BUXTON RESOURCES LIMITED — Interim / Quarterly Report 2013

Jul 25, 2013

ASX Release

26[th] July 2013

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Quarterly Activities Report For the period ending 30 June 2013

HIGHLIGHTS:

Zanthus Ni-Cu Project

• Multiple high priority Ni-Cu sulphide targets identified in gravity survey

• A total of 15 target areas have been identified, with 3 of these designated high priority (priority 1) targets

• The gravity survey was designed to identify areas of dense rock types that could represent composite mafic-ultramafic intrusive rocks favourable for Ni-Cu mineralisation of the Voisey’s Bay and Nova-Bollinger type

• All targets identified to be followed up with a potential combination of airborne VTEM, ground EM and calcrete surface sampling over the coming months

Widowmaker Ni-Cu Project

• Total of 1,876m drilled in 9 holes on 8 ground EM targets

• Laboratory analytical results show anomalous multi-metal signature suggesting potential for gold mineralisation along regional shear zones.

• The gold signature is encouraging and will be followed up with systematic exploration

Yalbra Graphite Project

• Program of Works approved for drilling

Northampton Base Metals Project

• Application lodged over key area covering historic mining areas

Corporate

• Cash balance as at 30 June 2013 of $3.8 million sees Buxton well funded into 2014

Events Subsequent to the Completion of the Quarter

• Stuart Fogarty appointed as Non-Executive Director - enhances Nickel expertise of the Company

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

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Zanthus Project E28/1959 (100% Buxton) E28/2201 (100% Buxton)

On 19th June 2013, the Company announced that results for the gravity survey carried out at the Zanthus Ni-Cu Project had been received.

Data was acquired over a total of 3,539 unique gravity stations covering the SW part of the tenement at 200m x 200m grid spacing. Preliminary interpretation identified 15 target areas (Figure 1, Table 1) that demonstrate variably intense gravity anomalies, many in association with remanently magnetised zones and other favourable geological features.

Priority 1 targets include;

• Z-01: Very strong remanent magnetisation with coincident gravity high located on fold axis of dome structure and margin of a large intrusive body. Surface copper geochemistry high 112ppm.

• Z-02: Magnetic features including discrete positive anomalies and remanent magnetisation. Localised gravity high located along fold axis of large dometype structure on the margin of intrusive body.

• Z-06: Moderate to weak magnetic remanence on the margin of intrusive body. Located along regional shear zone with both broader and discrete gravity highs. Surface nickel geochemistry high 95 ppm.

The apparent intrusive bodies and associated rocks identified in the gravity and magnetic data have both positive magnetic response (induced magnetism) and negative magnetic signatures (remanent magnetism), suggesting potential for multiple magma pulses over long periods of time. These types of magnetic signatures, in association with gravity anomalies are characteristic of the Ni-Cu-hosting intrusive rocks at the Voisey’s Bay and Noril’sk complexes.

The Company intends to follow up all targets identified with a potential combination of airborne VTEM, ground EM and calcrete surface sampling over the coming months.

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Figure 1: Gravity-magnetic Ni-Cu targets in the SW part of the Zanthus Project

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Table 1: Ni-Cu target zones identified from preliminary interpretation of gravity and magnetic datasets over the Zanthus Project

