FireFly Metals Ltd. — Interim / Quarterly Report 2013

Apr 29, 2013

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 30 April 2013

Monax Mining Limited Quarterly Report

For the quarter ended 31 March 2013

HIGHLIGHTS

• Waddikee Project –

• Detailed ground electromagnetic (EM) surveys completed.

• Wilclo South prospect graphite drilling completed.

• Further coarse flake graphite reported at Wilclo South.

•

Monax | Antofagasta Strategic Alliance –

• Successful meeting with Arabana Native Title Group for Algebuckina Designated Project. Gravity survey planned to commence in coming weeks.

• Continued revision of tenement holding with new tenement applications and several applications relinquished.

• Ongoing review of potential copper projects for the Alliance.

• Punt Hill Project –

• Samples of granite from drill hole HODD3 submitted for age dating (geochronology).

New Project –

• Western Gawler Craton project currently being transferred from Monax Alliance to Monax Mining Limited.

Quarterly report for the period ending 31 March 2013 ~ 1 ~

Corporate

In the three months to 31 March 2013, Monax Mining Limited (ASX:MOX) has focussed exploration on its Waddikee Graphite Project, located on South Australia’s Eyre Peninsula.

A major drilling program was completed at the Wilclo South graphite prospect – part of the Wadikee Project - in late March, with the objective of providing sufficient drill hole information for Monax to produce an inferred resource by mid-2013.

During the quarter, Monax Alliance Pty Ltd progressed the first designated project – Algebuckina Designated Project. Monax Alliance met with the Native Title Group and is currently working on a Native Title Agreement in order to facilitate ground disturbing activities including drilling.

Marmota Energy Limited (ASX:MEU) (“Marmota”) commenced drilling at its Durkin Project in northern South Australia. Monax remains Marmota’s major shareholder with 32.4 million shares.

The current value of this holding is $2.2 million (based on share price $0.068).

As at 31 March 2013, Monax had a cash balance of $1.6 million. During the quarter $0.9 million was spent on exploration on Monax projects.

Exploration

South Australian projects

Monax has six South Australian projects (Figure 1).

1. Punt Hill – copper-gold (farm-in with Antofagasta).

2. Monax | Antofagasta Strategic Alliance (includes Algebuckina Designated Project).

3. Waddikee – graphite, manganese and iron.

4. Phar Lap – copper-gold.

5. Yorke Peninsula – copper-gold (includes Melton JV with Marmota Energy). 6. Western Gawler Craton – nickel-copper.

Quarterly report for the period ending 31 March 2013 ~ 2 ~

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Figure 1. Location of Monax’s projects.

Quarterly report for the period ending 31 March 2013 ~ 3 ~

Punt Hill Project – copper-gold (Monax 100%; Antofagasta earning 51%)

The Punt Hill Project is located within the highly prospective Olympic Iron Oxide Copper-Gold (IOCG) Province on the eastern margin of the Gawler Craton in northern South Australia. 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 Project is subject to a farm-in agreement with major Chilean mining company Antofagasta plc, through its wholly-owned subsidiary, Antofagasta Minerals Adelaide Pty Ltd (“Antofagasta”).

Antofagasta has invested approximately US$3.8 million in the Project since August 2010. Under the Punt Hill Farm-In Agreement, Antofagasta can earn a 51% interest in the Project upon reaching US$4 million expenditure in the Project.

During the quarter, Monax continues to review drill hole data for the project. As part of this review, samples of granite from drill hole HODD3 were submitted for age determination. The objective of the age dating is to confirm if the granite belongs to the Hiltaba Suite (~1590Ma) or the Donington Suite (~1850Ma).

This may have important implications for the source of mineralisation and fluids within the southern part of the Punt Hill Project.

Monax | Antofagasta Strategic Alliance – copper

In October 2011, Monax announced the formation of a Strategic Alliance with Antofagasta Minerals Adelaide Pty Ltd (“Antofagasta”), a wholly owned subsidiary of ‘Antofagasta plc’, a major international copper mining company, for project generation in South Australia.

The terms of the agreement require that Antofagasta invest US$1 million over two years in Monax to facilitate area prospectivity identification and analysis, basic exploration, project generation and target selection. Any initial properties that are identified as a “project of interest” become a ‘Designated Project’ (DP). Once a DP has been formed, Antofagasta will have acquired a 51% interest and Monax a 49% interest in the Project.

Antofagasta will then have the option to earn an additional 19% of any DP (cumulative 70% interest) by spending a further US$4 million on exploration within three years and upon earning this interest it will subsequently be required to make an additional cash payment (success fee) to Monax of US$3 million.

Algebuckina Designated Project

The Algebuckina DP (“ADP”) comprises three Alliance tenements and two tenements held by Falcon Minerals Limited (ASX:FCN) (“Falcon”) – refer ASX Announcement 19 December 2012 - and is located on the northern margin of the Gawler Craton in northern South Australia (Figure 1).

The ADP is located within the Peake and Denison Inlier and a gravity survey is planned to commence in early May 2013 over four copper-gold targets.

