FireFly Metals Ltd. — Investor Presentation 2013

Sep 24, 2013

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Investor Presentation September 2013

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Gary Ferris Managing Director

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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 l aw or any re evan l t s oc t k exc h ange li s ti ng ru es, l th e C ompany d oes no t un d er a t k e any o bli ga ti on t o pu bli c y l up d a e t or rev se i any o f 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 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.

Information in this presentation that relates to Mineral Resources was compiled by Ms Sharron Sylvester, who is a Member of the Australian Institute of Geoscientists (RPGeo 10125). Ms Sylvester is a full-time employee of AMC Consultants Pty Ltd and has sufficient ex p erience relevant to the st y les of mineralisation and to the activities which are bein g re p orted to q ualif y as a Com p etent Person as defined by the JORC Code, 2012 and consents to the release of the information compiled in this report in the form and context in which it appears.

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Corporate Snapshot

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

Profile

Exploration Office: Unit 2, 81 Harrison Road, Dudley Park, SA 5008

Vision: To move from explorer to producer via organic growth of current and acquired Cu-Au, Ni-Cu and graphite projects within South Australia.

Strategy: To concentrate efforts on the identification of worldclass exploration assets of IOCG, magmatic Ni-Cu and coarse flake graphite, thereby attracting developmental funding through JVs with major commodity houses.

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Cash : As at 30 June 2013, $1.3 million

Share Details
Total shares on Issue	150,214,803
Market Caitalisation	$45 million
p	.
Share price at 23/9/13	3.1 cents
Top Twenty Shareholders	37.9%

Capital Raising

• Monax is conducting a 1:3 non-renounceable Rights Issue entitlement to raise ~$1.5 million

• .

• Entitlement issue price is $0 03 (3 cents) per share

• Entitlement issue p rice re p resents an approximate 15% discount from VWAP traded over five business days prior to date of the announcement, and a 23% discount to the final trading day prior to announcement

	EVENT	DATE
	Prospectus lodged with ASIC and ASX	23 September 2013
	“Ex”date	25 September 2013
	Record Date to identify Shareholders entitled to participate in the Offer	1 October 2013
	Prospectus and Entitlement and Acceptance Forms dispatched to Shareholders	8 October 2013
	Opening date	8 October 2013
	Closing date for acceptances	22 October 2013
	Shares quoted on a deferred settlement basis	23 October 2013
	Notification to ASX of under subscriptions	25 October 2013
	Issue date for New Shares issued under the Offer Deferred settlement trading ends	30 October 2013
	Trading of New Shares on ASX commences	31 October 2013

Projects & Investment Highlights

Major Projects

Waddikee Project (100% Monax)

• Maiden JORC Inferred Mineral Resource of 6.38 Mt grading 8.8% TGC* with approximately 550,000 tonnes of contained graphite using a 5% TGC cut-off

• Hi g h- g rade com p onent of 1.75 Mt g radin g 12.5% TGC using a 10% TGC cut-off

• Scope for the definition of further resources along strike and at depth of current deposit and within tenement

Punt Hill Copper-Gold Project (100% Monax – Antofagasta earning 51%)

• Farm-in with Chilean major Antofagasta has expended ~US$3.9 million to date on the project

• Monax/Antofagasta defined further drill targets

• Recent success b y OZ Minerals at nearb y Carrapateena IOCG Deposit and Khamsin prospect

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• TGC – total graphitic carbon

Projects & Investment Highlights

Growth Pipeline (Copper Focus)

Monax | Antofagasta Strategic Alliance

• Project generation fully funded by Antofagasta and recently extended by extra year

• Currently three Alliance projects

• Gravity surveys planned for Olympic IOCG and Kangaroo Island projects

Algebuckina Project (AMSA 51%:MOX 49%)

• IOCG target identified, drilling planned 2014

Reedy Lagoon Project (Term sheet with Fortescue Metals Group)

• IOCG target identified, gravity and drilling planned for 2014

Phar Lap IOCG Project

• Two IOCG gravity targets identified

• Drilling planned for 2014

Western Gawler Craton Project

• Extensive landholding in prospective Ni-Cu terrain

• Thompson Ni-Belt and Albany Fraser m nera i li sa ti on ana ogy l

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Waddikee Graphite Project (100% Monax)

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• Total combined JORC Inferred Mineral Resource:

• 6.38 Mt grading 8.8% TGC 550,000 tonnes of contained graphite (5% TGC cut-off)

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• High grade component:

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• 1.75 Mt @ 12.5% TGC* (10% TGC cut-off)

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• Wilclo South resource extends 1.4km with further potential along strike and at depth.

