BUXTON RESOURCES LIMITED — Capital/Financing Update 2015

Oct 7, 2015

ASX Release

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8[th] October 2015

DOUBLE MAGIC NI-CU PROJECT – PHASE 2 DRILLING COMPLETED

• Phase 2 RC and diamond core drilling has been completed

• A medium to high grade Ni-Cu sulphide body at Conductor D has been defined on three sides but remains open to the north-west

• The last step out hole drilled at Conductor D (diamond core hole DMDD0004) intersected 8 metres of visible Ni-Cu sulphides from 45m down hole, including 0.4m of massive sulphide from 48.1m. This intersection is approximately 35 metres north-west of that in discovery hole DMRC0003

• Weakly disseminated sulphides and minor massive sulphides were also intersected in the diamond core hole drilled at Conductor C

• Heli-borne VTEMmax data acquisition completed

• Downhole HP TEM surveys currently underway

• Laboratory assays are pending and expected within weeks

Buxton Resources Limited (ASX: BUX & BUXO) advises that the Phase 2 drilling program and most related field programs at the Double Magic Ni-Cu Project (location in Figure 4) are complete, with only down-hole HP TEM surveys ongoing.

The Phase 1 and 2 programmes have yielded a vast amount of new information including encouraging results at Conductors D and C. The presence of high to very high grade Ni-Cu sulphides in the area has been confirmed. On the strength of this, and as no exploration of any kind has yet been completed outside the relatively small area of historic interest around Jack’s Hill, Buxton also considers the untested potential of its regional tenements to be outstanding.

Receipt of laboratory assays will enable full assessment of drilling results, this coupled with evaluation of both local DH TEM and the historic, regional new VTEM dataset will drive planning of the next program of works for the Double Magic Ni-Cu Project.

Drilling Update

A further 580 metres of RC drilling in 4 holes (DMRC0021, 22, 23 and 24) has been completed at three targets since Buxton’s last ASX announcement on 21[st] September 2015. This brings the Phase 2 RC total to 1,790 m in 15 holes, and Buxton’s RC drilling total at Double Magic to 3,123 m in 24 holes, testing 9 targets. See Figure 3 for a map of the area of work.

Phase 2 RC drilling successfully employed additional downhole stabiliser equipment, preventing excessive drillhole deviation like that encountered during Phase 1 work.

A total of 495.3 metres of orientated HQ diamond core drilling has also now been completed in 4 holes at Conductors D and C.

Laboratory assays for all Phase 2 drillholes are pending, reporting of those is expected over the coming weeks.

PO Box 9028 Suite 1, First Floor Subiaco WA 6008 14-16 Rowland Street Subiaco WA 6008

Tel: 08-9380 6063 Fax: 08-9381 4056

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

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See Table 1 for a complete list of all drillholes completed by Buxton, and Figure 3 for an overall plan of the area of drilling to date.

This last part of Phase 2 drilling was designed to test the geometry and along-strike extensions of the Conductor D mineralisation, as well as following up at existing geophysical targets.

Buxton provides this drilling update based on visual assessment only as laboratory results are pending. The company also reminds readers that mineralised intercepts reported are not to be considered as true thicknesses.

Conductor D

DMRC0021 was collared 85 metres south-west of DMRC0003 at -70[o] inclination towards 015, intersecting only minor sulphides from 52-54m downhole. DMRC0024 was collared 75m south-south-west of DMRC003 at -70[o] inclination towards 080, intersecting 6 metres of moderate sulphides from 55m downhole.

Diamond core holes DMDD0001 and 2 were drilled to twin discovery RC holes DMRC0003 and 17 respectively, duplicating the original intersections and successfully obtaining orientated core of disseminated, net-textured massive matrix, and massive sulphide.

Diamond core hole DMDD0004 was drilled from the same pad as DMRC0019, 35 metres west-south-west of DMRC0003, but angled at -60[o] inclination towards 335 to test the north-western extent of mineralisation. It intersected 8 metres of low to moderate levels of sulphides from 44.8m downhole, including a 0.4m massive sulphide vein from 48.1m (approximately 35 metres north-west of the discovery intersection in DMRC0003), before entering the barren dolerite dyke at 60.5m downhole.

See Figure 1 below for a cross section of the Conductor D area, Figure 2 for a plan of the same area, and Table 1 at the end of this document for a full list of all drillholes completed by Buxton to date.

