FireFly Metals Ltd. — Interim / Quarterly Report 2011

Apr 18, 2011

Exploration Office Warehouse I, 5 Butler Blvd Burbridge Business Park Adelaide Airport SA 5950 Postal Address PO Box 247 Export Park SA 5950

ABN: 96 110 336 733

Tel: +61 8 8375 3900 Fax: +61 8 8375 3999 www.monaxmining.com.au

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For immediate release 19 April 2011

Monax Mining Limited Quarterly Report

For the period ending 31 March 2011

HIGHLIGHTS

• Major gravity survey completed at Punt Hill copper-gold project adjacent to the Carrapateena deposit in South Australia’s Far North. Drilling planned after completion of IP survey and Aboriginal Heritage clearance.

• RC/aircore drilling program completed at Waddikee manganese and iron project, on South Australia’s Eyre Peninsula. A total of 62 holes (3317m) were completed with samples submitted for analysis. Full results expected early May.

• In-house assessment of the iron potential of the Waddikee project commenced, with major geophysical review undertaken.

• Copper-gold drilling commenced on Melton project, located within Pine Point Fault, Yorke Peninsula, South Australia.

• Monax acquires bauxite tenements on Cape York Peninsula, Far North Queensland. First 100% Monax bauxite tenement granted on Cape York Peninsula, Far North Queensland.

• Monax renews option over four granted gold mining leases in northern Queensland.

Quarterly report for the period ending 31 March 2011 ~ 1 ~

Corporate

The Company has been actively reviewing opportunities to add to the current project portfolio.

During the quarter to 31 March 2011, Monax applied for a series of tenements in northern Queensland, focussed on gold and tin mineralisation.

Monax holds option agreements over four granted Mining Leases within the Percyvale area, together with six Mining Lease applications in the Percyvale area. Monax has commenced the Right to Negotiate process on the Mining Lease Applications, the first step in moving the Leases to being granted.

Monax holds 36 million shares (23.93% undiluted) in Marmota Energy Limited (ASX:MEU).

As at 31 March 2011, the Company had a cash balance of $3.8 million.

Exploration

South Australian projects

Monax has three core South Australian projects (Figure 1).

1. Punt Hill – copper, gold (farm-in with Antofagasta) 2. Melton – copper, gold (JV with Marmota Energy) 3. Waddikee – manganese, iron (farm-in with OM (Manganese) Limited)

Punt Hill project (Monax 100%; Antofagasta earning 51%)

The Punt Hill project is located within the highly prospective Iron Oxide Cu-Au Province on the eastern margin of the Gawler Craton. This province is host to the world class Olympic Dam and Prominent Hill mines, as well as the recently discovered Carrapateena and Hillside deposits. The Punt Hill tenement is adjacent to Carrapateena, which consists of a complex hematite breccia extending at depth from 470m.

The large regional and detailed gravity survey over the Punt Hill project was completed in early April. The survey comprised over 8000 new gravity station measurements which takes the total gravity station measurements to ~14,800 across the project area.

Figure 2 shows the raw gravity data across the project area. The data is currently being processed to allow the Monax and Antofagasta geologists to undertake target selection.

The next Monax:Antofagasta Technical Committee Meeting will be held in Adelaide in the first week of May. The next phase of exploration will comprise selection of gravity targets for testing by induced polarisation (IP). The IP survey will be undertaken once Aboriginal heritage clearances are completed, with drilling planned for the second half of 2011.

Quarterly report for the period ending 31 March 2011

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Figure 1: Location of Monax’s core South Australian projects

Quarterly report for the period ending 31 March 2011

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Figure 2: Bouger gravity image for Punt Hill project.

Quarterly report for the period ending 31 March 2011

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Waddikee project (Monax 100%; OM (Manganese) Limited earning 60% interest in manganese and iron)

The Waddikee project in South Australia is located south of the township of Kimba on the central Eyre Peninsula, which is also the focus of iron ore exploration in South Australia. The Waddikee project is the subject of a farm-in agreement with OM (Manganese) Ltd (OMM), a wholly-owned subsidiary of OM Holdings Limited (ASX:OMH). OMM is required to fund A$2 million over four years to acquire a 60% participating interest in the Waddikee project.

