Buffalo Resources Announces Year-End and Q4 2007 Results

Buffalo Resources Corp. ("Buffalo")(TSX VENTURE:BFR) is pleased to announce its
financial and operating results for the fourth quarter and ten months ended
December 31, 2007. The Buffalo Oil Corporation ("Old Buffalo") and Choice
Resources Corp. ("Choice") amalgamated on August 2, 2007 (the "Amalgamation")
and the new entity, Buffalo adopted December 31 as its year-end. The results for
the ten months reflect the amalgamated company from August 2, 2007 to December
31, 2007 and Choice for the period March 1, 2007 to August 1, 2007. All
comparative figures are those of Choice and reflect Choice's year and fourth
quarter ended February 28, 2007.


HIGHLIGHTS

- Production for the fourth quarter ended December 31, 2007, which reflects the
amalgamated company for the full period, averaged 4,054 boe/d compared with
1,959 boe/d for the comparative period.


- Annual production increased 81% from 1,636 boe/d for the year ended February
28, 2007 to 2,956 boe/d for the ten months to December 31, 2007.


- Proved plus probable reserves increased 57% to 15.1 million boe.

- Net asset value of $2.25 per fully diluted share at December 31, 2007 using
the proved plus probable reserves value discounted at 10% of $196.5 million and
the balance sheet values of undeveloped land, seismic data, bank debt, working
capital deficit and asset retirement obligations.


- Finding, development and acquisition costs of $10.68 per boe on a proved plus
probable reserves basis and $17.29 per boe on a proved reserves basis for the
ten months.


- Drilled 22 (net 13.6) wells at an 86% success rate during the ten months.



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FINANCIAL ($000s except shares and per share amounts)

                                                                     Twelve
                      Four months  Three months    Ten months        months
                            ended         ended         ended         ended
                      December 31,  February 28,  December 31,  February 28,
                             2007          2007          2007          2007
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Revenue                    20,664         8,358        39,208        25,741
Cash flow from
 operations                 4,382         1,826         7,696         7,700
 Basic and diluted
  per share                 $0.07         $0.05         $0.15         $0.22
Net earnings (loss)        (3,096)       (1,020)       (5,236)          417
 Basic and diluted
  per share                ($0.05)       ($0.03)       ($0.10)        $0.01
Capital
 expenditures, net         19,618         7,180        83,435        28,455

As at December 31                                        2007          2006
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Working capital
 (deficit)                                            (63,600)      (41,700)
Shareholders' equity                                   94,461        61,018
Total assets                                          205,272       133,396
Common shares
 outstanding (000s)                                    65,702        84,148
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OPERATIONS

                                       Four      Three        Ten     Twelve
                                     months     months     months     months
                                      ended      ended      ended      ended
                                   December   February   December   February
                                   31, 2007   28, 2007   31, 2007   28, 2007
Average daily production
 Oil and NGLs (bbls/d)                2,101        298      1,241        153
 Natural gas (mcf/d)                 11,716      9,965     10,289      8,898
 Barrels of oil equivalent (boe/d)    4,054      1,959      2,956      1,636
Average realized prices
 Oil and NGLs ($/bbls)                45.53      56.87      48.82      63.89
 Natural gas ($/mcf)                   6.17       7.43       6.47       6.67
 Barrels of oil equivalent ($/boe)    41.78      47.41      43.35      43.10
Field netback ($/boe)                 15.17      23.71      17.59      21.98
Cash flow ($/boe)                      8.86       7.64       8.51      12.89
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Q4 2007 OPERATIONS

Production volumes averaged 4,054 boe/d in the fourth quarter of 2007, a 107%
increase over the comparative quarter of the year ended February 28, 2007.
Revenue increased 147% to $20.7 million largely the result of the Amalgamation
and the resultant increase in production. Heavy oil and natural gas selling
prices did not rise in conjunction with the rise in light oil prices through
2007. Buffalo realized $45.53 per bbl for oil and $6.17 per mcf for gas in Q4.
The average price realized per boe was $41.78 in 2007 compared with $47.41 in
the comparative period, mainly as a result of the higher proportion of heavy oil
in the Company's commodity mix. In the current period, Buffalo's production was
weighted 48% to natural gas compared with 85% in the prior year.


