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BUXTON RESOURCES LIMITED Capital/Financing Update 2012

May 28, 2012

64585_rns_2012-05-28_73c3ff69-88bd-491e-9ff8-36638fc10d0b.pdf

Capital/Financing Update

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==> picture [156 x 55] intentionally omitted <==

ABN: 86 125 049 550 ASX Code: BUX, BUXO Frankfurt: 3B4.F Share Price: 0.125 Shares on Issue: 40.1M No of listed options: 4.0M Market Cap: 5.02M Cash at Bank: 1.34M

ASX ANNOUNCEMENT

8 - 12 Million Tonnes Exploration Target* at Yalbra Graphite Project

HIGHLIGHTS

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

  • Preliminary Global Exploration Target;

  • 8 - 12 Million Tonnes @ 7 - 11% C*

  • High grade, wide, near-surface zones of graphite mineralisation identified over at least 4km strike length in historical trenches and drilling

  • Most zones of graphite mineralisation open at depth and along strike

  • Historical percussion drill results include;

  • PD 3 : 16.8m @ 13.2% C (from 15m) incl 6.1m @ 17.2% C

  • PD 9 : 23.5m @ 19.5% C (from 9m) incl 15.2m @ 25.2% C

  • PD 10 : 39.6m @ 10.0% C (from 3m) incl 12.2m @ 23.6% C

  • PD 13 : 24.4m @ 11.6% C (from 18m) incl 6.1m @ 23.5% C

  • PD 18 : 33.5m @ 8.8% C (from 18m) incl 9.2m @ 21.1% C

  • PD 23 : 30.5m @ 8.8% C (from 9m) incl 6.1m @ 17.7% C

  • Coarse flake graphite identified in historical drill logs and basic metallurgical tests

*The potential quality and grade of the Yalbra Exploration Target is conceptual in nature. There has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

Buxton Resources Ltd – ASX Announcement

29 May 2012

Summary

Buxton Resources Limited (“Buxton” or “the Company”) is pleased to report a preliminary Exploration Target at the Yalbra Graphite Project of;

8-12 Million Tonnes @ 7 - 11% C*

The global Exploration Target was derived by Buxton’s experienced geological team using historical drilling information. It is made up of six separate zones where graphite mineralisation was intersected in historical drilling.

  • The potential quality and grade of the Yalbra Exploration Target is conceptual in nature. There has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

Exploration Target

==> picture [481 x 408] intentionally omitted <==

Figure 1: Tenement application E09/1985 showing older tenements (in black).

Buxton Resources Ltd 50 Derby Road Subiaco WA 6008

2

Ph; 08 9380 6063 Fax; 08 9381 4056

Buxton Resources Ltd – ASX Announcement

29 May 2012

Historical drilling results indicate the six discreet zones of graphite mineralisation occur in a broad zone that extends over a strike length of at least 4km. Historical drilling shows that all of the zones are open at depth, and in most cases, are also open along strike. For the purposes of the Exploration Target estimation, Buxton has assumed mineralisation extends to a depth of 150m below surface.

==> picture [451 x 360] intentionally omitted <==

Figure 2 : Yalbra Graphite Project – simplified plan of historical drill results and geology and six main zones of graphite mineralisation.

Buxton Resources Ltd 50 Derby Road Subiaco WA 6008

Ph; 08 9380 6063 Fax; 08 9381 4056

Buxton Resources Ltd – ASX Announcement

29 May 2012

Background

On the 15[th ] May 2012, Buxton Resources announced an option to acquire application E09/1985 - the Yalbra Graphite Project. The Yalbra Graphite Project is located 250km North West of Meekatharra and 280km East of Carnarvon, Western Australia, and covers an area of 37 square kilometres.

In June 1974, a percussion drilling program was undertaken by Carpentaria Exploration Company Pty Ltd. A total of 21 holes were drilled for 856 metres to down-hole depths generally in the order of 40m. Substantial grades and widths of graphite mineralisation were identified in most of the holes drilled (Table 1).

Historical field observations indicated that the graphite occurs both in disseminated and veinlet styles. Coarse flake graphite was identified in both drilling logs and in a rudimentary metallurgical test of nearsurface mineralisation. However, from the historical information available it is not currently possible to estimate what percentage of the graphite mineralisation would fall into the coarse flake category.

Table 1. Significant graphite intercepts from percussion drilling by Carpentaria Exploration in 1974.