RC/aircore drilling at Waddikee was completed on 30 March 2011, comprising 62 holes for a total of 3317 metres. The manganese prospects that were drill tested included Jamieson Tank, Polinga, Windyzell, Bunora West and Hodgins (Figure 3). 522 samples were collected and have been submitted for laboratory analysis and results are expected in May.

Monax also undertook a geophysical appraisal of the tenement with an external geophysical consultant reprocessing the high-resolution aeromagnetic data, to provide an insight into the prospective zones for magnetite and hematite. This data is currently being assessed and further drilling targeting iron may be undertaken in late 2011. The iron rights are currently part of the farm-in agreement with OMM.

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Figure 3: Location of manganese prospects, Waddikee project.

Quarterly report for the period ending 31 March 2011

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Melton project (50:50 Joint Venture with Marmota Energy Limited)

The Melton project is located on the northern Yorke Peninsula along the Pine Point Fault Belt, a newly defined structural corridor which hosts the Hillside deposit (Rex Minerals). The current drilling program (Plate 1) is focussing on following up the promising results from the maiden drilling program at the Miranda target conducted in the first half of 2010.

Drill holes MIRDD01 and MIRDD04 at the Miranda target intersected a zone of low-grade copper mineralisation associated with an amphibole-magnetite-pyrite-chalcopyrite alteration system. The alteration system is interpreted to be related to the intrusion of an extensive mafic body into the metasedimentary host rocks. The best intersections include:

• 21m @ 0.11% Cu (hole MIRDD01 from 451m)

• 4m @ 0.15% Cu (hole MIRDD04 from 432m)

• 4m @ 0.12% Cu (hole MIRDD04 from 463m)

• 3m @ 0.26% Cu (hole MIRDD04 from 487m)

The drilling program is due to be completed in late April with results due in June 2011.

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Plate 1: Drilling at Miranda target, Melton project.

Quarterly report for the period ending 31 March 2011

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Queensland projects

Monax currently has two key projects located in northern Queensland (Figure 4).

1. Pretender Creek – bauxite 2. Percyvale – gold

During the March quarter, Monax applied for further tenements in northern Queensland focusing on gold and tin (Stannary Hills and Mt Oweenee projects – see Figure 4).

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Figure 4: General location of Monax Queensland Projects

Quarterly report for the period ending 31 March 2011

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Pretender Creek bauxite project

The Pretender Creek project area is located on Cape York, a major bauxite province in northern Queensland (Figure 4). The project comprises five tenements covering an area of 1198 km[2] (Figure 5). Monax exercised the option to purchase two bauxite tenements from Delminco Pty Ltd in February 2011. After careful due diligence across the five tenements under the option agreement, Monax negotiated the purchase of EPM 16963 and EPM 17005 for $50,000. Title for the tenements is currently being transferred to Monax and exploration will commence at the completion of the current wet season.

EPM 18304 was granted on 31 March 2011 for a period of two years. EPM 18304 contains a prominent zone of bauxite covering an area of 13.8 km[2 ] (Figure 5). Previous bauxite sampling of this plateau reported up to 44% Al2O3 with bauxite outcropping around the margins of the plateau (Plate 2).

Monax is planning on drilling EPM 18304, EPM 17005 and EPM 16963 at the completion of the wet season. Monax is awaiting the grant of EPM 18403 and EPM 18404, which are expected to be granted by mid-2011.

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Figure 5: Pretender Creek project area showing areas of known and interpreted bauxite (tenements outlined in red represent tenements purchased from Delminco Pty Ltd).

Quarterly report for the period ending 31 March 2011

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Plate 2: Outcrop of bauxite within EPM 18304.

