FireFly Metals Ltd. — Capital/Financing Update 2013

Sep 23, 2013

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24 September 2013

ASX ANNOUNCEMENT

RIGHTS ISSUE – LETTER TO SHAREHOLDERS

Please find attached for release to the market a letter sent to shareholders today relating to the one for three non-renounceable rights issue (‘Rights Issue’) by Monax Mining Limited.

Exploration Office Unit 2, 81 Harrison Rd Dudley Park SA 5008

ABN: 96 110 336 733

Tel: +61 8 8245 4900 Fax: +61 8 8245 4999 www.monaxmining.com.au

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24 September 2013

Dear Shareholder,

On 16 September 2013, Monax Mining Ltd (ASX: MOX) ( Monax or Company ) announced a non-renounceable rights issue to shareholders of one new share for every three existing shares held at an issue price of $0.03 per share ( Rights Issue or Offer ).

The Rights Issue seeks to raise up to $1.5 million (approximately) before costs through the issue of up to 50 million (approximately) new fully paid ordinary shares in the Company.

Use of Funds

The net proceeds from the Rights Issue will be used to fund the following:

• beneficiation and metallurgical studies – Wilclo South

• exploration at Francis prospect (inclusive of costs)

• graphite testing/resource definition at Francis prospect

• marketing initiatives of the graphite product

• maintenance/exploration of other Monax projects

• general working capital

• expenses of the Offer

Details of the Rights Issue

Monax shareholders with registered addresses in Australia or New Zealand at 7.00pm (ACST) on 1 October 2013 ( Record Date ) will be eligible to participate in the Rights Issue ( Eligible Shareholders ). Monax has decided that it is unreasonable to make the offer to shareholders who have a registered address in a country outside of Australia or New Zealand, having regard to the number of shareholders in such places, the number and value of the new shares they would be offered and the substantial costs of complying with the legal and regulatory requirements in those jurisdictions.

Each Eligible Shareholder will be entitled to subscribe for one new share in the capital of the Company for every three shares registered in their name on the Record Date. The new shares will be issued at a cost of $0.03 per share.

The Rights Issue price reflects a 15% discount to the 30-day closing volume weighted average price of the Company’s shares ending on 13 September 2013, the most recent trading day prior to the announcement of the Rights Issue.

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Existing optionholders will need to exercise their options and be a registered holder of shares on the Record Date if they wish to receive an entitlement to participate in the Rights Issue.

The Directors reserve the right to place any shortfall within three months after the close of the Offer. Full details of the Rights Issue will be contained in a prospectus lodged with the Australian Securities and Investments Commission and ASX ( Prospectus ). The Prospectus together with the Entitlement and Acceptance Form will be mailed to all Eligible Shareholders on 8 October 2013. A copy of the Prospectus will be available through the ASX website.

Key Dates

Key dates which shareholders should note are as follows:

EVENT	DATE
Prospectus lodged with ASIC and ASX	23 September 2013
“Ex” date	25 September 2013
Record Date to identify Shareholders entitled to participate in theOffer	1 October 2013
Prospectus and Entitlement and Acceptance Forms dispatched toShareholders	8 October 2013
Opening date	8 October 2013
Closing date for acceptances	22 October 2013
Shares quoted on a deferred settlement basis	23 October 2013
Notification to ASX of under subscriptions	25 October 2013
Issue date for new shares issued under the Offer. Deferredsettlement trading ends	30 October 2013
Trading of new shares on ASX commences	31 October 2013

These dates are indicative only and, subject to the Corporations Act 2001 and the ASX Listing Rules, may be varied as the Directors decide.

Applications for new ordinary shares under the Rights Issue may only be made by completing the Entitlement and Acceptance Form which accompanies the Prospectus. Eligible Shareholders should read the Prospectus carefully. For further information on the Rights Issue, you should contact your professional advisor.

Yours sincerely

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Robert Kennedy Chairman Monax Mining Ltd

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