Banro's Feasibility Study of its Twangiza gold project indicates gold production of 320,000 ounces per year at an average total operating cash cost of US$274 per oz over first three years of production

    TORONTO, Jan. 26 /CNW/ - Banro Corporation ("Banro" or the "Company")
(TSX - "BAA"; NYSE Alternext US - "BAA";) is pleased to announce results of
the Feasibility Study ("FS") of its wholly-owned Twangiza project, located on
the Twangiza-Namoya gold belt in the Democratic Republic of the Congo (the
    This follows the Pre-Feasibility Study ("PFS") of the Twangiza Project,
the results of which were announced in a press release issued on July 7, 2008.

    Highlights include:

    -  Average annual production of 319,962 ounces of gold per annum for the
       first 3 years of operation at average total operating cash costs of
       US$274 per ounce;
    -  Average annual production of 261,965 ounces of gold per annum for the
       first 5 years of operation at average total operating cash costs of
       US$358 per ounce;
    -  Total gold production of 2,615,807 ounces over 15 years life of mine,
       based on current resources, at average total operating cash costs of
       US$429 per ounce;
    -  Extensions of the current zone and neighbouring gold targets at
       Twangiza have the potential to add significant oxide resources to the
    -  Twangiza Project capital expenditure of US$409.6 million (which
       includes a contingency of US$38.9 million);
    -  A separate stand alone 30MW Hydro Electric scheme (the Ulindi II site)
       to supply power to the Twangiza Project will cost US$133.8 million
       (including a contingency of US$20.1 million) to be funded in whole or
       in part by third party financing;
    -  Total Project capital expenditure of US$409.6 million, increasing to
       US$476.5 million assuming that Banro funds 50% (US$66.9 million)
       of the Hydro Electric plant;
    -  Project post tax net present value ("NPV") of US$342 million based on
       a gold price of US$850 per ounce and a discount rate of 5%;
    -  Total Project capital expenditure payback of 2.53 years from start of
       production, yielding an IRR of 20.5%. (These figures assume that Banro
       funds US$66.9 million or 50% of the Hydro Electric plant);
    -  Total Project net cash flows after tax and after capital spending of
       US$593 million.

    Banro President and CEO Mike Prinsloo said: "We are very pleased with the
robustness of the Twangiza Project as demonstrated by this Feasibility Study.
On the back of this outcome and the further upside which the neighbouring
deposits on the Twangiza property offer to increase the oxide and transitional
resources, we will now actively seek a strategic partner to assist us in
adding ounces and to further strengthen the Twangiza Project economics through
to development of this open pit project."
    The Feasibility Study has been prepared with input from a number of
independent consultants including SRK Consulting (United Kingdom) - (Mineral
Resource), SRK Consulting (South Africa) - (Mining, Mineral Reserves,
Environmental and Social), SGS Lakefield (South Africa) - (Metallurgical
testwork), Mintek (South Africa) - (Metallurgical test work), Knight Piésold
(Canada) - (Hydro Power), AMEC Earth & Environmental (United Kingdom) -
(Tailings and Water facilities) and SENET (South Africa) - (Processing Plant
and Infrastructure). SENET also undertook the economic valuation and report
compilation for the study.

    Comparison with the July 7, 2008 Pre-Feasibility Study

    The above mentioned independent consultants were also responsible for
preparing the Pre-Feasibility Study, the results of which were published on
July 7, 2008.
    In order to provide a comparative base to the Pre-Feasibility Study of
July 7, 2008, the key financial drivers and assumptions have been largely
maintained. (See comparative table, Table VI of this release).

    Twangiza Project Overview

    The Twangiza Project is located in the South Kivu Province of the DRC, 41
kilometers to the south-southwest of Bukavu, the provincial capital. The
Twangiza property consists of six exploitation permits totaling 1,164 square
kilometers which are wholly-owned by Banro through a DRC subsidiary, Twangiza
Mining SARL. The current exploration commenced in October 2005 and up to
November 2008, more than 330 diamond drill holes have been completed. 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.
    Mr. Prinsloo said: "With the completion of the resource upgrade, the
infill drilling program and the core technical and consulting work for this
Feasibility Study, we will now turn our attention to adding more resource
ounces to Twangiza. Further exploration work is planned on a number of
flanking structures, identified by SRK, that remain open along strike. We
expect to prove up additional ounces, especially in the oxide and transitional
categories, on the four neighbouring targets on the Twangiza Project which are
within trucking distance of the proposed Twangiza plant site, namely Luhwindja
(adjacent to Twangiza North), Kaziba, Mufwa and Tshondo. These deposits are
expected to strengthen the robustness of the Twangiza project and boost the
ounce profile over and above the numbers we released today."