Percyvale gold project

Monax recently renewed the Option Deal over four granted gold Mining Leases in the Percyvale area, northern Queensland. Preliminary rock chip sampling has confirmed high-grade gold is present within all four Leases.

The four Mining Leases are listed below:

Lease No.	Name	Expiry Date	Size(hectares)
ML 3366	Union	31 July 2016	23.6
ML 30199	Percy West	30 June 2016	32
ML 30139	Josephine	31 October 2014	6.36
ML30103	HomewardBound	30 September 2013	2.63

Monax is planning a drilling program to commence at the completion of the wet season targeting the Union and Percy West Leases. Recent drilling on the boundary of the Union Mining Lease by PepinNini Minerals reported 4m @ 4.65 g/t Au & 69.75 g/t Ag, from 33m (including 1m @ 14.85 g/t Au & 223 g/t Ag). This drilling was on the margins of the Cranky Dick line of lode which is located within ML 3366. Previous rock chip sampling by Monax from the Cranky Dick line of lode within ML 3366 reported gold up to 28.41 g/t. This area has not received significant exploration and the reef extends for approximately 400m and is up to 10m wide.

Monax plans to drill five holes targeting the Cranky Dick line of lode and five holes on the Percy West Lease, where previous drilling did not test the known reef. Previous rock chip sampling at Percy West has reported gold up to 608 g/t. Monax also plans to drill two holes at Josephine and Homeward Bound to follow-up high-grade rock chip sampling results.

Quarterly report for the period ending 31 March 2011 ~ 9 ~

During the quarter, Monax was advised that it was not the successful applicant for two Exploration Permit Minerals (EPM) in the Percyvale area. Monax, however, has six Mining Lease Applications located within the two EPM areas, and the Company has commenced the Native Title process with a view to getting these leases granted in the next 12-18 months.

New projects

Stannary Hills (intrusive-related gold and tin)

Monax has applied for four tenements located in the Stannary Hills area in northern Queenland. The tenements are outlined below:

EPM No.	Location	Status
19088	Mutchilba	100%Monax
19115	StannaryHills	CompetingApplication
19111	Boulder Peak	Competing Application
19121	California Creek	CompetingApplication

Stannary Hills has significant potential for tin mineralisation with numerous small mines and prospects located within the tenements (Figure 6). The tenements also have potential for intrusive–related gold mineralisation. Previous exploration on EPM 19088 reported highly encouraging gold results, with up to 8.5 g/t Au from rock chip samples from outcropping quartz reefs.

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Figure 6: Location of Stannary Hills project (black dots represent old mines/prospects)

Quarterly report for the period ending 31 March 2011

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Mt Oweenee project (tin)

Monax has applied for two tenements in the Mt Oweenee area approximately 120 km west of Townsville. The area hosts numerous historical tin workings (Figure 7). Monax will undertake a full assessment of available information prior to the tenements being granted.

The addition of the two new projects is part of the Company’s strategy to provide a pipeline of quality projects for the future.

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Figure 7: Location of the Mt Oweenee project (black dots represent old mines/prospects)

Exploration Program for Current Quarter

Punt Hill – copper-gold

• Processing of gravity data

• Assessment of gravity data and target generation

• Aboriginal heritage clearance

Waddikee – manganese, iron

• Assessment of Aircore/RC drilling results

• Continued in-house assessment of the iron potential

Melton – copper-gold

• Diamond drilling at Miranda target

Pretender Creek – bauxite

• Commence on-ground bauxite exploration

• Undertake Aboriginal heritage clearance

• Drilling program to commence after June 2011

Percyvale – gold

• Drilling program to commence May-June 2011

Quarterly report for the period ending 31 March 2011

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For further information please contact:

Gary Ferris Managing Director Monax Mining Ph: (08) 8375 3900 Email: info@monaxmining.com.au

Duncan Gordon Investor Relations Ph: 0404 006 444

‘The information in the Quarterly Report that relates to Exploration Results, Mineral Resources, Ore Reserves or targets 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 2004 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.’

