Mr. Malcolm Campbell reports

FURTHER RESTRUCTURING OF BUFFALO'S DUNDEE OPERATIONS

Buffalo Coal Corp. advises shareholders that further to the completion of the retrenchment process as announced on March 11, 2015, and as a result of continuing 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 continuing 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 organized 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 appropriate time.

We seek Safe Harbor.