Buffalo Resources Updates Outlook and Operations

Buffalo Resources Corp. ("Buffalo" or the "Company") (TSX VENTURE:BFR) Buffalo
is pleased to provide the following corporate and operational update of its
recent activities and to update the short-term outlook for the Company.


OUTLOOK

Buffalo has updated its 2009 capital expenditure forecast to $19.6 million. This
forecast is based on management's current expectation for 2009 commodity prices
of $57.50 US per barrel of West Texas Intermediate crude oil, an exchange rate
of $1 Cdn to $0.825 US, and $7.58 per MMbtu for natural gas. As presently
envisioned, this cash flow will fund drilling of 56 (18 net) wells including 44
wells at Frog Lake, five wells in west central Alberta, five wells in the Peace
River Arch and two wells in southern Alberta. The capital program will be
restricted to cash flow and will be adjusted throughout the year as cash flow
forecasts change.


Activity in Q1 2009 is expected to focus on completion and tie in of wells
drilled in Q4 2008, partner drilling commitments and land expiries. Higher
levels of capital investment are scheduled following spring break up in
anticipation of improved commodity prices and lower industry service costs.


CORPORATE

In 2009 Buffalo intends to focus on reducing its overall cost structure and
increasing operating efficiency. In light of this, the Board has frozen the
salaries of all professional, management, and executive personnel at 2008
levels.


In December 2008, the Company increased its bank credit facility from $66 to $70
million and negotiated the termination of an office space lease, surplus to its
requirements, which will result in a savings to the Company of $4.5 million over
the next 7.5 years.


OPERATIONS

Buffalo's current production rate is approximately 3,050 boe/d, comprising 1,500
bbls/d of oil and liquids and 9.3 MMcf/d of natural gas. Production of
approximately 600 boe/d is shut-in at Pincher Creek awaiting completion of the
new sour gas processing train at Shell Canada's Waterton gas processing plant.
Following delays in commissioning these facilities, Buffalo now expects that the
Pincher Creek property will be back on production in May 2009.


EXPLORATION AND DEVELOPMENT

Frog Lake, Alberta

In December 2008, Buffalo received approval from the Energy Resources
Conservation Board ("ERCB") of its holding application for increased density of
producing oil wells at Frog Lake, Alberta. The approval will permit the Company
to develop the property in a manner consistent with other fields in the
surrounding area, generally allowing for four hectare spacing per well with a
minimum inter-well distance of 100 metres. With this approval, Buffalo has
between 150 and 250 development drilling locations at Frog Lake and the first
phase of this program is now scheduled to begin following spring break-up this
year.


Pincher Creek, Alberta

Two sands were completed in the Cretaceous/Jurassic interval in a suspended
wellbore to evaluate the potential for sweet light oil and gas. Testing revealed
that the sands are charged with hydrocarbons and yielded light oil, but not at
economic production rates. Other suspended wellbores will be reviewed for
re-completion to further test the potential of these hydrocarbon-bearing zones.
Simultaneous with the upgrading of the Shell Waterton gas processing plant,
major modifications were made to Buffalo's gas compression facilities to reduce
operating costs.


Whitecourt, Alberta

The five well drilling program targeting Manville gas which commenced in Q3, has
been completed. All five wells have been tied-in and are currently producing at
rates between 1 and 2 MMcf/d. Reservoir pressures in the new wells indicate very
limited depletion and the operator is seeking further down-spacing approval for
the property. This would allow for the drilling of three to four producing wells
per section. Additional capacity has been added to the gas gathering system to
ensure sufficient take-off capacity for current and future wells.


Peace River Arch, Alberta

Two wells were successfully drilled in 2008. At Royce, a horizontal well was
drilled for Charlie Lake oil. The well was completed using a staged fracturing
technique and produced 220 boe/d of oil and natural gas on test. The well is
expected to be tied-in during Q1 2009. A second exploratory well was drilled in
the area pursuant to a farm-in agreement. The well has been completed and tested
and is expected to be tied-in and producing after spring breakup. Buffalo has
exercised its option to drill a follow up well during Q1 2009.


Southeast Saskatchewan

A Midale horizontal oil well was drilled at Alameda to follow up the successful
well drilled in Q3 2008. Both wells are now tied-in as pumping oil wells.


DISCLAIMER

Certain statements contained in this press release constitute forward looking
statements or forward-looking information under applicable securities
legislation. Such forward-looking statements or information are provided for the
purpose of providing information about management's current expectations and
plans relating to the future. Readers are cautioned that reliance on such
information may not be appropriate for other purposes, such as making investment
decisions. Forward-looking statements or information typically contain
statements with words such as "anticipate", "believe", "expect", "plan",
"intend", "estimate", "propose", "project", "seek", "continue", "forecast",
"may", "will", "potential", "could", "should" or similar words suggesting future
outcomes or statements regarding an outlook. All forward looking statements are
based on the Company's beliefs and assumptions based on information available at
the time the assumption was made. Forward-looking statements or information are
based on a number of factors and assumptions that have been used to develop such
statements and information but which may prove to be incorrect. Although the
Company believes that the expectations reflected in such forward-looking
statements or information are reasonable, undue reliance should not be placed on
forward-looking statements because the Company can give no assurance that such
expectations will prove to be correct. In addition, forward-looking statements
or information are based on current expectations, estimates and projections that
involve a number of risks and uncertainties which could cause actual results to
differ materially from those anticipated by the Company and described in the
forward-looking statements or information. These risks and uncertainties which
may cause actual results to differ materially from the forward-looking
statements or information.


In particular, in connection with such forward-looking statements and
information, the Company has made assumptions regarding, and there are risks and
uncertainties relating to, among other things: the ability of management to
execute its business plan; general economic and business conditions; the nature
of the oil and natural gas industry, including exploring for, developing and
producing crude oil and natural gas; competition; market demand; government
policies or laws and approvals; reserves estimates and reserves life; the
ability of the Company to add production and reserves; timing and amount of
exploration or development projects and capital expenditures; estimates and
projections relating to production (including decline rates), costs and
expenses; fluctuations in oil and natural gas prices, currency, exchange and
interest rates; marketing operations; credit exposure; royalty payments; health,
safety and environmental matters; legal and regulatory proceedings; and the
availability and cost of financing. Additional assumptions upon which such
forward-looking statements are based and risk factors affecting the Company and
its business are contained in the Company's annual information form and
management's discussion and analysis filed on SEDAR at www.sedar.com. Readers
are cautioned that the foregoing list is not exhaustive of all possible risks
and uncertainties facing the Company or of the assumptions and other factors
that may have been considered by the Company in connection with such
forward-looking statements.


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.


References in this news release to test production rates for recently drilled
wells are useful in confirming the presence of hydrocarbons, however, such rates
are not determinative of the rates at which such wells will commence production
and decline thereafter. While encouraging, readers are cautioned not to place
reliance on such rates in calculating the aggregate production capability for
the Company.


In this news release production data is commonly stated in barrels of oil
equivalent (Boe's) using a conversion ratio of 6 Mcf of gas = 1 Bbl of oil based
upon an energy equivalency conversion method primarily applicable at the burner
tip and does not represent a value equivalency at the wellhead. Such conversion
may be misleading, particularly if used in isolation.