Based on positive results from the gravity survey, drilling is planned for mid-2013 following an Aboriginal Heritage Clearance.

Quarterly report for the period ending 31 March 2013 ~ 4 ~

During the March quarter, Monax met with the Arabana Native Title Group and its legal representative to present Monax Alliance’s exploration plans for the ADP and discuss a Native Title Agreement. Based on a very positive meeting, a Native Title Agreement is currently being drafted and early stage, non-ground disturbing exploration activities were approved.

Alliance Projects

During the quarter, the Alliance projects underwent considerable change.

Antofagasta withdrew from the western Gawler Craton (WGC) project and this is currently in the process of being wholly transferred (100%) to Monax.

Tenements comprising the Marla project have been relinquished based on a detailed review of available geophysical data.

The Olympic IOCG and Kangaroo Island projects are at an early stage of evaluation by the Alliance, and these projects have not yet been approved as Designated Projects.

Monax is currently reviewing a number of other opportunities for consideration by the Alliance.

Waddikee Project – graphite, manganese and iron (Monax 100%)

The Waddikee Project (EL 4662) is located approximately 100 kilometres south-west of Whyalla, on SA’s Eyre Peninsula, within an area that is becoming the premier graphite province in South Australia (Figure 1).

During the quarter Monax completed ground electromagnetic (EM) surveys over the Wilclo South, Francis, Argent and Lacroma prospects. The detailed EM surveys were undertaken to define the conductive targets and allow for accurate positioning of drill holes.

The ground EM survey confirmed the location and intensity of regional airborne EM (“AEM) conductors, using both moving loop and slingram techniques to provide detailed data to define the location and dip of the conductive units.

The data for the Wilclo South prospect showed a continuous conductive zone over a strike length of 2km, which remains open at both ends (Figure 2).

Seventy seven reverse circulation (RC) drill holes were completed at the Wilclo South prospect totalling 7307m. The location of the drill holes is shown in Figure 3. The drilling program was designed to test a 1.2km strike zone to 100m depth for an initial resource definition.

Further coarse flake graphite was reported from the early drill holes. Petrological results of the drill samples confirmed initial observations (refer Plates 1-6).

The results confirmed coarse flake graphite with a minimum size of 250 micron (0.25 mm) and maximum size of 1200 micron (1.2 mm), with an average size of approximately 450 micron (0.45 mm). The width of simple composite graphite aggregates comprising several joined graphite flakes is about 100 micron (see Plates 2 and 3).

Petrology of the “pure” graphite aggregates (see Plate 1) reported clean, coarse graphite with trace pyrite (see Plates 4-6). Coarse graphite aggregates were observed in several further holes and samples have been submitted for petrology.

Quarterly report for the period ending 31 March 2013 ~ 5 ~

Two HQ triple tube diamond drill holes at Wilclo South were completed to collect cored samples for further detailed metallurgical test work.

RC drilling at the Francis graphite and magnetite prospects was completed in early April.

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Figure 2. Wilclo South 3D EM model. Coloured plates indicate location of conductive zone which remains open along strike. Model shows 2012 Monax drill holes (WG031 and WG032) which intersected high grade graphite mineralisation.

Quarterly report for the period ending 31 March 2013 ~ 6 ~

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Figure 3. Wilclo South prospect - Location of drill holes showing drill hole traces.

Quarterly report for the period ending 31 March 2013 ~ 7 ~

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Plate 1. Coarse graphite aggregates from Wilclo South prospect (WG042 101102m)

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Plate 2. General view of graphite-rich drill chip showing coarse graphite (Note scale bar = 500 micron or 0.5mm). White mineral is pyrite. (Note: coarse flake graphite = >0.177mm or 177 micron).

Quarterly report for the period ending 31 March 2013 ~ 8 ~

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Plate 3. Detailed view of drill chip showing coarse flake graphite (Note scale bar =

200 micron or 0.2 mm).

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Plate 4. General view showing cross section of coarse graphite aggregates shown in Plate 1 (note scale bar = 500 micron or 0.5 mm).

Quarterly report for the period ending 31 March 2013 ~ 9 ~

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Plate 5. Detailed view of one graphite aggregate shown above (note scale bar = 100 micron or 0.1 mm).

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Plate 6. Detailed view of different graphite aggregate shown above (note scale bar = 100 micron or 0.1 mm). White mineral is pyrite along cleavage in graphite.

Quarterly report for the period ending 31 March 2013 ~ 10 ~

Phar Lap Project – copper-gold (Monax 100% of all minerals excluding uranium; Marmota 75% uranium, Monax 25% uranium)

EL 5124 (Phar Lap) is located about 60km west north-west (WNW) of the Prominent Hill mine, on the south-western margin of the Mt Woods Inlier in South Australia’s Far North (Figure 1). The Mt Woods Inlier contains the Prominent Hill (Cu-Au) and Cairn Hill (Fe-Cu) mines, as well as several IOCG style targets including Joes Dam and Manxman.

