BUXTON RESOURCES LIMITED — Capital/Financing Update 2013

Sep 8, 2013

9[th] September 2013

ASX Release

VTEM INDICATES COMPELLING NI-CU SULPHIDE DRILL TARGETS AT ZANTHUS

Highlights

• Recently completed VTEM survey results, combined with gravity and magnetic data, indicates numerous, compelling Ni-Cu sulphide drill targets

• Total of 20 possible bedrock conductors identified to date, with 13 classed as high priority targets

• Bulls-eye shallow & moderately dipping conductors associated with gravity highs and interpreted intrusive bodies

• Reconnaissance fieldwork confirms presence of mafic rocks

• Ground EM and surface geochemistry programs commencing immediately to further define targets for drilling Q1 2014

==> picture [463 x 309] intentionally omitted <==

Figure 1. Late-time airborne VTEM image. Conductors ZV01 & 14 are targets that have flat-lying to complex geometries that could represent magmatic sulphide bodies.

PO Box 9028 Subiaco WA 6008

Suite 1, First Floor Tel: 08-9380 6063 14-16 Rowland Street Fax: 08-9381 4056 Subiaco WA 6008

www.buxtonresources.com.au info@buxtonresources.com.au

Summary

==> picture [228 x 71] intentionally omitted <==

Buxton Resources Limited (ASX: BUX & BUXO) is pleased to provide results of the recently completed VTEM survey over its 100%-owned Zanthus Ni-Cu Project, located 60km along strike from Sirius Resources’ (ASX: SIR) Nova-Bollinger Ni-Cu discovery in the emerging Fraser Range Nickel Province, Western Australia.

A total of 20 interpreted bedrock conductors have been identified in the VTEM dataset, with 13 of these deemed high-priority (Figure 2, Table 1).

VTEM survey

The Company’s geophysical contractors surveyed a total 574 line km in the south-western portion of the Zanthus tenement with the airborne VTEM max system. The area was selected for the VTEM survey through analysis of magnetic, gravity, geological and geochemical datasets gathered by Buxton and previous explorers (see below “Systematic Exploration Approach at Zanthus”).

Some of the more compelling high-priority VTEM targets include:

• ZV01 Strong bedrock conductor near the margin of a gravity high. Irregular shape and orientation - dip direction changes between lines, plunges to the south.

• ZV08 Steeply dipping and near-surface bedrock conductor. Close to folded magnetic sequence, high gravity response and regional shear zone.

• ZV16 Discrete, late-time anomaly bound by regional shears with coincident localised gravity anomaly.

• ZV05 Discrete anomaly on the flank of a broader, possibly stratigraphic response. Located on the margin of a localised gravity anomaly.

In addition to the VTEM conductors identified, a number of other gravity/magnetic and geochemical targets without VTEM anomalies were previously identified through the Company’s systematic exploration approach (refer ASX announcement 4[th] April 2013).

Forward Work Program

The geology at Zanthus has been shown to be very complex but potentially favourable for the occurrence of Ni-Cu magmatic sulphide deposits. The Company expects numerous phases of systematic work, including multiple drill programs, will be required to adequately test all of the targets identified to date, and additional targets that may emerge through further work.

Buxton’s ongoing exploration program will include:

• Systematic ground EM survey over all high-priority targets - planned to commence 11[th] September 2013.

• Systematic, detailed surface geochemical sampling over high-priority targets and other areas of favourable geology – planned to commence around 18[th] September 2013

• Initial drilling program to test highest priority targets refined by ground EM and geochemical sampling programs above – planned for Q1 2014

==> picture [595 x 272] intentionally omitted <==

==> picture [595 x 271] intentionally omitted <==

Figure 2: 13 high-priority interpreted bedrock VTEM conductors over magnetic image.

Systematic Exploration Approach at Zanthus

==> picture [228 x 71] intentionally omitted <==

Buxton’s Managing Director, Anthony Maslin, commented:

“Our team and consultants are very excited about the Zanthus Project and we look forward to the commencement of the initial drill program in Q1 2014. We believe the number and complexity of the targets identified offers excellent potential for large scale nickel – copper sulphide deposits. Continued systematic exploration at Zanthus and across our extensive Albany-Fraser Orogen exploration package places Buxton in an excellent position to discover large scale nickel-copper sulphide deposits.”

