Banro's pre-feasibility study of its Twangiza gold project indicates gold production of 2.3 million ounces at average operating cash costs of US$345/OZ during 12 years of operation



    Study indicates production of 345,125 ounces per year at a total
    operating cash cost of US$212/oz during first 3 years, with payback of
    Capital Expenditure (including Hydro Electric Power) of 2.78 years at
    US$850/oz

    TORONTO, July 7 /CNW/ - Banro Corporation ("Banro" or the "Company")
(AMEX - "BAA"; TSX - "BAA") is pleased to announce completion of the
Pre-Feasibility Study of its wholly-owned Twangiza project, located on the
Twangiza-Namoya gold belt in the Democratic Republic of the Congo (the "DRC").

    
    Highlights include:

    -  Average annual production of 345,125 ounces of gold per annum over the
       first 3 years of operation;
    -  Average annual production of 236,144 ounces of gold per annum for the
       first 7 years of operation;
    -  Total operating cash costs of US$212 per ounce for the initial 3 years
       of mine life;
    -  Average total operating cash costs of US$345 per ounce for the first
       phase Life of Mine;
    -  Project post tax net present value ("NPV") of US$352 million based on
       a gold price of US$850 per ounce and 5% real discount rate;
    -  Full project capital expenditure payback, including the cost of the
       hydro-electric scheme, of 2.78 years from the start of production,
       based on a US$850 per ounce gold price;
    -  Project net cash flow after tax and capital spending of
       US$583 million.
    

    "The Twangiza production profile is skewed with significantly higher
rates of gold output in the earlier years resulting from the near surface,
wide oxide zone, and together with lower mining and processing costs of this
material, results in strong cash-flows, supporting a quick pay-back of total
capex. This is an ideal scenario for this region and should support the
decision to apply a lower discount rate on these future cash-flows in securing
financing for the project. In addition to this, the project brief was designed
to take full advantage of Banro's mining convention, specifically over the
first 10 years of the mine's life. It is likely that the Twangiza project, and
its resultant free cash-flows, can assist financing the organic growth of the
belt," said Simon Village, Chairman of Banro.
    The Pre-Feasibility Study has been prepared with input from a number of
independent consultants including SRK Consulting, Cardiff (Mineral
Reserve/Resource), SRK Consulting, Johannesburg (Mining, Environmental and
Social), SGS Lakefield, Johannesburg (Metallurgical test work), Knight
Piésold, Vancouver (Power), AMEC, UK (Tailings Dam) and SENET, Johannesburg
(Processing and Infrastructure). SENET also undertook the Pre-Feasibility
economic valuation and report compilation.

    Twangiza Project Overview

    The Twangiza project is located in the South Kivu Province of the DRC, 45
kilometres to the south-southeast of Bukavu, the provincial capital. The
Twangiza property consists of six exploitation permits totaling 1,164 square
kilometres which are wholly-owned by Banro through a DRC subsidiary, Twangiza
Mining SARL. The current exploration commenced in October 2005, and by May
2008, a total of 216 diamond drill holes had been completed. There has also
been extensive re-sampling of old mine adits along the 3.5 kilometre long,
north trending mining target, which hosts the two principal deposits of
Twangiza Main and Twangiza North. Gold mineralization is hosted in sediments
(mudstones and siltstones) which have been intruded by a series of feldspar
porphyry sills along the hinge of a major anticlinal structure. Exploration is
continuing with six diamond rigs on the property.
    "In spite of excessive increases in the cost of steel, fuel, other
reagents and transportation which have been experienced since the publication
of the Scoping Study last year, this Pre-Feasibility Study demonstrates the
robust economics of the Twangiza project. Twangiza has the potential to
generate significant cash flow based on its projected low operating cash
costs. Our focus is now to further improve Twangiza's economics by expanding
the resource base as well as optimizing various aspects of the project,
specifically the processing route and the hydro electric plant. This will be
done as we finalize the Bankable Feasibility Study and move Twangiza further
along the development path and up the value curve," said Banro President and
CEO Mike Prinsloo.

    Mineral Resources

    SRK Consulting (UK) Ltd. ("SRK") has prepared an independent estimate of
the Mineral Resources at Twangiza, which estimate is set out in Table I below.
    SRK's estimate is based on drilling data available as at May 14, 2008 and
followed a review, analysis, interpretation and estimation lead by Martin
Pittuck, C.Eng, who is an employee of SRK and is the "qualified person" (as
defined by National Instrument 43-101) for the purpose of this estimate. SRK's
Mineral Resource estimate uses the definitions and guidelines given in the
Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on
Mineral Resources and Reserves and is reported in accordance with National
Instrument 43-101 requirements. The effective date of the estimate is June 23,
2008 and is based on a cut-off grade of 0.5 g/t gold. The Mineral Resource is
considered to have reasonable prospects for economic extraction by open pit
mining and has been restricted to an optimum pit shell which uses a US$910 /oz
gold price.

    
    Table I - Summary of Twangiza Mineral Resource Estimate (June 23, 2008)

    -------------------------------------------------------------------------
    Mineral Resource           Tonnes            Grade          Ounces
    Category                  (Million)         (g/t Au)       (Million)
    -------------------------------------------------------------------------
    Measured                     16.7             2.59            1.39
    -------------------------------------------------------------------------
    Indicated                    42.5             1.72            2.35
    -------------------------------------------------------------------------
    Measured & Indicated         59.2             1.96            3.74
    -------------------------------------------------------------------------
    Inferred                     10.0             1.80            0.60
    -------------------------------------------------------------------------
    (Using a 0.5 g/t Au cut-off).
    

