FireFly Metals Ltd. — Capital/Financing Update 2015

Oct 14, 2015

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 15 October 2015

ASX RELEASE

Landmark Acquisition of NT Gold Project

HIGHLIGHTS

• Monax signs landmark deals to take control of multiple mining and exploration leases in NT’s Pine Creek gold camp

• Visible gold observed in reconnaissance samples

• Assays of up to 257 g/t gold from reconnaissance rock chip sampling

• Monax planning further work in 2015 with a view to drilling in early 2016

Monax Mining Ltd (“Monax”) (ASX:MOX) is pleased to announce it has agreed to terms with several private holders of Mining Leases and Exploration Licences in the Mt Ringwood area, approximately 120km south of Darwin (Figure 1).

This outcome is the culmination of significant efforts in bringing together a number of tenements held by private interests into what Monax views as a significant gold project. The Pine Creek area is renowned for in hosting shallow, high grade gold mineralisation. Mining in the area has taken place more or less continuously since the ‘gold rush’ in the area during the 1870’s.

Monax conducted field reconnaissance visits to inspect the leases and exploration tenements and visible gold was observed in samples collected by one of the leaseholders (Plate 1). Further visible gold was observed within another lease from several old prospecting pit (Plate 2).

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Plate 1. Example of Gold collected on ML 30232 by leaseholder (all of the rocks shown have visible gold – not assayed or included in reported results)

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Plate 2. Visible gold within quartz from Mt Ringwood Mining Leases (Note: none of the samples above have been assayed and are not included in samples reported below). These samples were collected during a one day field reconnaissance undertaken by Monax.

“Monax is excited about the new project and is looking forward to commencing exploration with a view to drilling early in 2016” Monax Mining Managing Director, Gary Ferris, said today.

“The Pine Creek area is highly prospective for gold and was a key area Monax was targeting for a new project. The history of discovery and current mining operations suggests the area still has potential for further discoveries” he said.

“Monax was seeking a project with a cheap entry and the ability to quickly be in a position to undertake a drilling program in the search for a potential discovery. The area is currently being prospected by private individuals with specimen gold being found, providing confidence that these quartz reefs still have potential for a major discovery of a high-grade system” he said.

Monax undertook a one day reconnaissance and collected six rock chip samples on the Mining Leases. The results are shown below, with one sample reporting 257 g/t gold.

Sample No.	Easting	Northing	Au (g/t)
295104	762395	8538576	0.09
295105	762424	8538524	0.98
295106	762374	8538429	0.44
295107	762374	8538429	257
295108	762525	8538606	4.33
295109	762622	8538666	10.4

(Note: Sample details, laboratory details included in Table 1)

“Monax is excited about the results from the initial inspection and the observation of visible gold at the surface is seen as highly encouraging” Monax Mining Managing Director, Gary Ferris, said today.

A review of historical exploration shows limited exploration across the tenements. Anglogold Australia explored part of the eastern part of the area between 1993 to 2001. They collected rock chip samples within the eastern part of EL 29966 with some elevated gold reported. Two samples reported >10g/t gold and four samples reported >1 g/t gold (Figure 2). These areas

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were not visited as part of the reconnaissance trip, but will be inspected during the next field inspection.

Transaction Details

Monax has negotiated an Option to Purchase arrangement with the four leaseholders whereby total upfront consideration payable by Monax equals the issue of 14,000,000 shares in the Company to the vendors. Completion of these transactions is conditional upon the approval of the issue and allotment of 14,000,000 shares to the vendors by the Company’s shareholders at the Annual General Meeting (AGM). The shares will be issued to the vendors within five business days of the approval of the resolution and in any event no later than 3 months after the date of the AGM.

The table below summarises the transaction details for the Option to Purchase arrangements.

Details	Agreement	Agreement	Agreement	Agreement
Vendor	Glen Teece	NT Gold Pty Ltd	Wladimir Falko	CR & E Pty Ltd
Shares to be issued	2,571,429	4,428,571	4,428,571	2,571,429
Mining leases	MLN894 MLN893	ML30232	ML30232	ML29978

The Option to Purchase arrangements allows Monax to explore the tenements for two years and if Monax elects to purchase the tenements outright, Monax will pay each vendor an agreed cash settlement.

Monax has also negotiated a Farm-In deal with North Queensland Mining Pty Ltd (NQM) for two Exploration Licences (EL 29966 & EL 29976). Under the Farm-In deal, Monax is required to spend $200,000 over 4 years to earn a 90% interest in the Exploration Licences. If Monax holds a 90% interest in the Exploration Licences, NQM can elect to contribute to future spending based on a 10% interest or convert its interest to a 1% NSR.

Monax is currently preparing documentation for the abovementioned transactions.

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Gary Ferris Duncan Gordon Managing Director Adelaide Equity Partners Monax Mining Investor Relations Ph: (08) 8245 4900 Ph: 0404 006 444 Email: info@monaxmining.com.au

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. Location of Mt Ringwood Project

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Figure 2. Location of historical rock chip samples on Exploration Licences from NT Geological Survey database highlighting anomalous gold samples. Red dots are samples collected by Monax and included in the report.

