Buffalo Gold Receives Resource Estimate for Furtei Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - September 03, 2008) -
Brian McEwen, President and CEO of Buffalo Gold Ltd. (TSX VENTURE:
BUF)(OTCBB: BYBUF)(FRANKFURT: B4K) is pleased to announce the first
NI 43-101 compliant resource estimate at the Furtei gold mine in
Sardinia, Italy. The resource estimate includes Measured and
Indicated sulphide resources of 425,800 ounces gold, including 5.73
million tonnes at 2.3 g/t gold, 0.24% copper and 3.06 g/t silver at a
1 g/t gold cut-off.
 
The resource estimate was completed by Wardrop Engineering Inc. in
compliance with NI 43-101, and will be included in a Technical Report
to be filed on SEDAR shortly. The resource estimate is based on 1,568
drill holes and 1,034 sample trenches that were completed during the
period 1990 to 2004. The programs identified 11 distinct ore deposits
on the property. Details of the resource estimate are contained in
Table 2 below. The majority of the resource comes from the
gold-copper and gold-pyrite sulphide mineralization. Buffalo recently
announced an arrangement with MRI Trading AG ("MRI") of Zug,
Switzerland for the sale of all sulphide concentrates produced for
the life of the Furtei mine (see Buffalo Gold news release dated July
9th, 2008).
 
"We are pleased to have this completed as it forms the basis for the
feasibility study we have undertaken," commented Mr. McEwen. "This
estimate confirms our internal calculations of the current resources
and we anticipate delineating additional resources as we explore on
the property."
 
Buffalo, with help from Wardrop, has commenced a feasibility study at
Furtei, expected to be completed by the fourth quarter of 2008. The
study will incorporate this resource estimate, and include an updated
mine plan as well as capital and operating costs of the project. As
part of the feasibility work Buffalo is drilling holes for
metallurgical testing of the ore bodies. The first of these holes
drilled through the Su Coru ore body returned assay results of 74
metres of 7.07 g/t gold and 1.6% copper. This is significantly higher
in grade than the average from the resource estimate at Su Coru of
3.77 g/t gold and 1.05% copper, and indicates a possible opportunity
to increase resources at that deposit.
 
Table 1. Results of Metallurgical Drilling at Su Coru
--------------------------------------------------------------------------
                 From (m)       To (m)  Interval (m)     Au (g/t)    Cu (%)
--------------------------------------------------------------------------
CODM001               73          147            74         7.07       1.6
--------------------------------------------------------------------------
Including             93           95             2        11.97       2.4
--------------------------------------------------------------------------
And                  106          109             8        44.27       7.0
--------------------------------------------------------------------------
And                  114          115             1        42.20       5.6
--------------------------------------------------------------------------
And                  137          144             7        10.57       2.4
--------------------------------------------------------------------------
 
Samples were analysed by four labs in Sardinia, Tuscany, France and
Ireland. Samples were analysed using a 50g fire assay with AA finish
for gold and an aqua regia digestion, ICP-OES finish for copper.
 
In addition to the feasibility study, Buffalo has an exploration
drill program underway, as detailed in the news release of March
19th, 2008. Buffalo has so far completed 1,608 m of diamond and 651 m
of RC drilling. First results are expected to be available in the
next month.
 
Resource Estimate Methodologies
 
This resource estimate was completed by Wardrop Engineering Inc. in
compliance with National Instrument 43-101 (NI 43-101), and is based
on historic data at Furtei - no current drilling has been completed
or incorporated in this resource estimate. Wardrop reviewed and
updated the geological model for each of the deposits. A NI 43-101
compliant Technical Report is underway and will be posted on SEDAR
upon completion.
 
The drillholes were coded based on the geological interpretation. A
capping strategy was developed based on these selected drillholes to
minimize the metal at risk. Wardrop capped assays before compositing.
The composite length was 1.25 meters. A minimum of three composites
were used for grade estimation along with a maximum of eight
composites. A maximum of two composites were used from each
drillhole.
 
Wardrop Engineering Inc. reported resources using a cut-off grade of
1.00 g/t Au. The grade interpolation was based on Inverse Distance
Weighting Squared. Validation models were also completed using
Inverse Distance Weighting Cubed and Nearest Neighbour interpolation
methods. A bulk density of 2.00 g/cc was used for the Oxide resources
and 2.48 g/cc for the Sulphide resources.
 
