FACSIMILE TRANSMISSION

ASX Code: SHE


28 July 2015

Market Announcements Platform

ASX Limited, Exchange Centre,

20 Bridge Street, Sydney NSW 2000

SALE OF 50% OF KOREAN SUBSIDIARY COMPLETE

50% sale of Stonehenge Korea Limited complete

KOSDAQ listed KORID now owns 50% of Stonehenge Korea Limited

Stonehenge in receipt of 4,643,497 KORID shares with ~$2.4 million market value


Stonehenge Metals Limited (Stonehenge, or the Company) is pleased to advise that the sale of 50% of Stonehenge Korea Limited (Stonehenge Korea) to KOSDAQ listed Korea Resources Investment & Development Inc. (KORID) has now been completed. Stonehenge and KORID now hold 50% each of Stonehenge Korea which is now an incorporated Joint Venture (JV) company.
In consideration for the sale Stonehenge has received 4,643,497 KORID shares with a value of ~A$2.4 million1. These shares are listed on the Korean Stock Exchange (KOSDAQ) and are escrowed for 12 months. The shares can be sold to fund the activities of the JV after 13 months if KORID does not exercise its right to withdraw from the JV, as per the transaction terms advised to ASX on 24 December 2014 (Transaction). Pursuant to the Transaction KORID has also agreed to subscribe for 3 separate placements, in Stonehenge shares, of
$100,000 each at 6, 9 and 12 months post completion.
Stonehenge Korea is working towards:
Securing a collaboration agreement with the Korean Institute of Geoscience and Mineral Resources (KIGAM) to test the relevant sections from within the 36,000 metres of mineralised historical drill core (from Stonehenge Korea's Daejon Project area) stored at KIGAM;

Significantly upgrading the current Daejon Project resource estimates in size and or confidence;

Preparing a pre-feasibility study for the Daejon project; and

Preparing work programs and budgets to support completion of a definitive or bankable feasibility study for the Daejon project.

For further information see www.stonehengemetals.com.au,www.proteanwaveenergy.com.auor contact:

Bruce Lane - Managing Director

T: + 61 8 9481 2276
E: blane@stonehengemetals.com.au

1 Valuation based on the volume weighted average price of KORID shares traded on the KOSDAQ exchange in Korea during the last 20 traded days and the average exchange rate of the Korean Won to the Australian Dollar over the last 90 days.

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