FireFly Metals Ltd. — Regulatory Filings 2012

Oct 17, 2012

Exploration Office Warehouse I, 5 Butler Blvd BurbridgeBusinessPark 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 Thursday, 18 October, 2012

ASX RELEASE

Punt Hill Update

HIGHLIGHTS

• Assay results received for first drill hole of the 2012 drilling program at the Punt Hill copper-gold project.

• 75m @ 0.2% copper intersected from 990m in hole MMDD1.

• Element association suggests an IOCG related magmatic source for mineralising fluid.

• Drilling program is fully funded by Chilean major, Antofagasta plc under its farmin agreement with Monax.

Monax Mining Limited (ASX:MOX) today announces that results had been received for the first drill hole MMDD1 of the 2012 drilling program at its Punt Hill copper-gold project located in northern South Australia (Figure 1), which is entirely funded by major Chilean copper miner, Antofagasta plc.

Monax commenced a seven hole drilling program at Punt Hill on 15 August 2012. Figure 2 shows the location of the completed drill holes and planned drill holes remaining for the 2012 program. Four holes have been completed with drill hole statistics outlined below:

Hole No.	Easting	Northing	Depth toBasement(m)	Total Depth(m)
MMDD1	743328	6503022	933.5	1248.4
PHDD1201	741802	6503642	846.6	969.5
PHDD1202	739692	6507636	907.5	1077.5
PHDD1203	737499	6507582	834.8	866.3

All holes drilled vertical. Datum: MGA Zone 53 (GDA 94).

The first drill hole of the campaign was MMDD1 (Figure 2). This was a re-entry into a hole drilled by Monax in 2007. The hole was originally terminated at ~911m within the Beda Volcanics (part of the cover sequence), due to technical difficulties and geological understanding at that time.

Under the terms of the Monax-Antofagasta farm-in agreement, a technical committee comprising personnel from both companies reviewed the gravity data and made the decision to extend this

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hole to provide an accurate depth to the top of the basement and test for alteration and mineralisation.

Basement geology in drill hole MMDD1, from 933.5m to1248.4m (EOH), comprised massive calcsilicate skarn, including a number of zones of overprinting sulphide mineralisation. Plate 1 is an example of the calc-silicate skarn alteration with associated sulphide mineralisation from MMDD1. Selected intervals from MMDD1 were submitted for geochemical analyses.

An extended zone of mineralisation intersected in the drill hole returned 75m @ 0.2% Cu and 1.5 g/t Ag from 990m. This included a 10m zone reporting 0.72% Cu, 0.18 g/t Au and 2.55 g/t Ag (1034 – 1044m). Several narrow zones of anomalous copper were also reported including:

• 4m @ 0.17% Cu (1099 – 1103m)

• 4m @ 0.56% Cu (1164 – 1168m).

A narrow zone of anomalous uranium (11m @ 291 ppm U; 1036 – 1047m) was also reported. (Note: all holes drilled vertical and due to the flat lying nature of sediments within MMDD01, reported widths represent interpreted true widths).

Drill hole MMDD1 is located in the southwest area of the “Prairie Dog” gravity ridge, approximately 6.5km from previous drill holes PDDD1 and PDDD2 (Figure 2). Both drill holes at Prairie Dog intersected long intervals of mineralisation with 99m @ 0.24% Cu returned from hole PDDD2 (876 – 975m).

The presence of intense skarn style alteration and mineralisation within MMDD1 is seen as highly encouraging for the project, significantly increasing the prospectivity footprint of the area. The presence of anomalous barite, fluorite, rare-earth elements and hematite, in addition to copper, gold, silver and locally high zinc and uranium provides continued evidence of an IOCG related magmatic source for the mineralising fluids.

Drilling of PHDD1204 has commenced at Site No. 2 on Figure 2. This hole is an angled hole to the southeast, aimed at intersecting a discrete gravity high within the broader anomalous “Prairie Dog” gravity ridge. This target is located in a complex structural setting. 3D modelling of the geophysical data over this target demonstrates a discrete density pipe in a magnetic structure (Figure 3). This anomaly is comparable to other known IOCG deposit signatures. It is expected that this hole will take 2-3 weeks to complete.

Drill hole PHDD1201, located 1.65km to the northwest of MMDD1, intersected altered Donington Suite granite at 841.6m depth. The hole was terminated at 969.9m depth. No mineralisation was observed in the drill core.

Drill hole PHDD1202, located 650m southeast of the Prairie Dog drill holes, intersected altered metasediments from 907.5m to 1077.5m. The intensity of the alteration was intermediate and there was only weak mineralisation observed near the bottom of the hole. The bottom 11.5m of drill core has been sampled and awaits submission for geochemical analyses.

Drill hole PHDD1203 was drilled to test an interpreted large northwest trending fault structure in the gravity data. The drill hole intersected very broken rock, likely related to faulting, and has provided increased control on the developing geological model for the project. This hole was terminated at 866.3m depth in altered Donington Suite granite.

The drilling program is being fully funded as part of Monax’s farm-in agreement with Antofagasta plc, a FTSE 100 mining company based in Chile, through its wholly-owned subsidiary Antofagasta Minerals S.A (“Antofagasta”).

Under the agreement, Antofagasta can earn a 51% interest in the Punt Hill project by committing US$4 million over four years. Antofagasta can earn a further 19% equity in the project by

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expending a further US$5 million on exploration and development of the project tenements. If a development decision is made, Antofagasta will pay Monax a success fee of US$10 million. Antofagasta has already met the minimum expenditure of US$1.5 million on the Punt Hill project within the first two years.

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Figure 1. Punt Hill project location.

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Figure 2. Location of completed drill holes and planned drill holes, Punt Hill project. Background image: Bouguer Gravity UC1kR. (red dots - 2012 completed and planned holes; yellow dots -previous drill holes).

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Plate 1. Example of calc-silicate skarn alteration and mineralisation from MMDD1.

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Figure 3. 3D model for Site No. 2 showing the projected trace of drill hole PHDD1204 into a discrete density pipe. (red/orange shells – dense gravity isosurfaces, blue shell – magnetic isosurface).

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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 this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr G M Ferris, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Ferris is employed full time by the Company as Managing Director and, has a minimum of five years relevant experience in the style of mineralisation and type of deposit under consideration and qualifies as a Competent Person as defined in the 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.

Sampling Procedure and Assay Details

NQ2 drill core was geologically logged on site with down hole magnetic susceptibility and specific gravity measurements collected at 5m intervals.

Selected drill core was cut and sampled. Drill core was cut in half along a marked line and half drill core was submitted for analyses. All samples are one metre samples.

Geochemical assays were undertaken by Genalysis (Intertek). Most elements were assayed using Genalysis method 4A/OE using a four acid digest and an ICP-OES finish. Gold was assayed using Genalysis method FA50/AA using fire assay and an AA finish. Uranium, Cerium and Lanthanum was assayed using Genalysis method FB6/MS, a lithium borate fusion method with a MS finish. No cut-off was used.

Industry copper standards, laboratory standards and check samples were also assayed to provide quality control with results within allowable error. Intersections calculated by averaging 1m samples.

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