FireFly Metals Ltd. — Investor Presentation 2012

Jul 17, 2012

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Investor Presentation – July 2012

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Balumbah Graphite Prospect: photomicrograph

Disclaimer

Forward Looking Statements

'The following presentation 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.'

Competent Person Statement

The information in this presentation 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 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.

Corporate Snapshot

Profile

Head Office: Unit i, 5 Butler Blvd, Burbridge Business Park, SA 5950

Vision: To become a mining company via discovery and partnerships with major exploration, resources development and investment and mining companies.

Strategy: To make a world-class discovery at its flagship Punt Hill copper-gold project in SA, and identify and secure high quality asset positions that are either stand-alone 'company makers' or will be attractive to majors.

Directors/Executives Bob Kennedy Non-Executive Chairman Gary Ferris Managing Director Reg Nelson Non-Executive Director Glenn Davis Non-Executive Director Virginia Suttell Company Secretary

	Cash : As at 30 June 2012, $2.5 million	Cash : As at 30 June 2012, $2.5 million
	Share Details
	Total shares on Issue	149,514,803
	Market Capitalisation	$9.56 million
	Share price at 16/07/12	6.4 cents
	Top Twenty	34.61%

Projects & Investment Highlights

Waddikee Graphite Project

• Highly prospective for graphite – 'Graphite Province'

• Graphite identified in historic data and recent sampling

• Drilling: July/August 2012 - test 7 graphite targets

• Prospective for Manganese, Iron, Silver-Lead-Zinc

Punt Hill Copper-Gold Project

• Antofagasta approved US$2.5 million budget for 2012

• Major drilling program planned August/December 2012

• • $60,000 PACE Grant

Monax | Antofagasta Strategic Alliance

• Monax 'Alliance' has 13 current tenement applications

• Four 'Key Project' areas

• Marla | Algebuckina | WGC | Kangaroo Island

Phar Lap IOCG Project

• Prominent Hill/Carrapateena IOCG style target

• Western margin of Mt Woods Inlier – hosts Prominent Hill

• Drilling planned

Yorke Peninsula IOCG project

• Full review of exploration data in progress

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Waddikee Graphite Project

Snapshot

• Location: Eyre Peninsula, SA

• • Emerging graphite province: - Large land holding (999km[2] )

• Project commodities: - Graphite

• • Iron

• Manganese

• • Silver/Lead/Zinc
• • Gold

• Geology: - Palaeoproterozoic Hutchinson Group metasedimentary rocks

• Close to infrastructure

• Excellent community relations

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Waddikee – Graphite Prospects

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Surface Samples

• Coarse flake graphite

Drilling Program

• In progress

Background – AEM (red = high conductivity

= graphite targets)

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Waddikee – Drilling Program

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Background – AEM (red = high conductivity = graphite targets)

Waddikee – Forward Program

Planned Exploration

• Ongoing review of geophysics and historical data

• Landowner and Government access negotiations - complete

• Field mapping and sampling

• ongoing

• 4500m drilling program

• July/August (commenced)

• Analysis & beneficiation of selected drill hole samples - August/October

• Resource drilling – based on July/August drilling

• December 2012

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Punt Hill Copper‐Gold Project

Flagship Project

• Located within Olympic Iron-Oxide Copper-Gold Province

• Province hosts major copper deposits and mines at Olympic Dam and Prominent Hill and significant new discoveries at Carrapateena and Hillside

• OZ Minerals recently purchased Carrapateena ($250 million)

• Large zone of mineralisation and alteration defined

• Best intersection – Hole GHDD6

• 159m @ 0.47% Cu, 0.12 g/t Au, 5.3 g/t Ag, 0.48% Zn & 0.12% Pb (from 846m)

• including 17m @ 1.1% Cu, 0.27 g/t Au, 8.5 g/t Ag & 1.2% Zn from 853m

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Punt Hill – Farm‐In Agreement

Farm-In Agreement – Antofagasta PLC, Chile

• In September 2010, Monax announced major Farm-In Agreement with Antofagasta PLC

• Antofagasta spending US$4 million on exploration to earn 51% interest in Punt Hill

• Antofagasta have the option to spend a further US$5 million on exploration to earn an additional 19% interest in the project (70% interest)