Monax is continuing the land access process and plans to drill these targets in mid to late 2013.

Yorke Peninsula Project – copper-gold

• Monax has two sub-projects located on the Yorke Peninsula in South Australia. They are:

• Melton (50:50 Joint Venture with Marmota Energy Limited – ASX:MEU)

• Webling Bay (100% Monax)

No exploration was undertaken on the Webling Bay project during the quarter.

Joint venture partner Marmota undertook a detailed calcrete sampling program on the Melton project area with areas of anomalous copper and gold defined. The Joint Venture will review the results and determine the next phase of exploration for the project.

Western Gawler Craton (WGC) Project – nickel-copper, gold (Monax 100%)

The WGC project comprises five granted tenements (EL 4992, EL 4993, EL 5077, EL 5199 & EL 5200) covering an area of 3,433km[2] (Figure 1).

The basement rocks on the western Gawler Craton record a history of active tectonism which resulted in the mafic and ultramafic intrusives being introduced into a package of Palaeoproterozoic sediments; a setting analogous to the Thompson Nickel Belt in Manitoba, Canada. Monax considers this area prospective for nickel-copper mineralisation.

The Fowler Domain in South Australia comprises a northeast trending sinuous, high-magnetic intensity belt located on the western Gawler Craton (Figure 4). The Fowler Domain contains Archaean/Proterozoic rocks, reworked and intruded by Palaeoproterozoic igneous and metamorphic rocks.

Limited company exploration and geological mapping has shown that the Fowler Domain is a complex, long-lived deep crustal scale structural zone similar to the Thompson Nickel Belt in Canada and the Albany Fraser Belt in Western Australia.

Monax has engaged a specialised geoscience consultancy to undertake detailed analysis of the available high-resolution aeromagnetic data within the Fowler Domain and develop a suitable exploration strategy for the region.

Monax will use the report as a basis to produce an Information Memorandum and start seeking a strategic partner for this project.

Quarterly report for the period ending 31 March 2013 ~ 11 ~

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Figure 4. Plan showing WGC Project (background TMI). For location of WGC Project – see Figure 1.

Quarterly report for the period ending 31 March 2013 ~ 12 ~

Exploration Program planned for current quarter (April – June 2013)

Punt Hill – copper-gold

• Ongoing review of all drill hole data.

• Ongoing review of all geophysical data.

• Plan next phase of exploration.

Monax | Antofagasta Strategic Alliance - copper

• Ongoing identification of new copper projects within South Australia.

• Continue assessment of identified copper projects.

• Assess and model gravity data on Algebuckina Designated Project (ADP).

• Undertake heritage clearance for proposed drilling program for ADP.

Waddikee – graphite, iron and manganese

• Compile drill hole data and assays for Wilclo South prospect.

• Undertake due diligence on drill hole data and forward to approved consultant for resource determination.

• Assess drill hole assays from Francis graphite and magnetite prospects.

• Continue assessment of the Project’s iron potential

Phar Lap – copper-gold

• Continue land access process.

Yorke Peninsula – copper-gold

• Melton Joint venture – assess calcrete results.

Western Gawler Craton – nickel-copper, gold

• Assess geophysical data and report.

• Produce an Information Memorandum and seek partner for project.

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 2013 ~ 13 ~

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 2013
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 Net Operating Cash Flows		Current quarter $A’000		Year to date ( 9 months) $A’000
		- (872) - - (210) - 8 - - - 65		- (3,764) - - (663) - 76 - - 2,798 99
		(1,009)		(1,454)
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)		- - - (34) - -		- (3) 25 647 - (43) - -
		(34)		626
		(1,043)		(828)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(1,043)	(828)
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 of quarter	(1,043) 2,625 -	(828) 2,410 -
	1,582	1,582

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
		(205)
		-
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 5124 (formerly EL 3910), EL 5122 (formerly EL 3911) and EL 4000 has incurred on an accruals basis $37,668 in the quarter ending 31 March 2013.

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 $47,557 in the quarter ending 31 March 2013.

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
	250
	-
	-
	175
Total	425

Reconciliation of cash

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)	65	858
	1,515	1,765
	-	-
	2	2
Total: cash at end of quarter(item 1.22)	1,582	2,625

• 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
	ELA 2012/00250 ELA 2012/00261 ELA 2012/00278 ELA 2012/00326	Withdrawn Withdrawn Withdrawn Withdrawn	100% 100% 100% 100%	0% 0% 0% 0%
	EL 5176 (formerly ELA 00068) ELA 2013/00069	Granted Application	100% 0%	100% 100%

• See chapter 19 for defined terms.

Appendix 5B Page 4

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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	149,514,803	149,514,803
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	215,000 10,000 425,000 225,000 325,000	Nil Nil Nil Nil Nil	Exercise Price $0.246 $0.0517 $0.0517 $0.051 $0.053	Expiry Date 18/07/2013 23/12/2013 05/03/2015 28/07/2016 23/07/2017
7.11 Debentures (totals only)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

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: ....30/04/2013....... ( ~~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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