• High grade graphite intersected from Francis prospect within same geological trend as Wilclo South.

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• Monax currently considering development options to maximise the value of this asset.

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Waddikee Graphite Project (100% Monax)

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Wilc o oul S th Graphite
Grade and Flake Size are critical – Wilclo South ticks the boxes
Petrology by Pontifex and Associates
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Waddikee Graphite Project – Regional Potential

Francis Prospect

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Best results* from the Francis prospect include:

15m @ 20.7% TGC (WG118 14-29m) 12m @ 21.9% TGC (WG121 60-72m) 3m @ 22.2% TGC (WG119 36-39m) 2m @ 25.1% TGC ( WG120 51-53m )

(*Note: all lengths are downhole lengths; true width unknown; TGC = total graphitic carbon).

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Extensive strike-length of interpreted graphite horizon on Project area awaits drill testing.

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Waddikee Graphite Project

Forward Program

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• Metallurgical and beneficiation testing of drill hole samples from Wilclo South - to characterise potential product for off-take discussions and marketing.

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• D e a t il e d geop h ys cs an i d f o ll ow-up r d illi ng a t Francis prospect to identify satellite deposit.

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• R esou r ce de fini t i o n at Fr a n c i s to in c r ease global mineral resource for Waddikee Project.

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• Marketing studies based on results from me a t ll urg ca i l t es ti ng.

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• Seek off-take partners.

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• Scoping study.

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Waddikee Graphite Project

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Q4 2013 Q1 2014 Q2 2014 Q3 2014
Metallur g ical studies – Wilclo South
Ground EM survey – Francis prospect
Resource Drilling – Francis prospect
Assays – from drilling Francis prospect
JORC Resource ‐ Francis
Marketin g studies , p roduct assessment and
seeking off‐take agreements with potential
end users – Wilclo South
Sco p in g Stud y
Assessing other areas on Waddikee for
potential additional graphite resources
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Punt Hill Copper‐Gold Project

Monax’s Flagship Project

• Located within Olympic Iron-Oxide Copper-Gold Province.

• P rov nce osts ma or copper epos ts at i h j d i Ol ymp c am, i D Prominent Hill, Carrapateena and Hillside.

• Premier IOCG province in Australia which attracts large mu lti -na ti ona compan es l i (BHP Billit on, Ri o n o an Ti t d Antofagasta) and is tightly held.

• Target – large (>200Mt), high-grade (>1% Cu) deposit .

• Persistence is required to discover major ore deposits on the Gawler Craton.

• I mpor ance o t f th e Ol ymp c i IOCG P rov nce g i hi hli g ht e d b the three discoveries within last decade.

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Punt Hill – Farm‐In Agreement

Farm-In Agreement with Antofagasta plc, major Chilean copper producer

• Monax announced si g nificant Farm-In A g reement with Chilean major, Antofagasta plc, in September 2010.

• Antofa g asta spendin g US$4 million on exploration to earn 51% interest in Punt Hill (Phase 1).

• Antofagasta has an option to spend a further US$5 million on exploration to earn an additional 19% interest in the project (70% total interest) (Phase 2).

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• Drilling programs completed in 2011 & 2012.

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• Antofagasta has expended ~US$3.9 million on the project to date.

• Monax has identified further targets for drilling.

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• Further drilling will trigger Phase 2.

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Punt Hill Copper‐Gold Project

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Khamsin Carrapateena

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• Geophysical review has highlighted additional drilling targets.

• Monax is currently modelling these targets, and will present to the Punt Hill Technical Committee for drilling approval.

• Monax has received the date of granite within hole HODD3 – Hiltaba age (alteration) – same age date as .

• mineralisation at Olympic Dam

• OZ Minerals continues to report good results from its Khamsin prospect (recent intersection of 662m @ 0.57% C u & 0 . 09 g t u rom / A f 888 m n o e i h l DD13KMS011 – d own hole length, true width unknown). • Monax and Antofagasta currently planning next phase of exploration.

New Targets Image: Bouguer Gravity residual

Monax|Antofagasta Strategic Alliance

Monax | Antofagasta Strategic Alliance

• In August 2011, Monax signed a Strategic Alliance with Antofagasta plc , for copper project generation within South Australia.

• Antofagasta committed US$1 million over two years.