Quarterly report for the period ending 31 March 2011

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Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

Name of entity

	Monax Mining Limited	Monax Mining Limited
	ABN 96 110 336 733 Consolidated statement of cash flows
			31 March 2011
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Cash call contributions under JV agreements Other R & D tax offset Net Operating Cash Flows		Current quarter $A’000		Year to date ( 9 months) $A’000
		- (589) - - (258) - 87 - - - (31) (16)		- (915) - - (635) - 270 - - 302 32 (16)
		(807)		(962)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)		- - - - - 2 - -		- - - - - (1) - -
		2		(1)
		(805)		(963)

• See chapter 19 for defined terms.

Appendix 5B Page 1

30/9/2001

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(805)	(963)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) Net financing cash flows	- - - - - -	- - - - - -
	-	-
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end ofquarter	(805) 4,650 -	(963) 4,808 -
	3,845	3,845

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		478
		2
1.25	Explanation necessaryfor an understandingof the transactions
	The amount at 1.23 above represents non executive directors’ fees and executive director’s salary (including SGC superannuation), legal fees paid to a legal firm in which a director is a partner, contributions to Joint Venture expenditure made to a related party and service fee payments to an associated entity. The amount at 1.24 above represents costs to be recovered in relation to shared facilities from a related entity.

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

• See chapter 19 for defined terms.

Appendix 5B Page 2

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Appendix 5B Mining exploration entity quarterly report

Marmota Energy Limited pursuant to the Farm-In and Joint Venture Agreements for EL 4510 (formerly EL 3358), EL 3910, EL 3911and EL 4000 has incurred on an accruals basis $72,000 in the quarter ending 31 March 2011.

OM (Manganese) Ltd pursuant to the Farm-in and Joint Venture Agreement for EL 3357 has incurred on an accruals basis $41,971 in the quarter ending 31 March 2011.

Antofagasta Minerals S.A. pursuant to the Farm-In Option Agreement – Punt Hill Project for EL 4642 and EL 4548 has incurred on an accruals basis $131,928 in the quarter ending 31 March 2011.

Financing facilities available

Add notes as necessary for an understanding of the position.

	3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
		-	-
		-	-

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	500
	-
	-
	250
Total	**750 **

Reconciliation of cash

Total Reconciliation of cash		**750 **
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	77	232
	3,765	4,415
	-	-
	3	3
Total: cash at end of quarter(item 1.22)	3,845	4,650

• See chapter 19 for defined terms.

Appendix 5B Page 3

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Appendix 5B Mining exploration entity quarterly report

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
	EL 3684 EL 3685 EL 4413 EL 4458 EPM 16964 EPM 17006 EPM 17715	Relinquished Relinquished Relinquished Relinquished Relinquished Relinquished Relinquished	100% 100% 100% 100% 100% 100% 100%	0% 0% 0% 0% 0% 0% 0%
	EL 4662 (formerly ELA 74/10) EL 4642 (formerly ELA 244/10) EPM 19088 EPM 19110 EPM 19116	Granted Granted Application Application Application	100% 100% 0% 0% 0%	100% 100% 100% 100% 100%

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (see note3) (cents)	Amount paid up per security (see note3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	148,053,668	148,053,668
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	150,000 215,000 10,000 3,000,000 18,309,654 425,000	Nil Nil Nil Nil 18,309,654 Nil	Exercise Price $0.666 $0.246 $0.0517 $0.10 $0.15 $0.0517	Expiry Date 14/02/2012 18/07/2013 23/12/2013 31/07/2012 30/11/2011 05/03/2015

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

7.11	Debentures
	(totals only)
7.12	Unsecured
	notes(totals
	only)

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

• 2 This statement does / ~~does not*~~ (delete one) give a true and fair view of the matters disclosed.

Sign here: ..................... Date: ....19/4/2011....... ( ~~Director/~~ Company secretary)

Print name: Virginia Suttell

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

• See chapter 19 for defined terms.

Appendix 5B Page 6

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