FireFly Metals Ltd. — Capital/Financing Update 2015

Dec 7, 2015

Exploration Office Level 3, 100 Pirie Street ADELAIDE SA 5000

ABN: 96 110 336 733

Tel: +61 8 8232 8320 Fax: +61 8 8232 8811 www.monaxmining.com.au

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For Immediate Release Tuesday 8 December 2015

ASX RELEASE

Significant Target Outlined at Western Gawler Craton Project

HIGHLIGHTS

• Electromagnetic surveys outline an anomaly likely to have a deep bedrock source at Atomic Cafe area

• Target has a coincident magnetic and gravity anomaly

• Monax has 14 days to decide whether to co-fund exploration based on a 10% interest or dilute to a 1% NSR

Monax Mining Ltd (“Monax”) (ASX: MOX) is pleased to announce that ground electromagnetic surveys have uncovered a moderately conductive anomaly likely to have a deep bedrock source at the Atomic Cafe area on the Western Gawler Craton (“WGC”) Project.

The WGC Project is currently funded by Western Areas Limited (“Western Areas”) under a FarmIn Agreement. Western Areas recently completed Stage 2 of the earn-in for the WGC Project by expending $1.2 million on exploration activities meaning that Monax must decide whether to form an unincorporated joint venture and co-fund exploration pro-rata (based on a 10% interest) or dilute to a 1% NSR.

Monax is currently undertaking a Share Purchase Plan (“SPP”) and notes that a strong shareholder participation will enhance the Company’s ability to co-fund exploration on the Western Gawler Craton project based on a 10% project interest.

Electromagnetic Survey Parameters

A Moving In-Loop survey along with a Fixed Loop survey were completed over the area. The two high powered, electromagnetic surveys were undertaken by specialised contractor, GAP Geophysics.

Interpretation of Results

The surveys have defined a discrete late time conductor in the north-east portion of the survey area. Using CDI transforms, the anomaly is clearly visible in the “X” and “Y” components. We

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note that the anomaly in the “Z” component is more subtle given the thickness of the conductive cover (See Figures 2 & 3).

Modelling undertaken in Maxwell using the "Leroi" algorithm indicates that the anomaly is sourced by a plate like body at 300m+ depth under approximately 100m of conductive cover. The body dips steeply in a westerly direction with a strike of 70 degrees and a moderate northerly plunge (See Figure 4). The body has a moderate conductance of approximately 3500+ Siemens metres (See Figures 2 & 3).

A gravity survey undertaken over the Atomic Cafe area also shows a discrete positive anomaly (see Figure 5). Importantly, the anomaly is confirmed through the correlation of all three data sets (electromagnetic surveys, gravity surveys and aeromagnetic data) (See Figure 6).

Initial Work

Results from initial drilling within the Atomic Cafe area have been highly encouraging with the identification of hornblende pyroxenite/hornblendite intrusive rocks in drill hole WGA0046.

Significantly, petrology has confirmed the presence of magmatic copper sulphides within these rock types (See Figure 7). The presence of mafic rocks which contain magmatic sulphides confirm initial observations regarding the prospectivity of the area for intrusive related nickel and copper mineralisation. The mafic intrusive rocks appear to be widespread throughout the tenure.

Monax notes that initial assay results align with the petrological results, further supporting the prospectivity of the area.

Summary

“Recent geophysical works coupled with an initial drilling program have provided highly encouraging results, culminating in the identification of a likely bedrock anomaly,” Monax Mining Managing Director, Gary Ferris, said today.

“Importantly, this target lies within an area of rock type which can potentially host magmatic nickel-copper ore bodies,” Mr Ferris said.

“A strong shareholder participation in the SPP is required to enable Monax to co-fund future exploration based on a 10% project interest,” he added.

If you have any queries, please don’t hesitate to contact:

Gary Ferris Duncan Gordon Managing Director Adelaide Equity Partners Monax Mining Limited Investor Relations Ph: (08) 8232 8320 Ph: 0404 006 444 Email: info@monaxmining.com.au dgordon@adelaideequity.com.au

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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.

Forward Looking Statements

“The information in this report includes forward looking statements. Forward looking statements inherently involve subjective judgement and analysis and are subject to significant uncertainties, risks and contingencies, many of which are outside of the control of, and may be unknown to, the Company. Actual results and developments may vary materially from those expressed in these materials. The types of uncertainties which are relevant to the Company may include, but are not limited to, commodity prices, political uncertainty, changes to the regulatory framework which applies to the business of the Company and general economic conditions. Given these uncertainties, readers are cautioned not to place undue reliance on such forward looking statements.

Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, the Company does not undertake any obligation to publicly update or revise any of the forward looking statements or any change in events, conditions or circumstances on which any such statement is based.”

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Figure 1. Magnetic imagery (Colour RTP) highlighting the current exploration status and the interpreted intrusions on the Western Gawler Craton Project (Note EL 4440 is not a Monax tenement). Yellow boxes show areas in which ground EM surveys have been undertaken.

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Figure 2: Residual MLEM time channel images, extracting the late time anomaly enabling it to be better highlighted.

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Figure 3: Profiles of the observed and modelled Atomic Cafe traverses for all 3 components, displaying a good fit to the data.

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Figure 4: Snap shot of the modelled body, a steeply dipping plate. Significant depth extent is required so as to match the wavelength for the observed anomalies.

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Figure 5: The 2nd order residual Bouguer Anomaly image and Reduced to Pole magnetic image (gravity contours overlain on both images) note the good correlation between the positive gravity anomalies and magnetic anomalies.

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Figure 6: The same 2nd Order residual gravity image with a residual time channel image from the Moving Loop EM data. Note another good correlation between the gravity anomaly and the late time EM anomaly (channel 35: 156msec).

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,

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Figure 7: Petrology micrographs of Hornblende pyroxenite (left) and secondary pyrite after pyrrhotite and chalcopyrite (right) in drill hole WGA0046. Fields of view are 2.4mm (left) and 600 microns (right).

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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		EM survey - Two high powered ground EM surveys were completed
techniques		specific specialised industry standard measurement tools appropriate		by GAP Geophysics
		to the minerals under investigation, such as down hole gamma
		sondes, or handheld XRF instruments, etc). These examples should		1. Moving In-Loop (MLEM): A total of 15 traverses, all 3.6 line
		not be taken as limiting the broad meaning of sampling.		kilometres of 200m square loops moving 100m spaced stations.
		Include reference to measures taken to ensure sample representivity		14 traverses collected with a 300m line spacing (1000n to
		and the appropriate calibration of any measurement tools or systems		4900n), a 1.4 kilometre infill line was undertaken at 4150n
		used.		(eastern end).
		Aspects of the determination of mineralisation that are Material to the		2. Fixed Loop (FLEM): A total of 3 traverses, all 1.2km long (3975n
		Public Report.		to 4175n) at 100m line and 50m station pacing; a centrally
		In cases where ‘industry standard’ work has been done this would be		located 200m by 300m (XY) Transmitter loop.
		relatively simple (eg ‘reverse circulation drilling was used to obtain 1
		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		Gravity survey -320 gravity stations have been collected with East- west orientation traverses, 1km line and 500m station spacing. In the centre of the survey area.
		submarine nodules) may warrant disclosure of detailed information.
Drilling		Drill type (eg core, reverse circulation, open-hole hammer, rotary air		Not Applicable for electromagnetic (EM) survey.
techniques		blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple
		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 for electromagnetic (EM) survey.
recovery		and results assessed.	.
		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 for electromagnetic (EM) survey.
		geotechnically logged to a level of detail to support appropriate
		Mineral Resource estimation, mining studies and metallurgical
		studies.
		Whether logging is qualitative or quantitative in nature. Core (or
		costean, channel, etc) photography.
		_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 for electromagnetic (EM) survey.
techniques and		taken.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
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
		sample preparation technique.
		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
		duplicate/second-half sampling.
		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		Not Applicable for electromagnetic (EM) survey.
assay data and		laboratory procedures used and whether the technique is considered
laboratory		partial or total.
tests		For geophysical tools, spectrometers, handheld XRF instruments, etc,
		the parameters used in determining the analysis including instrument
		make and model, reading times, calibrations factors applied and their
		derivation, etc.
		Nature of quality control procedures adopted (eg standards, blanks,
		duplicates, external laboratory checks) and whether acceptable levels
		_of accuracy (ie lack of bias) and precision have been established. _
Verification of		The verification of significant intersections by either independent or		Not Applicable for electromagnetic (EM) survey.
sampling and		alternative company personnel.
assaying		The use of twinned holes.
		Documentation of primary data, data entry procedures, data
		verification, data storage (physical and electronic) protocols.
		_Discuss any adjustment to assay data. _
Location of		Accuracy and quality of surveys used to locate drill holes (collar and		Not Applicable for electromagnetic (EM) survey.
data points		down-hole surveys), trenches, mine workings and other locations
		used in Mineral Resource estimation.		EM data was collected using GDA94 (Zone 53).
		Specification of the grid system used.		Location data was collected using a differential GPS.
		Quality and adequacy of topographic control.
Data spacing		Data spacing for reporting of Exploration Results.		Two high powered ground EM surveys were completed by GAP
and		Whether the data spacing and distribution is sufficient to establish the		Geophysics
distribution		degree of geological and grade continuity appropriate for the Mineral
		Resource and Ore Reserve estimation procedure(s) and		1. Moving In-Loop (MLEM): A total of 15 traverses, all 3.6 line
		classifications applied.		kilometres of 200m square loops moving 100m spaced
		Whether sample compositing has been applied.		stations. 14 traverses collected with a 300m line spacing
				(1000n to 4900n), a 1.4 kilometre infill line was undertaken at
				4150n (eastern end).
				2. Fixed Loop (FLEM): A total of 3 traverses, all 1.2km long
				(3975n to 4175n) at 100m line and 50m station pacing; a
				centrally located 200m by 300m (XY) Transmitter loop.
			Both surveys were completed usingHigh Power transmitter;current for