Prospect Hole Id From(m) To(m) Interval(m) C % Comments
Yalbra 001 3.05 9.14 6.09 3.74 Ended in mineralisation
002 0.00 18.28 18.28 9.33
Inc 0.00 6.09 6.09 19.0
003 15.24 32.00 16.76 13.2
Inc 22.86 28.95 6.09 17.2 Ended in mineralisation
004 6.09 30.48 24.39 7.87
Inc 16.76 22.86 6.10 13.2
006 3.05 36.58 33.53 4.59
008 9.14 51.82 42.68 7.96 Ended in mineralisation
Inc 33.53 51.82 18.29 13.0
009 6.09 29.57 23.48 19.5
Inc 9.14 24.38 15.24 25.2 Ended in mineralisation
010 3.05 42.67 39.62 10.0
Inc 3.05 15.24 12.19 23.6
011 6.09 12.19 6.10 6.75
24.38 36.58 12.20 13.1
012 6.09 12.19 6.10 6.75
013 18.28 42.67 24.39 11.6
Inc 33.53 39.62 6.09 23.5
018 18.28 51.82 33.54 8.84
Inc 42.67 51.82 9.15 21.1
019 0.00 41.15 41.15 0.00
020 6.09 27.43 21.34 7.80
Inc 9.14 18.28 9.14 10.9
021 3.05 35.05 32.00 4.71
022 6.09 30.48 24.39 8.73

Buxton Resources Ltd 50 Derby Road Subiaco WA 6008

Ph; 08 9380 6063 Fax; 08 9381 4056

Buxton Resources Ltd – ASX Announcement

29 May 2012

Prospect
Hole Id
From(m)
To(m)
Interval(m) C %
Comments
Inc
21.34
30.48
023
9.14
39.62
Inc
24.38
30.48
024
0.00
30.48
025
6.09
21.34
33.53
53.34
026
12.19
18.28
30.48
45.72
027
9.14
24.38
9.14
30.48
6.10
30.48
15.25
19.81
6.09
15.24
15.24
12.7
8.84
17.7
0.00
4.85
10.4
Ended in mineralisation
6.49
7.70
6.50

*Significant intercepts reported at 3% C lower cut-off grade and minimum 6m width. It is assumed that all carbon occurs as graphite. The historical results have not been verified independently by Buxton Resources and therefore should be treated with caution. The historical results are a combination of laboratory analyses and visual estimation correlated with the laboratory grades (see Appendix for details).

About Graphite

The acquisition of the Yalbra Project provides the Company with attractive commodity diversification at a time of historically high graphite prices. The project acquisition was prompted by recent worldwide interest in sources of flake graphite, which is used in the construction of lithium ion batteries, fuel cells and pebble bed nuclear reactors. Spot prices for coarse flake graphite have risen dramatically to in excess of US$3000 per tonne.

Next steps

An initial field reconnaissance trip is planned immediately, subject to contact and access agreement being made with stakeholders, including native title parties and the pastoral lease holder. Buxton is also planning a substantial ground EM (electromagnetic survey) in order to properly define targets for drilling.

Concluding Comments

The Yalbra Graphite Project represents an exciting opportunity for the company. Buxton Resources believe the identification of this Exploration Target combined with the current prices and future outlook for graphite bode well for the Company’s future.