    The above estimated Mineral Resources are found within three deposits:
Twangiza Main, which contains 87% of the total Mineral Resources; Twangiza
North, which contains 11% of the total Mineral Resources; and the transported
Twangiza "Valley Fill" deposit, which contains 2% of the total Mineral
Resources.
    This Mineral Resource estimate differs from Banro's January 2008 estimate
owing to some changes in approach, the more significant of which are described
here. Principally, SRK has restricted the Mineral Resource to a Whittle pit
shell below which the mineralization model is not considered to have
reasonable prospects of economic extraction. This approach is now considered
best practice and is in line with the methods used by major mining houses in
their public reporting. Secondly, the cut-off grade now used is 0.5 g/t gold
compared to 1.0 g/t gold previously used by Banro. This change results from
economic and technical factors resulting from the current study; however, the
effect of this has been offset by SRK's slightly tighter wireframing and grade
estimation parameters. Thirdly, slightly lower densities have been used in the
weathered material based on a greater number of measurements than were
previously available.
    The lower cut-off grade has resulted in a 10% increase in Measured and
Indicated tonnage at a 13% reduced grade for a 3.5% reduction in gold content.
The pit restriction has resulted in a significant reduction in Inferred
Mineral Resource given that deeper areas of fresh mineralisation are now
considered unlikely to be mined economically assuming a US$910 gold price.
There remains potential to increase the Mineral Resource contained in the
Pre-Feasibility Study pit, resulting from the ongoing drilling that is being
undertaken. A number of flanking structures remain open along strike and these
may add incremental oxide and transitional Mineral Resources if further
drilling supports their extensions.

    Mine Plan

    SRK Consulting (Johannesburg office) undertook a mine plan based on the
Measured, Indicated and Inferred Mineral Resources delineated to date for
Twangiza. Pit optimizations were undertaken on the two principal deposits at
Twangiza, namely Twangiza Main and Twangiza North, using the following
estimates and factors:

    
    -------------------------------------------------------------------------
    Gold price               US$ 700  (downside), US$850 (base case),
                             US$1,000 (upside)  - per ounce
    -------------------------------------------------------------------------
    Diesel fuel price        US$ 1.60/litre
    -------------------------------------------------------------------------
    Mining dilution          5% at zero grade
    -------------------------------------------------------------------------
    Mining recovery          95%
    -------------------------------------------------------------------------
    Pit slopes               Minus 28 to 55 degrees
    -------------------------------------------------------------------------
    Metallurgical recovery   Oxide ore                                   90%
    -------------------------------------------------------------------------
                             Transitional porphyry: Twangiza Main        85%
    -------------------------------------------------------------------------
                             Transitional porphyry: Twangiza North       90%
    -------------------------------------------------------------------------
                             Fresh porphyry: Twangiza Main               83%
    -------------------------------------------------------------------------
                             Fresh porphyry: Twangiza North              75%
    -------------------------------------------------------------------------
                             Transitional sedimentary                    38%
    -------------------------------------------------------------------------
                             Fresh sedimentary                           54%
    -------------------------------------------------------------------------

    The following Mineral Reserves are estimated by SRK Consulting to be
contained in a practical pit design:

    Table II - Summary of Twangiza Mineral Reserve Estimate (June 23, 2008)

    -------------------------------------------------------------------------
                                            Tonnes       Grade       Ounces
    Reserve Category     Deposit           (Million)    (g/t Au)    (Million)
    -------------------------------------------------------------------------
    Proven               Twangiza Main      15.22         2.60        1.273
                        -----------------------------------------------------
                         Twangiza North      0.07         1.19        0.003
    -------------------------------------------------------------------------
    Total : Proven                          15.29         2.60        1.276
    -------------------------------------------------------------------------
    Probable             Twangiza Main      27.47         1.81        1.594
                        -----------------------------------------------------
                         Twangiza North      6.13         2.23        0.440
    -------------------------------------------------------------------------
    Total : Probable                        33.60         1.88        2.034
    -------------------------------------------------------------------------
    Total : Proven
     and Probable        Twangiza Project   48.89         2.11        3.310
    -------------------------------------------------------------------------
    

    SRK Consulting's independent estimate of the Twangiza Mineral Reserves is
based on the Mineral Resource estimate set out above (see Table I). The
Mineral Reserves were estimated by H.G. Waldeck and M. Sturgeon, who are
employees of SRK Consulting and who are the "Qualified Persons" as defined by
National Instrument 43-101 for the purpose of this estimate. The Mineral
Reserve estimate uses the definitions and guidelines given in the Canadian
Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral
Resources and Reserves and is reported in accordance with National Instrument
43-101 requirements.
    The two deposits at Twangiza are planned to be mined simultaneously to
provide 5.0 million tonnes of oxide ore to the processing plant in the initial
years. The transition and fresh ore types are planned to be stockpiled during
this period and processed once the oxide ore production decreases.
    The estimated total open pit mine operating cost of US$6.94 per tonne of
ore is equivalent to US$1.59 per tonne of material moved.
    "Twangiza has a favourable stripping ratio of only 1.72, which is an
important contributing factor to Twangiza's low operating costs," said
Prinsloo.
    The Pre-Feasibility Study has been done at Banro's request with specific
focus on the non-refractory portion of the ore body. SRK has included some of
the transitional and fresh sedimentary ore types in the Measured and Indicated
categories, but due to their refractory nature, this results in lower
processing plant recoveries; recoveries of 38% for the sedimentary transition
and 54% for the sedimentary fresh were used. (These same recoveries were used
in the Scoping Study for this material). The Pre-Feasibility Study excludes an
estimated 22.5 million tonnes of mineralized material categorized as reject
material (transitional and fresh sedimentary), at an average estimated grade
of 0.8g/t Au, (equivalent to approximately 570,000 ounces of gold) which are
in the Inferred category and are to be stockpiled separately for processing at
a later stage or blending when capacities in the plant allow for it. The
metallurgy around those ore types will be reworked and optimized in the next
six months as the Company moves through to completion of the Bankable
Feasibility Study.
    The Scoping Study (or Preliminary Assessment) that was released on July
30, 2007 included all of the refractory and non-refractory material, within
the optimized pit in the project economics.
    "This has further upside for Twangiza, and essentially provides the
option of processing a further half million ounces that have not been
incorporated in the current production profile. Also not included in the
Pre-Feasibility Study as the first phase Life of Mine are the additional
targets of Luhwindja (neighbouring Twangiza North), Mufwa and the Tshondo.
Initial soil results and adit samples at Mufwa show promise, and should be
confirmed by the current drilling program we have initiated at Mufwa," said
Prinsloo.

