The Big Break II winner made 10 birdies over two rounds at the Black Creek Club, but eight bogeys and one double bogey left him at even-par 144 for the tournament, and well outside the cut line, which fell at 4-under 140.
Henley, who resides in nearby Crossville, Tenn., completed his weather-delayed first round Friday morning, playing his final six holes in 1 under for an opening 1-over 73.
He then went right out for his second round and offset three birdies with three bogeys on his front nine. He made three more birdies on the inward half, but gave back two of those.
Of his 10 total birdies, six were followed on the next hole with a bogey.
This was Henley's second Nationwide Tour exemption of the season. He missed the cut by two strokes at the Henrico County Open in Richmond, Va.
He qualified for last week's FedEx St. Jude Classic on the PGA Tour, but shot 79-80 to also miss the cut.
Henley, who outlasted nine other competitors in the second installment of The Golf Channels popular reality series, has four more Nationwide Tour exemptions to use: next week's LaSalle Bank Open (Chicago, Ill.), the Knoxville Open (Knoxville, Tenn.), the Lake Erie Charity Classic (Erie, Pa.) and the National Mining Association Pete Dye Classic (Bridgeport, W. Va.).