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Figure 1 – Conductor D cross-section (bearing 040) showing drillholes with visual sulphide estimates, Ni/Cu assays where available, and interpreted geology. Section view envelope width restricted to 15 metres (+/-7.5m) around intersections for clarity

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Figure 2 – Conductor D plan view, showing drillhole collars & traces with interpreted surface geology.

Other Conductors

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Diamond core hole DMDD0003 was drilled at Conductor C targeting a complex zone of conductors identified by downhole TEM and the large loop HP FLTEM survey, above and to the east of the intersections in DMRC0004. The new hole intersected a zone of weakly disseminated sulphides from 143-175m downhole, with a 0.2m massive sulphide vein from 144m downhole.

Hole DMRC0022 was drilled at Conductor I to follow up moderately promising results in DMRC0018 (as reported on 21[st] September 2015), however the new hole, angled more westerly, intersected only traces of sulphides between 130-140m downhole.

Hole DMRC0023 was drilled between Conductors A and B, testing two remodelled plates identified by the large loop HP FLTEM survey. Low to moderate levels of sulphides were observed from 222-227m downhole but the second plate appears not to have been intersected.

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Figure 3 – General plan view of the central part of the Double Magic project, showing conductors, Buxton drill hole collars, and interpreted geology.

Geophysics

Flying of the heliborne VTEMmax survey over the balance of Buxton’s tenements (~55km[2] ) at 100 metre line spacing has just been completed. Checking and processing of data is underway. This historic survey is the first exploration of any kind in the region outside the relatively small area of past and present interest around Jack’s Hill.

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Down-hole HP TEM surveying of nine selected Phase 2 drillholes (including two diamond core holes) is presently underway, completion anticipated within a few days.

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Table 1 – Buxton’s completed drilling at Double Magic. Coordinates are MGA Zone 51 (GDA94)

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Figure 4. Location of the Double Magic Ni-Cu Project in Western Australia. Also shown is the location of Panoramic’s Savannah Ni-Cu Mine.

For further information regarding Buxton Resources Limited please contact:

Sam Wright

Company Secretary

sam@buxtonresources.com.au

Competent Person

The information in this report that relates to Exploration Results is based on information compiled by Mr Rolf Forster, Member of the Australasian Institute of Mining and Metallurgy, and Mr Derek Marshall, Member of the Australian Institute of Geoscientists. Mr Forster is an Independent Consultant to Buxton Resources Limited and Mr Marshall is a full-time employee. Mr Forster and Mr Marshall have sufficient experience which is relevant to the activity being undertaken to qualify as a “Competent Person”, as defined in the 2012 edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Forster and Mr Marshall consent to the inclusion in this report of the matters based on the information in the form and context in which it appears.

