CUFE LTD — Regulatory Filings 2007

Dec 16, 2007

60 Wellington Square North Adelaide SA 5006 Tel: +61 8 8360 8672 Fax: +61 8 8361 7985

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BUKA GOLD LIMITED

ASX ANNOUNCEMENT, 17 DECEMBER 2007

POSITIVE RESULTS FROM INITIAL TEST DRILLING AT MT SCOTCHY

The first series of RC percussion drill holes testing the Mt Scotchy Prospect has been completed. Each of the 14 holes intersected fresh primary sulphides in highly altered zones within the sub-volcanic intrusive host rocks.

This announcement is being made in advance of receipt of assay results because of the significance of the positive results achieved, and their materiality in assessing the prospectivity of the Mt Scotchy tenements.

As previously reported, sub-outcropping altered and gossanous zones, subsequent shallow trenching and soil sampling of adjacent areas at Mt Scotchy returned highly anomalous gold, silver, lead, zinc and arsenic values. The overall strike extent at surface of the mapped and sampled main target area is now in excess of 1.5 kilometres.

The purpose of this initial drilling program was to sample the mineralised zones below the influence of surface oxidation and weathering effects which can result in localised surface enrichment and depletion of precious and base metals, particularly in gossans.

The 14 inclined RC percussion holes totalling 1348 metres, tested three defined target zones. Seven holes were drilled under the 'Discovery Trend' gossanous zone, plus one additional hole testing the inferred extension of the 'Discovery Zone' under soil cover. Three holes were drilled to intersect the down-dip extension of the 'Trend 2' gossanous zone, and three holes were drilled into the adjacent 'Geochemical Target' where anomalous soil values mapped out a well-defined target under shallow cover.

All holes returned fresh bedrock and each intersected sulphide-bearing alteration zones that could be correlated with the gossanous and weathered alteration zones mapped at surface though no assay correlation should be assumed. The dominant sulphide was pyrite, ranging widely in abundance in the alteration zones from < 10% to > 90%, with several 1 metre drilled intervals returned of essentially massive pyrite (ie >90%). The next most abundant sulphide was a dark grey to black species, tentatively identified as a silver-lead-zinc bearing sulphosalt, along with less abundant accompanying galena and arsenopyrite. Selected sulphide-rich samples have been assembled for a detailed mineralogical examination.

The sulphides are contained within zones of intense carbonate and silica alteration, surrounded by a less intense alteration halo in the host rocks. As mapped at surface, and as interpreted from logging of RC drill rock chips, these alteration zones are associated with a steeply dipping complex fracture/shear system in the host volcanics, containing sulphidic breccias, multiple veins, and massive sulphide.

E-mail: info@bukagold.com.au

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The down hole width of intersected alteration zones varied from less than 1 metre, to a more typical 2 to 3 metres. The thickest down hole width came from hole MSRC 12 that intersected a carbonate-silica alteration zone interval of 12 metres carrying an average of 20% sulphide.

These results confirm the discovery of a significant new mineralised system at Mt Scotchy, and highlight the prospectivity of this and other Lower Cretaceous subvolcanic complexes within the southern half of the Maryborough Basin.

Sampling of the holes for assay has been completed, and initial assay results are expected to be received in January 2008.

Buka Gold will hold its AGM at Level 39, 2 Park Street Sydney at 11.00am on Wednesday, 19 December and exploration staff will make a short presentation with particular focus on the Mt Scotchy discovery.

Competent Persons’ Statement:

The information in this report that relates to exploration results was compiled by Liam J Frømyhr, who is a full-time employee of Gympie Eldorado Mining Pty Ltd. This information was then reviewed and verified by Dr R J Gunthorpe, a geological consultant to Buka Gold. Dr R J Gunthorpe is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr RJ Gunthorpe consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

For further information contact: David Hillier Executive Chairman Phone: +61 8 8360 8646 Mobile: + 61 (0) 408 236 408 Email: dh@buka.com.au