BUFFALO COAL CORPORATION - Update on consent for assignment of RCF convertible debt and repayment of various Investec loan facilities

Update on consent for assignment of RCF convertible debt and repayment of various Investec loan facilities

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 “Buffalo” or “the Group” or "the Company" or “the Issuer”)

UPDATE ON CONSENT FOR ASSIGNMENT OF RCF CONVERTIBLE DEBT AND REPAYMENT OF VARIOUS INVESTEC LOAN FACILITIES

September 2, 2022: Buffalo Coal advises its shareholders that, as previously reported on June 15, 2022,
Resource Capital Fund V L.P. (“RCF”) sold the convertible debt (“the Loan”) of USD 27,000,000 (twenty
seven million United States dollars) to Belvedere Resources DMCC (“Belvedere") for a consideration of
USD 2,000,000 (two million United States dollars) (“the Transaction”).

In accordance with the terms of the Transaction, Belvedere was required to obtain a written consent (“the
Consent”) from Investec Bank Ltd (“Investec”) on or before August 31, 2022 to assign the Loan in
Belvedere’s favour. While Investec is considering the request for providing the contemplated Consent,
RCF and Belvedere have mutually agreed to extend the deadline for obtaining the Consent to
October 31, 2022.

As per the Company’s announcement dated July 5, 2022, Investec expected repayment of all loan facilities
on or before August 31, 2022 in accordance with the Change of Control Notice. The Company and Investec
are in discussions to mutually finalise the date and the settlement amount of all owings and a further
announcement will be made when discussions conclude. In the interim, the previously reported ongoing
arrangements for the monthly repayment of principal and interest remain effective.

About Buffalo Coal

Buffalo is a coal producer in South Africa. It holds a majority interest in two operating mines through its
100% interest in Buffalo Coal Dundee Proprietary Limited, a South African company which has a 70%
interest in Zinoju Coal Proprietary Limited (“Zinoju”). Zinoju holds a 100% interest in the Magdalena
bituminous mine, the Aviemore East anthracite mine and the Balgray and North Adit anthracite projects
in South Africa. Buffalo Coal has an experienced coal-focused Board and Management team.
The Company has its primary listing on the TSX Venture Exchange and has a secondary listing on the
Alternative Exchange, operated by the JSE Limited.

Forward-Looking Statements

This press release may contain forward looking information within the meaning of applicable securities
legislation, which reflects the Company’s current expectations regarding future events. Forward looking
information is based on a number of assumptions and is subject to a number of risks and uncertainties,
many of which are beyond the Company’s control, which could cause actual results and events to differ
materially from those that are disclosed in or implied by such forward looking information. The Company
does not undertake any obligation to update such forward looking information, whether as a result of new
information, future events or otherwise, except as expressly required by applicable law.

FOR FURTHER INFORMATION PLEASE CONTACT:

Ms Emma Oosthuizen
Chief Executive Officer
Email: emma.oosthuizen@buffalocoal.co.za

Registered office:
Greytown Road
Industrial Area, Dundee
KwaZulu-Natal
3000

2 September 2022

Designated advisor:
Questco Corporate Advisory Proprietary Limited

Date: 02-09-2022 08:17:00
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