• Antofagasta to fund “Designated Projects” – US$4 million over three years to earn

• 70% interest in project.

• Alliance is currently in its second year.

• Antofagasta has approved 3[rd] year of funding (@$US 400,000).

• Three current Alliance Project areas

• Gawler IOCG

• Kangaroo Island

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1. Tent Hill

Monax|Antofagasta Strategic Alliance

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Alliance Phase D i d P ro ect Phase Jo nt enture i V Phase
es gnate j
Funded 100% by Antofagasta Funded 100% by AMSA Monax retains right to fund 30%
Project generation & evaluation US$4 million over three years of expenditure or dilute
MOX
Alliance 30%
AMSA MOX
AMSA
Projects 51% 49% 70%
Monax If AMSA withdraws
interest, opportunity
Example scenarios
Alliance reverts to MOX 100%
20 24
80% project equity
56
3 [rd] Party 3 [rd] Party 100% 30 21
Projects MOX & AMSA 0 % 49 70% project equity
Monax 30
70 100% project equity
Antofagasta
At this stage MOX has a 30% interest in the
equity jointly earned in any project
Third Party
Monax Free Carried At $US4 million expenditure by AMSA, MOX
receives success fee of $US3 million per project
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Monax|Antofagasta Strategic Alliance

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Olympic IOCG Project

• Monax has undertaken detailed assessment and modelling of available gravity data.

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• Two IOCG targets identified at Hunts Bore and Margaret’s Dam.

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• Targets warrant further investigation with .

• detailed gravity surveys planned

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• Awaiting grant of Margaret’s Dam tenement before undertaking further work.

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• Native Title Agreement signed with Arabana Native Title Group.

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• Note: This Alliance project is at an early stage and may not become a Designated Project.

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Algebuckina IOCG Project

( Antofa g asta 51%: Monax 49% )

Eitzen Bore Target

• 5km long, +3Mgal, non magnetic gravity anomaly

• At SG of 4.2g/cc (OD) target is 7.2Bt* at depth of 700m

• At SG of 3.8g/cc (PH/CAR) target is 7.5Bt* at depth of 600m

• OR is moderate densit y SG=2.8-2.9 g /cc , non ma g netic elongated pipe like body at 290m, (mafic lopolith within

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Neoproterozoic/Mesoproterozoic)

• Monax reviewing drilling options

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*** This refers to the mass of the entire dense body that gives rise to the gravity anomaly, NOT the mass of the mineralisation. The mineralised mass in modelled IOCG deposits is <30% that of the causative mass.**

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Side view looking northwest, gravity image drape

Phar Lap IOCG Project

(Monax 100% of all minerals excluding uranium; Monax 25% interest in uranium)

• Western margin of Mt Woods Inlier ~50km west of Prominent Hill.

• Two IOCG targets identified by geophysical review.

• Target – PLGA2

• Prominent Hill ' setting' | Carrapateena ' size‘.

• Geophysical anomaly comparable to Carrapateena in size and amplitude.

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• Drilling planned for 2014

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Reedy Lagoon IOCG Project

• Term sheet signed with Fortescue Metals Group (FMG) allowing Monax to undertake technical due diligence.

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• Monax and FMG to negotiate terms for Monax to earn an interest in the project as well as forming a joint venture upon successful technical due diligence.

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• Monax identified 2.5 Mgal gravity anomaly with associated - -

• NW SE and E W trending structural setting .

• Anomaly models as a Prominent Hill shaped body, 4.7km long, 300m wide at 800m depth, for approximately 3000Mt total mass of SG 3 . 9g/cc to 2 . 8km depth .

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• Monax plans to undertake a detailed gravity survey to accurately assess the anomaly for drill testing.

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EL 5026 showing gravity contours (1Mgal) over Total Magnetic Intensity, model profile line, drill hole RL1 and identified gravity anomalies.

(Monax 100%) Western Gawler Craton (Ni‐Cu) Project

• 2

• Highly prospective 2,200km tenement holding in the Fowler Domain ~150km west of Ceduna,

• Ni-Cu mineralisation target (eg. Thompson Ni-Belt).

• Comparable tectonic setting to Albany Fraser Belt in Western Australia which hosts the Nova Deposit.

• Potential for other styles of mineralisation (i.e. shear hosted gold like Tropicana). Area significantly unexplored.

