Buffalo Gold Ltd.
OTC Bulletin Board : BYBUF
FRANKFURT : B4K
TSX VENTURE : BUF

Buffalo Gold Ltd.

January 21, 2008 09:15 ET

Buffalo Closes Second Tranche of Non-Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 21, 2008) - Further to its news releases of December 4, 2007 and December 10, 2007, Buffalo Gold Ltd. (the "Company") (TSX VENTURE:BUF)(OTCBB:BYBUF)(FRANKFURT:B4K) is pleased to report that it has closed the second tranche of the private placement. Pursuant to the second closing, the Company issued 9,104,001 units ("Units") at a price of $0.45 per Unit for aggregate gross proceeds of $4,096,800. Altogether, the Company issued an aggregate of 17,774,001 Units at a price of $0.45 per Unit for aggregate gross proceeds of $7,998,300 pursuant to this placement.

Each Unit consists of one common share in the capital of the Company and one-half of one share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder to purchase one common share at $0.75 per share until January 18, 2010. The Company paid finders' fees in connection with the financing consisting of $558,810 in cash and issued 1,114,711 warrants which entitle the holders to purchase one common share at $0.75 per share until January 18, 2010. All securities issued pursuant to this closing are subject to a four-month hold period expiring May 19, 2008. The proceeds from the sale of the Units will be used to fund exploration and development of the Company's mineral properties and for working capital.

The Company also reports that it acquired 5,724,500 common shares of AMI Resources Inc. ("AMI") at a price of $0.40 per share in a private transaction. As a result of this transaction, the Company now owns 7,170,000 common shares, representing approximately 22.3% of AMI's issued and outstanding share capital. The Company has no present intention of acquiring any additional securities of AMI.

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

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

Brian McEwen, President

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

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