FireFly Metals Ltd. — Capital/Financing Update 2014

Jun 29, 2014

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A.B.N. 96 110 336 733

www.monaxmining.com.au

Exploration Office Unit 2, 81 Harrison Road Dudley Park SA 5008 info@monaxmining.com.au

Ph: 08 8245 4900 Fax: 08 8245 4999

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30 June 2014

Dear Shareholder

On 20 June 2014, Monax Mining Limited ( Company ) announced a non-renounceable rights issue to shareholders of 1 new share for every 4 existing shares held at an issue price of $0.021 per new share together with 1 free new option for every 2 new shares subscribed for, exercisable at $0.042 on or before 29 July 2015 ( Rights Issue or Offer ).

The Rights Issue seeks to raise up to $0.9 million (approximately) before costs through the issue of up to 42.8 million (approximately) new fully paid ordinary shares in the Company.

Use of Funds

The net proceeds from the Rights Issue will be used for working capital purposes and to fund exploration and development including the following:

• Drill test the IP/gravity anomaly on the Parndana Project; and

• Undertake reconnaissance exploration on the western Gawler Craton project.

Details of the Rights Issue

Monax shareholders with registered addresses in Australia or New Zealand at 7.00 pm (Adelaide time) on 3 July 2014 ( 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 and new options 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 1 new share in the capital of the Company for every 4 shares registered in their name on the Record Date. Fractional entitlements will be rounded up to the nearest whole number. The new shares will be issued at a cost of $0.021 per share.

The Rights Issue price reflects a discount of 25% to the last closing price for Monax shares on the ASX prior to the announcement of the Rights Issue.

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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 the 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 July 2014. A copy of the Prospectus is available on the company website at www.monaxmining.com.au.

Key Dates

Key dates which shareholders should note are as follows:

EVENT	DATE
Prospectus lodged with ASIC and ASX	27 June 2014
“Ex” date	1 July 2014
Record Date to identify Shareholders entitled to participate in the Offer	3 July 2014
Prospectus and Entitlement and Acceptance Forms dispatched to Shareholders	8 July 2014
Opening Date	8 July 2014
Closing date for acceptance (5.00pm Adelaide time)	22 July 2014
Shares quoted on a deferred settlement basis	23 July 2014
Notification to ASX of under subscriptions	25 July 2014
Issue date for New Shares and Options issued under the Offer. Deferred settlement trading ends	29 July 2014
Trading of New Shares and Options on ASX commences	30 July 2014

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. Before making a decision to participate in the Offer, you should seek independent advice from your professional advisor.

Yours sincerely

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Robert Kennedy Chairman Monax Mining Limited