BUXTON RESOURCES LIMITED — Capital/Financing Update 2011

Jan 10, 2011

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10 January 2011

The Manager Company Announcements Australian Stock Exchange Limited Via Electronic Lodgement

Dear Sir/Madam

CAPITAL RAISING

Buxton Resources Limited (ASX: BUX) is pleased to announce that it has executed a capital raising mandate with Mac Equity Partners Pty Ltd to raise $1,762,200.66 through a fully underwritten rights issue to fund further exploration of the Zanthus Project and for working capital.

The Company will offer a 1:4 rights issue to shareholders at $0.22 per share with a free option for every 2 shares subscribed for to raise $1,762,200.66 (8,010,003 ordinary shares at $0.22).

Full details of the Rights Issue will be contained in the Prospectus which will be lodged with ASIC and the ASX and will be mailed to all shareholders who are registered on the record date.

Yours sincerely,

Sam Wright Director & Company Secretary