Buxton Resources Ltd 50 Derby Road Subiaco WA 6008

Ph; 08 9380 6063 Fax; 08 9381 4056

Buxton Resources Ltd – ASX Announcement

29 May 2012

Appendix

Appendix 1: Historical Percussion Drill Results

Hole ID
From
To
Length (m)
Adjusted
(m)
(m)
Carbon %
From
To
Length (m)
Adjusted
(m)
(m)
Carbon %
1
0
3.05
3.05
0
3.05
6.1
3.05
2
6.1
9.14
3.04
5.5
9.14
12.19
3.05
0.7
12.19
15.24
3.05
0
15.24
18.28
3.04
0
18.28
21.34
3.06
1
21.34
24.38
3.04
7
2
0
3.05
3.05
24
3.05
6.09
3.04
14
6.09
9.14
3.05
5.5
9.14
12.19
3.05
5.5
12.19
15.24
3.05
0
15.24
18.28
3.04
7
18.28
21.34
3.06
0.7
21.34
24.38
3.04
0
24.38
27.43
3.05
3.5
27.43
30.48
3.05
0
30.48
33.53
3.05
0
33.53
36.58
3.05
0
36.58
39.62
3.04
0
39.62
42.67
3.05
0
42.67
45.72
3.05
0
3
0
3.05
3.05
0
3.05
6.09
3.04
0
6.09
9.14
3.05
0
9.14
12.19
3.05
0
12.19
15.24
3.05
0.7
15.24
18.28
3.04
7
18.28
22.86
4.58
11.5
22.86
25.9
3.04
19.2
25.9
28.95
3.05
15.3
28.95
32
3.05
14
32
35.05
3.05
2
35.05
38.1
3.05
1
4
0
3.05
3.05
0
3.05
6.09
3.04
0
6.09
9.14
3.05
4
9.14
13.72
4.58
7
13.72
16.76
3.04
7
16.76
19.81
3.05
10
19.81
22.86
3.05
17
22.86
25.91
3.05
7
25.91
28.96
3.05
3.5
28.96
30.48
1.52
8
30.48
35.05
4.57
0
6
0
3.05
3.05
0
3.05
6.09
3.04
7
6.09
9.14
3.05
5.5
9.14
12.19
3.05
3.5
12.19
15.24
3.05
4
15.24
18.28
3.04
4
18.28
21.34
3.06
4
21.34
24.38
3.04
4
24.38
27.43
3.05
4
27.43
30.48
3.05
2
30.48
33.53
3.05
5.5
33.53
36.58
3.05
7
36.58
39.62
3.04
1.5
39.62
40.54
0.92
0.7

Buxton Resources Ltd 50 Derby Road Subiaco WA 6008

6

Ph; 08 9380 6063 Fax; 08 9381 4056

Buxton Resources Ltd – ASX Announcement

29 May 2012

Hole ID
From
To
Length (m)
(m)
(m)
Adjusted
From
To
Length (m)
Carbon %
(m)
(m)
Adjusted
From
To
Length (m)
Carbon %
(m)
(m)
Adjusted
Carbon %
8
0
3.05
3.05
3.05
6.09
3.04
6.09
9.14
3.05
9.14
12.19
3.05
12.19
15.24
3.05
15.24
18.28
3.04
18.28
21.34
3.06
21.34
24.38
3.04
24.38
27.43
3.05
0
0
1.5
5.5
4
3.5
0
1.5
3.5
27.43
30.48
3.05
30.48
33.53
3.05
33.53
36.58
3.05
36.58
39.62
3.04
39.62
42.67
3.05
42.67
45.72
3.05
45.72
48.77
3.05
48.77
51.82
3.05
5.5
10
14
12.5
12.5
12.5
12.5
14
9
0
3.05
3.05
3.05
6.09
3.04
6.09
9.14
3.05
9.14
12.19
3.05
12.19
15.24
3.05
1.5
2
12.5
15.24
18.28
3.04
18.28
21.34
3.06
21.34
24.38
3.04
24.38
27.43
3.05
27.43
29.57
2.14
25.2
25.2
25.2
25.2 5
10
25.2
10
0
3.05
3.05
3.05
6.09
3.04
6.09
9.14
3.05
9.14
12.19
3.05
12.19
15.24
3.05
15.24
18.28
3.04
18.28
21.34
3.06
21.34
24.38
3.04
0.5 24.38
27.43
3.05
27.43
30.48
3.05
30.48
33.53
3.05
33.53
36.58
3.05
36.58
39.62
3.04
39.62
42.67
3.05
42.67
43.89
1.22
3.5
23.6 4.9
23.6 4.9
23.6 4.9
23.6 4.9
4
3
1.5
4.9
2
11
0
3.05
3.05
3.05
6.09
3.04
6.09
9.14
3.05
9.14
12.19
3.05
12.19
15.24
3.05
15.24
18.28
3.04
18.28
21.34
3.06
0
0
10
3.5
0
3
0
21.34
24.38
3.04
24.38
27.43
3.05
27.43
30.48
3.05
30.48
33.53
3.05
33.53
36.58
3.05
36.58
39.62
3.04
39.62
42.67
3.05
0
12.4
13.4
13.4
13.4
0
0
12
0
3.05
3.05
3.05
6.09
3.04
6.09
9.14
3.05
9.14
12.19
3.05
12.19
15.24
3.05
0
0
8
5.5
0.7
15.24
18.28
3.04
18.28
21.34
3.06
21.34
24.38
3.04
24.38
27.43
3.05
27.43
28.96
1.53
0
0
0
0
0