JORC Table: Section 1 – Sampling Techniques and Data

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Criteria	JORC Code explanation	Commentary
Sampling techniques	Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down-hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.	Early stage exploration drilling at the Double Magic project has been undertaken utilizing a Reverse Circulation Percussion (RC) rig, and an HQ diamond core wireline rig equipped with core orientation equipment. The drillhole locations are picked up by handheld GPS. Surveying by licensed surveyor is underway. Sampling was carried out under Buxton protocols and QAQC procedures are per industry best practice. RC drilling was sampled on 1m intervals. A rig mounted cyclone and cone splitter was used to provide a bulk sample and a representative split sample for assay. Either the 1m split or a composite (hand speared) sample was collected for assay purposes. Core sample lengths vary up to 1 metre, quarter HQ core submitted for analysis. Samples are submitted to Intertek Genalysis in Perth for analysis. A standard dry, crush and pulverize was followed by a 25g charge for fire assay with an ICP-MS finish for Au, Pt, Pd and a four-acid digestion finished with ICP-OES for a suite of 33 elements.
	Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
	Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.
Drilling techniques	Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	At the Double Magic Project, since July 2015, WBH Drilling has completed a total of 24 holes for 3,123m of bit-face sampled RC drilling. Terra Drilling has completed 4 HQ diamond core holes for a total of 495.3m. All core orientated by downhole spear. All holes downhole surveyedgenerallyon 30 metre intervals.
Drill sample recovery	Method of recording and assessing core and chip sample recoveries and results assessed.	The RC bulk sample recovery is routinely examined for representivity. It is not believed that any bias has occurred due to loss or gain of sample. All core was measured on-site, recoveries calculated and reconciled with driller’s plods.
	Measures taken to maximise sample recovery and ensure representative nature of the samples.
	Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.
Logging	Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.	All drill holes are geologically logged in real time by qualified and experienced geologists, recording relevant data to a set template. All logging included lithological features, mineral assemblages and estimated mineralization percentages. All data was codified to a set of company code systems. All core is orientated, RQD logged, all structural data measured and recorded. All chips and core are photographed.
	Whether logging is qualitative or quantitative in nature. _Core(or costean, channel, etc) photography. _
	The total length and percentage of the relevant intersections logged.
Sub-sampling techniques and sample preparation	If core, whether cut or sawn and whether quarter, half or all core taken.	All RC 1m intervals were split with a rig mounted cone splitter. Less mineralised analysis samples were prepared as multiple metre (generally 4m composites) spear samples. All HQ core was sawn at a constant angle to orientation markings, sampled to geological boundaries, up to a maximum of 1 metre in length. Quarter core submitted for assay. Sample preparation is consistent with industry best practice. Field QC procedures involved the use of certified reference material assay standards, blanks and duplicates for company QC measures, and laboratory standards, replicate assaying and barren washes for laboratory QC measures. The insertion rate of each of these QAQC measures averaged 1:20. The sample size is deemed appropriate for the material and analysis method.
	If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.
	For all sample types, the nature, quality and appropriateness of the samplepreparation technique.
	Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.
	Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.
	Whether sample sizes are appropriate to the grain size of the material being sampled.
Quality of assay data and laboratory tests	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.	The samples were analysed at Intertek Genalysis in Perth, Australia. Sample preparation included drying, crushing, splitting and pulverizing. A four acid digest followed by a 33 element ICP analysis was conducted on all samples. The samples were also analysed byFire

Assay with an ICP finish for Au, Pt and Pd. The laboratory procedures are considered to be appropriate for reporting according to industry best practice.

		Assay with an ICP finish for Au, Pt and Pd. The laboratory procedures are considered to be appropriate for reporting according to industry best practice.
	For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.	Not applicable.
	Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	The results of the laboratory-inserted standards, blanks and sample repeats demonstrate the accuracy and precision of methods employed.
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel.	Significant mineralization has been verified by independent consultants and alternative company personnel.
	The use of twinned holes.	Two RC holes (DMRC0003 and 17) have been twinned by HQ diamond core holes DMDD0001 and 2 respectively, confirming mineralization in both cases. Core has been logged but not sawn for sampling as geological work is ongoing.
	Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	All data is collected initially on paper and handheld GPS. This data is hand entered to spread sheets and validated by Company geologists. This data is then imported and validated using MapInfo software. Physical data sheets are stored at the company office. Digital data is securely archived on and off-site.
	Discuss any adjustment to assay data.	No adjustments to assay data have been made.
Location of data points	Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.	Handheld GPS (+/-5m) as well as reference to topographical and remote sensing data. Drillhole collar pickup by licensed surveyor is underway.
	Specification of thegrid system used.	MGA51(GDA94).
	Quality and adequacy of topographic control.	Topographic elevation was recorded via handheld GPS and checked against remote sensing data, this is deemed sufficient for this stage of exploration.
Data spacing and distribution	Data spacing for reporting of Exploration Results.	Drill holes are based on geophysical targets and not equally spaced. Follow-up holes are close to very closely spaced (20 metres or less). Samples from DMRC003 were taken as 1m splits for the entire hole. Core sample lengths variable but no more than 1 metre. Not applicable – No Mineral Resource or Ore Reserve calculations have been performed.
	Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimationprocedure(s) and classifications applied.
	Whether sample compositing has been applied.
Orientation of data in relation to geological structure	Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.	Information from orientated core indicates that drillhole orientation is appropriate for disseminated and massive matrix mineralization. Massive sulphides often appear amorphous in geometry All mineralized intervals are down hole intervals, not true width.
	If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.
Sample security	The measures taken to ensure sample security.	Samples were packaged and stored in secure storage from the time of gathering through to submission. Laboratory best practice methods were employed by the laboratory upon receipt. Returned pulps will be stored at a secure companywarehouse.
Audits or reviews	The results of any audits or reviews of sampling techniques and data.	No audits of the sampling techniques or data were carried out due to the early stage of exploration. It is considered by the Company that industry best practice methods have been employed at all stages of the exploration.

