BUXTON RESOURCES LIMITED — Interim / Quarterly Report 2020

ASX Release

28 January 2020

Quarterly Activities Report for period ending 31 December 2019

Buxton Resources Limited (ASX: BUX or “Buxton”) is pleased to release the quarterly activities report and Appendix 5B for the period ended 31 December 2019 (the Quarter).

- West Kimberley JV (IGO BUX)

• First-ever airborne electromagnetic surveys flown over 1,900km2 of prospective ground; Numerous conductors identified

• Ground follow-up commenced, initially at Sentinel (E04/2408)

• Belt scale airborne magnetics-radiometrics survey commenced

- Fraser Range JV (IGO BUX)

• Multiple high priority targets, including “Solar” large EM anomaly along strike from Creasy Silver Knight discovery

• Deep drilling and downhole EM completed at Solar

• BUX 10% free carried to Decision to Mine

West Kimberley JV Restructure

• Buxton and IGO strike new Joint Venture over Merlin

• All Buxton’s remaining West Kimberley tenure, which covers most known occurrences of the prospective Ruins Dolerite, is now to be vested into the West Kimberley Joint Venture

• The WKJV to be managed by IGO with exploration to be accelerated substantially

• Buxton to be free carried to the completion of a feasibility study

• Buxton to receive $1,275,000 consideration from IGO for the Quick Shears Tenements, Fissure Tenement and Buxton’s Kimberley-based field equipment

• Buxton’s cash reserves will be ~$6m at bank

• Major exploration push by IGO intended to continue on Buxton’s assets at both the Fraser Range and now, West Kimberley, without further expenditure by Buxton

New Projects

• Buxton has been actively pursuing Copper opportunities in the USA

• Buxton has incorporated subsidiary Buxton Resources Arizona LLC

Corporate

• Cash balance (31 December 2019) of approximately $3.2 million

• EGM to approve IGO transaction to be held 28 February 2020

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 [email protected]

West Kimberley Exploration Update

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Buxton Resources Limited confirmed that ground electromagnetic surveys (low temperature SQUID Moving Loop EM) and a reconnaissance Air Core drilling program were completed at the Quick Shears Project (Figure 1).

Regionally, a large, belt-scale airborne EM survey has been completed over 1,900km[2] of West Kimberley Joint Venture (WKJV) tenements (Figure 2). This survey was flown using the industryleading high-power Spectrem equipment and DC-3 aircraft (Figure 3) mobilised from overseas by IGO (Independence Group NL). A second airborne survey (aeromagnetics and radiometrics) is due to commence this quarter, providing the first high-resolution information on rock types and structures in these as-yet unexplored areas aside from Buxton’s 2018 aeromagnetics survey at Sentinel (ASX 20/09/18). No detailed government or multi-client datasets exist for the West Kimberley, greatly handicapping Buxton’s regional exploration to date. The upcoming highquality, belt-scale aerial work planned by the WKJV represents a major and historic step forward in exploration of the region.

Analysis of results from the large Spectrem EM survey is at an early stage and will be further informed by the high-resolution aeromagnetics results as they become available. However, numerous promising EM conductors have already been identified on multiple tenements. Anomaly assessment, ranking and target generation is underway, with this work to be completed over the next quarter. Ground follow-up on selected anomalies at Sentinel is already underway, with systematic ground assessment and ranking of targets throughout the belt to be completed during the 2020 field season.

IGO are planning a busy field season for the WKJV in 2020 throughout the belt (King Leopold Orogen) which will include mapping, surface geochemistry, ground EM, drilling and downhole EM. Buxton eagerly awaits the results from these planned large-scale exploration programs in this highly prospective, under-explored, magmatic nickel-copper province.

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Figure 1 . Air Core drill collars and ground EM survey areas at the Quick Shears and Merlin Projects

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The systematic MLTEM survey across Merlin (Figure 1) has confirmed all previously identified conductors, including those previously only detected by down-hole EM. One new conductor was detected by the new survey, a deep source which is difficult to resolve using surface EM methods. This result shifts the search space at Merlin deeper, most likely in excess of 600 metres below surface. This in turn means a different approach to future drill targeting at Merlin is needed, with deep, step-back drill holes designed to provide a platform for deep down-hole EM, as well as ideally intersecting geological and geochemical targets in conventional ways. The commitment required for this type of drilling and down-hole EM is substantial, as multiple deep holes will be required. Buxton is evaluating ways to get the best possible value for shareholders at Merlin.

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Figure 2 . Buxton-Independence Group West Kimberley Joint Venture tenure over the King Leopold Orogen (in dark grey), highlighting the area covered by the recent regional electromagnetic Spectrem survey

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Figure 3 . Spectrem aircraft used to survey WKJV tenements

Fraser Range Joint Venture

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Independence Group has been undertaking systematic greenfields exploration in the Fraser Range targeting Nova style (magmatic Ni-Cu-Co sulphide) discoveries within over ~15,000km2 of regional tenure. Exploration spend has been in the region of ~$20m per annum for several years.