    Processing

    Metallurgical test work, including recovery and comminution studies on
representative, composite drill core samples, have been undertaken for the
oxide, transitional and fresh rock ore categories by SGS Lakefield in
Johannesburg and are continuing. The results indicate that the oxide (sediment
and porphyry), the transitional and the fresh rock feldspar porphyry host
rock, is non-refractory, while the transitional and fresh rock sediments are
of a refractory nature or contain refractory material. Metallurgical results
to date indicate the following metallurgical recoveries for the various ore
types:

    Oxide Twangiza Main: 89.8%
    Oxide Twangiza North: 89.8%
    Transition Non-Refractory Twangiza Main: 85.2%
    Transition Non-Refractory Twangiza North: 90.2%
    Fresh Non-Refractory Twangiza Main: 82.7%
    Fresh Non-Refractory Twangiza North: 74.5%
    Transitional Sedimentary: 38%
    Fresh Sedimentary: 54%

    Based on this test work, SENET of Johannesburg scoped a conventional
Gravity-CIL (carbon-in-leach) 3-train processing facility with annual
throughput of 5.0 million tonnes per annum of oxides or 3.75 million tonnes
per annum of transitional and fresh ore take out, (all non-refractory), or
combinations thereof, resulting in a currently defined mine life of 12 years
as the first phase. Metallurgical variability test work is continuing to
confirm recoveries and reagent consumptions. Work will continue on alternative
processing routes, such as bio-oxidation, to optimize the extraction of gold
from the refractory ores in the transitional and fresh sedimentary ore types,
which are estimated to contain 2 million ounces.

    Power

    Studies have been undertaken using hydroelectric and diesel power sources
for the Twangiza project. Although capital costs are higher for the
hydroelectric alternative, operating costs, especially processing power costs,
are significantly lower and subsequent project economics are better than a
diesel powered generation alternative. Back up diesel power for essential
processing plant equipment has been included in the project's capital cost.
Knight Piésold Ltd. of Vancouver undertook studies on a number of potential
hydroelectric sites along the Twangiza-Namoya belt. Follow-up site
investigations, including the installation of flow gauges and detailed
hydrology studies, were done as part of the Pre-Feasibility Study. Two sites
on the Ulindi River, referred to as Ulindi 1 and Ulindi 2, were selected as
the preferred sites for the development of a hydro electric facility with an
installed capacity in the range of 26.5 MW and 30.0 MW. Studies also indicated
that the Ulindi 2 site would be capable of accommodating a significantly
larger installation if required. The estimated Pre-Feasibility capital costs
are based on the larger 30 MW option, which is a substantial increase over the
18MW costs presented in the Scoping Study. Knight Piésold Ltd. has indicated
that the development of a hydro electric power facility to supply power to the
project is both feasible and viable. Studies to date envisage the development
of a stand-alone, run-of-river hydroelectric scheme on the Ulindi River
(Ulindi 2) utilizing a 600 metre natural drop in the river over a distance of
some 18 kilometres.
    The hydro electric power scheme also has the potential of obtaining
carbon credits, which not only compliment Banro's environmental friendly
policies, but could also present a favourable cost saving or claw back for the
project. These recoveries have not been quantified in the Pre-Feasibility
Study, but will be included in the Bankable Feasibility Study.
    "Project economics have not been included using a diesel power
alternative at Twangiza owing to the hydro potential of both the Ulindi 1 and
Ulindi 2 sites in the area which are quite capable of supporting a project
size of Twangiza. In addition, the hydro offers a clean energy solution that
will attract both environmental and revenue benefits, the latter resulting
from carbon credits that are now available in the market. This also improves
the logistics of the operation through not having to convey diesel to site
which would otherwise create congestion along the N2 highway, which has
recently been upgraded with funding from the World Bank," said Prinsloo.