Buxton Resources Ltd 50 Derby Road Subiaco WA 6008

7

Ph; 08 9380 6063 Fax; 08 9381 4056

Buxton Resources Ltd – ASX Announcement

29 May 2012

Hole ID
From
To
Length (m)
(m)
(m)
Adjusted
Carbon %
From
To
Length (m)
(m)
(m)
Adjusted
Carbon %
13
0
3.05
3.05
3.05
6.09
3.04
6.09
9.14
3.05
9.14
12.19
3.05
12.19
15.24
3.05
15.24
18.28
3.04
18.28
21.34
3.06
21.34
24.38
3.04
24.38
27.43
3.05
0
1.5
0.7
0.5
1.5
1.5
8
13
12.5
27.43
30.48
3.05
30.48
33.53
3.05
33.53
36.58
3.05
36.58
39.62
3.04
39.62
42.67
3.05
42.67
45.72
3.05
45.72
48.77
3.05
48.77
51.28
2.51
51.28
53.34
2.06
3
3
23.5
23.5
7
0
0
0
0
18
0
3.05
3.05
3.05
6.09
3.04
6.09
9.14
3.05
9.14
12.19
3.05
12.19
15.24
3.05
15.24
18.28
3.04
18.28
21.34
3.06
21.34
24.38
3.04
24.38
27.43
3.05
0
0
0
0
0
0
5.5
7
8
27.43
30.48
3.05
30.48
33.53
3.05
33.53
36.58
3.05
36.58
39.62
3.04
39.62
42.67
3.05
42.67
45.72
3.05
45.72
48.77
3.05
48.77
51.82
3.05
5.5
0
0
4
4
10.5
21
31.8
19
0
3.05
3.05
3.05
6.09
3.04
6.09
9.14
3.05
9.14
12.19
3.05
12.19
15.24
3.05
15.24
18.28
3.04
18.28
21.34
3.06
0
0
0
0
0
0
0
21.34
24.38
3.04
24.38
27.43
3.05
27.43
30.48
3.05
30.48
33.53
3.05
33.53
36.58
3.05
36.58
39.62
3.04
39.62
41.15
1.53
0
0
0
0.1
0.1
0
0
20
0
3.05
3.05
3.05
6.09
3.04
6.09
9.14
3.05
9.14
12.19
3.05
12.19
15.24
3.05
15.24
18.28
3.04
18.28
21.34
3.06
0
0
7
21.34
24.38
3.04
24.38
27.43
3.05
27.43
30.48
3.05
30.48
33.53
3.05
33.53
36.58
3.05
36.58
39.62
3.04
10.5
3.5
0.7
3.5
0
0
10.9
10.9
10.9
1.5
21
0
3.05
3.05
3.05
6.09
3.04
6.09
9.14
3.05
9.14
12.19
3.05
12.19
15.24
3.05
15.24
18.28
3.04
0
8
9.5
7
5
4
18.28
21.34
3.06
21.34
24.38
3.04
24.38
27.43
3.05
27.43
30.48
3.05
30.48
33.53
3.05
33.53
35.05
1.52
2
3
1.5
1.5
5.5
5

Buxton Resources Ltd 50 Derby Road Subiaco WA 6008

8

Ph; 08 9380 6063 Fax; 08 9381 4056

Buxton Resources Ltd – ASX Announcement

29 May 2012

Hole ID
From
To
Length (m)
(m)
(m)
Adjusted
Carbon %
From
To
Length (m)
(m)
(m)
Adjusted
Carbon %
22
0
3.05
3.05
3.05
6.09
3.04
6.09
9.14
3.05
9.14
12.19
3.05
12.19
15.24
3.05
15.24
18.28
3.04
18.28
21.34
3.06
21.34
24.38
3.04
0
0.7
10.5
2
0.5
6
20.5
24.38
27.43
3.05
27.43
30.48
3.05
30.48
33.53
3.05
33.53
36.58
3.05
36.58
39.62
3.04
39.62
42.67
3.05
42.67
45.72
3.05
10.1
10.1
0
0
0
0
0
10.1
23
0
3.05
3.05
3.05
6.09
3.04
6.09
9.14
3.05
9.14
12.19
3.05
12.19
15.24
3.05
15.24
18.28
3.04
18.28
21.34
3.06
0
3.5
1.5
21.34
24.38
3.04
24.38
27.43
3.05
27.43
30.48
3.05
30.48
33.53
3.05
33.53
36.58
3.05
36.58
39.62
3.04
6.5
17.7
17.7
5.2 7.7
5.2 7.7
6.5 7.7
6.5
24
0
3.05
3.05
3.05
6.09
3.04
6.09
9.14
3.05
9.14
12.19
3.05
12.19
15.24
3.05
0
0
0
0
14
15.24
18.28
3.04
18.28
21.34
3.06
21.34
24.38
3.04
24.38
27.43
3.05
0
0
0
0
25
0
3.05
3.05
3.05
6.09
3.04
6.09
9.14
3.05
9.14
12.19
3.05
12.19
15.24
3.05
15.24
18.28
3.04
18.28
21.34
3.06
21.34
24.38
3.04
24.38
27.43
3.05
0.7
1.5
5.5
3.5
3.5
27.43
30.48
3.05
30.48
33.53
3.05
33.53
36.58
3.05
36.58
39.62
3.04
39.62
42.67
3.05
42.67
45.72
3.05
45.72
48.77
3.05
48.77
53.34
4.57
0
0
7
11.7
11.5
10.5
6
14
7.8
4
2
0
26
0
3.05
3.05
3.05
6.09
3.04
6.09
9.14
3.05
9.14
12.19
3.05
12.19
15.24
3.05
15.24
18.28
3.04
18.28
21.34
3.06
21.34
24.38
3.04
0
1.5
0
0
6
7
0.7
0.5
24.38
27.43
3.05
27.43
30.48
3.05
30.48
33.53
3.05
33.53
36.58
3.05
36.58
39.62
3.04
39.62
42.67
3.05
42.67
45.72
3.05
45.72
48.77
3.05
0
0
8.5
5.5
5.5
10.5
8.5
2

