SRH Stone Resources Limited

VANCOUVER, July 18, 2011 /CNW/ -- VANCOUVER, July 18, 2011 /CNW/ - Stone Resources Limited (TSX-V: SRH) (the "Company") announced today that it will not proceed with its previously disclosed potential acquisition of a 55% interest in Zhong Ji Mining Company. This decision follows a comprehensive due diligence and evaluation process by the Company of Zhong Ji Mining Company and its assets. The Company has identified certain other potential mineral property acquisition targets, and is conducting due diligence on these prospects. Subject to the satisfaction of conditions including completion of due diligence activities, conclusion of the Offering (as described below) and obtaining adequate financing, the negotiation of definitive agreements, obtaining the consent of shareholders of the Company, and the receipt of requisite approvals including that of the TSXV, the Company intends to use the proceeds from the Offering to fund the acquisition of such mineral properties. The Company previously announced a non-brokered private placement of 270,000,000 common shares of the Company at $0.15 per common share for gross proceeds up of to $40,500,000 (the "Offering"), for which it has received conditional approval from the TSX-V. On behalf of the Board, "Yongji Duan" Yongji Duan Chairman About Stone Resources Limited Stone Resources Limited (TSX-V: SRH) is a company incorporated in Bermuda and listed on the TSX Venture Exchange in Canada. The Company is involved with mineral resources exploration and development in Yemen and Tanzania. Stone Resources plans to expand and develop its business using its effective team of experts in exploration, geology, metallurgy, mine engineering, law and finance. Cautionary Statement on Forward-Looking Statements The information in this document contains certain forward-looking statements with respect to acquisition and financing activities of the Company, based on assumptions about future courses of action. Although management has a reasonable basis for the conclusions drawn, risk factors and uncertainties may cause actual results to differ materially from those currently anticipated in such statements. These risks and uncertainties relate to such factors as the ability of the Company to complete its due diligence activities, successfully conclude the Offering and obtain adequate financing, negotiate definitive agreements, obtain the consent of shareholders, and receive requisite approvals including that of the TSX-V. In view of these uncertainties we caution readers not to place undue reliance on these forward-looking statements. Statements made in this document are made as of the date hereof and the Company disclaims any intention or obligation to update or revise any statements made herein, except in accordance with applicable securities laws. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/July2011/18/c6061.html p Mr. Kelei Xin at 001-604-3220607 /p

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