Buffalo Coal Corp.
TSX : BUF
JSE : BUC

Buffalo Coal Corp.

September 03, 2015 08:20 ET

Buffalo Coal Corp.: Aviemore Mining Right Update

TORONTO, ONTARIO--(Marketwired - Sept. 3, 2015) - Buffalo Coal Corp. (TSX:BUF)(JSE:BUC) ("Buffalo" or "the Company") updates shareholders on the proceedings in respect of the notice received from the Minister of Mineral Resources in South Africa ("the Minister") withdrawing the Director-General's decision to grant Mining Right 301 ("MR301"), as well as withdrawal of the approval by the Regional Manager of the Environmental Management Plan in respect of that right, as announced on August 27, 2015.

On August 28, 2015, Buffalo instituted proceedings against both the Minister, as the first respondent, and the Avemore Trust, as the second respondent, to seek urgent relief as previously advised ("Urgent Application"), with the matter anticipated to be heard on September 1, 2015.

On August 31, 2015, the state attorney provided the Company's lawyers with notice that it will (i) not oppose the Urgent Application and (ii) abide by the order handed down by the court in the Urgent Application. However the Avemore Trust requested a postponement of the hearing of the Urgent Application, which postponement was agreed to, subject to the Company being allowed to continue mining operations in the MR301 area. Accordingly, the postponement was granted, and the Urgent Application will now be heard during the course of the week commencing on September 14, 2015. In the interim, the court has granted immediate relief to the Company for mining operations to continue in the MR301 area until the Urgent Application is heard and finally ruled upon by the court.

Further details will be provided in due course.

About Buffalo

Buffalo is a coal producer in southern Africa. It holds a majority interest in two operating mines through its 100% interest in Buffalo Coal Dundee (Pty) Ltd, a South African company which has a 70% interest in Zinoju Coal (Pty) Ltd ("Zinoju"). Zinoju holds a 100% interest in the Magdalena bituminous mine and the Aviemore anthracite mine in South Africa. Buffalo has an experienced coal-focused management team.

Cautionary Notes:

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the future financial or operating performance of Buffalo and its projects. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Buffalo to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, foreign operations, political and social uncertainties; a history of operating losses; delay or failure to receive board or regulatory approvals; timing and availability of external financing on acceptable terms; not realizing on the potential benefits of the proposed transaction; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of mineral products; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and, delays in obtaining governmental approvals or required financing or in the completion of activities. Although Buffalo has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Buffalo does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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