Between 10–12 August 1918, the 3rd Australian Division—of which the 40th Battalion was part—was ordered to attack from an easterly direction against the southern bank of the Somme River, and advance along the road past Proyart. On 12 August, the 40th Battalion was tasked with the objective of seizing and holding a valley to the south of the Proyart–Chuignes road. The advance entailed moving the battalion across approximately 1,300 metres (1,400 yd) of open ground, while under the direct observation of German forces on high ground to the east of Proyart. At the same time, the 37th Battalion was to move through the village of Proyart itself, and proceed to a line just beyond the railway to the north of the Proyart–Chuignes road. It was during this action that Statton was to earn the Victoria Cross.
The 40th Battalion began its attack at approximately 07:30, and by 08:30 had successfully advanced 800 metres (870 yd). It was at this point, however, that the unit came under an intense barrage from German artillery, and were prevented from moving further forward. With assistance from a Lewis Gun team under Statton's command, the battalion's A Company managed to reach the centre of Proyart village an hour later. The remainder of the 40th Battalion attempted to follow, but soon became subject to heavy machine gun fire. With his Lewis Gun, Statton engaged two German machine gun posts and thus enabled the remainder of his battalion to continue its advance. The battalion was later able to reach its objectives.
At 18:00, the 40th Battalion received a message that the 37th Battalion was about to attempt to advance from the village to its own objective. From his position, Statton observed a line of German machine gunners firing on the 37th Battalion and preventing its advance. He turned his Lewis Guns on them in an attempt to assist a party of men from the 37th as they attacked. Having failed, a party of thirteen men were assembled and rushed the position soon after, but the group was wiped out before they reached the first gun. Gathering Corporal Upchurch and Privates Leslie Styles and Beard, Statton worked his way along under the cover of the Chuignes road embankment. Reaching within 75 metres (82 yd) of the machine gunners and armed with only a revolver, Statton led the three men as they rushed across the open ground towards the German strongpoint. Reaching the position, the party was able to dispose of the first gun and its crew before moving onto the second, where Statton personally shot four of the five crew members and bayoneted the fifth with his own rifle. Seeing this, the two remaining gun teams began to retreat but were killed by Statton's Lewis Gunners.
Soon after, another German machine gun opened up, killing Private Styles and wounding Corporal Upchurch. With Private Beard, Statton began to crawl back to his own lines, while the inspired 37th Battalion continued its advance and cheered the pair as they went past. Later that evening, Statton, while under heavy machine gun fire, went out and retrieved the badly-wounded Upchurch and the body of Styles. By 20:00, both battalions had reached and consolidated their positions, and were relieved by the British 17th Division the following day.
At 09:00 on 27 September 1918, the 40th Battalion was ordered onto parade by the unit's Commanding Officer, Lieutenant Colonel John Lord. Addressing the assembled crowd, Lord announced that that same day, the name of Sergeant Percy Statton would appear in the London Gazette announcing that he had been awarded the Victoria Cross. Described by the battalion's history as a "reluctant hero", Statton was granted three cheers before he was carried shoulder high through the ranks while the battalion band played. The full citation for Statton's Victoria Cross appeared in a supplement to the London Gazette later that day, reading:
War Office, 27th September 1918.
His Majesty the KING has been graciously pleased to approve of the award of the Victoria Cross to the undermentioned Officers, N.C.O.'s and Man: —
No. 506 Sjt. Percy Clyde Statton, M.M., A.I.F.
For most conspicuous bravery and initiative in action when in command of a platoon which reached its objective, the remainder of the battalion being held up by heavy machine-gun fire. He skilfully engaged two machine-gun posts with Lewis gun fire, enabling the remainder of his battalion to advance.
The advance of the battalion on his left had been brought to a standstill by heavy enemy machine-gun fire, and the first of our assaulting detachments to reach the machine-gun posts were put out of action in taking the first gun. Armed only with a revolver, in broad daylight, Sjt. Statton at once rushed four enemy machine-gun posts in succession, disposing of two of them, and killing five of the enemy. The remaining two posts retired and were wiped out by Lewis-gun fire.
Later in the evening, under heavy machine-gun fire, he went out again and brought in two badly wounded men.
Sjt. Station set a magnificent example of quick decision, and the success of the attacking troops was largely due to his determined gallantry.