FireFly Metals Ltd. - Capital/Financing Update 2014

Exploration Office Unit 2 81 Harrison Road 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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For Immediate Release Thursday 11 December, 2014

ASX RELEASE

Parndana Project Update

HIGHLIGHTS

Soil sampling program completed
Preliminary portable x-ray fluorescence (XRF) results received
Coincident zinc and lead anomaly outlined

Monax Mining Limited (“Monax”) (ASX:MOX) is pleased to provide an exploration update for its 100 per cent owned Parndana Project in South Australia (Figure 1).

Monax recently completed a detailed soil sampling program on the Vinco prospect, located approximately 1km east of the Bonaventura prospect, which are both part of the Parndana Project, on South Australia’s Kangaroo Island.

Previous exploration at the Vinco prospect, included detailed gravity and induced polarisation (IP) surveys. Monax drilled two diamond holes targeting the main gravity anomaly and a chargeable anomaly defined by the dipole-dipole IP survey.

Further refinement using a gradient array IP (GAIP) survey outlined a prominent NNW trending chargeable and resistive anomaly in an area not targeted by the diamond drilling.

Figure 2 shows the chargeability response from the GAIP survey and Figure 3 shows the resistivity anomaly outlined by the GAIP survey.

Figure 4 shows the combined lead and zinc soil results which show a strong correlation to the NNW trend of the GAIP anomalies.

“The new defined anomaly represents a genuine target for zinc and lead mineralisation similar to Bonaventura, and the next phase of drilling will target this feature,” Monax Mining Managing Director, Mr Gary Ferris said.

“The correlation between the IP data and the soil results provides encouragement that this newly defined anomaly potentially represents a zone of mineralisation,” he said.

Monax is planning a drilling program at its Parndana Project in the first half of 2015.

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Background

Monax’s Parndana Project is located at the flexure within the Cygnet Snelling Shear Zone (CSZS), a prominent east-west trending crustal scale structure. The CS-SZ is the interpreted southern margin of the Gawler Craton, and is marked by a clear zone of low magnetic intensity.

Mineralisation at Bonaventura comprises NNE trending zones of coarse sphalerite (zinc sulphide) and galena (lead sulphide) bearing quartz vein stockworks and disseminations within a silicified sandstone host rock. Exploration to date has focused around historical workings and near surface mineralisation.

Drilling by the former SA Department of Mines and Energy in 1990 reported several encouraging intersections of mineralisation in the Bonaventura area including:

16m (10-26) @ 2.69% Zn, 0.45% Pb & 1.7 g/t Ag including 5m (16-21) @ 5.8% Zn (Hole GRA 7).

(This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported. Note: all lengths are downhole lengths; true width unknown).

Exploration by ASX-listed Havilah Resources at Bonaventura in 2003 involved a shallow drilling program which produced further encouraging results including:

7m (14-21) @ 1.32% Zn, 3.16% Pb & 3.81 g/t Ag including 2m (16-18) @ 3.59% Zn, 9.46% Pb & 10 g/t Ag (Hole PRC01),
18m (30-48) @ 1.69% Zn & 1.81 g/t Ag including 6m (42-48) @ 3.48% Zn, 0.51% Pb & 1.4 g/t Ag (Hole PRC04), and
5m (26-31) @ 26.9% Zn, 10% Pb & 1.54 g/t Ag (Hole PRC31).

Monax undertook drilling programs at Bonaventura in 2006 and 2008 aimed at understanding the structural setting to better target high-grade zones (see ASX Release 27 March 2014 for drill hole details). Significant intersections from the 2006 drilling program include:

6m (52-58) @ 1.96% Zn & 0.26% Pb including 2m (54-56) @ 3.65% Zn (Hole BVRC02),
4m (16-20) @ 2.06% Zn & 2.15% Pb (Hole BVRC03),
16m (34-50) @ 3.43% Zn & 0.66% Pb including 6m (40-46) @ 6.3% Zn (Hole BVRC03),
23m (62-85) @ 1.16% Zn (Hole BVRC08 – ended in mineralisation),
1m (56-57) @ 3.3% Zn & 4.58% Pb (Hole BVRC10),
4m (91-95) @ 3.94% Zn including 1m (93-94) @ 7.1% Zn (Hole BVRC10),
23m (98-121) @ 1.22% Zn (Hole BVRC10 – ended in mineralisation); and
1m (76-77) @ 2.31% Zn & 1.09% Pb (Hole BVRC11).