Section 2 – Reporting of Exploration Results

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties,	The Double Magic Project is located in the Kimberley region of Western Australia and consists of four exploration licences (E04/1533, E04/2142, E04/2026 & E04/2060)held byAlexander Creek PtyLtd. Alexander

	native title interests, historical sites, wilderness or national park and environmental settings.	Creek Pty Ltd is a wholly (100%) owned subsidiary of Buxton Resources Limited.
	The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	The tenements are in good standing with the DMP and there are no known impediments for exploration on these tenements.
Exploration done by other parties	Acknowledgment and appraisal of exploration by other parties.	Data used during the appraisal of the Double Magic Project (previously known as the Alexander Creek Project, Clara Hills, Jack’s Hill, Limestone Springs & Maura’s Reward) has been collected by numerous exploration parties, including Alexander Creek Pty Ltd, Victory Mines Limited (ASX:VIC), Proto Resources and Investments Limited (ASX:PRW), and Ram Resources Limited (ASX:RMR). All geophysical data has been independently reviewed by Southern Geoscience Consultants. Any historical data presented has been previously reported under JORC 2004 and there has been no material change.
Geology	Deposit type, geological setting and style of mineralisation.	The Project area lies within the Palaeoproterozoic Hooper Province of the King Leopold Orogen in the Kimberley region of Western Australia. The geology of the Project is characterized by mica schists of the Marboo Formation which are intruded by thick sills of the Ruins Dolerite. The Ruins Dolerite is a medium- to fine-grained mafic-ultramafic intrusive that is host to the known nickel-copper sulphide mineralization. This mineralization is interpreted to represent primary orthomagmatic sulphide mineralization, however there appears to be significant re-working and alteration of the mineralization in places (in particular at the Jack’s Hill Gossan where the mineralization is dominated by copper carbonates and contains limited nickel). Importantly the gossan at Jack’s Hill does not have an electromagnetic (EM) signature, whereas the EM targets tested to date all appear to be due to nickel and copper enriched sulphide mineralization.
Drill hole Information	A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:	See Table 1 in body of release.
	o_easting and northing of the drill hole collar_
	o_elevation or RL (Reduced Level – elevation above sea_ level in metres) of the drill hole collar
	o_dip and azimuth of the hole_
	o_down hole length and interception depth_
	o_hole length_
	If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.
Data aggregation methods	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.	No weighting, truncations, aggregates or metal equivalents were used.
	Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.
	The assumptions used for any reporting of metal equivalent values should be clearly stated.
Relationship between mineralisation widths and intercept lengths	These relationships are particularly important in the reporting of Exploration Results.	The relationship between the true mineralization width and intercept length is not known at this early stage of drilling, however true width of the intercepts in most holes is interpreted to be less than intercept length.
	If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

		If it is not known and only the down hole lengths are
		reported, there should be a clear statement to this effect
		(eg ‘down hole length, true width not known’).
	Diagrams	Appropriate maps and sections (with scales) and	Refer to figures/tables in body of release.
		tabulations of intercepts should be included for any
		significant discovery being reported. These should include,
		but not be limited to a plan view of drill hole collar
		locations and appropriate sectional views.
	Balanced reporting	Where comprehensive reporting of all Exploration Results	All currently available exploration results have been
		is not practicable, representative reporting of both low	reported.
		and high grades and/or widths should be practiced to
		avoid misleading reporting of Exploration Results.
	Other substantive	Other exploration data, if meaningful and material,	There is no other exploration data that is deemed to be
	exploration data	should be reported including (but not limited to):	meaningful or material.
		geological observations; geophysical survey results;
		geochemical survey results; bulk samples – size and
		method of treatment; metallurgical test results; bulk
		density, groundwater, geotechnical and rock
		characteristics; potential deleterious or contaminating
		substances.
	Further work	The nature and scale of planned further work (eg tests for	See text in body of release.
		lateral extensions or depth extensions or large-scale step-
		out drilling).
		Diagrams clearly highlighting the areas of possible	See modelled conductors in Figures within the text of
		extensions, including the main geological interpretations	this report. Additional zones of interest may be
		and future drilling areas, provided this information is not	established based on geological information (such as
		commercially sensitive.	drilling or downhole data). Regionally, the extensive
			land package containing significant exposure of the
			nickeliferous host lithology the Ruin’s Dolerite are of
			exploration interest.