BUXTON RESOURCES LIMITED — Capital/Financing Update 2012

Sep 6, 2012

7th September 2012

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ABN: 86 125 049 550 ASX Code: BUX, BUXO Frankfurt: 3B4.F Share Price: $0.17 (at 5/9/12) Shares on Issue: 41.1M No of listed options: 4.0M Market Cap: 6.99M Cash at Bank: 1.18M Board Members Seamus Cornelius Chairman Anthony Maslin Managing Director Julian Stephens Non-Executive Director Joint Company Secretaries Sam Wright Jodi Haslinger Website www.buxtonresources.com.au

ASX ANNOUNCEMENT

Buxton Raises $2.1M through Transaction with NBH Group

HIGHLIGHTS

• Transaction with NBH Group realises total cash injection of ~ $2.1M

• **15% placement @ $0.25c per share to raise ~**

  • $1.5M

• Additional $0.6M licensing fee for exclusive right to market Zanthus Magnetite Project for next 15 months

• Mr Liu Xing Zhou to join the board as a NonExecutive Director

• Funds will facilitate exploration programs at Widowmaker Nickel Copper Project and Yalbra Graphite Project

Buxton Resources Ltd – ASX Announcement

7 September 2012

Background

Buxton Resources Ltd (Buxton) is pleased to announce the establishment of a strategic relationship with National Business Holdings (VU) (NBH), a private company and member of the National Business Holdings Group of Companies (NBH Group).

Key elements of the deal are as follows:

Placement

Buxton will immediately issue 5,017,728 ordinary shares to NBH at a price of $0.25c per share, raising $1,254,432 using the company’s 15% capacity. Subject to shareholder approval, Buxton will issue a further 1,150,000 ordinary shares at $0.25c per share, raising $287,500, for a total of $1,541,932. The issued shares will be voluntarily escrowed for a period of 6 months post the date of this agreement.

Buxton is very pleased to have attracted this level of investment from NBH, as it demonstrates confidence in Buxton's range of emerging projects. The Company is now well funded to pursue its exploration objectives and has NBH to assist it in securing further investment.

Exclusivity Agreement

Buxton has entered into an exclusive marketing agreement with NBH for the Zanthus Magnetite Project, whereby Buxton grants NBH the exclusive right to market (and invest in) the project to potential purchasers or partners over the next 15 months. The agreement covers the iron ore minerals within the tenements E28/1959 and E28/2201 (subject to grant).

In return, NBH has agreed to pay Buxton a non-refundable license fee of $600,000. The first tranche of $400,000 is payable immediately, with the balance of $200,000 payable upon the completion of the second tranche of the share placement.

Use of Funds

The funds raised will be used to expedite the exploration programs already planned for the Widowmaker Nickel Copper Project and the Yalbra Graphite Project.

The Widowmaker Project is located 22 kilometres along strike from Sirius Resources Nova Nickel Discovery. Yalbra Graphite Project is a highly prospective graphite prospect located in Western Australia’s Gascoyne Region.

Buxton Resources Ltd Suite 1, First Floor, 14 – 16 Rowland St Subiaco WA 6008

Ph: 08 9380 6063 Fax: 08 9381 4056

Buxton Resources Ltd – ASX Announcement

7 September 2012

Director Appointment

Buxton welcomes Mr Liu (Leo) Xing Zhou who joins the board of Buxton as a Non-Executive Director. Mr Liu joins on the same terms and conditions as other Buxton Non-Executive Directors. Mr Liu has significant experience in senior financial positions with both businesses in China and multinational companies based in Hong Kong and the United States. He holds an MBA from University of Chicago and CPA qualifications.

Fees

Hong Kong based broker Chancellor Zeuspac will be paid a 5% fee on the funds raised, along with 2 million options exercisable at 50c with an expiry date 5 years from the date of signing (subject to shareholder approval).

For future transactions relating to the sale of a majority share of Zanthus Magnetite, Buxton will pay NBH 5% of the value received in cash or equity.

About NBH

National Business Holdings (VU) is a member of the National Business Holdings Group of Companies (NBH Group). NBH Group have extensive investments within and outside of China, along with a substantial network of business contacts within the Chinese private and public sectors.

About Buxton

Buxton is a Western Australian based company with offices in Perth and Hong Kong. Buxton has 41 Million shares on issue and $1.2m in cash, making it very highly leveraged to exploration success.

For further information regarding Buxton Resources Limited please contact:

Anthony Maslin Jodi Haslinger Managing Director Joint Company Secretary amaslin@buxtonresources.com.au jodi@buxtonresources.com.au

Buxton Resources Ltd Suite 1, First Floor, 14 – 16 Rowland St Subiaco WA 6008

Ph: 08 9380 6063 Fax: 08 9381 4056