Proactive investors

Acquisition of South Korea Uranium Interests
Stonehenge has completed the acquisition of 100% of Chong Ma Mines Inc. Chong Ma holds the rights to four uranium projects in South Korea including the Daejon Project which contains the largest uranium resource within South Korea.

Stonehenge recently announced a Maiden Mineral Resource of 34.9 Mlbs1 of contained eU3O8 at the Daejon Uranium Project.

Stonehenge Lead-Zinc-Silver Project — EL 17/2003 & 20M/2001
The Company's namesake Stonehenge lease, located three kilometres from Zeehan and accessible via existing sealed and gravel roads lies within the Heemskirkm Mineral field and covers extensive historical lead-zinc- silver workings.

The area consists of Proterozoic sediments overlying younger Cambrian sedimentary and volcanic rocks intruded by gabbros and underlain by serpentinised nickeliferous ultramafic volcanic rocks. The dominant mineralising event in the area is the intrusion of the Devonian Heemskirk Granite which provided both mineralised solutions and the heat source to remobilise metals from existing rock units to develop mineral concentrations in favourable lithological and structural sites. The lease is prospective for lead-zinc-silver, tin and nickel mineralisation.
Sunshine — 20M/2001

The Sunshine Mining lease is located within the Stonehenge Exploration Licence is approximately three kilometres to the south east of Zeehan Zinc PLC's Comstock Mine, five kilometres west of the township of Zeehan and neighbours the Avebury Nickel Mine a further four kilometres to the south-west.

During 2007, drilling identified lead-zinc-silver mineralisation at the Sunshine prospect and established consistent mineralisation over a strike length of 125m to a depth of 40m. The mineralised zone remains open along strike and at depth. Drilling intersections included up to 7m @ 12.8% zinc, 1.6% lead and 22 g/t silver at the main mineralised zone and also encountered wide intersections of low grade mineralisation from surface that demonstrated additional potential further to the west.

An Inferred resource estimate of 287,600 tonnes at 2.8% zinc, 1.5% lead and 31g/t silver containing 8,000 tonnes of zinc, 4,200 tonnes of lead and 291,000 ounces of silver was calculated on the Sunshine deposit. It was carried out in house by Mr Todd Hibberd who is a Member of The Australasian Institute of Mining and Metallurgy 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".

The estimation is based on 21 diamond core and reverse circulation drill holes designed to intersect the mineralisation on a nominal 25m by 25m spacing. The deposit was modelled in three dimensions using cross sectional interpretations of the geology and mineralisation. The deposit boundary was defined by a 0.5% zinc cut-off grade which coincides with the geological boundary of the shear zone. Individual blocks were defined around drill hole intersections with block boundaries on and between cross sections defined by the midpoints between adjacent holes and by geological constraints. Estimation methodologies included inverse distance squared and ordinary kriging. Based on statistical analysis, maximum sample assays were reduced to 30% zinc, 9% lead and 200g/t silver (top cuts) and all grades were length weighted. Block densities were assigned based on density analysis of samples collected from diamond core drill hole samples.

The mineralisation occurs within Precambrian Oonah Formation sediments which have been thrust over the Cambrian Crimson Creek Formation volcaniclastic rocks, basaltic rocks and sedimentary rocks. The structure is complex with the sequence folded in a series of tight folds with west to northwest trending axes and disrupted by NNE-SSW faults with conjugate or linking faults orientated NNW-SSE in the prospect area.

The Sunshine deposit strikes north-east, is sub-vertical and extends to the surface where initial channel samples identified 10m @ 22% zinc. The mineralisation is open on strike to the north-east and at depth. The lode is contained within a wider shear system and the mineralisation may extend to the Colonel North Mine 400 metres to the north-east. Geological logging in conjunction with the assay results indicates that lead grades increase to the north-east while zinc grades increase to the south-west.

The area contains several other historical lead-zinc-silver workings and remains prospective for additional resources at Sunshine and economic open pitable mineralization associated with other historic mineralisation within the Oonah black shale units. Historical drilling 200 metres to the northwest of Sunshine intersected substantial widths of mineralisation at depth which may indicate further extensions to the Sunshine mineralisation or a new zone of mineralisation.

Stonehenge Nickel Project — EL 17/2003
The Stonehenge lease contains the potential to host significant nickel deposits. The lease contains similar rocks and magnetic signatures to the adjacent Avebury Nickel Mine and the recently discovered Saxon Nickel Deposit. Both deposits are located on magnetic highs. In addition the Comstock lead-zinc- silver mine is also located on a magnetic high.

