FireFly Metals Ltd. — Regulatory Filings 2016

Jul 25, 2016

Exploration Office Level 3, 100 Pirie Street ADELAIDE SA 5000

ABN: 96 110 336 733

Tel: +61 8 8232 8320 Fax: +61 8 8232 8811 www.monaxmining.com.au

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26 July 2016

Litchfield Lithium Project Update

HIGHLIGHTS

• Confirmation that high-grade lithium samples are amblygonite

• Surface samples from project area report lithium up to 7.55% Li2O

• Further area of amblygonite discovered

• Detailed sampling program to commence this week

Monax Mining Limited ( Monax or the Company ) is pleased to announce that x-ray diffraction (“XRD”) on one of the high-grade lithium samples from the Litchfield Project, Northern Territory has confirmed that the lithium mineral is montebraisite, which is a member of the amblygonite group. Laboratory assay results for the samples of amblygonite report high-grade lithium up to 7.55% Li2O (see Plate 1).

A further occurrence of amblygonite has been discovered in the Tank Hill area by the tenement holder (see Figure 1 & Plate 2) and Monax will undertake further sampling at this site in the coming week. The sample has not been assayed, but has a specific gravity (density) indicative of amblygonite.

For further information, please do not hesitate to contact:

Gary Ferris	Duncan Gordon
Managing Director	Investor Relations
Monax Mining Limited	Adelaide Equity Partners Limited
P: 0423 259 488	P: 0404 006 444
E:info@monaxmining.com.au	E: dgordon@adelaideequity.com.au

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 engaged under a contract to provide services as Managing Director as required 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 2012 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.

Forward Looking Statements

“The information in this report 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.”

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Figure 1: Location of Litchfield Project including sampling locations.

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Plate 1: High-grade amblygonite samples from Litchfield Project.

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Plate 2: Sample of amblygonite from Litchfield Project from Tank Hill area (not assayed).

JORC Code, 2012 Edition – Table 1 report template Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria		JORC Code explanation	JORC Code explanation	Commentary	Commentary
Sampling			Nature and quality of sampling (eg cut channels, random chips, or		Samples were collected from surface exposures within Exploration
techniques			specific specialised industry standard measurement tools appropriate		Licences 30521, 29731 and 28462.
			to the minerals under investigation, such as down hole gamma		The samples are not considered as being highly representative.
			sondes, or handheld XRF instruments, etc). These examples should		There has been insufficient exploration to define a Mineral Resource
			not be taken as limiting the broad meaning of sampling.		and it is uncertain if further exploration will result in the determination
			Include reference to measures taken to ensure sample representivity		of a Mineral Resource.
			and the appropriate calibration of any measurement tools or systems
			used.
			Aspects of the determination of mineralisation that are Material to the
			Public Report.
			In cases where ‘industry standard’ work has been done this would be
			relatively simple (eg ‘reverse circulation drilling was used to obtain 1
			m samples from which 3 kg was pulverised to produce a 30 g charge
			for fire assay’). In other cases more explanation may be required,
			such as where there is coarse gold that has inherent sampling
			problems. Unusual commodities or mineralisation types (eg
			submarine nodules) may warrant disclosure of detailed information.
Drilling			Drill type (eg core, reverse circulation, open-hole hammer, rotary air		Not Applicable – no drilling results reported.
techniques			blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple
			or standard tube, depth of diamond tails, face-sampling bit or other
			_type, whether core is oriented and if so, by what method, etc). _
Drill	sample		Method of recording and assessing core and chip sample recoveries		Not Applicable – no drilling results reported.
recovery			and results assessed.
			Measures taken to maximise sample recovery and ensure
			representative nature of the samples.
			Whether a relationship exists between sample recovery and grade
			and whether sample bias may have occurred due to preferential
			loss/gain of fine/coarse material.
Logging			Whether core and chip samples have been geologically and		Not Applicable – no drilling results reported.
			geotechnically logged to a level of detail to support appropriate
			Mineral Resource estimation, mining studies and metallurgical
			studies.
			Whether logging is qualitative or quantitative in nature. Core (or
			costean, channel, etc) photography.
			The total length andpercentage of the relevant intersections logged.
Sub-sampling			If core, whether cut or sawn and whether quarter, half or all core		No sample preparation was completed on sample collected in the
techniques and			taken.		field. Samples were crushed and pulverised at the laboratory for
sample			If non-core, whether riffled, tube sampled, rotary split, etc and		analysis

