Buffalo Resources Corp.
TSX VENTURE : BFR

Buffalo Resources Corp.

June 23, 2008 08:30 ET

Buffalo Resources Sells Killam Oil Property

CALGARY, ALBERTA--(Marketwire - June 23, 2008) - Buffalo Resources Corp. ("Buffalo" or the "Company")(TSX VENTURE:BFR) wishes to announce that it has entered into a letter of intent for the sale of the Company's Killam property in East Central Alberta for proceeds to Buffalo of $21.75 million plus a 5% non convertible override on the production of certain natural gas rights, subject to adjustment from the effective date (June 1, 2008) to the closing date. The property produces approximately 290 bbls of oil and 580 Mcf of natural gas per day and based on this production level, the transaction will be completed at approximately $56,000 per flowing barrel.

This transaction is an integral part of Buffalo's strategy to rationalize its asset base and will allow the Company to better focus its technical and capital resources on its core producing properties at Frog Lake and Pincher Creek. It will bring the value of non-core assets sold since the August 2007 merger with Choice Resources to approximately $25 million.

Completion of the transaction is subject to financial and environmental due diligence by the purchaser, receipt of all regulatory approvals, the resolution of rights of first refusal and other consents and completion of formal documentation. The transaction is expected to close on or about June 30, 2008.

Bill Trickett the Company's CEO commented, "In today's environment of record high heavy oil pricing, Buffalo is now well positioned with a strong balance sheet and the capital resources to accelerate development drilling programs at Frog Lake in eastern Alberta."

Buffalo is an emerging Canadian junior oil and gas company engaged in the exploration, development and production of oil and gas reserves in the provinces of Alberta and Saskatchewan.

Certain information set forth in this press release contains forward looking statements. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, reliance should not be placed on forward-looking statements. Buffalo's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits Buffalo will derive therefrom. Buffalo disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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

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