• C urrent JV i nterest rom severa part es. f l i

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Total Magnetic Intensity showing lithological & structural complexity

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Monax Mining – Project Overview
Antofagasta Monax Mining
Focus on copper in S . A . F ocus on copper an d grap hit e on e aw er ra on th G l C t
Monax | Antofagasta Alliance Monax Monax Monax
project generation JV projects earning in projects projects
Designated Algebuckina Punt Hill (Antofagasta) Reedy Lagoon (FMG) Waddikee
(AMSA 51% | Monax 49%)
Projects
WGC
Kangaroo Island
Phar Lap
Potential project Olympic IOCG
pathway Webling Bay
Tent Hill
Red = copper
Black = graphite
Blue = nickel/copper
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Summary

• Monax is undertaking 1:3 Rights Issue to raise ~$1.5 million.

• Funds will be directed to metallur and beneficiation work on Wilclo South Gra hite De osit. gy p p

• Monax also plans drilling and resource definition at Francis graphite prospect with aim of doubling the Waddikee Project JORC Inferred Mineral Resource.

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• Monax to commence marketing study to find strategic partner for Waddikee Graphite Project.

• Monax stron g l y su pp orted b y Chilean co pp er p roducer Antofa g asta for Punt Hill , Strate g ic Alliance and future Designated Projects focused on large IOCG targets.

• Monax has outlined further drill targets at its flagship Punt Hill project.

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• Antofagasta extends Strategic Alliance funding for additional 12 months.

• Monax lannin to drill IOCG tar ets at Phar La in 2014. p g g p

• Monax planning gravity survey for Reedy Lagoon IOCG project once access is approved.

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Thank You

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Gary Ferris Managing Director

P ( 08) 8245 9004 M 0423 259 488 E: gferris@monaxmining.com.au

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Appendices

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Wilclo South JORC Inferred Mineral Resource

‐ TOTAL INVENTORY (no cut off)

	Fault Zone		Tonnage (Mt)	TGC (%)	Density (g/cc)
	Upper Block	Oxide	1.32	7.3	2.3
		Fresh	3.56	7.4	2.3
	ddl l k Mi e B oc	Oxide	0.39	7.9	2.1
		Fresh	1.83	9.2	2.1
	Lower Block	Oxide	0.32	7.1	2.1
		Fresh	0.40	8.5	2.1
	Subtotals	O id x e	2 02 .	7 4 .	2 2 .
		Fresh	5.79	8.0	2.3
	TOTAL INFERRED(no cut‐off)		7.81	7.9	2.2

Note: totals may not exactly balance due to the effects of rounding

	TOTAL INVENTORY (above 5% TGC) Fault Zone Tonnes (Mt) TGC (%) Density (g/cc) Upper Block Oxide 1.02 8.4 2.3 Fresh 2.67 8.7 2.3 Middle Block Oxide 0.36 8.2 2.1 Fresh 1.72 9.5 2.1 Oxide 0 25 7 9 2 1 Lower Block . . . Fresh 0.36 9.1 2.1 Subtotals Oxide 1.63 8.3 2.2 Fresh 4.74 9.0 2.2	TOTAL INVENTORY (above 5% TGC) Fault Zone Tonnes (Mt) TGC (%) Density (g/cc) Upper Block Oxide 1.02 8.4 2.3 Fresh 2.67 8.7 2.3 Middle Block Oxide 0.36 8.2 2.1 Fresh 1.72 9.5 2.1 Oxide 0 25 7 9 2 1 Lower Block . . . Fresh 0.36 9.1 2.1 Subtotals Oxide 1.63 8.3 2.2 Fresh 4.74 9.0 2.2	TOTAL INVENTORY (above 5% TGC) Fault Zone Tonnes (Mt) TGC (%) Density (g/cc) Upper Block Oxide 1.02 8.4 2.3 Fresh 2.67 8.7 2.3 Middle Block Oxide 0.36 8.2 2.1 Fresh 1.72 9.5 2.1 Oxide 0 25 7 9 2 1 Lower Block . . . Fresh 0.36 9.1 2.1 Subtotals Oxide 1.63 8.3 2.2 Fresh 4.74 9.0 2.2	TOTAL INVENTORY (above 5% TGC) Fault Zone Tonnes (Mt) TGC (%) Density (g/cc) Upper Block Oxide 1.02 8.4 2.3 Fresh 2.67 8.7 2.3 Middle Block Oxide 0.36 8.2 2.1 Fresh 1.72 9.5 2.1 Oxide 0 25 7 9 2 1 Lower Block . . . Fresh 0.36 9.1 2.1 Subtotals Oxide 1.63 8.3 2.2 Fresh 4.74 9.0 2.2	TOTAL INVENTORY (above 5% TGC) Fault Zone Tonnes (Mt) TGC (%) Density (g/cc) Upper Block Oxide 1.02 8.4 2.3 Fresh 2.67 8.7 2.3 Middle Block Oxide 0.36 8.2 2.1 Fresh 1.72 9.5 2.1 Oxide 0 25 7 9 2 1 Lower Block . . . Fresh 0.36 9.1 2.1 Subtotals Oxide 1.63 8.3 2.2 Fresh 4.74 9.0 2.2
	Fault Zone		Tonnes (Mt)	TGC (%)	Density (g/cc)
	Upper Block	Oxide	1.02	8.4	2.3
		Fresh	2.67	8.7	2.3
	Middle Block	Oxide	0.36	8.2	2.1
		Fresh	1.72	9.5	2.1
	Lower Block	Oxide	0 25 .	7 9 .	2 1 .
		Fresh	0.36	9.1	2.1
	Subtotals	Oxide	1.63	8.3	2.2
		Fresh	4.74	9.0	2.2
	TOTAL INFERRED >5% TGC		6.38	8.8	2.2

