Date Closed

October 17, 2006

Lead Office

Toronto

Value

11.00 Million CAD

On October 17, 2006, The Buffalo Oil Corporation announced that has taken up approximately 10.1 million common shares of Pocaterra Energy Inc., representing approximately 85% of the outstanding common shares of Pocaterra. Buffalo has now acquired control of Pocaterra and encourages all remaining shareholders to tender to the offer as quickly as possible. Pocaterra shareholders who tender to Buffalo's offer may elect to receive (i) C$0.575 in cash and 0.2 of a common share of Buffalo; (ii) C$0.915 in cash; or (iii) 0.538 of a Buffalo Share for each common share of Pocaterratendered to the Offer, provided, however that the aggregate consideration paid shall in any event be equal to the number of Pocaterra Shares tendered multiplied by 0.2 of a Buffalo Share and C$0.575 in cash and, to the extent that Pocaterra Shares are tendered under items (ii) and (iii), the consideration received by those Pocaterra shareholders shall be pro-rated, if required, so that the aggregate consideration is equal to the number of Pocaterra Shares tendered multiplied by 0.2 of a Buffalo Share and C$0.575 in cash.

Buffalo Resources Corp. engages in the exploration, development, and production of oil and gas reserves in western Canada. It holds 15% to 100% interest in Frog Lake property, which consists of 51 producing oil wells and 8 producing natural gas wells located to the northwest of Lloydminster, Alberta; and 15% to 50% interest in the Gilby/Rimbey property that comprises 5 producing natural gas wells and 3 producing oil wells located to the southwest of Edmonton.

McCarthy Tétrault LLP advised Buffalo with a team led by Michael Bennett.