The classification was based on the drill spacing: Indicated
Resources used a minimum of two drillholes with the nearest composite
within 30 meters. The remaining blocks were classified as Inferred
Resources. Inferred Resource blocks were also based on a minimum of
two drillholes used for grade estimation.
 
Table 2. Sulphide Resources for Furtei Mine (August 11th, 2008)
 
-----------------------------------------------------------
Measured and Indicated Resources at 1.00 g/t Au Cap cut-off
--------------------------------------------------------------------------
               Tonnes      Grade  Au In Situ     Grade     Grade     Grade
               (000 t)      (g/t)    (000 oz)       (%)       (%)     (g/t)
--------------------------------------------------------------------------
Au-Cu ore     2,673.5      2.717       233.5      0.52      0.12      3.89
--------------------------------------------------------------------------
Au-Py ore     3,054.9      1.957       192.2         -         -      2.33
--------------------------------------------------------------------------
TOTALS        5,728.4      2.312       425.8      0.24      0.06      3.06
--------------------------------------------------------------------------
 
---------------------------------------------
Inferred Resources at 1.00 g/t Au Cap cut-off
--------------------------------------------------------------------------
               Tonnes      Grade  Au In Situ     Grade     Grade     Grade
               (000 t)      (g/t)    (000 oz)       (%)       (%)     (g/t)
--------------------------------------------------------------------------
Au-Cu ore        65.9      3.151         6.7      0.48      0.20      7.80
--------------------------------------------------------------------------
Au-Py ore       284.8      1.771        16.2         -         -      1.83
--------------------------------------------------------------------------
TOTALS          350.7      2.030        22.9      0.22      0.09      4.61
--------------------------------------------------------------------------
 
The following capping levels were used in the resource calculations:
------------------------------------------------------
              Au (g/t)     Cu (%)      As (%)  Ag (g/t)
------------------------------------------------------
Au-Cu Deposits     70         20           6       190
------------------------------------------------------
Py-Au Deposits     25          -           -        40
------------------------------------------------------
 
Tim Maunula, P.Geo., was the Qualified Person responsible for the
grade estimation on the Is Concas, Su Coru, Nord, Est, S'Arruga,
Cima, Cima West, Su Masoni, Sa Perrima, Coronas Arrubias and Bruncu
Murdegu deposits.
 
About Buffalo Gold
 
Buffalo's vision is to build shareholder value by growing a gold
mining company through a combination of exploration and acquisition.
The Company became a gold producer in November 2007 with the
acquisition of the Furtei mine, and is exploring projects in
Sardinia, PNG and Australia.
 
To find out more about Buffalo Gold Ltd. (TSX VENTURE: BUF), please
visit the company website at www.buffalogold.ca.
 
Brian McEwen is the Qualified Person for Buffalo and has read and
approved the contents of this news release.
 
On behalf of the Board of Directors of BUFFALO GOLD LTD.
 
Brian McEwen, President and CEO
 
This press release contains certain forward-looking statements, which
are based on the opinions and estimates of management at the date the
statements are made, and are subject to a variety of risks and
uncertainties and other factors that could cause actual events or
results to differ materially from those projected. Buffalo undertakes
no obligation to update forward-looking statements if circumstances
or management's estimates or opinions should change. The reader is
cautioned not to place undue reliance on forward-looking statements.
 
Cautionary Note to U.S. Investors
 
The United States Securities and Exchange Commission ("SEC") permits
mining companies, in their filing with the SEC, to disclose only
those mineral deposits that a company can economically and legally
extract or produce. We use certain terms in this website, such as
"Mineral Resources", "Measured", "Indicated", and "Inferred
Resources", that the SEC Guidelines prohibit us from including in our
filing with the SEC. Investors are urged to consider closely the
disclosure in our Form 20-F, File No. 0-30150, available from us by
contacting the Investor Relations department.
 
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 or Toll Free: 1-888-685-5492
(604) 685-2536 (FAX)
Email: julie@buffalogold.ca
Website: www.buffalogold.ca