    Capital Costs and Infrastructure

    Table III below summarizes estimated capital costs for the Twangiza
project, as estimated by the independent consultants, and includes preliminary
quotations from equipment providers, further substantiated by experience on
current projects in Africa.
    It is important to note that recent metallurgical test results (post
process plant design selection) reveal that the selected process plant is not
the most cost effective design for the processing requirements of the existing
ore body. It is therefore envisioned that, based on this recent information, a
substantial capital cost saving may be achieved through a redesign of the
processing plant and its footprint. The transition into the bankable phase of
the study will reveal this in greater detail, but for the purposes of the
Pre-Feasibility Study, a scoping level capital expenditure estimate has been
indicated for this alternative option. (See Sensitivities - Scenario II).
    Within the Pre-Feasibility Study, certain assumptions around key
financial drivers have been made (eg. owner operated mining fleet vs.
outsourced mining, capital purchase of standby diesel generators vs. leasing
options, etc.). These drivers have the obvious impact of increasing capital
costs and reducing operating costs and need to be considered when reviewing
the financial figures. Conversely, the lower capital cost options will
increase the operating costs.
    Costs currently assume an owner-operated mining fleet, although
contractor mining has been investigated and interested parties will conduct
site visits in the near future in order to submit a price for the Bankable
Feasibility Study. (See Sensitivities - Scenario III).
    Additionally, the assumption is made that a dedicated hydro-electric
facility would be developed by Banro utilizing one of the sites selected by
the Company's consultant hydrologist, Knight Piésold. Hydro electric power
plant builders/operators have been approached to do on-site visits in the near
future in order to submit a price for the Bankable Feasibility Study.
    All financial analysis for the Life of Mine includes the total design,
construction and commissioning, production and closure.
    A conservative approach to the cost of lime and cement has been taken in
the Pre-Feasibility Study and further investigations of sourcing locally
(within the DRC) or close country supply (within Kenya, Uganda, etc.) will be
further explored over the coming months to achieve reductions in these costs.
    Labour costs have also been brought into line with Banro's current market
levels.

    
    Table III - Twangiza Project Estimated Capital Costs

                            3 Stream      1 Stream/Contractor    30 July 2007
    -------------------------------------------------------------------------
                              PFS             Provisional
                            Original           Estimate            Original
    CAPEX SUMMARY            Design         (Scoping Level)        Scoping
    -------------------------------------------------------------------------
                              HEP                 HEP                 HEP
    -------------------------------------------------------------------------
    Mining                US$ million         US$ million        US$ million
    Plant & Equipment        57.789                  0               57.588
    Haul Roads                3.500              3.500                4.563
    Prestrip Costs            6.646              6.646               15.132
    Other                     2.944              2.944                1.386
    -------------------------------------------------------------------------
    Total Mining             70.879             13.090               78.670
    -------------------------------------------------------------------------
    Process Plant
    Earthworks & Civils      49.348             38.000               14.287
    Mechanical Equipment,
     Structural & Piping     87.699             70.000               57.307
    Electrical &
     Instrumentation         14.790             11.500                7.899
    Tailings Dam             16.848             16.848                5.441
    Other                    22.699             16.000               14.537
    -------------------------------------------------------------------------
    Total Process Plant     191.383            152.348               99.470
    -------------------------------------------------------------------------
    Infrastructure
    Power Plant & First
     Fuel Fill (Standby
     Genset&Fuel Farm)       92.555             86.500               54.840
    Buildings &
     Accomodation
     Facilities               8.382              7.000                7.598
    Access Roads             17.298             17.000                6.510
    Light Vehicles
     & Mobile Equipment       2.784              2.500               2.6188
    Other                     9.000              7.500                1.452
    -------------------------------------------------------------------------
    Total Infrastructure    130.019            120.500               73.019
    -------------------------------------------------------------------------
    Management Costs
    EPCM                     41.000             39.000               34.227
    Owner's Preproduction
     Costs                   26.134             17.000                9.695
    Administration Tax
     & Insurances            14.737             11.500                9.966
    -------------------------------------------------------------------------
    Total Management Costs   81.870             67.500               53.888
    -------------------------------------------------------------------------
    Contingency              67.050             55.000               42.423
    -------------------------------------------------------------------------
    TOTAL INITIAL
     CAPITAL COSTS          541.202            408.438              347.469
    -------------------------------------------------------------------------
    Ongoing Capital          39.380             39.380               32.823
    -------------------------------------------------------------------------
    GRAND TOTAL PROJECT
     CAPITAL COSTS          580.582            447.818              380.292
    -------------------------------------------------------------------------

    The estimated capital costs include the full hydro electric power plant
capital, which has increased by some US$40million compared to the Scoping
Study, however Banro will seek third party funding of the hydro electric power
plant and discussions are underway with a number of outside parties.

    Note: Scenario 1 under sensitivities below examines the Base Case.

    Note: Scenario 2 under sensitivities below examines the US$580.582 less
    US$57.789 for the contractor mining fleet. (i.e US$522.793 capital
    expenditure) - See Table III.

    Note: Scenario 3 under sensitivities examines the US$447.818, which is
    the contractor mining fleet /single stream plant.

    Operating Costs

    Table IV - Total Operating Costs for Initial 7 years

    -------------------------------------------------------------------------
                                           PFS               Scoping Study
    -------------------------------------------------------------------------
    OPEX : First 7 Years : HEP        US$/t    US$/oz       US$/t    US$/0z
    -------------------------------------------------------------------------
    Mining                             5.39    109.67        6.62    104.25
    -------------------------------------------------------------------------
    Processing                         8.72    191.31        5.31     83.55
    -------------------------------------------------------------------------
    G & A                              2.09     44.89        1.58     24.92
    -------------------------------------------------------------------------
    Refining                           0.26      5.00        0.13      2.07
    -------------------------------------------------------------------------
    Total                             16.46    350.87       13.64    214.79
    -------------------------------------------------------------------------

    Table V - Life of Mine Total Operating Costs

    -------------------------------------------------------------------------
                                           PFS               Scoping Study
    -------------------------------------------------------------------------
    OPEX : LoM : HEP                  US$/t    US$/oz       US$/t    US$/0z
    -------------------------------------------------------------------------
    Mining                             4.32     91.76        5.95    114.21
    -------------------------------------------------------------------------
    Processing                         9.48    201.29        5.73    110.01
    -------------------------------------------------------------------------
    G & A                              2.19     46.60        1.58     30.40
    -------------------------------------------------------------------------
    Refining                           0.24      5.00        0.11      2.07
    -------------------------------------------------------------------------
    Total                             16.23    344.65       13.37    256.69
    -------------------------------------------------------------------------

    In preparing the Pre-Feasibility Study there have been a number of
assumptions and material factors that have been employed. Some of these are
shown in Table VI and VII below.