• Minimum expenditure of US$1.5 million over first 2 years

• Maiden drilling program completed in 2011

• Antofagasta have agreed to spend ~US$2.5 million on 2012 exploration program

• Drilling planned to commence in late August 2012

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Punt Hill – Monax Drilling Results

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• large

• area of skarn

• alteration and copper

• mineralisation

• GHDD1 WDDD1 PDDD2

Prairie Dog Prospect

• PDDD2 99m @ 0.24% Cu 876-975m

Groundhog Prospect

• GHDD1 126m @ 0.4% Cu 837-963m (including 14m @ 0.7% Cu & 14m @ 1% Cu)

• GHDD2 162m @ 0.34% Cu 888-1050m (including 28m @ 0.7% Cu)

GHDD3 76m @ 0.22% Cu 826-902m

GHDD4 122m @ 0.47% Cu, 0.1g/t Au, 6.6g/t Ag, 0.38% Zn 840-962m (including 15m @ 0.96% Cu)

• GHDD6 159m @ 0.47% Cu, 0.12g/t Au, 5.3g/t Ag, 0.48% Zn 846-1005m (including 17m @ 1.1% Cu)

Woodchuck Prospect

• WDDD1 70m @ 0.41% Cu 683-753m (including 28m @ 0.82% Cu, 10g/t Ag)

Whistlepig Prospect

• WPDD1 60m @ 0.13% Cu 788-848m

Note: all intersections reported are downhole lengths only; true widths unknown

Punt Hill – Drilling Results

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Groundhog GHDD6

Chalcopyrite within highly altered sediments (869-870m – 1m @ 3.8% Cu, 0.93 g/t Au, 12.8 g/t Ag & 3.3% Zn)

Chalcopyrite with minor fluorite within highly brecciated sediments (983-984m 1m @ 2.4% Cu, 0.4 g/t Au, 6.2 g/t Ag, 0.8% Zn & 0.5% Pb )

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Best intersection -159m @ 0.47% Cu, 0.12 g/t Au, 5.3 g/t Ag, 0.48% Zn & 0.12% Pb (from 846m)

including 17m @ 1.1% Cu, 0.27 g/t Au, 8.5 g/t Ag & 1.2% Zn from 853m

Note: all intersections reported are downhole lengths; true widths unknown

Punt Hill Copper‐Gold Project

Forward Program

• Antofagasta have agreed to spend ~US$2.5 million on 2012 drilling program

• Aboriginal Heritage Clearance: July 26[th] to 29[th] , 2012

• Monax to drill up to 8 holes commencing late August

• Drilling will focus on areas where previous good results reported (i.e. Groundhog and Prairie Dog gravity trends)

• Drilling expected to take 3-4 months to complete

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Gawler Craton – Competitor Activity

Oz Minerals/Oz IMX JV TAS Rio/Rio Tasman JV BHP Billiton FMG Straits Resources/ & UXA JV Maximus/ERO Xstrata JV's (AXT & GUN) Uranium One Monax/Antofagasta

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TAS
Woomera
Prohibited
Area
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BHP Tenements – Olympic Domain

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ASKED TO COMMENT, BHP SAID THE
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ASKED TO COMMENT, BHP SAID THE COMPANY WAS 'MAKING A RELATIVELY LOW-COST INVESTMENT IN A POTENTIAL FUTURE OPTION'. 'WE BELIEVE THERE IS POTENTIAL FOR ADDITIONAL IRON OXIDE, COPPER, GOLD DISCOVERIES IN THE STUART SHELF REGION OF AUSTRALIA AND IN THE CONTEXT OF OUR LONG-TERM DEVELOPMENT PLANS AND STRATEGY FOR OLYMPIC DAM THIS MAKES BHP BILLITON WELL PLACED TO DEVELOP ANY FUTURE MINES IN THE AREA.'

