Investor Series : Nickel Day Presentation February 2008 Stonehenge Metals Limited, Level 24, St Martins Tower, 44 St Georges Terrace, Perth WA 6000, www.stonehengemetals.com.au
Summary Corporate Overview Mandiodo Nickel Project Australian Exploration Investment Summary
Corporate Overview Listed on ASX December 2006 Shares on Issue Listed Options (entitlement issue) Unlisted Options Fully diluted shares on Issue Share Price Market Capitalisation Market Cap. Fully Diluted Cash at Bank (Feb 08) Top 20 Shareholders Code: SHE 56,400,000 24,325,000 6,125,000 86,850,000 30 cents $16.92m $26.05m $3.1m 35.78%
Experienced Board Paul Rengel Non-Executive Chairman FCA, BCom. Todd Hibberd Managing Director BSc. (Hons), MSc. Dip. Bus. MAusIMM Andrew Parker Non-Executive Director LLB. Bevan Tarratt Non-Executive Director BCom. Warren Staude Non-Executive Director BSc, MSc, MAusIMM., F Fin
Mandiodo Nickel Project Operating Structure Project Summary Location and Infrastructure Geology Resources Metallurgy Development Schedule Exploration Blue Sky
Operating Structure Mining Services Agreement Between exploration permit holder and Stonehenge Indonesian subsidiary company Transition to listed Indonesian Company New mining laws will allow direct ownership of permits Exclusive Marketing Agreement
Project Summary JORC Resource Measured and Indicated 10.4Mt @ 1.61% Ni* 167Kt nickel metal Drilled to feasibility level Ore - direct smelter feed Shipping access (barges) Exploration Potential 200-300Mt 1.3-1.5% nickel 2.6-4.5Mt nickel metal =$USD 78-135 Billion ASX release, PT Aneka Tambang (ATM), 2006. The reader is cautioned that the potential quantity and grade of the Exploration Potential described is conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource.
Location Indonesia Southeast Sulawesi Mandiodo
Infrastructure Mandiodo Existing resource Coastal location Shipping access (barges) Local electricity, mobile phone and internet coverage Local workforce Sealed roads Local domestic airport Local Gov t support Perth time zone
Regional Laterite Mines 2 3 4 1 5 1. La Sampala-Rio Tinto 370 Mt @ 1.3% nickel 2. Sorowako - Inco 322 Mt @ 1.8% nickel 3. Bahodopi - Inco 180 Mt @ 1.8% nickel 4. Pomalaa - Inco 150 Mt @ 1.8% nickel 5. Mandiodo - Stonehenge 10.4 Mt @ 1.6% nickel and growing
Geology Ultramafic Bedrock Underlies permits Background grades of 0.3% Ni Tropical weathering concentrates nickel Laterite blanket 10-25 metres thick Laterite grades: 0.9% - 2.2% nickel
Geology - Laterite Extensive tropical laterite blanket Typically 10-25 metres thick 0.8-1.5% Ni Limonite 1.5-3.0% Ni Saprolite Drill grids at: 50 by 50 metres 100 by 100 metres 200 by 200 metres
Existing Resources The reader is cautioned that the potential quantity and grade of the Exploration target described is conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource Measured and Indicated resource of: 10.4Mt @1.6% nickel COG 1.8% Saprolite COG 1.2% limonite 167Kt contained nickel Massive resource increase as cut off grade drops Drilled to feasibility level Drill grid 50m,100m,200m 400 diamond drill holes
Resource Drilling The reader is cautioned that the potential quantity and grade of the Exploration target described is conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource Immediate drilling Targeting resource increase of: 60-90Mt @1.3-1.5% nickel COG 1.0% 0.7-1.2Mt nickel metal $USD 21-36 Billion value Timeline Drilling results by May 08 Resource Calc by June 08 Feasibility initiated July 08
Current Drilling 45 hole program 3 month timeframe Drilling in progress