    Table VI - Financial Assumptions - Twangiza

    -------------------------------------------------------------------------
                                           UNIT            BANRO ASSUMPTION
    -------------------------------------------------------------------------
    Revenue
    -------------------------------------------------------------------------
    Gold Price                           (US$/oz)                850
    -------------------------------------------------------------------------
    Discount Rate                          (%)                   5.0%
    -------------------------------------------------------------------------
    Fuel Prices
    -------------------------------------------------------------------------
    Diesel                                US$/l                 1.60
    -------------------------------------------------------------------------
    Power Costs
    -------------------------------------------------------------------------
    HEP Costs                             US$/kWh               0.025
    -------------------------------------------------------------------------
    Fiscal
    -------------------------------------------------------------------------
    Tax Free Holiday                      Years                  10
    -------------------------------------------------------------------------
    Tax Rate Year 0 -10                    (%)                  0.0%
    -------------------------------------------------------------------------
    Tax Rate greater than 10 years         (%)                   30%
    -------------------------------------------------------------------------
    Royalty (Government)                   (%)                  0.0%
    -------------------------------------------------------------------------
    Administration Tax                     (%)                  5.0%
    -------------------------------------------------------------------------
    Depreciation                           (%)                  0.0%
    -------------------------------------------------------------------------
    Depreciation Period                   Years                  10
    -------------------------------------------------------------------------
    Conversions Factors
    -------------------------------------------------------------------------
    Kilograms to Ounces               (kg/troy oz)             32.1505
    -------------------------------------------------------------------------
    Diesel Fuel Density                 (t/m(3))                0.85
    -------------------------------------------------------------------------
    Hydro Density                       (t/m(3))                0.97
    -------------------------------------------------------------------------
    Exchange Rate                      Rand:Dollar            ZAR8:US$1
    -------------------------------------------------------------------------
    Refining Charges, Dore
     Transport and Insurance             US$/oz                 5.00
    -------------------------------------------------------------------------
    Percent Capital
     Expenditure (Year 1)                  %                   30.0%
    -------------------------------------------------------------------------
    Process Plant Residual Value           %                    5.0%
    -------------------------------------------------------------------------
    Power Plant Residual Value             %                   30.0%
    -------------------------------------------------------------------------
    Mining Equipment Residual Value        %                    5.0%
    -------------------------------------------------------------------------
    Vehicles                               %                   10.0%
    -------------------------------------------------------------------------

    Table VII shows the percentage increases of the key components causing the
difference between the Scoping Study and the Pre-Feasibility Study.

    Table VII - Material Factors - Twangiza

    -------------------------------------------------------------------------
                                                          Approximate %
                                                          Price Increase
                                                     July 2007 vs. July 2008
    -------------------------------------------------------------------------
      1.  Diesel Costs                                          58.0%
    -------------------------------------------------------------------------
      2.  Transport (Logistics)                                   35%
    -------------------------------------------------------------------------
          -  Container Price for Freight                        26.0%
    -------------------------------------------------------------------------
      3.  Civils and Infrastructure
    -------------------------------------------------------------------------
          -  Earthworks (Increased Process Plant
             footprint, increase in earthwork rates)             784%
    -------------------------------------------------------------------------
          -  Civils (Increased Process Plant footprint)           70%
    -------------------------------------------------------------------------
          -  Access Roads (incl. Earthworks, Layers,
             Drainage & Bridges): Distance Increase
             (SS; 24km vs. PFS:34.2km)                           126%
    -------------------------------------------------------------------------
      4.  Steel Costs                                             85%
    -------------------------------------------------------------------------
      5.  Reagents
    -------------------------------------------------------------------------
          -  Lime Costs                                         12.0%
    -------------------------------------------------------------------------
          -  Cyanide                                            22.0%
    -------------------------------------------------------------------------
          -  Cement                                             22.0%
    -------------------------------------------------------------------------
      6.  Power (Increase from 18MW to 30MW)                    64.0%
    -------------------------------------------------------------------------
      7.  Process Plant Redesign (3 Stream (PFS) vs.
          Single Stream (SS))                                   62.0%
    -------------------------------------------------------------------------
      8.  Tailings Dam                                         210.0%
    -------------------------------------------------------------------------
      9.  Resettlement Costs                                   183.0%
    -------------------------------------------------------------------------
    

    (xx)Notes:  PFS - Pre-Feasibility Study;   SS - Scoping Study

    The 3 stream plant has a bigger footprint requiring more earthworks
    because of topography.

    The increase in the tailings dam is due to a change in location
    necessitated by environmental considerations.

    The contractors have also increased their margins, particularly for more
    remote locations.

    Project Economics and Financial Analysis

    SENET has produced a cash flow valuation model for the Twangiza project
based on the geological and engineering work completed to date and
incorporating the hydroelectric power source. The base case was developed
using a long-term gold price of US$850 per ounce. The financial model also
reflects the favourable fiscal aspects of the Mining Convention governing the
Twangiza project, which include 100% equity interest and a 10 year tax holiday
from the start of production. An administrative tax of 5% for the importation
of plant, machinery and consumables has been included in the projected capital
and operating costs.
    Calculated sensitivities show the significant upside leverage to gold
prices and robust nature of the projected economics to operating assumptions.
These sensitivities could also be indicative of a more economical process
plant design that will be reviewed within the bankable phase of the study.