Historical geological survey reports identified outcropping nickel sulphide mineralisation in a narrow pyroxenite dyke just south of the Swansea prospect. The dyke trends in a north-westerly direction parallel to the long axis of the magnetic high on the Stonehenge lease. The dominant sulphide noted was in the form of the nickel sulphides, millerite and pentlandite.

Mineral Resources Tasmania carried out stratigraphic drilling during 1989 in the north western corner of the lease. The drilling identified folded Cambrian volcanic basaltic lava flows and dolerite intrusive dykes and sills fault bounded against an intrusive ultramafic unit. The rock types identified also host Allegiance's Avebury deposit confirming that the rocks underlying the lease are prospective for nickel deposits. The gabbro was intersected at 153m metres vertical depth and the volcanic sequence started at surface indicating that any nickel mineralisation will be shallower than previously suggested.

Airborne geophysical surveys have identified two magnetic anomalies, a large 1,000m by 600m by 400m thick target (Stonehenge) and a smaller 300m by 200m by 100m thick target (Southwest). Geophysical modelling indicated that the Stonehenge target was between 100 and 200 metres below surface and the Southwest target was only 10-20 metres below surface.

Two diamond drill holes (SDD001 and SDD002) details shown in the table below have were completed by Stonehenge Metals in 2007 to depths of 603.6m and 420m respectively, targeting nickel sulphides at depths between 50 and 400 metres. While the holes did not intersect significant nickel mineralisation both holes encountered lithologies similar to the Avebury geological sequence and down hole geophysical surveys were completed. Drilling results from these holes contain small intervals of anomalous lead and copper but only background levels of nickel. Geophysical modelling of the drill holes indicates a moderate anomaly approximately 200 metres below the base of the second diamond hole in the area of Target 1. The Southwest Anomaly (Target 3) remains to be tested.

Granville Tin Project — 21M/2003 & 9M/2006
The Granville Tin Project is subject to a sale agreement with McDermott Mining Pty Ltd.

The Granville Tin Project is located between 24 and 16 kilometres to the northwest of the township of Zeehan on the West Coast of Tasmania and is covered by mining leases 21M/2003 and 9M/2006. The main lease 21M/2003 consists of five separate portions totalling 68 hectares in area.

The segments of the lease are:
* The existing Heemskirk Tin Plant located 17km NW of Zeehan;
* A 5 hectare tenement located 24km NW of Zeehan covering the Granville East open pit;
* 5.6 hectares over the Central Big H Prospect located 400m west of the plant site;
* 50 hectares covering the North Heemskirk Deep Lead Prospect located 1km N of the plant; and
* A small portion of the lease to the SE of the plant over a small dam used for water supply to the mill.

Heemskirk Tin Plant
Refurbishment of the Heemskirk gravity separation mill was completed on 19 July 2008 and wet commissioning commenced immediately treating Granville East ore blended with alluvial and tailings material stockpiled at the mill.

The plant was initially designed with a capacity to treat approximately 10 tonnes per hour of the clayey oxide ore sourced from the shallow Granville East pit. The initial commissioning process has been frustrated by material handling problems relating to feeding the wet clay ore into the plant which necessitated the blending of Granville or with low grade alluvials and tailings.

Installation of a new feed bin at the end of October 2008 improved the ore handling, however in November 2008, the Company placed the mill on care and maintenance due to ore handling problems and lower tin prices. The Company will continue to evaluate options regarding the project.

Granville East
The Granville East deposit is associated with an altered carbonate unit (skarn) which appears to contain economic concentrations of tin and associated magnetite. The mineralisation has been interpreted as representing the top of a weathered, primary magnetite-tin deposit however conjecture remains as to the origin of the mineralisation exposed in the Granville East open pit as to whether it is alluvial or eluvial (weathered primary mineralisation). Drilling to date has been inconclusive and detailed evaluation of the open pit and mineralisation style is warranted.

Central Big H
The Central Big H prospect located 400 metres to the west of the Heemskirk Mill exhibits a similar magnetic signature to the Granville East deposit and previous alluvial tin mining was carried out on the tenement. The prospectivity of the area is highlighted by the intersection of 1.25 metres grading 0.45% tin in the only drill hole on the northern boundary of the lease.
Heemskirk Alluvials

The Heemskirk alluvial lease is located one kilometre north of the mill site and covers 50 hectares. Previous sampling has identified up to 0.9 kilograms of tin per cubic metre of gravels in a lead which covers most of the tenement area and is known to be up to 20 metres deep. The area has potential to host a significant alluvial tin resource.