A systematic exploration approach has led the Company to the above-mentioned compelling targets for Ni-Cu sulphide mineralisation. Elements of this systematic exploration program completed to date include:

Initial technical review: of open-file magnetic, geological and surface geochemical data. This review identified possible intrusive bodies, some with remanently magnetised zones, suggesting potential for multiple magma pulses over a long period of time. These types of magnetic signatures are characteristic of the Ni-Cu-hosting intrusive rocks at the Voisey’s Bay and Noril’sk complexes (refer ASX announcement 4[th] April 2013).

Gravity survey: commissioned by Buxton to cover the SW part of the tenement at 200m x 200m grid spacing. Initial interpretation identified a number of zones that exhibit variably intense gravity anomalies, many in association with remanently magnetised zones and other favourable geological features (refer ASX announcement 19[th] June 2013).

Field reconnaissance: recent (August 2013) visit by Company’s geologists covered main gravity and magnetic targets. Very little outcrop is evident in the area, however, potentially favourable, although very weathered, mafic rocks were identified over one gravity anomaly, whilst all other potential targets visited showed no outcrop of bedrock.

HeliVTEM survey : covered 145km[2] and was flown at 250m spacing using the VTEM max system. The survey area was focused on areas of possible mafic-ultramafic intrusive bodies identified in the recent gravity survey. Numerous compelling targets were identified, as described in the section above (also refer Figures 1 & 2).

Conclusion

The Zanthus Project has been shown to have numerous favourable features in terms of the potential for discovery of magmatic nickel-copper sulphide deposits. These include:

• Complex geology with numerous ovoid, potentially mafic intrusive bodies interpreted from regional magnetics

• Associated gravity highs and remanent magnetism

• Confirmed mafic rocks

• Metal anomalism in rock-chip and calcrete samples

• Numerous VTEM conductors in potentially favourable geological positions and orientations

Table 1. List, description and ranking of all potential bedrock VTEM conductors at Zanthus.

Name	Priority	East_MGA51	**North_MGA51 **	Description
ZV01	1	581260	6523400	Strong bedrock conductor near the margin of a gravity high. Irregular shape and orientation - dip direction changes between lines, plunges to the south. Possible near surface expression on L1460 (581000mE). Weaker response L1490 and L1480. Strong response L1470 and peak response L1460.
ZV02	1	578840	6523400	Discrete anomaly near shearzone, L1460. Single line anomaly, appears late in time(bedrock response)with a near verical dip.
ZV03	1	576430	6524400	Discrete, late-time anomaly L1420. Requires ground TEM follow-up.
ZV04	1	576550	6525150	Discrete, late time anomaly L1390. On the edge of a broader flat conductor. Requiresground TEM follow-upto confirm.
ZV05	1	574170	6525400	Discrete , anomaly on the flank of a broader (?stratigraphic) response, line L1380. Located on the margin of a localisedgravityanomaly.
ZV06	1	576380	6526900	Large strongly conductive zone from L1360 to L1320 striking NE ~ 1.4 km in length. Coincident with magnetic remanence and gravity target Z- 06. Response varies strongly along strike, shallow response on line 1320 - test withground TEM.
ZV07	1	574200	6527150	Conductive zone striking N-S for ~500m. Strong response on L1310 and weaker response on L1320 and off-line response on L1300. Located near regional shear.
ZV08	1	581520	6527900	Steeply dipping and near-surface bedrock conductor. L1270 (581485mE) steep easterly dip. L1280 (581520mE) sub-vertical. Close to folded magnetic sequence, high gravity response and regional shear zone.
ZV09	2	577750	6529150	Small single peak anomaly on the margin of larger surficial conductor. Possiblysystem noise - requires confirmation?
ZV10	1	576610	6530150	N-S striking anomaly over 1.3km on the margin of gravity target Z-05. Bound by regional shears. Test line 1190 (shallowest response) with ground TEM.
ZV11	1	576450	6531650	Steep east dipping conductor, lines L1130 and L1140. Possibly a stratigraphic conductor with a very large depth extent. Located on the margin of a strong gravity anomaly. Shallowest and strongest response L1130 - test withground TEM
ZV12	2	578165	6526650	Very conductive zone on the margin of what is a larger, possibly stratigraphic, conductor - test withground TEM L1330
ZV13	2	579220	6523900	Strong steep (easterly) dipping conductor on regional shear, strong and broad response on lines L1440 and L1430 - possibly stratigraphic, test withground EM on L1440
ZV14	1	580500	6523900	Discrete, weakly to moderately conductive response on L1440. Located alongthe margin of a highgravityresponse
ZV15	1	575890	6524650	Discrete, late-time anomaly L1410. Requires ground TEM follow-up.
ZV16	1	579870	6526900	Discrete, late-time anomaly line L1320. Bound by regional shears with coincident localisedgravityanomaly.
ZV17	2	579522	6521900	Likely stratigraphic conductor, close to surface and dipping east. Test withground TEM L1520.
ZV18	2	583200	6522700	Likely stratigraphic conductor, extends >2km in strike length in N-S direction. Thick, shallow and steeply dipping with very large depth extent (?conductive sediment). Strongest response L1490. Could be modelled and drilled with VTEM data if considered of interest.
ZV19	2	573580	6531150	Possible thick stratigraphic conductor or multiple conductors? Located near folded magnetic sequence and discrete gravity anomaly. Requires ground TEM is considered of interest.
ZV20	2	574200	6532150	Possible stratigraphic conductor? Located near broad gravity high (thin cover?). Possibly part of a broader response that include ZV19 as part of a thick conductive sediment?