    Sensitivities
    -------------

    
    Scenario 1 - Base Case
    ----------------------

    Table VIII - Gold Price
    -------------------------------------------------------------------------
    Gold Price           IRR     NPV US$ million at different discount rates
                       ------------------------------------------------------
      US$/oz              %            0%                5%           10%
    -------------------------------------------------------------------------
       700               9.6%         237                92             7
    -------------------------------------------------------------------------
       850              20.5%         583               352           196
    -------------------------------------------------------------------------
      1000              29.8%         928               611           398
    -------------------------------------------------------------------------


    Table IX - Capex
    -------------------------------------------------------------------------
    CAPEX Change         IRR     NPV US$ million at different discount rates
        %              ------------------------------------------------------
                          %            0%                5%           10%
    -------------------------------------------------------------------------
      -10%              24.6%         641               407           249
    -------------------------------------------------------------------------
      +10%              17.1%         525               296           143
    -------------------------------------------------------------------------


    Table X - Operating Costs
    -------------------------------------------------------------------------
    OPEX Change          IRR     NPV US$ million at different discount rates
       %               ------------------------------------------------------
                          %            0%                5%           10%
    -------------------------------------------------------------------------
      -10%              22.4%         662               408           238
    -------------------------------------------------------------------------
      +10%              18.5%         503               295           153
    -------------------------------------------------------------------------


    Table XI - Fuel Price
    -------------------------------------------------------------------------
    Fuel Price           IRR     NPV US$ million at different discount rates
     Change            ------------------------------------------------------
        %                 %            0%                5%           10%
    -------------------------------------------------------------------------
      -10%              20.8%         592               359           201
    -------------------------------------------------------------------------
      +10%              20.2%         573               344           190
    -------------------------------------------------------------------------


    Scenario 2 - Contract Mining Option
    -----------------------------------
    (Contractor option where mining fleet is purchased by the contractor.
    This will impact on costs by an estimated US$30/oz, increasing the total
    operating cash cost to US$375/oz).


    Table VIII (2) - Gold Price
    -------------------------------------------------------------------------
    Gold Price           IRR     NPV US$ million at different discount rates
                       ------------------------------------------------------
     US$/oz               %            0%                5%           10%
    -------------------------------------------------------------------------
      700               13.1%         293               147            47
    -------------------------------------------------------------------------
      850               24.7%         639               406           249
    -------------------------------------------------------------------------
     1000               34.7%         984               666           451
    -------------------------------------------------------------------------


    Table IX (2)  - Capex
    -------------------------------------------------------------------------
    CAPEX Change        IRR      NPV US$ million at different discount rates
        %              ------------------------------------------------------
                          %            0%                5%           10%
    -------------------------------------------------------------------------
      -10%              29.1%         691               456           297
    -------------------------------------------------------------------------
      +10%              21.0%         586               357           202
    -------------------------------------------------------------------------


    Table X (2) - Operating Costs
    -------------------------------------------------------------------------
    OPEX Change         IRR      NPV US$ million at different discount rates
       %               ------------------------------------------------------
                          %            0%                5%           10%
    -------------------------------------------------------------------------
      -10%              26.7%         718               463           291
    -------------------------------------------------------------------------
      +10%              22.7%         559               350           207
    -------------------------------------------------------------------------


    Table XI (2) - Fuel Price
    -------------------------------------------------------------------------
    Fuel Price           IRR     NPV US$ million at different discount rates
     Change            ------------------------------------------------------
        %                 %            0%                5%           10%
    -------------------------------------------------------------------------
      -10%              25.0%         648               414           255
    -------------------------------------------------------------------------
      +10%              24.4%         629               399           243
    -------------------------------------------------------------------------


    Scenario 3 - Contractor Mining/Single Stream Plant
    --------------------------------------------------
    (Capital expenditure further reduced by footprint and single stream
    plant).


    Table VIII (3) - Gold Price
    -------------------------------------------------------------------------
    Gold Price           IRR     NPV US$ million at different discount rates
     US$/oz            ------------------------------------------------------
                          %            0%                5%           10%
    -------------------------------------------------------------------------
      700               19.0%         366               218           117
    -------------------------------------------------------------------------
      850               31.8%         711               478           319
    -------------------------------------------------------------------------
     1000               42.8%       1,057               737           521
    -------------------------------------------------------------------------


    Table IX (3) - Capex
    -------------------------------------------------------------------------
    CAPEX Change        IRR      NPV US$ million at different discount rates
        %              ------------------------------------------------------
                          %            0%                5%           10%
    -------------------------------------------------------------------------
      -10%              36.7%         756               520           359
    -------------------------------------------------------------------------
      +10%              27.6%         666               436           279
    -------------------------------------------------------------------------


    Table X(3) - Operating Costs
    -------------------------------------------------------------------------
    OPEX Change         IRR      NPV US$ million at different discount rates
       %               ------------------------------------------------------
                          %            0%                5%           10%
    -------------------------------------------------------------------------
      -10%              33.8%         791               535           361
    -------------------------------------------------------------------------
      +10%              29.6%         632               421           277
    -------------------------------------------------------------------------


    Table XI (3) - Fuel Price
    -------------------------------------------------------------------------
    Fuel Price           IRR     NPV US$ million at different discount rates
     Change            ------------------------------------------------------
        %                 %            0%                5%           10%
    -------------------------------------------------------------------------
      -10%              32.1%         721               485           325
    -------------------------------------------------------------------------
      +10%              31.4%         702               470           313
    -------------------------------------------------------------------------
    

    The above financial analysis does not take into account ongoing
exploration, financing, interest or working capital costs, but does estimate
ongoing capital requirements.