Criteria	Criteria		JORC Code explanation	JORC Code explanation	Commentary	Commentary
preparation				whether sampled wet or dry.		The sample size is considered appropriate for reconnaissance
				For all sample types, the nature, quality and appropriateness of the		sampling for gold.
				sample preparation technique.
				Quality control procedures adopted for all sub-sampling stages to
				maximise representivity of samples.
				Measures taken to ensure that the sampling is representative of the in
				situ material collected, including for instance results for field
				duplicate/second-half sampling.
				Whether sample sizes are appropriate to the grain size of the material
				being sampled.
Quality		of		The nature, quality and appropriateness of the assaying and		Rock chips were assayed in a commercial laboratory using standard
assay data		and		laboratory procedures used and whether the technique is considered		methods for lithium. X-ray Diffraction (XRD) was undertaken on one
laboratory				partial or total.		sample at Bureau Veritas Adelaide laboratory to determine
tests				For geophysical tools, spectrometers, handheld XRF instruments, etc,		mineralogy.
				the parameters used in determining the analysis including instrument		Lithium was determined by peroxide fusion with final analysis by
				make and model, reading times, calibrations factors applied and their		inductively coupled atomic emission spectroscopy (ICP-AES).
				derivation, etc.		Laboratory QA/QC samples and sample duplicates were assayed by
				Nature of quality control procedures adopted (eg standards, blanks,		the laboratory with all results within expected error range. Samples
				duplicates, external laboratory checks) and whether acceptable levels		were assayed at Bureau Veritas laboratory in Adelaide.
				of accuracy (ie lack of bias) and precision have been established.
Verification		of		The verification of significant intersections by either independent or		Not Applicable – no drilling results reported.
sampling		and		alternative company personnel.	
assaying				The use of twinned holes.
				Documentation of primary data, data entry procedures, data
				verification, data storage (physical and electronic) protocols.
				Discuss any adjustment to assay data.
Location		of		Accuracy and quality of surveys used to locate drill holes (collar and		Rock chip sample locations were collected using a hand held GPS
data	points			down-hole surveys), trenches, mine workings and other locations		(+/- 5m accuracy).
				used in Mineral Resource estimation.		MGA94 (Zone 52)
				Specification of the grid system used.
				Quality and adequacy of topographic control.
Data	spacing			Data spacing for reporting of Exploration Results.		The data is not appropriate for use in estimating a Mineral Resource
and				Whether the data spacing and distribution is sufficient to establish the		and is not intended for such use. There has been insufficient
distribution				degree of geological and grade continuity appropriate for the Mineral		exploration to define a Mineral Resource and it is uncertain if further
				Resource and Ore Reserve estimation procedure(s) and		exploration will result in the determination of a Mineral Resource.
				classifications applied.
				Whether sample compositing has been applied.		No sample compositing was undertaken.
Orientation		of		Whether the orientation of sampling achieves unbiased sampling of		The samples were collected at selected sites and it is unknown if this
data	in relation			possible structures and the extent to which this is known, considering		results is biased or unbiased.
to	geological			the deposit type.
				If the relationship between the drilling orientation and the orientation

Criteria		JORC Code explanation	JORC Code explanation	Commentary	Commentary
structure			of key mineralised structures is considered to have introduced a
			sampling bias, this should be assessed and reported if material.
Sample			The measures taken to ensure sample security.		Unknown.
security
Audits	or		The results of any audits or reviews of sampling techniques and data.		No audits or reviews have been completed.
reviews

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria		JORC Code explanation	JORC Code explanation	Commentary	Commentary
Mineral			Type, reference name/number, location and ownership including		The areas sampled are located on Exploration Licences 30521,
tenement	and		agreements or material issues with third parties such as joint		29731 and 28462 held by May Drilling Pty Ltd.
land	tenure		ventures, partnerships, overriding royalties, native title interests,
status			historical sites, wilderness or national park and environmental
			settings.
			The security of the tenure held at the time of reporting along with any		The tenements are free of any known impediments.
			known impediments to obtaining a licence to operate in the area.
Exploration			Acknowledgment and appraisal of exploration by other parties.		A review of historical company exploration found no exploration
done by	other				focussed on lithium.
parties
Geology			Deposit type, geological setting and style of mineralisation.		Pegmatite hosted lithium and quartz vein gold
Drill	hole		A summary of all information material to the understanding of the		Not Applicable – no drilling results reported.
Information			exploration results including a tabulation of the following information	.
			for all Material drill holes:
			o easting and northing of the drill hole collar
			o elevation or RL (Reduced Level – elevation above sea level in
			metres) of the drill hole collar
			o dip and azimuth of the hole
			o down hole length and interception depth
			o hole length.
			If the exclusion of this information is justified on the basis that the
			information is not Material and this exclusion does not detract from
			the understanding of the report, the Competent Person should clearly
			explain why this is the case.
Data			In reporting Exploration Results, weighting averaging techniques,
aggregation methods			maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.		Not Applicable – no drilling results reported.
			Where aggregate intercepts incorporate short lengths of high grade
			results and longer lengths of low grade results, the procedure used
			for such aggregation should be stated and some typical examples of
			such aggregations should be shown in detail.

Criteria		JORC Code explanation	JORC Code explanation	Commentary	Commentary
			The assumptions used for any reporting of metal equivalent values
			should be clearly stated.
Relationship			These relationships are particularly important in the reporting of		Not Applicable – no drilling results reported.
between			Exploration Results.
mineralisation			If the geometry of the mineralisation with respect to the drill hole
widths	and		angle is known, its nature should be reported.
intercept			If it is not known and only the down hole lengths are reported, there
lengths			should be a clear statement to this effect (eg ‘down hole length, true
			_width not known’). _
Diagrams			Appropriate maps and sections (with scales) and tabulations of		Map showing tenement location is included in Release and results
			intercepts should be included for any significant discovery being		have been previously released
			reported These should include, but not be limited to a plan view of
			drill hole collar locations and appropriate sectional views.
Balanced			Where comprehensive reporting of all Exploration Results is not		Results for samples have been previously released
reporting			practicable, representative reporting of both low and high grades
			and/or widths should be practiced to avoid misleading reporting of
			Exploration Results.
Other			Other exploration data, if meaningful and material, should be reported		Other data not considered material
substantive			including (but not limited to): geological observations; geophysical
exploration			survey results; geochemical survey results; bulk samples – size and
data			method of treatment; metallurgical test results; bulk density,
			groundwater, geotechnical and rock characteristics; potential
			deleterious or contaminating substances.
Further work			The nature and scale of planned further work (eg tests for lateral		Monax is planning to undertake detailed sampling within the area
			extensions or depth extensions or large-scale step-out drilling).		followed by drilling.
			Diagrams clearly highlighting the areas of possible extensions,
			including the main geological interpretations and future drilling areas,
			provided this information is not commercially sensitive.