Potential sources of conductivity anomalies

==> picture [228 x 71] intentionally omitted <==

The VTEM anomalies observed in the survey may relate to:

• Surficial conductors – clay rich layers and saline ground-water in drainage (present or paleo).

• Stratigraphic conductors – conductive sediments, typically carbonaceous / graphitic or sulphidic (meta-)sediments.

• Structural – shear-zones, contacts or faults, preferentially weathered, invaded by saline groundwater and/or clays or possibly mineralised with conductive mineralisation (graphite or sulphides).

• Sulphide bodies / veins or layers – massive, stringer or thick-matrix or blebby mineralisation with sufficient size and electrical connectivity to generate a response.

About Buxton’s Projects

Zanthus Ni-Cu Project (100% Interest)

The Zanthus Ni-Cu Project is located 60km along strike from Sirius Resources’ (ASX: SIR) Nova-Bollinger Ni-Cu discovery in the emerging Fraser Range Nickel Province, Western Australia. The project covers an area of 367km[2] . Gravity and VTEM data was gathered over an area of 137km[2] of that may contain similar mafic – ultramafic intrusive rocks to those that host the Nova-Bollinger deposit.

Widowmaker Ni-Cu Project (100% Interest)

The Widowmaker Ni-Cu Project is located approximately 22km along strike from Sirius Resources’ (ASX: SIR) Nova-Bollinger Ni-Cu discovery in the emerging Fraser Range Nickel Province, Western Australia. The project covers an area of 225km[2] , and over 20km of potential strike of the gneiss units that host “the Eye” mafic – ultramafic intrusive that contains the NovaBollinger deposit.

Yalbra Graphite Project (85% - 100% Interest)

The Yalbra Graphite Project is located 250km North West of Meekatharra and 280km East of Carnarvon, Western Australia, and covers an area of 37km[2] . The Yalbra Graphite Project has a significant preliminary global Exploration Target of 8-12 Million Tonnes @ 7 - 11% TGC (total graphitic carbon)*.

* 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.

Dempster Project (90% – 100% Interest)

The Company recently applied for two additional tenements adjacent to Dempster, E63/1363 and E63/1596. The E63/1364 application is 314km[2] and is located to the North of the existing Dempster tenements. The Dundas tenement application E63/1596 is 202km and is located 95km[2] South-west of Sirius’ Nova discovery bordering the Albany – Fraser Orogen. Recent exploration activity by other companies in this area suggests significant potential for base metals and gold mineralisation.

Northhampton Base Metals Project (100% Interest)

==> picture [228 x 71] intentionally omitted <==

The Northampton project area is located 477km North of Perth, along the Northwest Coastal Highway between Geraldton (in the South) and Ajana (in the North). The main target commodities in this project are Cu, Pb, Zn, and Au. The principal target style is structurally controlled polymetallic sulphide veins and pods.

ASX Code – BUX, BUXO Market Cap @ 22cps - $10.79m Issued shares – 54.5m Cash - $3.8m (at 30 June 2013)

For further information regarding Buxton Resources Limited please contact:

Anthony Maslin

Managing Director amaslin@buxtonresources.com.au

Competent Persons

The information in this report that relates to exploration results, exploration targets and geology is based on information compiled and/or reviewed 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 2012 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.

The information in this report that relates to Geophysical Results and Interpretation is based on information compiled and/or reviewed by Mr Bill Peters, Fellow of the Australasian Institute of Mining and Metallurgy and Chartered Professional (Geology). Mr Peters has sufficient experience which is relevant to the activity being undertaken to qualify as a “Competent Person”, as defined in the 2012 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.