Buffalo Resources Announces Q1 2009 Results and Provides Corporate Update

Buffalo Resources Corp. ("Buffalo" or the "Company") (TSX VENTURE:BFR) is
pleased to announce financial and operating results for the first quarter ended
March 31, 2009.


HIGHLIGHTS

- Production averaged 2,890 barrels of oil equivalent ("boe") per day.

- Positive cash flow from operations of $1.1 million or $0.01 per share.

- Capital expenditures for exploration and development activities of
approximately $4.1 million.


- DD&A of $14.82 per boe, down from $16.71 per boe in 2008, reflecting
exploration and development success.


- Formed a Special Committee of the Board of Directors to review strategic
alternatives.




FINANCIAL ($000s except shares and per share amounts)
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                                                    March 31,      March 31,
Three months ended                                      2009           2008
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Revenue                                                8,797         20,626
Cash flow from operations                              1,135          8,726
 Basic and diluted per share                           $0.01          $0.13
Net earnings (loss)                                     (469)         1,898
 Basic and diluted per share                          ($0.01)         $0.03
Capital expenditures, net                              4,058          8,763


                                                    March 31,   December 31,
As at                                                   2009           2008
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Total indebtedness, net                               54,807         51,842
Shareholders' equity                                 113,693        113,887
Total assets                                         207,327        206,835
Common shares outstanding (000s)                      76,702         76,702
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OPERATIONS
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                                                    March 31,      March 31,
Three months ended                                      2009           2008
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Average daily production
 Oil and NGLs (bbls/d)                                 1,411          1,966
 Natural gas (mcf/d)                                   8,875         10,868
 Barrels of oil equivalent (boe/d)                     2,890          3,777
Average realized prices
 Oil and NGLs ($/bbls)                                 36.20          69.90
 Natural gas ($/mcf)                                    5.17           8.10
 Barrels of oil equivalent ($/boe)                     33.82          60.01
Field netback ($/boe)                                   9.16          31.11
Cash flow ($/boe)                                       4.36          25.41
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Q1 2009 OPERATIONS

Buffalo's average daily production of oil and natural gas was 2,890 boe/d for
the first quarter of 2009. Gas production at Pincher Creek remains shut in
awaiting start-up of the Shell Waterton gas plant. Shell has completed
construction and is currently in the process of plant start-up. Buffalo now
expects to resume production at Pincher Creek by mid June at a rate of between
700-800 boe/d. At Frog Lake, all wells requiring maintenance due to cold weather
were left suspended awaiting the recovery of heavy oil prices which resulted in
net shut-in production of approximately 50 boe/d. Start-up of production of
approximately 120 boe/d net from two new wells at Cecil and Whitecourt was
delayed until April 1, 2009 in order to qualify for the Alberta Government
royalty incentive program.


Revenue was $8.8 million for the three months ended March 31, 2009. After record
high oil prices in the summer of 2008, both oil and gas prices fell dramatically
during the first quarter 2009. The price of Hardisty Heavy 12 degrees oil, which
generally approximates the average selling price for Buffalo's oil, fell to a
low of $23.21 per barrel in January 2009 and averaged $39.38 per barrel for the
quarter. The Company's average realized selling price for oil and NGLs was
$36.20 per barrel and for natural gas was $5.17 per mcf. Production was evenly
weighted between oil and natural gas during the quarter resulting in an average
selling price of $33.82 per boe.


As a consequence of the implementation of the Alberta New Royalty Framework on
January 1, 2009, royalties increased from 22% of revenue for the first quarter
of 2008 to 24% in the current period although average realized selling prices
dropped by approximately 44%. Operating costs remained comparable with Q1 2008
on a boe basis with only a 7% increase per boe, mainly attributable to the
continuing fixed costs at Pincher Creek while production remains shut in.
Buffalo generated a field netback of $9.16 per boe in the quarter. Both general
and administrative expense and interest expense were reduced from 2008 resulting
in cash flow from operations of $1.1 million or $4.36 per boe for the three
months ended March 31, 2009.


Depletion, depreciation and accretion decreased from $16.71 per boe in Q1 2008
to $14.82 per boe for the current quarter, reflecting the success of Buffalo's
exploration and development program in 2008. A net loss of $0.5 million or $0.01
per share was realized for the three months ended March 31, 2009.


EXPLORATION AND DEVELOPMENT

During the quarter, Buffalo drilled two (0.6 net) wells, one at Whitecourt in
west central Alberta and one at Spirit River in the Peace River Arch. The
Whitecourt well was drilled as an infill well. It production-tested at the
highest gas rate of all wells drilled in the pool to date (2.5 Mmcf/d) and
displayed minimal pressure depletion from offset producers. This indicates that
further downspacing and infill drilling of the property is warranted. The well
was tied in as a producing gas well and began producing in April 2009. In Spirit
River, a farm-in commitment exploration well missed the target zone but
encountered a secondary zone which is currently being evaluated for completion.
Two wells, an oil well at Cecil and a gas well at Ferrybank, that had been
previously drilled, were equipped and tied in during the quarter and began
producing in April 2009. Also during the quarter, the Company completed a
planned purchase of seismic data and as a result now has complete 3D coverage
over the entire Pincher Creek field.


ACQUISITION

On May 15, 2009, Buffalo completed the acquisition of an additional interest in
certain oil and natural gas assets located in the Pincher Creek, Killam, Viking,
Woking and Kakwa areas of Alberta from two third parties. The total
consideration for the acquired assets was $975,640, which included the issue of
an aggregate of 909,091 common shares of Buffalo, at a deemed price of $0.55 per
common share, to one of the vendors. Brian E. Bayley, a director of Buffalo, is
also an officer, director and shareholder of each of the vendors. The principal
terms of the acquisitions were agreed prior to Mr. Bayley joining the Buffalo
board.


OUTLOOK

In February 2009, in response to the deteriorating oil and gas commodity price
environment, the Company revised its 2009 capital program downward to $19.6
million. World oil prices are currently more than 30% higher than the average
price for the first quarter 2009 and the price of heavy oil has benefitted
disproportionately from a narrowing of the heavy oil price differential. In
addition, oil and gas service costs have decreased in western Canada. In light
of the marked improvement in operating fundamentals, Buffalo plans to commence
drilling the first 30 wells of its Frog Lake drilling program in June 2009.


On March 26, 2009, the Company announced that its Board of Directors had
appointed a Special Committee of independent directors with a mandate to
consider strategic alternatives for the Company, which may include a sale,
merger or other business combination involving Buffalo or the sale of some or
all of the assets of the Company.


Buffalo's interim financial statements and Management's Discussion and Analysis
for the three months ended March 31, 2009 are available on SEDAR (www.sedar.com)
and on Buffalo's website at www.buffaloresources.com.


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. The forward looking
statements contained in this press release are made as of the date hereof and
Buffalo disclaims any intention or 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. The terms "cash flow
from operations" and "field netback" are non-GAAP financial measures that do not
have any standardized meaning prescribed by Canadian Generally Accepted
Accounting Principles ("GAAP") and are therefore unlikely to be comparable to
similar measures presented by other issuers. Both "cash flow from operations"
and "field netback" provide useful information to investors and management since
they are an indicator of the Corporation's profitability and ability to fund
future capital expenditures which drives growth. Cash flow from operations is
calculated as earnings (loss) before charges for depletion, depreciation and
accretion, stock-based compensation and future income taxes and after deducting
asset retirement expenditures. The inclusion of changes in non-cash operating
working capital results in cash flow from operating activities. Field netback
represents the profit margin from the sale of oil, natural gas and natural gas
liquids and is calculated as revenues less royalties and operating expenses.