BUFFALO COAL CORP - Further restructuring of operationsRelease Date: 22/05/2015 15:06:00 Code(s): BUC
Buffalo Coal Corp.
(previously Forbes & Manhattan Coal Corp.)
(Registration number: 001891261)
(External company registration number: 2011/011661/10)
Share code on the Toronto Stock Exchange: BUF
Share code on the JSE Limited: BUC
(?Buffalo? or the ?Company?)
FURTHER RESTRUCTURING OF BUFFALO?S DUNDEE OPERATIONS
Shareholders are advised 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
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.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Malcolm Campbell Sarah Williams
Chief Executive Officer Chief Financial Officer
+27 82 924 4444 +27 83 781 1405
Email: firstname.lastname@example.org Email : email@example.com
22 May 2015
Sponsor to Buffalo Coal Corp.
Questco (Pty) Ltd
Date: 22/05/2015 03:06:00 Supplied by www.sharenet.co.za
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