Source: Adelaide Advertiser Tuesday 10 July 2012

Monax|Antofagasta Strategic Alliance

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Monax | Antofagasta Strategic Alliance

• In August 2011, Monax signed a strategic Alliance with major Chilean copper producer Antofagasta plc for project generation within South Australia

• Antofagasta committing US$1 million over 2 years for project generation within South Australia

• Antofagasta to fund 'Designated Projects' – US$4 million over 3 years to earn 70% interest in project

• Monax 'Alliance' has 13 current tenement applications

• Four 'Key Project' areas Marla | Algebuckina | WGC | Kangaroo Island

• Marla and Algebuckina looking for potential extension of Olympic IOCG province

• WGC project looking for 'Thompson Nickel Belt' style NiCu deposits

• Kangaroo Island located on the southern margin of the Gawler Craton – major structures present – looking for Hillside style copper mineralisation

Summary & Conclusions

• Monax Mining – South Australian focus

• Two major projects

• Waddikee Graphite

• Punt Hill Copper-Gold

• Monax's Waddikee Project located within new 'Graphite Province'

• AEM data demonstrates >40 km strike of potential graphite horizons

• Seven priority targets identified with drilling recently commenced

• Monax's Punt Hill project located in premier IOCG Province

• Project fully funded by major International copper producer Antofagasta plc

• Drilling planned to commence late August 2012 – Budget ~US$2.5 million

• Two further IOCG Projects

• Phar Lap – drilling planned

• Yorke Peninsula – reviewing current exploration results

• Strategic Alliance with Antofagasta for project generation in South Australia

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Managing Director Gary Ferris

gferris@monaxmining.com.au www.monaxmining.com.au

Sample from Argent Prospect

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Appendices

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Balumbah Graphite Prospect: photomicrograph
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Waddikee – Exploration Methodology: AEM

What is Airborne Electromagnetics (AEM)?

• Electrical current pulsed through wire coil around plane

• Electrical current induces magnetic field in ground

Magnetic field induces weaker secondary electrical current in the ground Conductivity of materials that make up the earth vary

Secondary current moving through the ground produces a secondary magnetic field Secondary magnetic field detected by receiver towed behind aircraft

Graphite: Highly Conductive

Waddikee Project (MOX 100%)

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AEM Profile

Waddikee – Balumbah

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Very Coarse Flake Graphite (above)

Waddikee – Lacroma

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Potential second graphite-rich area to be tested in late 2012

Interpreted east dipping graphite-rich unit (graphite getting closer to surface to the west)

Planned drill holes

Drill hole CP 528

88-158m (EOH) graphite gneiss (down hole length, true width unknown)

Waddikee – Argent

	Sample ID	Location	MGA_East	MGA_North	% C	Petrological Description
	52317	ARG1	631186	6298332	1.38
	52318	ARG2	631193	6298229	16.00	Foliated graphite, from 0.2mm to 1.5mm in crystal size, is common (~15%), with some kinked flakes and recrystallised areas with smaller graphite flakes (<
						0.2mm long).
	52319	ARG3	631221	6298328	15.21	Graphite is less abundant compared to the previous sample, (5‐7%) with some kinking and shredding. Some areas have poorly oriented graphite flakes less than 0.4mm in grainsize, but other areas have more foliated graphite that is locally more than 1mm in crystal size.
	52320	ARG4	631238	6298254	19.81
	52321	ARG5	631235	6298342	13.21	There is more abundant and mostly recrystallised but foliated graphite in this sample than in the other two ARG samples, to 1.5 or 2mm in crystal size, with some kinked flakes, and small areas with bent or contorted flakes. There may b h 20% hit i thi thi ti
						e as muc as grape n s n secon area.
	28701	ARG4	631238	6298254	16.04
	28702	ARG4A	631238	6298254	10.24
	28703	ARG5	631235	6298342	13.06
	28704	ARG6	631143	6298247	11.45

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ARG 2
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ARG 3
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ARG 5
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Very Coarse Flake Graphite: field of view is 2mm x 3mm

What is Graphite?

• Crystalline Carbon – like Diamond but planar structure

• Non-metallic, opaque, grey/black, metallic lustre

• Flexible, soft, compressible, malleable

• Properties of metals and non-metals

• Superb conductor of heat and electricity

• Melting point above 3,550[o] C

• Non-toxic, chemically inert, corrosion resistant

• High natural strength, stiffness and excellent lubricant

Forms of natural graphite

• Amorphous graphite: most abundant type, found in large lumps, lower quality and carbon content of 70-85%

• Flake graphite: rarer, formed in metamorphic rock, carbon content of 80% to 98%. Three main sizes: fine (-100 mesh), medium (+100 mesh) and coarse (+80 mesh).

