (‘Monax’ or ‘Company’) today announced that it will embark on an accelerated graphite exploration program at its Waddikee Project (EL 4662) in South Australia (Figure 1) after its reconnaissance sampling identified the presence of coarse graphite flakes.

In 2006, Monax undertook a sampling program at the Argent prospect to identify base metals and silver. As part of the sampling, three samples were sent for petrological description.

The table below provides a summary of the petrological report:

Easting	Northing	Description (taken from petrological report)
631193	6298229	Foliated graphite, from 0.2mm to 1.5mm in crystal size,is common (~15%), with some kinked flakes andrecrystallised areas with smaller graphite flakes (<0.2mm long).
631221	6298328	Graphite is less abundant compared to the previoussample, (5-7%) with some kinking and shredding.Some areas have poorly oriented graphite flakes lessthan 0.4mm in grainsize, but other areas have morefoliated graphite that is locally more than 1mm in crystalsize.
631235	6298342	There is more abundant and mostly recrystallised butfoliated graphite in this sample than in the other twoARG samples, to 1.5 or 2mm in crystal size, with somekinked flakes, and small areas with bent or contortedflakes. There may be as much as 20% graphite in thisthin section area.

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Monax recently revisited these sites to collect further samples.

Samples from an additional site at Argent (ARG 6 – see Plate 3), and another sample from the Stanley prospect (STA 1 – see Plate 4) were also collected.

These samples have been submitted for geochemical analyses.

“We have recently completed a manganese drilling program at Waddikee, and samples from four drill holes which intersected graphitic schist have been submitted for geochemical analyses,” Monax Managing Director, Mr Gary Ferris, said today.

“An inspection of our ‘bag farm’, which contains all drill hole samples from our drilling on the Waddikee tenement, also shows samples containing graphite”.

“As a result, Monax will sample these holes to assess for graphite content”.

“The Argent and Stanley prospects were not previously defined as target areas based on analysis of airborne electromagnetic data”.

“However, further investigation of this area is warranted as coarse graphite is present within ferruginous gneiss and graphite schist based on this current sampling”.

Mr Ferris said the Argent and Stanley areas have previously been drilled in the search for lead-zinc and graphite was reported in three drill holes (see table below).

Drill Hole	Easting	Northing	Interval	Description
RAS 6	631924	6299070	10–30m	Graphitic schist
RAS 22	631899	6299574	38-45m (EOH)	Graphitic schist
RAS24	632367	6298372	20-24m(EOH)	Graphitic schist

All holes drilled vertical and represent downhole widths, true widths unknown. Coordinates MGA94 Zone 53.

Results from the current sampling are expected in approximately four weeks with further results from the sampling of Monax drill holes expected in late May. Based on these results and further review of the airborne electromagnetic data, a drilling program will be organized for the second half of 2012.

Gary Ferris Managing Director, Monax Mining Ph: (08) 8375 3900 Email: [email protected]

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, highlighting graphite and iron projects.

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Figure 2. Location of coarse graphite samples at Argent and Stanley prospects.

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Plate 1. Sample ARG 2.

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Plate 2. Sample ARG 5.

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