[2] In 2014, during construction of a new amenity building at the Carnley Avenue Recreation Area, an old brick lined mine shaft from the 19th century was discovered.
[3] One of the lots that sold was a 17.75 acres portion on Lookout Road, purchased by the Newcastle District Sailors and Soldiers Memorial Institute.
[7] The plan proved to be uneconomical and impractical and in March 1938 the land was resumed by the NSW government[8] to form the first official portion of Blackbutt Reserve.
In 1934, Joe Richley, president of the Northern Parks and Playground movement, persuaded New Lambton Council to purchase six hectares of bushland.
[5] A small wildlife park exists at the reserve displaying animals such as koalas, wombats, kangaroos, wallabies, possums, echidnas, emus, parrots and goannas.
[5] The Northern Parks and Playgrounds movement become involved at Blackbutt Reserve in 1953 after rumours of the possibility of establishing a bowling club at the lookout.
[11] In 1956, Newcastle City Council wanted to divide the northern part of Blackbutt Reserve into a housing division but, due to public protest, this project was abandoned.
[3] In 1958 a Newcastle City Council announced a sub-division but due to pressure by the Northern Parks and Playgrounds Movement and 79 other organizations, it was abandoned.