BUFFALO GOLD LTD.

[G-khan]

FOR: BUFFALO GOLD LTD.

TSX VENTURE SYMBOL: YB.U

OCTOBER 20, 2003 - 19:44 ET

Buffalo Signs Agreement with Terrawest Minerals to
Acquire Chinese Gold Projects

VANCOUVER, BRITISH COLUMBIA--Further to its news release of
October 2, 2003, Buffalo Gold Ltd. ("Buffalo") is pleased to
announce that it has, subject to regulatory approval, reached an
agreement with Terrawest Resource Holdings Ltd. ("Terrawest") to
acquire all of the shares of Terrawest's wholly owned subsidiary,
Terrawest Gold Corp. ("TGC").

Terrawest has assigned to TGC all of its rights under a Letter of
Agreement on Cooperation dated August 30, 2003 with The Gold
Group Co. of Guizhou Province (the "Guizhou Gold Group") for the
establishment of a Sino-foreign cooperative joint venture company
for the purpose of exploring and mining a number of mineral
exploration permits in Guizhou Province, Peoples Republic of
China. Terrawest has also assigned to TGC all of its rights under
a a letter of intent with the Geological Mineral Resource Survey
and Development Bureau of Hunan Province dated June 11, 2003 for
the exploration and mining of the Xuefeng gold exploration
property in Hunan Province.

As consideration for the acquisition of TGC, Buffalo will issue
to Terrawest 5,000,000 escrowed common shares of Buffalo. In
addition, Buffalo has agreed to issue a further 2,000,000 shares
to Terrawest upon the completion of a final bankable feasibility
study showing the feasibility of placing any exploration permit
forming a part of the Guizhou property into commercial
production, provided that such study has confirmed mineable
reserves of not less than 2,000,000 ounces of gold.

Buffalo's agreement with Terrawest represents the culmination of
its search for highly prospective gold exploration properties to
augment its Alberta diamond properties. Buffalo will not be
proceeding with the option agreement, announced November 6, 2002,
to acquire a mineral property in northern B.C. nor with the
letter of intent with Big Sky Mining Canada Ltd., announced
December 23, 2002, to pursue Chinese mineral exploration
opportunities, as both have terminated.

In connection with the brokered private placement with Octagon
Capital Corporation, Buffalo has agreed, subject to regulatory
approval, to pay to Saintsbury Management Corp. a finder's fee
equal to 2% of the proceeds from the placement in consideration
of Saintsbury's introduction of Buffalo to Octagon.

On behalf of the Board of Directors of

BUFFALO GOLD LTD.

John V. Tully, President

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FOR FURTHER INFORMATION PLEASE CONTACT:
Buffalo Gold Ltd.
John V. Tully
President
(604) 685-5492
(604) 685-6940 (FAX)
No stock exchange has approved or disapproved the information
contained herein.