Stonehenge Metals Limited is pleased to announce the commencement of diamond drilling, cutting the first core at the Daejon Project Area since KORES last drilled some 30 years ago. Daejon has 225 historical diamond drill holes and outcrops over a 6 kilometre strike containing a globally significant uranium resource within South Korea at 65.0Mlbs grading 320ppm eU3O8. Daejon also has a Vanadium Exploration Target1 of 70-90 Mt at a grade of between 0.25% to 0.35% V2O5 for a contained 385-695 M lbs V2O5. The co-existence of the Uranium and Vanadium enable a production process which will deliver good extraction rates and lower production costs than many other Uranium development projects.

A twelve hole diamond drill program at Chubu was permitted in December 2012. Track construction began in March and was completed in early April. The Location of the proposed drill program is 400m ENE of the Chubu Adit, which was channel sampled at 1 metre intervals during 2011. Results from the 2011 adit sampling showed high grade zones much greater than the existing resource average with the best result of 59 metres at 472ppm U3O8. The purpose of the Daejon drill program is to confirm the continuity of the uranium mineralised zone including thickness and grade; this will be achieved by twinning selected historical drill holes and infill drilling to improve the confidence level of the existing uranium JORC resource and identify potential high grade zones. The program will also aim to establish a maiden vanadium resource at the Daejon Project.

The 1.4km access road has been constructed in accordance with temporary road specifications and, has been designed as an initial approach road that will be added to as resource development drilling of the Daejon Project expands over time. The road will enable access to two permitted drill sites spaced at about 160 metres ENE – WSW. These sites will enable initial resource drilling of the mineralisation at Chubu to upgrade confidence in the existing eU3O8 inferred resource and, provide sampling for a maiden vanadium resource. The drilling will be staged to ensure measurable objectives are completed in a timely manner in line with Stonehenge’s strategic objectives.

The initial 2013 resource drill program on Daejon 6-1 has been staged to meet Company strategic objectives. The stage 1 program is designed to confirm the location of the historical mineralisation with a small program of 80m spaced holes that will also twin DH74-1 (true width 41.9m at 270ppm eU3O8) and provide initial variography data for input into the stage 2 program. The stage 2 program is designed to deliver a high quality inferred resource in the upper 200 metres of the central Chubu area of the Daejon Project. Depending on results and input with surface mapping and sampling it may be possible to further upgrade some of this resource drilling to higher confidence categories of resource.

To complement the drilling, the surface geology was recently mapped and spot checked with a handheld XRF. As a result more than 500m of strike of +200ppm uranium and +1000ppm vanadium mineralised black shale has been defined (Figure 2 and 5). The anomalous black shale will be targeted for follow up 80m spaced trenching with 1m interval channel sampling. Four trenches covering 250m strike have been completed and samples will be sent for chemical analysis during April 2013. The remaining proposed trenches will be completed during the drilling program. Significantly, some of the spot check sites have recorded high grade uranium (+900 Uppm) and vanadium (+3000 Vppm) results using a handheld XRF on trench channel samples. Chemical assay results from the first 4 trenches are expected in 6 weeks.