Hitt og þetta 31. ágúst 2006

Buffalo Arranges USD$15 Million Brokered Private Placement


Buffalo Gold Ltd. (TSX VENTURE: BUF.U) (FWB: B4K) is pleased to announce that it has entered into an agreement with a syndicate of Agents led by Canaccord Adams for a private placement, on a commercially reasonable efforts basis, of up to 8,571,500 units at a price of USD$1.75 per unit for gross proceeds of USD$15,000,125. Each unit will consist of one share and one half share purchase warrant, with every whole warrant entitling the purchase of one additional share of Buffalo at an exercise price of USD$2.25 per share for a period of two years from the closing date.

Buffalo has also granted the Agents an option to increase the offering by up to 2,857,200 Units or US$5,000,100 up to 48 hours prior to closing. This placement is subject to regulatory approval.

As consideration for acting as Agents, Buffalo has agreed pay a commission of 6.5 percent of the total proceeds on closing in cash, and issue Agents' Warrants exercisable for common shares of Buffalo representing 10 percent of the total Offering sold, at an exercise price of $2.10 per common share for a period of two years from the closing date.

The proceeds from the offering will be used primarily to fund exploration and feasibility study work on Buffalo's Mt. Kare Property in Papua New Guinea. The balance of the proceeds will be used to fund exploration of Buffalo's Australian gold, uranium and nickel/copper/PGE properties and for general working capital.

To find out more about Buffalo Gold Ltd. (TSX VENTURE: BUF.U) please visit our website at www.buffalogold.ca.

On behalf of the Board of Directors of BUFFALO GOLD LTD.

Damien Reynolds, Chairman of the Board of Directors and Chief Executive Officer

The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy of this press release.

Contacts: Buffalo Gold Ltd. Julie Hajduk Investor Relations (604) 685-5492 (604) 685-2536 (FAX) julie@buffalogold.ca www.buffalogold.ca