Buxton and IGO entered into a joint venture agreement for two tenements in the Fraser Range, Widowmaker E28/2201 and Zanthus E28/1959, in 2016 whereby Buxton retained a 10% free carry to decision to mine and IGO manages all exploration ( refer to BUX ASX announcement 24 August 2016 ).

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Figure 4 . Drill targets at the Widowmaker (E28/2201) BUX-IGO joint venture in the Fraser Range, high priority targets include Ecliptic and Solar Prospects along strike from the Creasy Group Silver Knight Discovery (figure from IGO RIU conference presentation: https://www.asx.com.au/asxpdf/20190221/pdf/442twqw68jgtlq.pdf).

Buxton and IGO entered into a joint venture agreement for two tenements in the Fraser Range, Widowmaker E28/2201 and Zanthus E28/1959, in 2016 whereby Buxton retained a 10% free carry to decision to mine and IGO manages all exploration ( refer to BUX ASX announcement 24 August 2016 ).

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Goldmember Project

Two exploration licences were granted and an additional 5 applications lodged in the southern Yilgarn based on widespread gold anomalism defined in auger sampling by AngloGold during their belt-scale Viking Project.

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Figure 8 : Soil Sampling at Buxton’s Goldmember Project

West Kimberley JV Restructure

As per the announcement released on 2 October 2019, Buxton has entered into three further commercial binding agreements with Independence Newsearch Pty Ltd ( INPL ), a wholly owned subsidiary of Independence Group NL ( IGO ) (ASX:IGO), with respect to Buxton’s Merlin and Quick Shears assets as well as amending the broader West Kimberley Joint Venture.

Whilst the transactions have been fully endorsed by Buxton’s Senior Management and Board, Buxton shareholder approval is still required in order to complete these deals, with a formal notice to shareholders to be issued imminently.

Buxton will be released from any further financial contributions and will either be free carried to completion of feasibility studies for both the Merlin JVA and WKJVA or, with respect to any newly acquired properties within the WKJVA, granted a net smelter royalty (NSM) of 0.25% (where held by IGO and other parties) and 0.5% (where acquired wholly by IGO).

Buxton plans to hold the necessary Shareholder Approval meeting for these transactions on 28 February 2020.

Buxton intends to use funds received from these transactions to fund work on existing projects as well as assessing and/or acquiring further resource projects which complement existing activities of the Company.

New Projects

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Buxton has been actively pursuing copper opportunities in the southwest USA. This region represents one of the major endowments of copper known in the Earth’s crust and includes three of the top 10 jurisdictions for mining investment according to the 2018 Fraser Institute Annual Survey of Mining Companies (Nevada, Utah and Arizona).

During the Quarter Buxton incorporated a subsidiary USA entity called Buxton Resources Arizona LLC. Buxton has also engaged contractors to commence the process of seeking the grant of new licences in 2 areas to secure subsurface mineral rights with previously identified copper resources in Arizona and New Mexico.

Buxton has additionally entered into a binding Terms Sheet by which NSL Resources, LLC (an Arizona incorporated company that is owner of mining leases) has granted an irrevocable and exclusive option in favour of Buxton to acquire 100% of 2 general mining leases in New Mexico. Buxton has paid a non-refundable option fee of US$25,000 to secure the option. Buxton may elect at any time until 15 October 2020 to exercise the option and enter into a transaction by which it will acquire 100% of the general mining leases free of encumbrances other than rights in favour of surface rights holders. In such an event, Buxton at completion will pay US$150,000, grant a 0.5% net smelter return royalty on the sale of any mineral product and agrees to pay a deferred consideration sum of 10% of the sale proceeds in the event of on-sale of the mining leases by Buxton and where Buxton, or any joint venture or funding partner, have not together spent US$2,500,000 on expenditure on the mining leases.

Buxton will update the market with further details In the event of a material development from the pursuit of copper opportunities.

Corporate

Buxton held its Annual General Meeting of Shareholders at Steve’s Wine Cellar, 30 The Avenue, Nedlands, Western Australia on 22 November 2019. All resolutions that were put were unanimously passed on a show of hands.

Buxton continues to meet all necessary expenditure needs and is, per usual, operating with demonstrable financial constraint and responsibility. Cash balance as at 31 December 2019 was approximately $3.2 million.

For further information please contact:

Eamon Hannon Sam Wright Managing Director Company Secretary [email protected] [email protected]

Competent Persons

The information in this report that relates to Exploration Results is based on information compiled by Mr. Eamon Hannon Fellow of the Australian Institute of Geoscientists. Mr. Hannon is a full-time employees of Buxton. Mr. Hannon 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 Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Hannon consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.

Appendix 1: Changes in interests in mining tenements - Buxton Resources Ltd 01/10/19 – 31/12/19

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Abbreviations and Definitions used in Tenement Schedule:

E Exploration Licence ELA Exploration Licence Application P Prospecting Licence