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

Buffalo Gold Ltd.

August 23, 2007 09:30 ET

Buffalo, Bondi and Newcrest Complete Arrangement for Uranium Rights at Mt. Hogan

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 23, 2007) - Buffalo Gold Ltd. (TSX VENTURE:BUF.U)(OTCBB:BYBUF)(FRANKFURT:B4K) is pleased to announce that, through Buffalo's wholly-owned Australian subsidiary, Murphy Uranium Pty Ltd., Bondi Mining Ltd. ("Bondi")(ASX:BOM) has acquired the uranium rights to an area of interest at Newcrest Operations Limited's ("Newcrest") (ASX:NCM) Mt Hogan Project in Queensland.

The property has been acquired through a Concurrent Rights Deed between Newcrest and Murphy Uranium. Newcrest's parent company, Newcrest Mining Ltd., is Australia's largest gold mining company, and ranks in the top ten gold producers globally. Murphy Uranium is the unlisted subsidiary of Buffalo to be sold to Bondi as part of the previously announced LOI that sees Bondi acquire Buffalo's uranium portfolio in exchange for Buffalo receiving a 44% stake in Bondi (see Buffalo News Release May 13th, 2007).

Under the terms of the deal Bondi will acquire 100% ownership of any uranium-only deposits delineated and, upon the decision to mine, Newcrest will receive a 2.5% gross product royalty on all uranium produced including an AUD$500,000 royalty pre-payment on the decision to mine.

"We are pleased to be able to include the Mt Hogan project into the portfolio of uranium projects," stated Buffalo Chairman and CEO Damien Reynolds. "We now look forward to a quick finalization of our transaction with Bondi, following approval by Bondi shareholders. This will allow Bondi to commence an aggressive exploration program on the uranium projects."

About the Mt. Hogan Project

The Mt. Hogan project is located in northeast Queensland approximately 135 kilometres south of the Maureen uranium deposit where Mega Uranium reports an historical indicated resource estimate of 6.5 million pounds U3O8 at 0.12% U3O8 and 0.07% molybdenum (ref www.megauranium.com). The Mount Hogan project contains high grade uranium mineralisation in altered pyritic metasediments in contact with highly radioactive granite. Limited drilling of soil and radiometric anomalies by CRA Ltd. in the late 1970's produced best results of:

- 7 metres at 0.38% U3O8 in percussion drill hole 79 HH PDH-1, including 1 metre at 1.2% U3O8. The intersection starts at a down-hole distance of 29 metres. At current gold and long-term uranium prices, this intersection is equivalent to 7 metres at 36.9 grams per tonne gold.

- 1 metre at 0.17% U3O8 in percussion drill hole 79 HH PDH-2, within a broader interval of 5 metres at 0.05% U3O8 starting at a depth of 37 metres.

These intersections remain open in every direction, as part of a regionally extensive granite contact zone which has only been tested by four percussion holes over a strike length of at least 5 kilometres containing multiple radiometric and soil anomalies. Host rocks to the high grade uranium mineralisation are chloritic and pyritic metasediments and silicified pyritic shale adjacent to a high-background radioactive granite. Soil samples taken by CRA over the granite ranged up to 0.13% U3O8. Available radiometric data show that granites within Bondi's 100% owned Juntala Project some 40 kilometres south of Mount Hogan, have similar high background radioactive signatures.

Twelve other separate occurrences of uranium mineralisation are also noted on the published geoscience datasets within the Mount Hogan project and these will also be a focus of the planned program by Bondi. Bondi intends to carry out a program of detailed ground inspection followed by ground radiometrics and drill testing of a range of targets including the previous high-grade uranium zones defined by CRA.

About Bondi Mining

Bondi is a Brisbane-based uranium exploration company with a focus on high-grade cycle-proof uranium targets with world class size potential. The company announced on 14 May 2007 a letter of intent with Buffalo Gold Ltd. to acquire 100% of its Australian uranium portfolio, which is made up of 10 granted tenements and 13 applications totalling 15,085km2 in three major uranium provinces in the Northern Territory and Queensland. Buffalo retains a 44% interest in Bondi.

About Buffalo Gold

Buffalo Gold Ltd. is dedicated to maximizing shareholder value through growth strategies that emphasize careful opportunity assessment and vigilant project management. Buffalo is aggressively exploring the Mt. Kare gold project in Papua New Guinea and a portfolio of gold exploration projects in producing and past-producing regions of Australia. In July 2007, Buffalo announced a merger with Sargold Resource Corporation (TSX VENTURE:SRG), a junior gold miner with mining and exploration projects in Sardinia, Italy.

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

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

Damien Reynolds, Chair of the Board of Directors 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 may use certain terms in this news release, such as "inferred 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.

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