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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		Samples were collected from selected outcrops of quartz reef and old
techniques		specific specialised industry standard measurement tools appropriate		prospector pits.
		to the minerals under investigation, such as down hole gamma		The samples are not considered as being highly representative.
		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
		and the appropriate calibration of any measurement tools or systems
		used.
		Aspects of the determination of mineralisation that are Material to the
		Public Report.
		In cases where ‘industry standard’ work has been done this would be
		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
		submarine nodules) may warrant disclosure of detailed information.
Drilling		Drill type (eg core, reverse circulation, open-hole hammer, rotary air		Not Applicable – no drilling results reported.
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 – no drilling results reported.
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 – no drilling results reported.
		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		No sample preparation was completed by Monax on samples
techniques and		taken.		collected in the field. Samples were crushed and pulverised at the
sample		If non-core, whether riffled, tube sampled, rotary split, etc and		laboratoryfor analysis

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
preparation		whether sampled wet or dry.		The laboratory assay duplicates and standards as a standard
		For all sample types, the nature, quality and appropriateness of the		procedure with all results within error of expected results.
		sample preparation technique.		The sample sizes are considered appropriate for reconnaissance
		Quality control procedures adopted for all sub-sampling stages to		sampling of quartz reefs.
		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		Rock chips were assayed in a commercial laboratory using standard
assay data and		laboratory procedures used and whether the technique is considered		methods for gold.
laboratory		partial or total.		Gold was determined by fire assay with a nominal 40g charge
tests		For geophysical tools, spectrometers, handheld XRF instruments, etc,		analysed. Au is determined with AAS finish.
		the parameters used in determining the analysis including instrument		Laboratory QA/QC samples and sample duplicates were assayed by
		make and model, reading times, calibrations factors applied and their		the laboratory with all results within expected error range. Samples
		derivation, etc.		were assayed at Bureau Veritas in Adelaide.
		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 – no drilling results reported.
sampling and		alternative company personnel.		No assay results have been adjusted.
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		Rock chip sample locations were collected using a hand held Garmin
data points		down-hole surveys), trenches, mine workings and other locations		GPS (+/- 5m accuracy).
		used in Mineral Resource estimation.		MGA94 (Zone 52)
		Specification of the grid system used.
		Quality and adequacy of topographic control.
Data spacing		Data spacing for reporting of Exploration Results.		The data is not appropriate for use in estimating a Mineral Resource
and		Whether the data spacing and distribution is sufficient to establish the		and is not intended for such use.
distribution		degree of geological and grade continuity appropriate for the Mineral		No sample compositing was undertaken.
		Resource and Ore Reserve estimation procedure(s) and
		classifications applied.
		_Whether sample compositing has been applied. _
Orientation of		Whether the orientation of sampling achieves unbiased sampling of		The samples were collected at selected sites and is is unknown if this
data in relation		possible structures and the extent to which this is known, considering		results in biased or unbiased sampling.
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.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Sample		The measures taken to ensure sample security.		The samples were collected and transported to a Interstate transport
security				company for delivery to the Adelaide Laboratory by a Monax
				representative. All appropriates measures were taken for sample
				security.
Audits or		The results of any audits or reviews of sampling techniques and data.		No audits or reviews have been completed.
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 areas sampled are located on Mining Leases held by private
tenement and		agreements or material issues with third parties such as joint		individuals. Monax has negotiated an Option to Purchase deal with
land tenure		ventures, partnerships, overriding royalties, native title interests,		each leaseholder the details of which are outlined within this ASX
status		historical sites, wilderness or national park and environmental		Release.
		settings.
		The security of the tenure held at the time of reporting along with any		The Leases are free of any known impediments.
		_known impediments to obtaining a licence to operate inthe area. _
Exploration		Acknowledgment and appraisal of exploration by other parties.		A variety of exploration companies have undertaken work within the
done by other				area of the two Exploration Licences. Western Mining (EL 2362)
parties				undertook exploration along the western boundary of the area.
				Exploration comprised helicopter reconnaissance and rock chip
				sampling, mapping, soil sampling and costeaning. Western Mining
				drilled 3 diamond holes at C3 anomaly and 5 RC holes at C4 anomaly
				with some elevated gold values reported. Anglogold Australasia and
				Acacia Resources explored the eastern part of the area. Limited rock
				chip sampling reported some elevated gold up to 10.9 g/t (CR 2001-
				0225). The Goodall Gold Mine located adjacent to EL 29966
				produced 4095 kg of gold with a head grade of 1.99 g/t Au between
				1988-1993.
Geology		Deposit type, geological setting and style of mineralisation.		Sediment hosted quartz saddle reefs.
Drill hole		A summary of all information material to the understanding of the		Not Applicable – no drilling results reported.
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.
		Ifthe exclusion of this information is justified on the basis that the

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		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 – no drilling results reported.
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 – no drilling results reported.
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 tenement locations is included in Release and results
		intercepts should be included for any significant discovery being		are presented in Table format within the Release.
		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		Results of all samples are included in Table within ASX Release.
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		Historical rock chip results are discussed in the text.
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 is planning detailed mapping and sampling with a view to
		extensions or depth extensions or large-scale step-out drilling).		possible drilling in early 2016.
		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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