    Accessibility and Transport/Logistics

    SENET and FH Bertling Logistics have undertaken preliminary surveying
with detailed analysis of access routes to the Twangiza project for plant and
equipment as well as ongoing production materials and consumables. As part of
the Pre-Feasibility Study the following routes were investigated:

    
    1. Mombasa (Kenya)-Nairobi-Kampala (Uganda) - Kigali (Rwanda) - Bukavu
       (DRC) and then en-route to Site via the N2 road in South Kivu
       Province.
    2. Dar es Salaam (Tanzania) to Kigomo by road or rail - travel north
       through Tanzania crossover into the Burundi border and again into
       Rwanda en-route to Bukavu - N2 through to Site.
    3. Road from Johannesburg (RSA) on the Great North road through Zambia to
       Mpulungu (southern most point of Lake Tanganyika) - barge to Bujumbura
       (Burundi) and truck over the Rwandan border - Bukavu (DRC) N2 through
       to Site.
    

    The national road (N2) running from Bukavu to Kasongo passes within
approximately 24 kilometres of the project. This road is currently being
upgraded through a World Bank initiative and the upgraded section has passed
the Twangiza turnoff and the Ulindi 1 and/or Ulindi 2 hydro sites on route to
Kamituga, Lugushwa and Namoya, three of Banro's other projects.
    The study findings propose option 1 as the preferred choice.

    Environmental and Social Aspects

    SRK Consulting has commissioned and is implementing a Bankable
Feasibility, Environmental base-line study at Twangiza which will include
ecological, hydrological and socio-economic assessments. During the
Pre-Feasibility phase specialist inputs were commissioned on:
    - Environmental studies
    - Social studies
    - Water studies
    - Geochemistry studies

    The Pre-Feasibility socio-economic assessment included a village-level
socio-economic survey, which generated valuable data on demography, lifestyles
and household livelihoods. It provided a firm basis for the formulation of a
Resettlement Policy Framework, which will form the basis for taking the
resettlement planning process to the level of a resettlement action plan (RAP)
during the Bankable Feasibility phase. The social assessment also generated a
conceptual Social Development Plan and a Stakeholder Engagement Plan which
will be further detailed and refined during the Bankable Feasibility Study
phase.

    Project Opportunities

    Banro is actively pursuing a number of alternatives for enhancing and
increasing the economics and financial returns relating to the Twangiza
project. These include delineating additional resources at Twangiza, such as
the Luhwindja, Mufuwa and Tshondo deposits, which are within economic hauling
distances, optimizing the mine plan schedule, optimizing process recoveries
for the various ore types and targeting new near surface prospects within the
Twangiza project area.
    The regional exploration potential is encouraging. The Twangiza and
surrounding properties have recently been covered by geographical survey
involving helicopter borne magnetic and radiometric surveys. The data has been
processed and analyzed and resultant anomalies and targets will be tested as
part of future growth opportunities. The Company has also completed the LiDAR
surveys for the whole of the Twangiza property and the surrounding areas.

    Site Selection

    All sites have been selected from the different site positions that were
investigated for each category (e.g. the plant, waste rock dumps, tailings
(slimes) dam, man camps, etc.) However, further site opportunities and
optimization to minimize the associated earth works are under consideration
and will be evaluated in line with the perceived process plant design changes
to be undertaken in the Bankable Feasibility Study.

    Development Timetable

    Despite the recent abnormally high price increases in fuel, steel and
other consumables, the project economics have remained positive and have
endorsed Banro's decision to work seamlessly towards completion of a formal
Bankable Feasibility Study by the end of 2008. This will largely involve the
inclusion of more infill drilling and a further resource update, further pit
optimization and optimizing the engineering studies and design, including the
incorporation of further metallurgical and geotechnical investigations. Banro
and SRK Consulting are targeting to complete the baseline environmental
studies by the end of November 2008.
    All the Pre-Feasibility work will now progress directly to a definitive,
Bankable Feasibility Study with completion targeted for the end of the fourth
quarter of 2008. During this period, Banro intends to initiate discussions
with potential project finance lenders, including both multilateral agencies
and commercial banks.
    Full details of the Twangiza Pre-Feasibility Study in the form of a
National Instrument 43-101 technical report will be filed on SEDAR (at
www.sedar.com) within the next 45 days. Additional information with respect to
the Twangiza project is contained in the technical report of SENET dated
September 13, 2007 and entitled "Preliminary Assessment NI 43-101 Technical
Report, Twangiza Gold Project, South Kivu Province, Democratic Republic of the
Congo." A copy of this report can be obtained from SEDAR at www.sedar.com.

    Qualified Person

    The Pre-Feasibility Study of Twangiza was prepared under the supervision
of Neil Senior, Joint Managing Director of SENET and a "qualified person" as
such term is defined in National Instrument 43-101. Mr. Senior has reviewed
and approved the contents of this press release.

    Teleconference

    Banro will be hosting a teleconference to discuss the results of the
Twangiza Pre-Feasibility Study on Tuesday, July 8, 2008 at 9 a.m. Eastern
Time, 2 p.m. in the U.K. and 3 p.m. in Johannesburg. Please dial 416-695-6310
or 1 800-565-0813 in North America; 1 800-4222-8835 in the U.K. and Europe; or
+1 416-695-6310 in South Africa and elsewhere, and ask for the Banro
Corporation teleconference. An instant replay of the teleconference will be
available an hour following the call and for a period of one month. Please
dial 416-695-5800 or 1 800-408-3053 in North America or +1 416-695-5800 in
other locations and enter Passcode 3266112.