(This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported – see Monax ASX Release 24 July 2006 for details. Note: all lengths are downhole lengths; true width unknown).

Significant intersections from Monax’s 2008 drilling program include:

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29.9m (16.1-46) @ 1.79% Zn including 10m (27-37) @ 3.22% Zn, 1.62% Pb & 1.53 g/t Ag; and 3.9m (16.1-20) @ 2.13% Pb & 2.04 g/t Ag (Hole BVDD004)
10m (81-91) @ 2.13% Zn, 0.45% Pb & 0.83 g/t Ag including 6m (85-91) @ 2.97% Zn 0.65% Pb & 1.08 g/t Ag (Hole BVDD007),
12m (94-106) @ 2.59% Zn including 5m (97-102) @ 4.0% Zn (Hole BVDD007), and
11m (58-69) @ 1.64% Zn & 1.2% Pb including 2m (61-63) @ 6.96% Zn, 5.06% Pb & 2.5 g/t Ag (Hole BVDD008).

(Note: all lengths are downhole lengths; true width unknown. Full results are presented in ASX Release 27 March 2014)).

Gary Ferris Managing Director, Monax Mining Ph: (08) 8245 4900 Email: [email protected]

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 2012 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. Monax tenement location plan including Kangaroo Island (Parndana Project).

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Figure 2. Parndana Project – Gradient array IP survey chargeability results with soil sampling grid.

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Figure 3. Parndana Project – Gradient array IP survey resistivity results with soil sampling grid. Chargeability contours overlay.

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Figure 4. Parndana Project – Combined lead and zinc soil sample results.

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JORC Code, 2012 Edition – Table 1 report template

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Sampling		Nature and quality of sampling (eg cut channels, random chips, or		Soil samples comprised bulk samples collected at a nominal depth of
techniques		specific specialised industry standard measurement tools appropriate		10-30cm depth on a 25m x 25m grid within the central area of interest
		to the minerals under investigation, such as down hole gamma		grading to a 50m x 50m grid on the edge of the grid area.
		sondes, or handheld XRF instruments, etc). These examples should
		not be taken as limiting the broad meaning of sampling.
		Include reference to measures taken to ensure sample representivity		Bulk samples were sieved to remove the >3mm (coarse) fraction.
		and the appropriate calibration of any measurement tools or systems
		used.
		Aspects of the determination of mineralisation that are Material to the		The samples were collected dry and field sieved and approximately
		Public Report.		300g was collected for analysis. A sub-sample was taken and hand
		In cases where ‘industry standard’ work has been done this would be		crushed in a mortar and pestle to produce a fine powder which is then
		relatively simple (eg ‘reverse circulation drilling was used to obtain 1		pressed into a disc suitable for the portable XRF machine.
		m samples from which 3 kg was pulverised to produce a 30 g charge
		for fire assay’). In other cases more explanation may be required,
		such as where there is coarse gold that has inherent sampling
		problems. Unusual commodities or mineralisation types (eg
		submarine nodules) may warrant disclosure of detailed information.
Drilling		Drill type (eg core, reverse circulation, open-hole hammer, rotary air		Not Applicable, no drilling was undertaken as part of the soil sampling
techniques		blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple		program.
		or standard tube, depth of diamond tails, face-sampling bit or other
		_type, whether core is oriented and ifso, by what method, etc). _
Drill sample		Method of recording and assessing core and chip sample recoveries		Not Applicable, no drilling was undertaken as part of the soil sampling
recovery		and results assessed.		program.
		Measures taken to maximise sample recovery and ensure
		representative nature of the samples.
		Whether a relationship exists between sample recovery and grade
		and whether sample bias may have occurred due to preferential
		loss/gainof fine/coarse material.
Logging		Whether core and chip samples have been geologically and		Not Applicable, no drilling was undertaken as part of the soil sampling
		geotechnically logged to a level of detail to support appropriate		program.
		Mineral Resource estimation, mining studies and metallurgical
		studies.
		Whether logging is qualitative or quantitative in nature. Core (or
		_costean, channel, etc) photography. _