Field netback was $7.5 million for the four months ended December 31, 2007 or
$15.17 per boe compared with $4.2 million ($23.71 per boe) for the three months
ended February 28, 2007. Royalty expense was $5.5 million for the current period
and increased to 27% of revenue compared with 14% in the comparative period.
This increase resulted from a higher proportion of revenue being derived from
wells which are subject to the payment of gross overriding royalties, as well as
one time costs related to crown royalty audits of prior years. Operating costs
totalled $7.7 million for the current quarter or $15.51 per boe (lower than last
year at $16.88 per boe) and included a number of non recurring charges such as
the 2006 year-end adjustment of third party gas plant processing costs for
Buffalo's Pincher Creek gas production. A number of initiatives are being
undertaken to further reduce the operating cost per boe operating costs which
should be reflected in future quarters.


General and administrative expense increased from $1.3 million ($7.21 per boe)
for the quarter ended February 28, 2007 to $2.2 million ($4.46 per boe) for the
current period, mainly reflecting the additional month in the period and
increased staffing associated with the larger production and exploratory land
base. The Corporation generated cash flow from operations of $4.4 million or
$0.07 per share for the current quarter compared with $1.8 million or $0.05 per
share for the comparative period of the last financial year. Depletion,
depreciation and accretion expense was $8.3 million, an increase from $2.8
million for last year. This was the result of the significantly higher
production volumes as well as a 6% increase in the rate to $16.79 per boe.
Buffalo's net loss before tax for the quarter was $4.1 million and resulted in
an income tax recovery of $1.0 million for a net loss of $3.1 million (net loss
of $1.0 million or $0.03 per share for Q4 of the year ended February 28, 2007).
Cash flow from operations was $4.4 million for the current quarter compared with
$1.8 million for last year.


EXPLORATION AND DEVELOPMENT

Buffalo drilled 14 (9.2 net) wells during the four months ended December 31,
2007 and incurred $19.6 million in capital expenditures. This drilling included
four (3.1 net) exploration wells in the Peace River Arch including a discovery
well at Expanse, nine (5.5 net) development wells at Frog Lake of which five
were on production by December 31, 2007. A 30 square mile 3D seismic shoot was
completed at Clayhurst in the Peace River Arch and is currently being evaluated.
Further modifications were made to the Killam battery during the four months.
Buffalo sold two parcels of land for proceeds of $1.1 million in 2007 and
subsequent to year-end, further non core asset sales have generated proceeds of
$2.5 million.


CORPORATE

On March 13, 2008, Buffalo announced an $11 million private placement of common
shares and the formation of a $10 million drilling joint venture. The private
placement is expected to close by mid May 2008. The drilling joint venture which
will allow Buffalo to exploit its large land base and inventory of drilling
prospects more quickly, for the benefit of its shareholders, is expected to be
in place in Q2 2008.


OUTLOOK

Buffalo entered 2008 with a significant production base and a substantial
drilling inventory, balanced between low risk development prospects which will
provide steady growth and higher risk prospects which hold the potential to
significantly increase production. During the first quarter of 2008, heavy oil
selling prices improved dramatically. In March, Buffalo realized a selling sales
price of $76.87 per barrel for its heavy oil compared with $40.13 per barrel for
the fourth quarter, and $8.70 per mcf for natural gas compared with $6.17 per
mcf in the fourth quarter. These higher commodity selling prices should result
in significantly improved financial results for Buffalo in Q1 2008 and beyond.


In March 2008, Buffalo began drilling a deep Mississippian horizontal well at
Pincher Creek in southern Alberta. Drilling is expected to continue until mid to
late May. A 3D seismic data shoot is being undertaken over the gas discovery
lands at Expanse and a follow up well is planned for drilling this summer. Other
2008 drilling plans include: two exploratory wells at Clayhurst following
interpretation of the recently acquired 3D seismic data; two Charlie Lake
horizontal development wells at Cecil; a Cretaceous well at Pincher Creek to
test for the light oil and associated gas which other operators in the area have
encountered; and approximately 50 heavy oil development wells at Frog Lake.


Buffalo is an emerging Canadian junior oil and gas company engaged in the
exploration, development and production of oil and gas reserves in the provinces
of Alberta and Saskatchewan.


Buffalo's consolidated annual financial statements and Management's Discussion
and Analysis for the ten months ended December 31, 2007 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.
Buffalo disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.


Barrels of oil equivalent (Boe's) may be misleading, particularly if used in
isolation. A boe conversion ratio of 6 Mcf of gas equals 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.