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
			MLEM 100A, for FLEM 180A. All data collected using 3 component EMIT
			SMART fluxgates (magnetic "B" field sensors). Using 0.5Htz frequency,
			recording high quality coherent and repeatable data past 350 msec.
				Not applicable – data not used for resource estimation.
				Not Applicable for electromagnetic (EM) survey.
Orientation of		Whether the orientation of sampling achieves unbiased sampling of		Not Applicable for electromagnetic (EM) survey.
data in relation		possible structures and the extent to which this is known, considering
to geological		the deposit type.
structure		If the relationship between the drilling orientation and the orientation
		of key mineralised structures is considered to have introduced a
		sampling bias, this should be assessed and reported if material.
Sample		The measures taken to ensure sample security.		Not Applicable for electromagnetic (EM) survey.
security
Audits or		The results of any audits or reviews of sampling techniques and data.		Not Applicable for electromagnetic (EM) survey.
reviews

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Mineral		Type, reference name/number, location and ownership including		The survey was undertaken on Exploration Licences 5077, 5199 and
tenement and		agreements or material issues with third parties such as joint		5200 which are owned 100% by Monax Mining Limited. These 3
land tenure		ventures, partnerships, overriding royalties, native title interests,		tenements are part of a farm-in agreement with Western Areas
status		historical sites, wilderness or national park and environmental		Limited. The tenements are partly located in Aboriginal Lands Trust
		settings.		(ALT), Yellabinna Regional Reserve and freehold land. The area
		The security of the tenure held at the time of reporting along with any		outside of the ALT area is part of the Far West Native Title
		known impediments to obtaining a licence to operate in the area.		determination.
				There are no known impediments to obtain a licence to operate in the
				area. Monax and Western Areas have commenced negotiations with
				the Aboriginal Lands Trust and the Far West Native Title Group.
Exploration		Acknowledgment and appraisal of exploration by other parties.		Several companies have explored for coal, mineral sands and nickel
done by other				in the area. Monax has reviewed this exploration data and no
parties				systematic approach in the search for Ni-Cu has been undertaken.
Geology		Deposit type, geological setting and style of mineralisation.		Intrusive Ni-Cu style mineralisation.
Drill hole		A summary of all information material to the understanding of the		Not Applicable for electromagnetic (EM) survey.
Information		exploration results including a tabulation of the following information
		for all Material drill holes:

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		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,		Not Applicable for electromagnetic (EM) survey.
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
		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. _
Relationship		These relationships are particularly important in the reporting of		Not Applicable for electromagnetic (EM) survey.
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 EM 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		Not Applicable for electromagnetic (EM) survey.
reporting		practicable, representative reporting of both low and high grades
		and/or widths should be practiced to avoid misleading reporting of
		_Exploration Results. _
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/Western Areas will model newly acquired EM data to assist in
		extensions or depth extensions or large-scale step-out drilling).		outlining possible drilling targets.
		Diagrams clearly highlighting the areas of possible extensions,
		including the maingeological interpretations and future drilling areas,
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Criteria

JORC Code explanation

Commentary

provided this information is not commercially sensitive.

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