Banro acquires refurbished process plant to fast track gold production at its Twangiza project

    TORONTO, Aug. 13 /CNW/ - Banro Corporation ("Banro" or the "Company")
(NYSE AMEX - "BAA"; TSX - "BAA") is pleased to announce that it has entered
into an agreement to purchase a refurbished gold processing plant (the
"plant") capable of achieving a throughput capacity of 1.3 million tonnes per
annum. The closing of the purchase of the plant is expected to occur on or
about September 21, 2009.
    This acquisition supports the Company's strategy of advancing production
through a staged approach which will focus initially on the processing of
oxide material at the Company's wholly-owned Twangiza gold project in the
Democratic Republic of the Congo (the "DRC").
    It is planned that the plant will be transported by sea from Australia,
via the Mombasa port in Kenya, and then by road to the Twangiza project site
in the DRC, where it will be erected and commissioned over the next 24 months.
The Company intends to further optimize this timeline as the project moves
    The refurbished plant comprises a crushing plant, two ball mills,
carbon-in-pulp (CIP) section, gold room and a laboratory. The Company's
consultants, SENET Engineering, estimate the total cost of purchasing and
delivering the plant to Twangiza to be less than US$15 million, which
represents significant savings in time and cost to Banro. SENET Engineering
has been selected as the overall project manager and will also manage the
erection and commissioning of the plant.
    The Company intends to operate the plant as part of a low-cost "phase
one" oxide mining operation, to be expanded in subsequent years.
    It is estimated that annual production from this first phase plant will
be between 80,000 and 110,000 ounces of gold per annum at a total operating
cash cost of less than US$400 per ounce. The Company estimates the capital
cost for phase one of the project (which phase is planned to use diesel power
rather than hydroelectric power) to be approximately US$145 million, including
contingencies. The Company has initiated discussions with a number of parties
to arrange debt financing to supplement the equity financing which closed on
June 25, 2009.
    The Company believes that this decision will enable the Company to fast
track the Twangiza project and commence gold production earlier along the
extensive Twangiza - Namoya gold belt in the DRC where significant potential
exists for expanding the Company's gold resources at its four wholly-owned
gold projects. The updated feasibility study of the Twangiza project,
announced on June 8, 2009, indicated full production at the Twangiza project
to be in excess of 300,000 ounces of gold per annum based on current
resources. Full details of the updated feasibility study of Twangiza,
including the factors and assumptions used to develop the study's conclusions,
are contained in the technical report of SENET dated July 17, 2009 and
entitled "Updated Feasibility Study NI 43-101 Technical Report, Twangiza Gold
Project, South Kivu Province, Democratic Republic of Congo." A copy of this
report can be obtained from SEDAR at and EDGAR at

    Qualified Person

    Neil Senior, Joint Managing Director of SENET and a "qualified person" as
such term is defined in National Instrument 43-101, has reviewed and approved
the technical information in this press release.
    Banro is a Canadian-based gold exploration 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 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

    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
future gold production, estimates and/or assumptions in respect of production
and costs, future financings, mineral resource and mineral reserve estimates,
potential mineralization, potential mineral resources and mineral reserves,
projected timing of possible production and the Company's exploration and
development plans and objectives) 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: failure to complete the
acquisition of the plant as a result of one or more of the closing conditions
not being fulfilled; uncertainties relating to the availability and costs of
financing needed in the future; 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 study and mine plan; failure to establish
estimated mineral resources or mineral reserves (the mineral resource and
mineral reserve figures for Twangiza are estimates and no assurances can be
given that the indicated levels of gold will be produced); 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; lack of infrastructure; failure to procure or
maintain, or delays in procuring or maintaining, permits and approvals; lack
of availability at a reasonable cost or at all, of plants, equipment or
labour; inability to attract and retain key management and personnel; changes
to regulations affecting the Company's activities; 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 30, 2009 filed on SEDAR at and EDGAR at 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.

For further information:

For further information: visit our website at, or contact:
Mike Prinsloo, President and C.E.O., South Africa, Tel: + 27 (0) 11 958-2885;
Arnold T. Kondrat, Executive 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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