FireFly Metals Ltd. - Regulatory Filings 2012

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 Wednesday, 29 August 2012

ASX RELEASE

Drilling Results - Waddikee Graphite Project

HIGHLIGHTS

High-grade graphite intersected at Wilclo South prospect from maiden drilling program
15m @ 16.3% TGC and 9m @ 14.8% TGC reported at Wilclo South drilled below surface outcrop with visible coarse flake graphite
60m @ 6.6% TC including 21m @ 9% TGC intersected at Lacroma prospect
Samples from high-grade zone submitted for petrology to determine flake size
Drill results determine Wilclo South as main focus of next drilling program

Monax Mining Limited (ASX: MOX) (‘Monax’ or ‘Company’) is pleased to announce that drilling results have been received for the maiden graphite drilling program at its Waddikee Project in South Australia. The Waddikee Project (EL 4662) is located approximately 100 kilometres southwest of Whyalla, within an area that is becoming the premier graphite province in South Australia (Figure 1).

Forty holes totalling 2906 metres were completed with drilling targeting five of eight graphite targets identified by Monax (Drill hole details are presented in Tables 1 and 2 and shown in Figure 2).

The primary aim of the program was to drill those areas of the project considered to be the most prospective for graphite and to determine those areas on which the Company should conduct more detailed exploration.

Monax has achieved its desired outcome after receiving some promising results from its Wilco South target which will be the main focus of planned further exploration.

Wilclo South target

Four holes were drilled at the Wilclo South target area with two holes intersecting high-grade graphite at depth below a recently discovered surface outcrop of graphite with visible flakes (Plate 1). A sample of the outcrop and several samples from the drilling have been submitted for petrology to determine flake size and form.

A previous sample from the Wilclo South area located approximately 900m to the south reported an average flake size of 0.5mm (range 0.1 to 1.0mm – see ASX Release 16 July 2012 for details).

Graphite up to a maximum of 29.9% total graphitic carbon (TGC) (66-67m) was returned with the two holes which intersected graphite, reporting three zones of graphite grading >5% TGC (Figure 3). The drill holes show that the surface outcrop of graphitic gneiss continues to a depth of around 100m below the surface. The surface outcrop is up to 10 metres in width and crops out for around 50 metres. The best intersections from each hole are:

15m @ 16.3% TGC (WG032 90-105m)
9m @ 14.8% TGC (WG031 59-68m)

The airborne electromagnetic (AEM) data shows the highly conductive zone coincides with the high-grade intersection and the conductive unit is approximately 2.4km in length (see Figure 2). The paddock/area is currently in crop (lupins) and Monax will seek access for ground based geophysical work and drilling.

Further work is planned for Wilclo South including a ground electromagnetic (EM) survey. The samples from the drilling will be submitted for beneficiation testing to determine flake size, recovery and grade.

Lacroma target

Four holes (WG021-24) were drilled at the Lacroma prospect (Figure 4). Hole WG021 was drilled to test a previous drill hole completed by WMC Exploration in 1982, which reported 70m of graphite gneiss (88-158m). Hole WG021 intersected 60m @ 6.8% TGC (note: downhole length, true width unknown). The highest reported graphite was 16.3% TGC (112-113m).

This intersection is not considered economic, it was drilled to test the AEM data and verify previously reported a graphite drill hole intersection. Based on these results and a better understanding of the AEM data from the Wilclo South prospect, the area located to the east of the Monax drilling represents a highly prospective target. The new target area is characterized by intense conductivity, which potentially shows the conductive unit steeply dipping in the north and becoming more flat lying to the south.

This area was not available for drill testing due to being under crop and will be a focus of exploration in late 2012.

Balumbah target

Ten holes were drilled at the Balumbah prospect. Four holes (WG011-14) were drilled along Riches Road. These holes were designed to test an outcropping zone of graphite. Sampling of the surface graphite reported very coarse graphite up to 10% carbon. Drilling showed the subsurface was predominantly low-grade (mostly <2% TGC).

Holes WG015-20 failed to intersect basement rocks and showed the conductivity in this area results from conductive clays.

Reviewing previous company exploration for this area, Aberfoyle Resources collected samples within the western part of the area with the carbon content ranging from 0.01 to 11.9% TGC. These samples appear to be located on the western margin of a prominent conductivity feature and further work is planned for this area (see Figure 4).

Cut Snake target

Ten holes were completed at the Cut Snake target with the best intersection being 3m @ 11.55 TGC at Cut Snake (WG025 69-72m). No further work is planned for this area.

Wilclo target

The Wilclo area reported low grade graphite with the best intersection being 3m @ 7.0% TGC (WG005 56-59m). This area is characterised by long intersections of low grade graphitic rocks which assayed between 2-3% TGC. Based on results, no further work is planned for this area.

Monax is excited by the results of the maiden graphite drilling program, which has confirmed the area is highly prospective for high-grade, potential coarse flake graphite.

The drilling program has outlined several areas for follow-up exploration based on our increase understanding of the AEM data.

Monax plans to undertake beneficiation testing of samples from Wilclo South to determine the flake size, grade and recovery.

No drilling was undertaken at the Argent, Ridgestone and Jamieson Tank prospects.

The Argent prospect remains a high priority target due to exceptional grades and coarse flake graphite returned from surface samples (see ASX Release 3 May 2012).

Forward Program

Samples from the Wilclo South holes and the surface outcrop have been submitted for petrology to provide a petrographic description of the flake size and size distribution. Results are expected in 1-2 weeks.

Monax plans to submit samples from drill holes and an outcrop from Wilclo South for metallurgical laboratory testing including size determination and grade determination. This work will take approximately 3-4 weeks to complete.

In addition, Monax is planning a ground EM survey over the Wilclo South, Lacroma, Balumbah and Argent targets to provide more detailed data to site further drilling.

Gary Ferris Managing Director Monax Mining Ph: (08) 8375 3900 Email: [email protected]

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.

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Figure 1. Location of the Waddikee project, central Eyre Peninsula, highlighting other graphite and iron projects within the region.

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Figure 2. Plan showing location of drill holes for 2012 drilling program and historical sampling

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Figure 3. Wilclo South section.

(down hole lengths, true width unknown)

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Figure 4. Lacroma prospect. Plan showing location of drill holes and new target area.
Background image AEM profiles (red-white zones of high conductivity).
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Figure 5. Balumbah prospect. Plan showing location of drill holes and new target area. Black crosses represent location of Aberfoyle rock chip samples. Background image AEM profiles (red-white zones of high conductivity).