Buffalo Gold acquiring Dynasty Gold

Vancouver – Under a friendly merger plan Buffalo Gold (BUF.U-V, BYBUF-O) plans to acquire Dynasty Gold (DYG-V, DGDCF-O) through an all stock deal.

Buffalo Gold will issue one share for each 4.5 Dynasty Gold shares, warrants or options, representing about a 29% premium on Dynasty shares based on closing prices prior to the announcement.

Buffalo stands to gain Dynastys three Chinese gold projects, specifically:

Hatu Project

• located in the Xinjiang Autonomous Region of northwestern China
• Qi-2 deposit has 16.9 million inferred tonnes grading 1.7 grams gold per tonne (913,000 contained oz. gold)
• major Dynasty shareholder Avocet Mining (AVVGF-O) earning into the project
• data from 2006 drill program (56 holes, 8,900 metres) being compiled into a new resource estimate
• past production from the Qi-2 mine

Red Valley Project

• located in Qinghai Province, north-central China
• partnered with AngloGold Ashanti (AU-N, ANG-J, AGG-A) that finance exploration
• plus-20 km surface anomaly for gold, arsenic, antimony, mercury coincident with major structures
• initial drilling in 2006 cut narrow intervals up to several grams gold

Wild Horse Project

• located in Gansu Province, northwestern China
• also a financing partnership with AngloGold Ashanti
• large land package (3,000 sq. km) in gold producing region
• two large anomalies identified in satellite imagery
• surface grab samples up to 3.6 grams gold

In addition to its planned acquisition of Chinese mineral projects from Dynasty, Buffalo Gold has also tabled an $11.4-million exploration program for 2007 at the Mt. Kare gold project in Papua New Guinea. Up to 12,000 metres of drilling in 60 holes is planned.

Buffalo has rights to acquire up to 90% interest in the project, assigned through offshore company Longview Capital Partners, from Madison Minerals (MMR-V, MMRSF-O) for staged payments and work commitments leading to completion of a bankable feasibility study.

A resource estimate conducted on Mt. Kare in 2000 reviewed 14.68 million indicated tonnes grading 2.36 grams gold and 33.7 grams silver per tonne plus an additional 10.85 million inferred tonnes at 1.98 grams gold and 22.7 grams silver using a 1 gram gold equivalent cut-off and cutting all high grade assays to 30 grams gold.

Buffalo also holds three early-stage exploration projects in Australia: the Corridors gold project in Queensland, the Hannah base metal prospect in Western Australia and the Murphy Ridge uranium project in the Northern Territory.

Shares of Dynasty Gold gained about 14% on the March 13th takeover news to close up 4 at 32 apiece. Buffalo Gold traded essentially even on the day, off a couple of pennies at $1.40 per share.