Buffalo Gold Ltd. (fka BYBUF)

[sumisu]

Buffalo Gold Makes Strategic Investment in Upcoming Gold Producer Kinbauri Gold

Thursday April 5, 9:15 am ET

VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Apr 5, 2007 -- Buffalo Gold Ltd. (CDNX:BUF-U.V - News)(OTC BB:BYBUF.OB - News)(Frankfurt:B4K.F - News) is pleased to announce that it is expanding its gold assets through a strategic CAD$5,500,000 investment in Kinbauri Gold Corp. (CDNX:KNB.V - News). Kinbauri is using the proceeds of the brokered private placement to complete the purchase of the El Valle and Carles gold mines, the El Valle mill, auxiliary facilities, and two further exploration properties in northern Spain, from Rio Narcea Gold Mines S.L. ("Rio Narcea").

Under the terms of the private placement, Buffalo will acquire 11,000,000 subscription receipts convertible into Units of Kinbauri at a purchase price of CAD$0.50. Each Unit will be comprised of one common share and one-half common share purchase warrant exercisable for eighteen months at a price of CAD$0.70. The total offering by Kinbauri is up to CAD$13,500,000 and if closed in full will result in Buffalo holding approximately 28% of the company. The securities are subject to a four month hold from the closing date of the offering.

Upon approval of the offering from the TSX Venture Exchange, Mr. Brian McEwen, President and C.O.O. of Buffalo Gold, will be appointed to the Board of Directors of Kinbauri.

Value from growth strategies emphasizing careful opportunity assessment

While Buffalo's current exploration programs are focused on Australasia, the company is continuing with a strategy of aggressively adding value through investing in or acquiring projects and companies that offer considerable growth potential. By purchasing a major stake in Kinbauri, Buffalo's management is confident that it is making an investment with excellent upside potential. With a current market cap of less than CAD$9,000,000 (pre-financing) Kinbauri has positioned itself as a potential near-term gold mining company by completing the purchase of the El Valle and Carles gold mines and associated facilities and properties from Rio Narcea. An experienced due diligence team from Kinbauri reviewed the projects in detail and confirmed the favourable potential for rejuvenation of gold mining operations. In addition, they put together a plan to re-start operations through selectively expanding resources and establishing reserves.

"I agree with the evaluation by Kinbauri's due diligence team," commented Buffalo's President and C.O.O., Brian McEwen, after visiting the El Valle site in March 2007. "With proper mine development and exploration drilling prior to start-up, I expect both the El Valle and Carles mines to be profitable. With the permits and infrastructure in place we could be in production within 18 months."

As reported by Kinbauri in a January 16th, 2007 news release, Rio Narcea reported the following resources for the El Valle and Carles mines as of December 31st, 2005:

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