Acquires additional license based on geophysics

VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) -- August 28, 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:

- 49.0 metres of 10.4 g/t gold in hole MK06-50
- Including 8.0 meters of 29.2 g/t gold
- 79.1 metres of 3.0 g/t gold in hole MK06-52
- 40.0 metres of 15.3 g/t gold in hole MK06-53
- Including 24.0 metres 24.0 g/t gold
- 26.6 metres of 3.7 g/t gold in hole MK06-56 (Hole abandoned while still in mineralization)

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

Damien Reynolds, CEO, Buffalo Gold, commented, "We continue to be excited by the results of the drilling program. This has led us to increase the exploration license area as we believe we are just beginning to understand the true potential of this world class deposit, especially given presence of the Porgera mine just seventeen kilometres away."

The drilling results confirm the cohesive, high-grade nature of mineralization in the North-Western Roscoelite Zone, (NWRZ). These encouraging results have prompted aggressive drilling to test the extension of the NWRZ as Buffalo works on expanding the resource at Mt. Kare as part of the planned pre-feasibility study.

The recent drilling has greatly enhanced the understanding of the nature of mineralization in the NWRZ. The presence of significant intersections of quartz roscoelite is similar to Porgera's Zone 7 ore body.

Furthermore, re-interpretation of the geophysical data at Mt. Kare suggests that the NWRZ extends directly north towards a known magnetic anomaly and also continues to the north east and extends along the Porgera Transfer Structure towards Red Hill. Induced polarisation anomalies displaying high chargeability are known in both areas. As well, Red Hill has an outcropping intrusive with associated brecciation, alteration and artisanal workings. Consequently, Buffalo is testing both targets as part of the on-going drill program to evaluate the northern extensions of the WRZ.

In addition, there are other targets in the immediate environs of the WRZ which the company plans to further drill. These include:

- Black Zone - will follow a similar programme as the WRZ
- Realgar Zone - effectively the northern extension of the Black Zone
- C9 Zone - possibly the feeder channel for other known mineralized zones

Table 1. Summary of Mt. Kare Drill Hole Intersections from
August 10 to August 28, 2006
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Drill Hole From To Intercept Gold Silver
No.(i) (m) (m) (m) (g/t) (g/t)
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MK06-50 94.0 143.0 49.0 10.4 PENDING
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Including 101.0 128.5 27.5 17.2 PENDING
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Including 101.0 109.0 8.0 29.2 PENDING
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MK06-52 5.4 84.5 79.1 3.0 PENDING
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MK06-53 93.0 133.0 40.0 15.3 PENDING
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Including 97.0 121.0 24.0 24.0 PENDING
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MK06-56(ii) 81.0 107.6 26.6 3.7 PENDING
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Including 81.0 103.0 22.0 4.3 PENDING
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(i) Holes are not drilled in numerical or sequential order.
(ii) Hole abandoned due to drilling conditions.


True widths from the drill intersections have not yet been estimated as Buffalo's geological team is completing a reinterpretation of the geology and structure of the Western Roscoelite zone. 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.

Exploration program tests other highly prospective targets.

The mineralization at Porgera and Mt. Kare is associated with a number of magnetic anomalies related to intrusions controlled by major structures. A number of these features can be recognized in the aeromagnetic data covering the Mt. Kare exploration license and have been identified as exploration targets. These include:

- Lubu Creek - approximately 7 kilometres from Mt. Kare. The Lubu Creek Magnetic anomaly is coincident with alluvial gold. Previous sampling located mineralised float samples with values up to 500 g/t gold.
- Pinuni Creek - along the Porgera Transfer Structure, a major north-east structure covered by gold bearing colluvium. There are several magnetic anomalies associated with this structure.
- Orosa Creek - is a major north-west trending magnetic anomaly with alluvial gold workings.
- Lower Maratane zone - is likely the southern extension of the SWRZ. A grab sample was collected with 8.9 g/t gold.

Buffalo plans an exploration program in these areas which could include:

- Further refinement of the remotely sensed data
- Detailed stream sediment sampling
- Ridge and spur soil sampling
- Detailed Geophysics
- Pitting and trenching
- Diamond Drilling

New License Application - EL 1427 - 100% owned by Buffalo Gold PNG.

Following the encouraging results from the Mt. Kare project this season, Buffalo is expanding its exploration tenure in the region. The company has applied for a new license area "EL 1427" which will be 100% owned by Buffalo PNG. The license is continuous to the south of the current license being explored and will approximately double the area the company has to explore to approximately 360 square kilometres. The property was selected based on the identification of a cluster of magnetic anomalies lying within the confines of the Porgera Transfer Structure in a similar manner to both Mount Kare and Porgera.

A work program similar to the other targets on the existing license is planned.

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

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 uses 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.

Contacts:
Buffalo Gold Ltd.
Julie Hajduk
Investor Relations
(604) 685-5492 or Toll Free: 1-888-685-5492
(604) 685-2536 (FAX)
julie@buffalogold.ca
www.buffalogold.ca