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		_The total length and percentage of the relevant intersections logged. _
Sub-sampling		If core, whether cut or sawn and whether quarter, half or all core		Not Applicable, no drilling was undertaken as part of the soil sampling
techniques and		taken.		program.
sample		If non-core, whether riffled, tube sampled, rotary split, etc and
preparation		whether sampled wet or dry.
		For all sample types, the nature, quality and appropriateness of the		Not Applicable, no drilling was undertaken as part of the soil sampling
		sample preparation technique.		program.
		Quality control procedures adopted for all sub-sampling stages to
		maximise representivity of samples.
		Measures taken to ensure that the sampling is representative of the in
		situ material collected, including for instance results for field		Sample size is considered appropriate to the grain size of the material
		duplicate/second-half sampling.		sampled.
		Whether sample sizes are appropriate to the grain size of the material
		_being sampled. _
Quality of		The nature, quality and appropriateness of the assaying and		Soil samples were assayed using an Olympus X-5000 Portable XRF
assay data and		laboratory procedures used and whether the technique is considered		machine.
laboratory		partial or total.		Portable XRF allows for more accurate analysis of samples over
tests		For geophysical tools, spectrometers, handheld XRF instruments, etc,		longer beam times when sampling which allows for lower detection
		the parameters used in determining the analysis including instrument		limits of elements and can detect lighter elements with more accuracy
		make and model, reading times, calibrations factors applied and their		than handheld XRF.
		derivation, etc.		Standard samples were used for calibration. Monax also analysed 25
		Nature of quality control procedures adopted (eg standards, blanks,		soil pulp samples (laboratory returns) from a previous soil sampling
		duplicates, external laboratory checks) and whether acceptable levels		program from the nearby Bonaventura prospect through the portable
		of accuracy (ie lack of bias) and precision have been established.		XRF machine to provide an independent check on the results.
Verification of		The verification of significant intersections by either independent or		Not Applicable, no drilling was undertaken as part of the soil sampling
sampling and		alternative company personnel.		program.
assaying		The use of twinned holes.		No twinned holes.
		Documentation of primary data, data entry procedures, data		Field data was entered on to a paper template and transferred into an
		verification, data storage (physical and electronic) protocols.		electronic copy back in the Office.
		Discuss any adjustment to assay data.		No adjustment was made to the assay data.
Location of		Accuracy and quality of surveys used to locate drill holes (collar and		Not Applicable for soil sampling program.
data points		down-hole surveys), trenches, mine workings and other locations
		used in Mineral Resource estimation.		Soil sample sites were located using MGA Zone 53 (GDA94).
		Specification of the grid system used.		Location data for the soil sites was collected using a hand held GPS
		Quality and adequacy of topographic control.		with +/- 5m accuracy.
Data spacing		Data spacing for reporting of Exploration Results.		Soil samples were collected mostlyat 25m spacingwith some

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
and		Whether the data spacing and distribution is sufficient to establish the		collected at 50m spacing.
distribution		degree of geological and grade continuity appropriate for the Mineral		Not applicable – data not used for resource estimation.
		Resource and Ore Reserve estimation procedure(s) and
		classifications applied.		No sample compositing was undertaken.
		_Whether sample compositing has been applied. _
Orientation of		Whether the orientation of sampling achieves unbiased sampling of		The sampling grid was predominantly 25m x25m which increased to
data in relation		possible structures and the extent to which this is known, considering		50m x 50m on the margins of the grid. In Monax’s view the relatively
to geological		the deposit type.		detailed grid achieves and unbiased sampling program appropriate
structure		If the relationship between the drilling orientation and the orientation		for the style of mineralisation.
		of key mineralised structures is considered to have introduced a		Not Applicable, no drilling was undertaken.
		sampling bias, this should be assessed and reported if material.
Sample		The measures taken to ensure sample security.		Samples were collected and then taken back to the field camp each
security				night. The samples were transported back to the Monax Office by the
				field contractors. Soil sampling program was undertaken by Euro
				Exploration who are experienced in this type of sampling program.
Audits or		The results of any audits or reviews of sampling techniques and data.		No audits were undertaken.
reviews