Laterite Metallurgy Saprolite Metallurgy Tropical laterite Grade ~1.45% SiO2/MgO ratio = 2 Fe content 18% Limonite Metallurgy Tropical laterite Grade ~1.3% SiO2/MgO ratio = 2.2 Fe content 33% >1.5% suitable for ferro-smelting or pig iron production <1.5% suitable for leaching
Development Schedule Task Drilling starts Drilling results Resource Calc Feasibility initiated Resource Calc Feasibility complete Govt Approval Pre-stripping Mining start Date Feb 08 April 08 Jun 08 July 08 Nov 08 Dec 08 Mid 09 2009 2009-11 Direct shipping Truck to Beach Beach to Barge Barge to Ship Ore is Free On Board ~$USD 84/t (1.5%) ~$USD 150/t (2.0%) Y1 production 1.2 Mtpa Y2 production 3.6 Mtpa Y1 free cash flow $30M Y2 free cash flow $100M
Exploration Blue Sky Mandiodo North Exploration target 150-300 Mt Target grade 1.3-1.8% nickel 5 existing diamond drill holes with the following grades: The reader is cautioned that the potential quantity and grade of the Exploration target described is conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource Hole 14 15 28 13 144 Intersection width 27m 23m 26m 23m 21m Grade 1.71 1.74 1.91 2.00 2.11
Exploration Cross Section 450mRL 23m @ 1.7% 23m @ 2.0% Ophiolite bedrock 27m @ 1.7% Mineralised limonite and Saprolite 26m @ 1.9% surface 350mRL 21m @ 2.1% Average thickness = 24 metres Average Grade 1.87% Nickel 1 Kilometre long section, open in all directions
Drill Hole Grades Open 1km Open 23m @ 1.7% 23m @ 2.0% 27m @ 1.7% 26m @ 1.9% 21m @ 2.1%
Mandiodo Summary JORC Resource Measured and Indicated 10.4Mt @ 1.61% Ni 167Kt nickel metal Drilled to BFS level Ore - direct smelter feed Shipping access (barges) Exploration Potential 200-300Mt 1.3-1.5% nickel 2.6-4.5Mt nickel metal =$USD 65-110 Billion
Australian Exploration Stonehenge Nickel Drilling Geophysics Stonehenge Base Metals Resource calculation Granville East Tin Production commences Federation Tin-Zinc Resource calculation
Location Australia Northwest Tasmania
Stonehenge Nickel Two Avebury style nickel targets Stonehenge Southwest Similar rocks and magnetic signatures to Avebury High resolution geophysics Currently waiting on Assay results
Stonehenge Base Metals Tramway Shear 6.5m @ 6.3% Zn, 2.9% Pb and 41 g/t Ag Sunshine Shear ~125 metres long ~10 metres wide Best result: 7m at: 12.2% Zinc 2.3% lead 64 g/t silver Resource Calculation underway
Granville East Tin Ore stockpiles of 6-7000 tonnes @ 1% Tin Mill Refurbishment 98% complete Refurbishment cost of $300,000 Planned Mill commissioning in March
Federation Tin-Zinc Modelling complete Resource calculation underway
Investment Summary Mandiodo nickel project in Indonesia Rapid resource and mine development Direct shipping to smelters Large exploration upside Australian projects Stonehenge Nickel discovery potential Lead-zinc-silver and tin-zinc resources Tin production imminent
More Information Level 24 St Martins Tower 44 St George Terrace, Perth, Western Australia P: +61 (8) 9325 4205 F: +61 (8) 9218 8875 www.stonehengemetals.com.au Level 24 Royal Exchange Building 56 Pitt St, Sydney Australia P: +61 (2) 9375 0100 F: +61 (2) 9247 4844 www.novuscapital.com.au AFS Licence No. 238168
Disclaimer The document is not a disclosure document nor does it constitute the provision of financial product advice. No representation or warranty is made as to the accuracy, completeness or reliability of the information. The information is provided expressly on the basis that recipients will carry out their own independent inquiries into the matters contained herein and make their own independent decisions about the affairs, financial position or prospects of the Company which reserves the right to update, amend or supplement any information at any time in its absolute discretion. Please consult Stonehenge Metals for more detailed information. Feb 2008