Name	Priority	Description
Z‐01	high	Very strong remanent magnetisation. Broad gravity high (+4 mGal) with smaller localised anomalies. Located on a fold axis of a dome structure and the margin of a large intrusive body, also bound by regional shears. Regional copper geochem high 112ppm
Z‐02	high	Magnetic features including discrete positive anomalies and remanent magnetisation. Localised gravity high (+1.5 mGal). Located along fold axis of large dome‐type structure on the margin of an intrusive body.
Z‐03	moderate	Very strong magnetic remanence along regional shear zone. Broader regional gravity highs with minor discrete positive anomalies around the margins of the remanence. Located on the margin of larger intrusive body.
Z‐04	moderate	Very strong remanent magnetisation along regional shear. Associated with broad gravity high and smaller discrete gravity anomalies (+1 to 1.5 mGal). Located on the margin of larger intrusive body
Z‐05	moderate	Moderate magnetic remanence located on the margin of intrusive and bound by regional shears
Z‐06	high	Moderate to weak magnetic remanence on the margin of intrusive. Located along regional shear zone with both broader and discrete gravity highs. Regional geochem nickel high (+95 ppm)
Z‐07	moderate	Strong and broad gravity high (?indicating mafic lithology) bound by regional shears
Z‐08	moderate	Coincident remanent magnetisation and discrete gravity high (+1mGal)
Z‐09	low	Broad gravity high (+3mGal) with smaller discrete anomalies along shear zone
Z‐10	moderate	Discrete gravity anomaly (+3 mGal)
Z‐11	moderate	Discrete gravity anomaly (+1.5 mGal)
Z‐12	moderate	Coincident remanent magnetisation and gravity anomaly
Z‐13	low	Broad gravity high (+2 mGal)
Z‐14	low	Broad gravity high (+5 mGal)
Z‐15	low	Discrete magnetic high and density low associated with large intrusive body

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Widowmaker Nickel-Copper Project E28/2201 (100% Buxton)

On 22[nd] April 2013, the Company reported that the ground electromagnetic (EM) survey at the Widowmaker Ni-Cu project had delineated a further two moderate to strong conductors, taking to 8 the total number of significant targets.

On 4th July 2013, the Company announced that it completed its maiden RC drilling program at its Widowmaker Project in the Fraser Range nickel province (Table 2). At total of 9 holes were drilled on 8 targets for 1,876m.

All 8 conductors were explained as being due to either pyrite (iron sulphide) or graphite, or a combination of the two (Figure 2). The major rock type intersected was biotite-garnet gneiss and no evidence of mafic-ultramafic intrusive rocks was found.

However, laboratory results have now been received by the company, and in association with minor logged quartz veining, indicate potential for gold mineralisation along regional shear zones in the area. The best gold result was;

• WMRC0003: 8m @ 0.21g/t Au including 4m @ 0.37g/t Au (from 92m)

Significantly, a widespread anomalous metals signature of Au-Ag-As-Cu-Mo-PGE occurs in at least five separate intercepts ranging from 12m to 24m in down-hole width in four different drillholes – WMRC0001, 2, 3 & 8. Peak results over 4m composites were Au 0.37 g/t, Ag 2.1 g/t, As 209 g/t, Cu 467 g/t (0.05%), Mo 37 g/t and 2PGE (Pt + Pd) 0.016 g/t.

Whilst the Company has not intersected any significant nickel or copper sulphides, it is encouraged by the potential for gold mineralisation to occur at Widowmaker. Buxton now plans to follow up historical surface multi-element geochemical anomalies with infill sampling in order to better define potential gold targets, whilst continuing to assess the nickel-copper potential of the project.

The low cost RC drill program was partly funded by the West Australian Government’s Royalty for Regions Exploration Incentive Scheme which will contribute a maximum of $150,000 towards the drilling at the Widowmaker Project.

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Figure 2: Location of RC drill-holes and EM conductors

Hole ID	Easting	Northing	Dip (degrees)	Azimuth (degrees)	Depth (m)
WMRC001	542301	6498390	60	135	202
WMRC002	542591	6498862	60	135	262
WMRC003	543908	6493711	60	135	214
WMRC004	538974	6497244	80	135	160
WMRC005	538535	6497541	80	135	130
WMRC006	537743	6497355	80	315	288
WMRC007	537305	6500185	70	135	328
WMRC008	543941	6500538	60	135	196
WMRC009	547430	6500309	90	0	96

Table 2: RC drill-hole collar and depth information.

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Yalbra Project

E09/1986 (85% Buxton), Coordewandy (90% Buxton), Gum Creek Well (100% Buxton)

Yalbra

During the quarter the Department of Mines and Petroleum approved the Program of Work (PoW) for the RC drilling program scheduled for the second half 2013. The drilling program is designed to test the southern conductor “main zone” and the newly identified northern conductor (Figure 3).

