Buffalo Resources 2009 Capital Program and Operations Update

Buffalo Resources Corp. ("Buffalo")(TSX VENTURE:BFR) is pleased to update its
operational activities and to provide guidance for 2008 and 2009.


2009 Capital Program:

The Board of Directors of Buffalo has approved a 2009 capital program of $32
million. Included in the capital spending will be the drilling of 80 (32 net)
wells: 62 at Frog Lake, five in the Peace River Arch, nine in west central
Alberta, two in southern Alberta and two in southeast Saskatchewan. The program
will be funded from cash flow from operations, estimated based upon average
commodity prices of $65 US per barrel for West Texas Intermediate crude oil,
with an exchange rate of $1 Cdn to $0.80 US, and $7.50 per MMbtu for natural
gas.


Operational Update:

2008 Outlook

Buffalo is currently producing 3,350 barrels of oil equivalent per day (boe/d)
and expects to exit 2008 at a daily production rate of 3,500 boe/d. The current
and year-end production rates exclude approximately 500 boe/d at Pincher Creek
where the field is shut-in while Shell Canada's Waterton gas processing facility
is being upgraded, and approximately 400 boe/d of production at Killam, Alberta
as a result of the sale of that property in June 2008.


Pincher Creek, Alberta:

Shell Canada has advised that, following installation of a new sour gas
processing train at the Waterton gas plant in southern Alberta, plant start up
is expected to commence in January 2009 and Buffalo anticipates that its Pincher
Creek field will be back on production by March 2009. Buffalo anticipates
realizing initial net production rates between 4 and 6 MMcf/d (600-900 boe/d)
following the six month shut-in of the field.


Frog Lake, Alberta:

Buffalo has received all environmental and regulatory approvals from Indian Oil
and Gas Canada and the Frog Lake First Nation for the first 54 wells in its
heavy oil drilling program at Frog Lake in eastern Alberta and is currently
waiting on Energy Resources Conservation Board final approval of its Primary
Recovery Scheme (downspacing) application so that drilling can commence. Delays
in this approval have resulted in the majority of Buffalo's planned Q4 2008
drilling program at Frog Lake being deferred until Q1 2009.


West Central Alberta:

During the third and fourth quarter the Company drilled five Mannville gas wells
at Whitecourt East. The wells encountered between 9 and 13 metres of net pay and
were tested at flow rates of between 1.0 and 2.3 MMcf/d. The first well has been
tied-in and is currently producing 2 MMcf/d of natural gas and the remaining
four wells are expected to be tied-in and on production by year-end. As
reservoir pressures, measured in the new wells, remain at 85% to 95% of original
pool pressure, Buffalo expects to drill an additional six wells at Whitecourt in
2009.


Peace River Arch, Northern Alberta:

Prior to year-end, the Company plans to drill a Devonian/Cretaceous test at
Expanse as well as a horizontal well at Cecil and a vertical well at Spirit
River, both for Triassic oil. At Valhalla, a discovery well was completed in
June and is currently producing at a rate of 2.0 MMcf/d with two follow up
locations having been identified for drilling in 2009. Following the success of
its discovery gas well at Expanse, Buffalo shot 3-D seismic over the southern
portion of the Expanse lands in the spring of 2008 and plans to complete a
further 3-D program over the northern portion before year-end. Further drilling
is planned at Expanse in 2009.


Southeast Saskatchewan:

Given the attractiveness of the Saskatchewan fiscal regime, Buffalo has decided
not to dispose of its operations in the Province. Two horizontal wells were
recently drilled at Alameda for production from the Midale zone. The first well
is currently producing at a rate of 70 barrels of oil per day and the second is
being equipped as a pumping oil well. A further two wells are planned in 2009
and Buffalo intends to increase its focus on new opportunities in the area.


Certain information set forth in this press release contains forward-looking
statements. More particularly, this press release contains statements concerning
Buffalo's projected exit rates of production of oil and natural gas for the 2008
financial year and of anticipated capital expenditures and cash flow from
operations for 2009. The forward-looking statements are based on certain key
assumptions made by Buffalo, including expectations and assumptions concerning
prevailing commodity prices and exchange rates, availability of labour and cost
of labour and services, the timing of receipt of regulatory approvals, the
performance of existing wells the success in drilling new wells, the performance
of new wells and the sufficiency of budgeted capital expenditures in carrying
out Buffalo's planned activities.


Although Buffalo believes that the expectations and assumptions on which the
forward-looking statements are based are reasonable, undue reliance should not
be placed on the forward-looking statements because Buffalo can give no
assurance that they will prove to be correct. Since forward-looking statements
address future events and conditions, by their very nature they involve inherent
risks and uncertainties. Actual results could differ materially from those
currently anticipated due to a number of factors and risks. These include, but
are not limited to, the risks associated with the oil and gas industry in
general (e.g., operational risks in development, exploration and production;
delays or changes in plans with respect to exploration or development projects
or capital expenditures; the uncertainty of reserve estimates; the uncertainty
of estimates and projections relating to production, costs and expenses, and
health, safety and environmental risks), commodity price and exchange rate
fluctuations and uncertainties resulting from potential delays or changes in
plans with respect to exploration or development projects or capital
expenditures. These risks are set out in more detail in Buffalo's annual
information form for the year ended December 31, 2007, which can be accessed at
www.sedar.com.


The forward-looking statements contained in this press release are made as of
the date hereof and Buffalo undertakes no obligation to update publicly or
revise any forward-looking statements or information, whether as a result of new
information, future events or otherwise, unless so required by applicable
securities laws.


Barrels of oil equivalent (Boe's) may be misleading, particularly if used in
isolation. A boe conversion ratio of 6 Mcf of gas = 1 Bbl of oil is based upon
an energy equivalency conversion method primarily applicable at the burner tip
and does not represent a value equivalency at the wellhead.