Buxton Resources Ltd 50 Derby Road Subiaco WA 6008

9

Ph; 08 9380 6063 Fax; 08 9381 4056

Buxton Resources Ltd – ASX Announcement

29 May 2012

Hole ID
From
To
Length (m)
Adjusted
(m)
(m)
Carbon %
From
To
Length (m)
Adjusted
(m)
(m)
Carbon %
27
0
3.05
3.05
0
3.05
6.09
3.04
5.5
6.09
9.14
3.05
0
9.14
12.19
3.05
6
12.19
15.24
3.05
10.5
15.24
18.28
3.04
7
18.28
21.34
3.06
5
21.34
24.38
3.04
4
24.38
27.43
3.05
0
27.43
30.48
3.05
0
30.48
33.53
3.05
0
33.53
36.58
3.05
0

*It is assumed that all carbon occurs as graphite. The historical results have not been verified independently by Buxton Resources and therefore should be treated with caution. The historical results are a combination of laboratory analyses and visual estimation correlated with the laboratory grades. Results highlighted in yellow are laboratory analyses, whilst all other results are adjusted visual results keyed to the laboratory analyses.

Appendix 2: 1974 Yalbra Percussion drilling collar table

Prospect
Yalbra
Hole ID Easting Northing Dip Azimuth Depth (m)
1 434233 7172239 -60 135 24.3
2 434082 7171956 -60 295 45.7
3 434266 7172800 -60 161 38.1
4 432798 7172360 -60 143 35
6 434996 7172675 -60 184 40.5
8 435063 7172616 -60 342 51.8
9 435213 7172593 -60 179 29.5
10 435327 7172718 -60 199 43.8
11 436480 7172702 -60 340 42.6
12 436460 7172705 -60 341 28.9
13 435454 7172695 -60 356 53.5
18 435031 7172669 -60 169 51.8
19 435092 7172589 -60 162 41.1
20 434889 7172587 -60 349 39.6
21 434935 7172597 -60 1 35
22 435161 7172589 -60 165 45.7
23 435266 7172604 -60 225 39.6
24 436663 7172853 -60 186 30.4
25 433872 7171869 -60 360 53.3
26 434885 7171835 -60 360 48.7
27 433822 7171881 -60 360 36.5

Buxton Resources Ltd 50 Derby Road Subiaco WA 6008

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Ph; 08 9380 6063 Fax; 08 9381 4056

Buxton Resources Ltd – ASX Announcement

29 May 2012

Competent Person: The information in this report that relates to Exploration Results and Exploration Targets is based on information compiled by Dr Julian Stephens, Member of the Australian Institute of Geoscientists and Non-Executive Director for Buxton Resources Limited. Dr Stephens has sufficient experience which is relevant to the activity being undertaken to qualify as a “Competent Person”, as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and consents to the inclusion in this report of the matters reviewed by him in the form and context in which they appear.

For further information regarding Buxton Resources Limited please contact:

Anthony Maslin Jodi Haslinger Managing Director Joint Company Secretary [email protected] [email protected]

Buxton Resources Ltd 50 Derby Road Subiaco WA 6008

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Ph; 08 9380 6063 Fax; 08 9381 4056