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] . Buxton has recently expanded its strategic ground holdings via agreements to acquire the Coordewandy and Gum Creek Graphite Projects along strike from Yalbra “main zone” target.

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.

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Figure 3: Yalbra’s main southern zone and the newly identified northern zone

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- Dempster Dundas Project

Dempster E63/1582 (90% Buxton), E63/1595, E63/1525 (100% Buxton), Dundas E63/1596, E63/1634 (100% Buxton)

The Company acquired two additional tenements adjacent to Dempster, E63/1634 and E63/1596. The E63/1634 application is 314 km² and is located to the North of the existing Dempster tenements.

The Dundas tenement application E63/1596 is 202km² and is located 95km South-west of Sirius’ Nova discovery bordering the Albany – Fraser Orogen. This takes the company’s landholding in and around the Fraser Range Complex up to 1,841km² (Figure 4).

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Figure 4: Buxton tenements over regional magnetic image.

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Northampton Base Metals Project (100% Buxton) E66/86, E66/87

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 Northampton project area includes two tenements stretching from Geraldton to Ajana, E66/86 and E66/87 for a total area of 836 km[2] (Figure 5). The main target commodities in this project are Cu, Pb, Zn, Ag and Au. The principal target style is structurally controlled polymetallic sulphide veins and pods.

The Northampton area has been explored and mined since the early 1800s, with mining commencing in 1842. The majority of which are centred on the towns of Northampton and Pindadanno in the Galena area.

Recorded historic production from all mines was approximately 77,000t of lead, 4,300t of copper, 42t of zinc, and 210kg of silver. Mining concentrated predominantly on lead and copper; zinc ore was discarded and ignored in exploration due to its low value at the time.

Most of the more recent (1970’s to present) exploration in the area has involved detailed sampling and drilling around known abandoned mines, looking for extensions either at depth or along strike. The deepest historic mine development in the area was to 150m although greater than 60% of the mines did not go below 50m suggesting some potential may remain below this depth at existing mines

All of the deposits found historically have outcropped at the surface. Little is documented on the exploration for “blind” ore deposits. The scarcity of outcrop in the area indicates that there is excellent potential for “blind” deposits.

Buxton’s principal focus at the Northampton Project will be to target new base metal targets in areas of thin Silurian to Permian cover along with recent cover. Many of these areas are surrounded by historic mines with mineralisation controlling structure having indicated continuity beneath the cover in aeromagnetic data. This provides a high level of encouragement that obscured mineralised positions are likely to be present.

The potential development of a deepwater port at Oakajee adds additional upside to development of any discoveries made in the area as does the proximity to services and a ready labour supply in the Geraldton to Northampton region.

The Northampton Base Metals Project is located 50km North of Geraldton, Western Australia (Figure 5). The area hosts numerous small Pb-Zn-Ag and Cu deposits which have been intermittently mined since the 1850’s. The tenement applications E66/85 and E66/86 have a combined area of 744km².

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Figure 5: Northampton Base Metal Project located 50km North of Geraldton, Western Australia

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Appointment of Non-Executive Director

On 11th July 2013, Buxton announced the appointment of Mr Stuart Fogarty as a Non-Executive Director of the Company.

Stuart has over 19 years of exploration experience with BHP Billiton and Western Mining Corporation. Until recently, Stuart was BHP’s Senior Exploration Manager for North and South America.

Stuart has a very strong background in nickel exploration, having commenced his career at Kambalda Nickel in 1994. He has held senior roles with BHP including Senior Geoscientist for nickel exploration in the Leinster and Mt Keith region, Project Manager WA Nickel Brownfields and Regional Manager Australia – Asia where he was responsible for a $100 million per annum exploration budget.

Corporate

Cash balance as at 30 June 2013 of $3.8 million sees Buxton well funded into 2014.

Competent Persons Statement

The information in this report that relates to Exploration Results and Exploration Targets 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 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

Managing Director

amaslin@buxtonresources.com.au