Section 2 Reporting of Exploration Results

(Criteria listed in the	(Criteria listed in the	precedingsection also applyto this section.)
Criteria	JORC Code explanation		Commentary
Mineral		Type, reference name/number, location and ownership including		The soil sampling program was undertaken on Exploration Licence
tenement and		agreements or material issues with third parties such as joint		4581 which is owned 100% by Monax Mining Limited. The tenement
land tenure		ventures, partnerships, overriding royalties, native title interests,		is located on Freehold Land.
status		historical sites, wilderness or national park and environmental
		settings.		The tenement is free of any known impediments.
		The security of the tenure held at the time of reporting along with any
		known impediments to obtaining a licence to operate in the area.
Exploration		Acknowledgment and appraisal of exploration by other parties.		Initial drilling in the Bonaventura area was undertaken by the South
done by other				Australian Department of Mines and Energy in 1991. Havilah
parties				Resources undertook regional soil and stream geochemical surveys,
				followed by a drilling program in 2003. Several companies prior to
				1990 undertook soil sampling programs in the region. No evidence of
				any mineral exploration at the soil sampling site has been reported.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Geology		Deposit type, geological setting and style of mineralisation.		Sediment hosted silver-lead-zinc style mineralisation.
Drill hole		A summary of all information material to the understanding of the		Not Applicable for soil sampling program.
Information		exploration results including a tabulation of the following information	.
		for all Material drill holes:
		`o` easting and northing of the drill hole collar
		`o` elevation or RL (Reduced Level – elevation above sea level in
		metres) of the drill hole collar
		`o` dip and azimuth of the hole
		`o` down hole length and interception depth
		`o` hole length.
		If the exclusion of this information is justified on the basis that the
		information is not Material and this exclusion does not detract from
		the understanding of the report, the Competent Person should clearly
		_explain why this is the case. _
Data		In reporting Exploration Results, weighting averaging techniques,		No averages or weighting have been used.
aggregation		maximum and/or minimum grade truncations (eg cutting of high
methods		grades) and cut-off grades are usually Material and should be stated.
		Where aggregate intercepts incorporate short lengths of high grade		No aggregate intercepts are reported.
		results and longer lengths of low grade results, the procedure used
		for such aggregation should be stated and some typical examples of
		such aggregations should be shown in detail.
		The assumptions used for any reporting of metal equivalent values should be clearly stated.		No metal equivalent values have been reported.
Relationship		These relationships are particularly important in the reporting of		Not Applicable for soil sampling program.
between		Exploration Results.	.
mineralisation		If the geometry of the mineralisation with respect to the drill hole
widths and		angle is known, its nature should be reported.
intercept		If it is not known and only the down hole lengths are reported, there
lengths		should be a clear statement to this effect (eg ‘down hole length, true
		_width not known’). _
Diagrams		Appropriate maps and sections (with scales) and tabulations of		Map showing location of survey area included in this report.
		intercepts should be included for any significant discovery being
		reported These should include, but not be limited to a plan view of
		_drill hole collar locations and appropriate sectional views. _
Balanced		Where comprehensive reporting of all Exploration Results is not		Only results relevant to the discussion on the style of mineralisation
reporting		practicable, representative reporting of both low and high grades		presented.
		and/or widths should be practiced to avoid misleading reporting of
		_Exploration Results. _

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Other		Other exploration data, if meaningful and material, should be reported		Data from previous exploration has been previously released..
substantive		including (but not limited to): geological observations; geophysical
exploration		survey results; geochemical survey results; bulk samples – size and
data		method of treatment; metallurgical test results; bulk density,
		groundwater, geotechnical and rock characteristics; potential
		_deleterious or contaminating substances. _
Further work		The nature and scale of planned further work (eg tests for lateral		Monax will review newly acquired data to assist in determining the
		extensions or depth extensions or large-scale step-out drilling).		next phase of exploration.
		Diagrams clearly highlighting the areas of possible extensions,
		including the main geological interpretations and future drilling areas,
		_provided this information is not commercially sensitive. _

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AI assistant

FireFly Metals Ltd. Capital/Financing Update 2014

48548_rns_2014-12-10_419cb7c6-94e4-40c8-b9ad-d2abdfce0fee.pdf

ABN: 96 110 336 733

ASX RELEASE

Parndana Project Update

HIGHLIGHTS

Background

JORC Code, 2012 Edition – Table 1 report template

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Section 2 Reporting of Exploration Results

AI assistant

FireFly Metals Ltd. — Capital/Financing Update 2014

48548_rns_2014-12-10_419cb7c6-94e4-40c8-b9ad-d2abdfce0fee.pdf

ABN: 96 110 336 733

ASX RELEASE

Parndana Project Update

HIGHLIGHTS

Background

JORC Code, 2012 Edition – Table 1 report template

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Section 2 Reporting of Exploration Results

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FireFly Metals Ltd. Capital/Financing Update 2014