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

Buffalo Gold Ltd.

August 16, 2006 09:58 ET

Buffalo Gold Expands Mineralization at Mt. Kare-Brings in Third Drill Rig

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 16, 2006) - Buffalo Gold Ltd. (TSX VENTURE:BUF.U)(OTCBB:BYBUF)(FWB:B4K) is pleased to announce additional assay results from the diamond drilling program at the Mt. Kare Gold Project in Papua New Guinea. Highlights of the drill results include:

- 33.4 metres of 15.7 g/t gold in hole MK06-09A, including: 19.3 metres of 24.32 g/t gold

- 86.0 metres of 4.2 g/t gold in hole MK06-43, including: 58.3 metres of 5.83 g/t gold

- 122.0 metres of 2.4 g/t gold in hole MK06-49, including: 69.0 metres of 3.13 g/t gold

A summary of drill intersections can be found below in Table 1.

The drilling results indicate that the structural block hosting the gold mineralization becomes more cohesive, and of higher grade to the north. This has lead to subdivision of the Western Roscoelite Zone (WRZ) into north and south components referred to as the North-Western Roscoelite Zone (NWRZ) and South-Western Roscoelite Zone (SWRZ) respectively. The northern area has only been sparsely drilled in the past. Additional drill holes in this area have been completed and are awaiting assays.

"We are thrilled with these outstanding results and the progress of the program to date," commented Buffalo Chairman and CEO Damien Reynolds. "We believe that on-going drilling will continue to enhance the emerging picture of a world class deposit at Mt. Kare."

Additional drill holes planned in this new zone to test the extents of mineralization. A third drill rig is being brought to the property to accelerate the exploration program.

Buffalo plans to use the results of drilling in the recalculation of the resource at Mt. Kare and as part of the pre-feasibility study scheduled for completion in July 2007. The remaining drill program and concurrent work for the planned pre-feasibility study is continuing on schedule and Buffalo is pleased with the results of the program to date. A map showing planned and completed drill hole locations can be viewed on the Mt. Kare page of Buffalo's website, www.buffalogold.ca.



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Table 1. Summary of Mt. Kare Drill Hole Intersections from
June 20 to August 9, 2006
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Drill Hole From To Intercept Gold Silver
No.(i) (m) (m) (m) (g/t) (g/t)
--------------------------------------------------------------------
MK06-07 No significant intersections
--------------------------------------------------------------------
MK06-09A(ii) 17.8 36.1 18.3 4.77 Pending
----------------------------------------------------
44.7 78.0 33.3 15.71 Pending
--------------------------------------------------------------------
including 44.7 64.0 19.3 24.32 Pending
--------------------------------------------------------------------
MK06-12 3.5 23.0 19.5 0.95 43.91
--------------------------------------------------------------------
MK06-17 15.0 45.9 30.9 3.87 4.59
--------------------------------------------------------------------
MK06-18 48.0 70.0 22.0 2.00 5.61
----------------------------------------------------
202.0 207.9 5.9 2.53 25.51
--------------------------------------------------------------------
MK06-20 142.0 175.0 33.0 0.42 0.85
--------------------------------------------------------------------
MK06-23A(ii) 1.5 21.0 19.5 2.38 14.54
--------------------------------------------------------------------
MK06-25 11.0 48.0 37.0 2.51 2.87
----------------------------------------------------
129.0 164.5 35.5 3.78 5.87
--------------------------------------------------------------------
MK06-33 No significant intersections
--------------------------------------------------------------------
MK06-41 1.5 12.0 10.5 0.50 Pending
--------------------------------------------------------------------
MK06-43 19.0 105.0 86.0 4.23 Pending
--------------------------------------------------------------------
Including 46.7 105.0 58.3 5.83 Pending
--------------------------------------------------------------------
MK06-49 0.0 122.0 122.0 2.36 Pending
--------------------------------------------------------------------
Including 29.0 98.0 69.0 3.13 Pending
--------------------------------------------------------------------
MK06-61 63.0 82.0 19.0 2.02 28.80
--------------------------------------------------------------------
(i) Holes are not drilled in numerical or sequential order.
(ii) Redrilled hole - original abandoned.


True widths from the drill intersections have not yet been estimated. All samples were analysed for gold by PT Intertek Utama Services in Jakarta, part of an internationally recognized lab testing group with ISO 17025 accreditation at the Jakarta facility. Samples were analysed using a 50g fire assay with AA finish for gold and an aqua regia digestion, ICP-OES finish for silver.

Mr. Brian McEwen, PGeol., President and COO, Buffalo Gold, is the qualified person for the Mt. Kare project and has approved the contents of this news release.

Buffalo Gold Ltd., head-quartered in Vancouver, Canada is actively engaged in exploring and developing gold, uranium and nickel properties in Australasia. Management is dedicated to maximizing shareholder value through growth strategies that emphasize careful opportunity assessment and vigilant project management.

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

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