Note: totals may not exactly balance due to the effects of rounding

Wilclo South JORC Inferred Mineral Resource

	TOTAL INVENTORY (above 10% TGC) Fault Zone Tonnes (Mt) TGC (%) Density (g/cc) Upper Block Oxide 0.23 11.9 2.3 Fresh 0.76 11.9 2.3 O id 0 07 12 0 2 1 Middle Block x e . . . Fresh 0.60 13.3 2.1 Lower Block Oxide 0.03 11.8 2.1 Fresh 0.08 14.3 2.1 Subtotals Oxide 0.33 11.9 2.2 Fresh 1.43 12.6 2.2 TOTAL INFERRED >10% TGC 1.75 12.5 2.2

Note: totals may not exactly balance due to the effects of rounding

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Information in this presentation that relates to Mineral Resources was compiled by Ms Sharron Sylvester, who is a Member of the Australian Institute of Geoscientists (RPGeo 10125). Ms Sylvester is a full-time employee of AMC Consultants Pty Ltd and has sufficient experience relevant to the styles of mineralisation and to the activities which are being reported to qualify as a Competent Person as defined by the JORC Code, 2012 and consents to the release of the information compiled in this report in the form and context in which it appears.

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What is Graphite?

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• Crystalline carbon – like diamond but planar structure

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

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• Flexible, soft, compressible, malleable

• Properties of metals and non-metals

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• 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

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Forms of natural graphite

• Amorphous graphite : mos a t b un d an t t ype, oun f d i n arge umps, ower qua l l l lit y an d car b on content of 70-85%

• Flake graphite: rarer, formed in metamorphic rock, carbon content of 80% to 98%. Three ma n s zes: ne - i i fi ( 100 mes h) , me di um + ( 100 mes h) an d coarse + ( 80 mes h) .

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

Traditional Uses of Graphite

Refractory industry

• refractory bricks to line blast furnaces

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Steelmaking

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

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: Automotive industry

• crucial component of cylinder heads, gaskets, clutch material, exhaust systems and motors

Other uses :

• Dry cell batteries

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• Lubricants

• Sporting equipment

• C as ngs or e ec ron cs i f l t i

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• Fire retardants

• Pencils

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Emerging Uses of Graphite

• New / Green Initiatives Technology

• • Alkaline and lithium-ion batteries – mobile phones, laptops, mp3 players, ta bl ets, g ta cameras, y di i l h b r id e ectr c l i vehicles

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• Fuel cells – boats, buses, trains, planes, G

• solar energy

raphene – New Mirac e l Mater ai l

• Thinnest and strongest material ever developed

• Nuclear energy – pebble bed nuclear reac ors t

• 200 times stronger than steel and can stretch like rubber

• Carbon fibre technology – used for li hter wei ht vehicles to reduce fuel g g

• consumption /CO2 emissions

• C ommerc a sa es pre i l l di cte d to eg n b i before 2015

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

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• Applications include: nano-electronics, t ransparen t/ con d uc ti ve ms, energy fil 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

• • El ec r c ve t i hi c es a one w l l ill requ re ur i f th er a fl k e grap hit e o approx. f 460 , 000 t onnes y b 2020

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

Supply Issues

• China roduces around 75% of ra hite p g p

• • 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