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

Buffalo Gold Ltd.

October 29, 2007 18:46 ET

Buffalo Gold Completes Merger With Sargold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 29, 2007) - Buffalo Gold Ltd. (TSX VENTURE:BUF)(OTCBB:BYBUF)(FRANKFURT:B4K) ("Buffalo") and Sargold Resource Corporation (TSX VENTURE:SRG)(FRANKFURT:DU4) ("Sargold") are pleased to announce that they have received all approvals to complete the merger with Sargold Resource Corporation, as announced on July 13th, 2007.

The Sargold shareholders voted 99.8%in favour of the merger on October 25th, and approval from the TSX Venture Exchange was received on October 26th. Final approval from the Supreme Court of British Columbia was received this morning.

Since its reactivation in late 2005, Buffalo has been pursuing an aggressive strategy of building value through the acquisition of properties and companies with significant growth potential, with a focus on assets that will provide gold production. The acquisition of Sargold represents the next step in the continuing growth of the company, moving Buffalo from pure explorer towards junior gold producer.

"We are pleased to see this merger completed as we believe that the Sardinian assets add considerable value to Buffalo," remarked Buffalo President and CEO Brian McEwen. "We look forward to ramping up the Furtei mining operation and exploring for new resources at all of the properties."

The flagship Sardinian asset is the Furtei mine project. The project includes a number of potential open pit and underground mines, a processing plant (1,000 tonne-per-day), multiple exploration targets and a fully permitted mining concession including future tailings disposal.

The Furtei processing plant was built in 1995-1996, and has a maximum annual capacity of 400,000 tonnes of ore. The Furtei mine produced 135,000 ounces of gold between 1996 and 2002 from oxide resource, after which the processing plant was converted from an oxide heap leach to a sulphide flotation plant.

The Furtei plant was re-commissioned for a marginal cost in the fourth quarter of 2006. The first new gold bar was poured in March 2007 to launch a near-term production plan based on processing the upgraded ore from the residual heap leach pad at the site. While the current production is relatively small-scale, based on metallurgical test work, internal studies and results to date the mine plan is now targeting to commence annual production of 15,000 -- 20,000 ounces of gold from the Sa Perrima gold zone within the next 3 months. The plan then includes ramping up production from the Su Coru underground zone, which is a gold-copper hosted mineralization, to produce between 60,000 -- 70,000 ounces of gold equivalent in its second year, before levelling off to approximately 50,000 ounces of gold equivalent per year for a minimum of five years.

In addition to the known mineralized zones at Furtei, there are a series of high priority gold exploration targets within the mine area, as well as at the Monte Ollasteddue and Osilo properties.

(Note: A feasibility study has not been completed on the Furtei project and there is no certainty that the projected production rates will be achieved, or that the proposed operations will be economically viable.)

Sargold will be amalgamated with a wholly-owned subsidiary of Buffalo, and shareholders of Sargold will receive one common share, common share purchase warrant or option of Buffalo in exchange for each 3.5 Sargold common shares, common share purchase warrants or options which they hold immediately prior to the date of the effective date of the Transaction, expected to be October 30, 2007. Following completion of the Transaction, Sargold shareholders will hold an approximate 25% equity ownership in the merged company.

According to the plan of arrangement approved by the Board of Buffalo Gold on October 25th, there are approximately 75,600,000 common shares of Sargold to be converted to Buffalo Gold shares. Buffalo will therefore issue approximately 22 million common shares to the Sargold shareholders. An aggregate of 67,435,643 Buffalo common shares are issued and outstanding as at the date of this news release.

To find out more about Buffalo Gold Ltd. 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 R. McEwen, President and Chief Executive Officer

Cautionary Note to U.S. Investors - The United States Securities and Exchange Commission ("SEC") permits mining companies in filings with the SEC to disclose only those mineral deposits that a company can economically and legally extract or produce. The Company uses certain terms in this news release, such as "indicated resource", that the SEC guidelines strictly prohibit from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure contained in the Company's Form 20-F Registration Statement, File No. 000- 30150. The Company's filings are available on the SEC's website at http://www.sec.gov/edgar.shtml.

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

Contact Information