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 CORP. ANNOUNCES SECURED CREDIT FACILITY

TORONTO, ONTARIO – Newsfile – January 23, 2023: Buffalo Coal Corp. (TSXV: BUF) (the
“Company”) announced today that its wholly-owned subsidiary, Buffalo Coal Dundee Proprietary
Limited (“BCD”) has entered into and received approval from the South African Reserve Bank
regarding a secured credit facility agreement dated November 7, 2022 and addendum to the facility
agreement dated December 29, 2022 (as amended, the “Credit Agreement”) with Ikwezi Mining
FZE (the “Lender”), an affiliate of the Company’s majority shareholder, Belvedere Resources
DMCC (“Belvedere”).

Pursuant to the Credit Agreement, the Lender will make a credit facility available to BCD in the
aggregate principal amount of USD$30,000,000, which amount may be drawn in up to ten draws
under the Credit Agreement (each such draw, a “Facility Advance”). Interest will accrue on each
Facility Advance at a rate based on the base lending rate applicable in the United States of America,
as prescribed by the South African Reserve Bank (7.5% as of January 20, 2023), and each Facility
Advance will become due and payable three (3) years after the date such Facility Advance was
advanced to BCD by the Lender. The Credit Agreement provides for a general charge against
BCD’s assets as security for the Facility Advances made thereunder, which may be prepaid by
BCD on notice to the Lender in whole or in part without any penalties.

Although the Credit Agreement constitutes a “related party transaction” for the purposes of
Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions
(“MI 61-101”) and TSXV Exchange Policy 5.9, it is exempt from the valuation requirements
pursuant to Section 5.5(b) of MI 61-101, as the Company’s securities are not listed on a market
specified in that section, and from the minority approval requirements pursuant to Section 5.7(1)(f)
of MI 61-101, as the credit facility is a non-convertible loan on what the Company and its
independent board members have determined are market terms and is not repayable in securities
of the Company.

The Company intends to use the initial Facility Advance under the Credit Agreement to repay
amounts owing to Belvedere under the Third Amended and Restated Loan Agreement between the
Company and Resource Capital Fund V L.P. (which was assumed by Belvedere). The remaining
amounts available to BCD under the Credit Agreement will be used for general working capital
purposes.

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 BCD, 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 Financial Officer
Email: emma.oosthuizen@buffalocoal.co.za

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

January 23, 2023

Designated Advisor: Questco Corporate Advisory Proprietary Limited