• Vein Graphite: rarest form, only commercially mined in Sri Lanka

Traditional Uses of Graphite

Refractory industry

• Refractory bricks to line blast furnaces

Steelmaking

• Used as agent to increase carbon content (strength) of steel

Automotive industry

• systems and motors

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Other uses

• Dry cell batteries

• Lubricants

• Sporting equipment

• Casings for electronics

• Fire retardants

• Pencils

Emerging Uses of Graphite

New Technology / Green Initiatives

• Alkaline and lithium-ion batteries – mobile phones, laptops, mp3 players, tablets, digital cameras, hybrid electric vehicles

• Fuel cells – boats, buses, trains, planes, solar energy

• Nuclear energy – pebble bed nuclear reactors

• Carbon fibre technology – used for lighter weight vehicles to reduce fuel consumption /CO2 emissions

Graphene – New Miracle Material

• Thinnest and strongest material ever developed

• 200 times stronger than steel and can stretch like rubber

• Commercial sales predicted to begin before 2015

• Market size expected to reach US$675m by 2020

• Applications include: nano-electronics, transparent/ conductive films, energy storage devices and thermal management

Why Graphite?

Strong Demand

• Global demand to increase rapidly from emerging new applications and traditional uses

• Analysts believe global production will need to double to at least 2.6 million tonnes by 2020

• Electric vehicles alone will require further flake graphite of approx. 460,000 tonnes by 2020

Price of pure graphite has tripled in 10 years and is expected to keep rising Supply Issues

• China produces around 75% of graphite

• China cannot meet demand as 70% of production is amorphous/lower value and cannot be used for new applications

• The US and the European Union named graphite as supply critical material

Graphite Players

Graphite Project Pipeline by Company – as of 1 May 2012

Eyre Peninsula graphite explorers MOX – Monax Mining AXE – Archer Exploration LML – Lincoln Minerals

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Gawler Craton – Competitor Activity

Recent Deals within Olympic IOCG Province

• Rio Tinto farm-in Agreement with Tasman Resources – Vulcan Prospect

• BHP Billiton purchase Minotaur tenements ($10 million cash)

• BHP Billiton purchase Archer Exploration tenements ($8 million cash)

• BHP Billiton purchase Copper Range tenements ($3 million cash)

• BHP Billiton purchase Tasman Resources tenements ($3 million cash)

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• Xstrata – Joint ventures with Gunson Resources and Argo Exploration

• Straits Resources – Joint venture with Uranium Exploration Australia

• Red Metal – Looking to sell or joint venture Pernatty tenement

• BHP Billiton recent tenement applications – all free ground within northern part of Olympic IOCG province

NO AVAILABLE GROUND WITHIN PREMIER IOCG PROVINCE

Olympic Dam – Persistence Pays Off

Chronology of drilling results – Olympic Dam

	1973	Western Mining renews exploration in South Australia for a major copper deposit.
	1975	The first drill hole (RD1)in the new search is located near the Olympic Dam stock watering hole on Roxby Downs station.Sub-economic copperminerals are discovered at depths of more than 300 metres.
	1976	Thenext eight drill holes disappoint, but persistence is finally rewarded atRD10, which intersects 170 metres assaying more than 2% copper. Western Mining announces initial results from RD10 at its annual meeting on 18 November, and Olympic Dam makes headlines for the first time.
	1977	Further assay results from RD10 reveal uranium minerals of mineable grade interlocked with copper, posing a major challenge in a state where the Labor Government bans uranium mining.
	1978	Thenext six holes disappoint again,but RD17, RD19 and RD20, located almost two kilometres east of RD10, finally allow Western Mining to claim the discovery of a major copper and uranium deposit at Roxby Downs.
1979 In July, BP enters a joint venture to earn 49% of the Olympic Dam project by committing to spend almost $300 million on drilling out and evaluating the deposit, including a feasibility study. BP also agrees to act as banker for Western Mining's share of the cost of developing Olympic Dam. Persistence is required to discover major ore deposits on the Gawler Craton	1979	In July, BP enters a joint venture to earn 49% of the Olympic Dam project by committing to spend almost $300 million on drilling out and evaluating the deposit, including a feasibility study. BP also agrees to act as banker for Western Mining's share of the cost of developing Olympic Dam.

