BUXTON RESOURCES LIMITED — Capital/Financing Update 2008

Jul 29, 2008

30 July 2008 ASX Announcement

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Buxton sells East Pilbara tenement to Atlas Iron Limited

Buxton Resources Limited (ASX:BUX) is pleased to announce that it has agreed to sell its mineral interest in the Western Shaw tenement located in the East Pilbara to Atlas Iron Limited (ASX:AGO).

The tenement, E45/2768 is held 90% by Buxton and 10% by South Boulder Mines (ASX:STB) and both parties have agreed to sell their respective interest in the tenement to Atlas on the following terms.

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1. Payment of $325,000 to BUX and STB (apportioned 90% BUX, 10% STB) in Atlas shares valued on the volume weighted average price for the 5 days prior to 29 July 2008 and payable upon execution of the formal agreement. Buxton’s portion of this payment is valued at $292,500.

2. Payment of $250,000 in Atlas shares to BUX and STB (apportioned 90% BUX, 10% STB) on commencement of a mining operation.

3. BUX and STB (apportioned 90% BUX, 10% STB) retain a 1.25% gross FOB sales revenue per tonne of iron ore sold and a 1.5% Net Smelter Royalty on all other minerals produced.

Buxton Managing Director Ron Smit said “this is an excellent outcome for our shareholders. The small Western Shaw tenement was the company’s only asset in the Pilbara and was regarded as non‐strategic. The fit with Atlas is good, they are an iron ore group moving towards production and any success resulting in a mining operation on the Western Shaw tenement will further benefit Buxton shareholders via a royalty stream”.

For further information on Buxton Resources Limited please contact:

Ron Smit

Managing Director Phone: 08‐92282577 Mobile: 0408 095 452 ron@buxtonresources.com.au

or visit our website at: www.buxtonresources.com.au

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