Further Restructuring of Buffalo's Dundee Operations

TORONTO, ONTARIO--(Marketwired - May 22, 2015) - Buffalo Coal Corp. (TSX:BUF)(JSE:BUC) ("Buffalo" or "the Company") advises shareholders that further to the completion of the retrenchment process as announced on March 11, 2015, and as a result of ongoing financial difficulties, the Company continues to consider restructuring alternatives at its Dundee operations.

Despite a welcomed recent increase in productivity, previous underperformance by Magdalena underground, the Company's largest business unit, the depletion of the Magdalena opencast reserve, which reached the end of its life in March 2015, the continued reduction in export coal prices, as well as ongoing frequent and unpredictable load shedding by Eskom, have impacted the Company's current and forecast financial position. This has necessitated further restructuring in order to cover operational cash flow shortfalls, thereby ensuring that Buffalo remains sustainable into the future.

In terms of the proposed further restructuring, a consultation process has commenced in South Africa with organised labour and relevant stakeholders, as required in terms of section 189A of the South African Labour Relations Act, and details on the outcome of this process will be announced at the appropriate time.

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.

Contact

Buffalo Coal Corp.
Malcolm Campbell
Chief Executive Officer
+27 82 924 4444
malcolm.campbell@buffalocoal.co.za
Buffalo Coal Corp.
Sarah Williams
Chief Financial Officer
+27 83 781 1405
sarah.williams@buffalocoal.co.za