Drill Hole Comparison – Olympic Dam area

	Prospect/Company	Best drill hole intersection
	Groundhog (Monax)	GHDD6 149m @ 0.47% Cu, 0.12g/t Au, 5.3g/t Ag, 0.48% Zn, 0.12% Pb (846-1005)
	Groundhog (Monax)	GHDD4 122m @ 0.47% Cu, 0.1g/t Au, 6.6g/t Ag, 0.38% Zn (840-962m)
	Groundhog (Monax)	GHDD1 126m @ 0.4% Cu (837-963m)
	Groundhog (Monax)	GHDD2 162m @ 0.34% Cu (888-1050m)
	Woodchuck (Monax)	WDDD1 70m @ 0.41% Cu (683-753m)
	Prairie Dog (Monax)	PDDD2 99m @ 0.24% Cu (856-1014m)
	Whistlepig (Monax)	WPDD1 60m @ 0.13% Cu (788-848m)
	Acropolis (WMC)	ASD-1 66m @ 0.7% Cu (depth unknown)
	Vulcan (Tasman Resources)	VUD 3 56.65m @ 0.59% Cu, 0.17g/t Au (874.2-930.85m)
	Vulcan (Tasman Resources)	VUD 7 163m @ 0.23% Cu, 0.1g/t Au (1065-1228m)
	Vulcan (Tasman Resources)	VUD 8 179.75m @ 0.19% Cu, 0.1g/t Au (899.75-1079.5m)
	Glenside (UXA Resources)	UGSDD001 32m @ 0.36% Cu (1095-1127m)
	Winjabbie (UXA Resources)	07WJ01 42m @ 0.34% Cu (824-866m)
	Torrens (Straits Resources)	TD004 16m @ 0.17 Cu (620-636m) & 11m @ 0.12% Cu (692-703m)
	Torrens (WMC)	TD2 41m @ 0.16% Cu (584-625m)
	Winjabbie East (Argo Exploration)	IHAD5 180m @ 0.27% Cu, 0.17g/t Au (919-1099m) includes 9m @ 2.56g/t Au (1083-1092m)
	Winjabbie East (Argo Exploration)	IHAD2 81m @ 0.26% Cu (942-1023m)
	Winjabbie East (Argo Exploration)	IHAD3 58.8m @ 0.15% Cu (760.2-819m
	Winjabbie (WMC)	WJD1 56m @ 0.34% Cu (864-920m)
	Horse Well (WMC)	HWD1 16m @ 0.67% Cu (903-919m)
	Bopeechee (WMC)	BD1 333m @ 0.1% Cu (608-941m)

Note: all intersections reported are downhole lengths; true widths unknown

Phar Lap IOCG Project

Genuine Target – PLDD002

• Western margin of Mt Woods Inlier

• Prominent Hill ' setting' | Carrapateena ' size'

• Geophysical anomaly equal to Carrapateena

• Cultural heritage clearance initiated

• Drilling planned

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3D Inversion Model ( red-gravity, blue-magnetics )
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Yorke Peninsula IOCG Project

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Highlights

• Interest in 3 tenements:

• Melton | Webling Bay

• Significant recent discoveries:

• Rex Minerals – Hillside

• Adelaide Resources – Paskeville

• Historical copper mining district: - Moonta-Wallaroo

• Olympic Dam aged mineralisation

• Encouraging drilling results at Melton: - 9m @ 1% Cu from hole MRDD008

• Significant results from historic drilling along boundary of Webling Bay tenement: - Hole KD11

  • 5.3m @ 1.66% Cu (97-102.3m) and

  • 2.3m @ 1.06% Cu (108.3 – 110.6m)

• Hole KD16

  • 3.5m @ 1.18% Cu (169.5 – 173m)

• Hole KD04

  • 10m @ 0.37% Cu (224 - 234m)

Note: all intersections reported are downhole lengths; true widths unknown