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BUFFALO COAL CORP - Completion of shares for debt arrangements

Release Date: 26/04/2016 16:17:00      Code(s): BUC     
Buffalo Coal Corp.
(Registration number: 001891261)
(External company registration number: 2011/011661/10)
Share code on the TSX Venture Exchange: BUF
Share code on the JSE Limited: BUC
ISIN: CA1194421014
(?Buffalo Coal? or ?the Company?)


Buffalo Coal announced today that it has completed certain shares for debt arrangements with two of
its creditors, STA Coal Mining Company Proprietary Limited (?STA?) and Resource Capital Fund V L.P.

The Company issued 6,136,353 common shares of the Company (?Common Shares?) to STA, at a
deemed issuance price of $0.05 per Common Share, in settlement of approximately $307,000 of
contract mining fees payable to STA by a subsidiary of the Company in respect of the five month period
ended March 31, 2016. The Common Shares were issued in accordance with the terms and conditions of
an equity settlement agreement dated October 28, 2015 between the Company, STA and certain other
parties and are subject to a four month resale restriction.

The Company also issued an aggregate of 57,000,240 Common Shares to RCF, at a deemed issuance
price of $0.05 per Common Share, in settlement of an aggregate of $2.85 million of interest payable to
RCF pursuant to a convertible credit facility between the Company and RCF dated December 2, 2015
(the ?RCF Facility?). The Common Shares were issued in two tranches as follows: 14,990,400 Common
Shares effective January 14, 2016 (in respect of interest payable to RCF for the three month period
ended December 31, 2015) and 42,009,840 Common Shares effective April 6, 2016 (in respect of
interest payable to RCF for the three month period ended March 31, 2016). The Common Shares issued
to RCF are subject to certain resale restrictions under applicable United State securities laws. RCF is an
insider of the Corporation (holding approximately 88.7% prior to the completion of arrangements
described herein and 89.0% following completion of the arrangements described herein). The RCF
Facility, including the settlement of interest through the issuance of Common Shares, was previously
approved by the shareholders of the Corporation at a meeting of shareholders held on June 19, 2015.

About Buffalo

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, a South African company which has a 70% interest in 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.
Cautionary Notes:

This press release contains ?forward-looking information? within the meaning of applicable Canadian
securities legislation. 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.

Neither the Toronto Venture Exchange, nor its regulation services provider (as that term is defined in the
policies of the exchange), accepts responsibility for the adequacy or accuracy of this release.


Malcolm Campbell                                               Sarah Williams
Chief Executive Officer                                        Chief Financial Officer
Email: malcolm.campbell@buffalocoal.co.za                      Email : sarah.williams@buffalocoal.co.za

26 April 2016

Designated Advisor: Questco (Pty) Ltd

Date: 26/04/2016 04:17:00 Supplied by www.sharenet.co.za                     
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