    Banro is a Canadian-based gold exploration and development company
focused on the development of four major, wholly-owned gold projects, each
with mining licenses, along the 210 kilometre-long Twangiza-Namoya gold belt
in the South Kivu and Maniema provinces of the DRC. Led by a proven management
team with extensive gold and African experience, Banro's strategy is to unlock
shareholder value by increasing and developing its significant gold assets in
a socially and environmentally responsible manner.

    Cautionary Statement

    The Pre-Feasibility Study of Twangiza does not include any Inferred
Mineral Resources. There is no certainty that the conclusions reached in the
Pre-Feasibility Study will be realized.

    Cautionary Note to U.S. Investors

    The United States Securities and Exchange Commission (the "SEC") permits
U.S. mining companies, in their filings with the SEC, to disclose only those
mineral deposits that a company can economically and legally extract or
produce. Certain terms are used by the Company, such as "measured",
"indicated", and "inferred" "resources", that the SEC guidelines strictly
prohibit U.S. registered companies from including in their filings with the
SEC. U.S. Investors are urged to consider closely the disclosure in the
Company's Form 40-F Registration Statement, File No. 001-32399, which may be
secured from the Company, or from the SEC's website at
http://www.sec.gov/edgar.shtml.

    Cautionary Note Concerning Forward-Looking Statements

    This press release contains forward-looking statements. All statements,
other than statements of historical fact, that address activities, events or
developments that the Company believes, expects or anticipates will or may
occur in the future (including, without limitation, statements regarding
estimates and/or assumptions in respect of production, revenue, cash flow and
costs, estimated Twangiza project economics, mineral resource and mineral
reserve estimates, potential mineralization, potential mineral resources and
mineral reserves and the Company's exploration and development plans and
objectives with respect to its Twangiza project) are forward-looking
statements. These forward-looking statements reflect the current expectations
or beliefs of the Company based on information currently available to the
Company. Forward-looking statements are subject to a number of risks and
uncertainties that may cause the actual results of the Company to differ
materially from those discussed in the forward-looking statements, and even if
such actual results are realized or substantially realized, there can be no
assurance that they will have the expected consequences to, or effects on the
Company. Factors that could cause actual results or events to differ
materially from current expectations include, among other things: uncertainty
of estimates of capital and operating costs, production estimates and
estimated economic return; the possibility that actual circumstances will
differ from the estimates and assumptions used in the Twangiza Pre-Feasibility
Study and mine plan; failure to establish estimated mineral resources or
reserves; fluctuations in gold prices and currency exchange rates; inflation;
gold recoveries for Twangiza being less than those indicated by the
metallurgical test work carried out to date (there can be no assurance that
gold recoveries in small scale laboratory tests will be duplicated in large
tests under on-site conditions or during production); changes in equity
markets; political developments in the DRC; changes to regulations affecting
the Company's activities; uncertainties relating to the availability and costs
of financing needed in the future; the uncertainties involved in interpreting
drilling results and other geological data; and the other risks disclosed
under the heading "Risk Factors" and elsewhere in the Company's annual
information form dated March 28, 2008 filed on SEDAR at www.sedar.com. Any
forward-looking statement speaks only as of the date on which it is made and,
except as may be required by applicable securities laws, the Company disclaims
any intent or obligation to update any forward-looking statement, whether as a
result of new information, future events or results or otherwise. Although the
Company believes that the assumptions inherent in the forward-looking
statements are reasonable, forward-looking statements are not guarantees of
future performance and accordingly undue reliance should not be put on such
statements due to the inherent uncertainty therein.

    Cautionary Note Concerning Resource and Reserve Estimates

    The mineral resource and mineral reserve figures referred to in this
press release are estimates and no assurances can be given that the indicated
levels of gold will be produced. Such estimates are expressions of judgment
based on knowledge, mining experience, analysis of drilling results and
industry practices. Valid estimates made at a given time may significantly
change when new information becomes available. While the Company believes that
the resource and reserve estimates included in this press release are well
established, by their nature resource and reserve estimates are imprecise and
depend, to a certain extent, upon statistical inferences which may ultimately
prove unreliable. If such estimates are inaccurate or are reduced in the
future, this could have a material adverse impact on the Company.
    Due to the uncertainty that may be attached to inferred mineral
resources, it cannot be assumed that all or any part of an inferred mineral
resource will be upgraded to an indicated or measured mineral resource as a
result of continued exploration. Confidence in the estimate is insufficient to
allow meaningful application of the technical and economic parameters to
enable an evaluation of economic viability worthy of public disclosure.
Inferred mineral resources are excluded from estimates forming the basis of a
feasibility study.
    The Mineral Resource and Reserve estimates are reported according to the
definitions and guidelines given in the Canadian Institute of Mining,
Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves.
The Mineral Resource and Reserve estimates are considered to have reasonable
prospects for economic extraction by open pit mining and have been restricted
to an optimum pit shell which uses a US$910/oz gold price assumption,
equivalent to a 7 % increase over the Pre-Feasibility Study base case gold
price of US$850/oz gold.

    -------------------------------------------------------------------------
    Banro will also be announcing the Pre-Feasibility Study Results for its
    Namoya Project in due course.
    -------------------------------------------------------------------------





For further information:

For further information: please visit our website at www.banro.com, or
contact: Mike Prinsloo, President and C.E.O., South Africa, Tel: + 27 (0) 11
958-2885; Arnold T. Kondrat, E xecutive Vice-President, Toronto, Ontario, or
Martin Jones, Vice-President, Corporate Development, Toronto, Ontario, Tel:
(416) 366-2221 or 1-800-714-7938.

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