    Mineral Resources

    SRK Consulting (UK) Ltd. ("SRK (UK)") prepared updated independent
estimates of the Mineral Resources at Twangiza which were announced by Banro
in a press release dated January 14, 2009 and are also set out in Table I
below. A copy of the press release can be obtained from SEDAR at
and EDGAR at
    The Mineral Resource estimates are reported according to the definitions
and guidelines given in the Canadian Institute of Mining, Metallurgy and
Petroleum ("CIM") Definition Standards on Mineral Resources and Mineral
Reserves. These estimates have an effective date of January 9, 2009 and are
based on sampling and assay data available as at November 19, 2008. SRK (UK)
has used a cut-off grade of 0.5 g/t gold. The Mineral Resources 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$1,000/oz gold
price assumption.
    Martin Pittuck, who is an employee of SRK (UK), is the "Qualified Person"
(as such term is defined in National Instrument 43-101) for the purpose of the
Mineral Resource estimates.
    Table I below presents the Mineral Resource estimates by confidence

    Table I - Summary of SRK (UK)'s Twangiza Mineral Resources Statement
    (January 9, 2009)

    Mineral Resource              Tonnes          Grade           Ounces
    Category                     (Million)       (g/t Au)        (Million)
    Measured                        17.2           2.40             1.32
    Indicated                       90.3           1.50             4.28
    Measured & Indicated           107.5           1.60             5.60
    Inferred                         8.2           1.70             0.40
    (Above 0.5 g/t Au cut-off)

    The infill drilling program that was completed since the previous
estimates of June 23, 2008, targeted Inferred Resources within the
Pre-Feasibility limiting pit shell and confirmed the geometry of the
mineralized bodies. This infill drilling and the inclusion of the 20 holes,
which were drilled by CME Consulting Ltd. in 1997-1998 (excluded from the
previous estimates), has also increased confidence in the estimates at depth.
SRK (UK)'s updated model for this Feasibility Study is slightly wider than the
Pre-Feasibility Study model, incorporating additional low grade material and
therefore producing a slightly lower grade than the previous model. Changes in
estimation parameters have influenced the estimation of block grades to a
small extent with more samples being used in the current estimation.
    SRK (UK) has reported the Mineral Resources using a block cut-off grade
of 0.5 g/t gold to reflect the technical and economic parameters used in the
Feasibility Study and is consistent with the Pre-Feasibility Study.
    The increased resource at Twangiza Main is mostly in the Indicated fresh
rock material. Reconciliation work between the Pre-Feasibility model and the
current estimates shows that the significant increase in the resources is due
to the infill drilling program intercepting certain additional high grade
intersections at depth, which has resulted in material being transferred from
the Inferred and unclassified categories into the Indicated Mineral Resource
    SRK (UK) has applied high grade capping of certain values during the
estimation process as consistent with the Pre-Feasibility model (in the oxide,
transitional and fresh domains and capped to 20 g/t gold, 25 g/t gold and 10
g/t gold respectively). SRK (UK)'s Mineral Resource estimates have been
limited to a pit shell based on an upside potential of US$1,000/oz gold price.
The pit shell represents a 10% increase in the price used for the
Pre-Feasibility Study pit shell.
    Given the importance associated with the lithological model, SRK (UK) has
updated and in some places reinterpreted the lithological model for the
deposit. SRK (UK) recommends further work be completed on the interpretation
at the north east of the main deposit to further define the presence of a
syncline structure, which is open at depth. 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 Planning

    SRK Consulting (South Africa) (Pty) Ltd, ("SRK (SA)") undertook the mine
planning process, based on the Measured and Indicated Mineral Resources
delineated to date at 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$750/oz (downside)
                              US$850/oz (base case)
                              US$950/oz (upside)
    Diesel fuel price         US$ 1.20/litre
    Mining dilution           5% at zero grade
    Mining recovery           95%
    Pit slopes                Minus 28 to 55 degrees
    Metallurgical recovery    Oxide ore: Twangiza Main                 90.2%
                              Oxide ore: Twangiza North                91.2%
                              Transitional porphyry: Twangiza Main     79.5%
                              Transitional porphyry: Twangiza North    93.2%
                              Fresh porphyry: Twangiza Main            74.8%
                              Fresh porphyry: Twangiza North           81.4%
                              Transitional sedimentary                 36.4%
                              Fresh sedimentary                        51.7%

    The following Mineral Reserves were estimated by SRK (SA) to be contained
in a practical pit design:

    Table II - Summary of Twangiza Mineral Reserve Estimates (effective date:
    January 12, 2009)

    Reserve Category        Deposit              Tonnes     Grade    Ounces
                                                (Million)  (g/t Au) (Million)
    Proven             Twangiza Main and North    14.46      2.45      1.14
    Probable           Twangiza Main and North    46.42      1.69      2.53
    Total Proven and   Twangiza Project           60.88      1.87      3.67
    Probable Reserves

    SRK (SA)'s independent estimates of the Twangiza Mineral Reserves are
based on the Mineral Resource estimates set out above in Table I of this
release. The Mineral Reserves were estimated by Wally Waldeck and Mark
Sturgeon, both of whom are employees of SRK (SA) and "Qualified Persons" (as
such term is defined in National Instrument 43-101). The Mineral Reserve
Statement uses the definitions and guidelines given in CIM Definition
Standards on Mineral Resources and Mineral 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 throughput of 5 million tonnes of oxide ore to the processing plant in
the initial years. The transitional and fresh ore types are planned to be
stock piled during this period and processed once the oxide ore production
begins decreasing.

    The Twangiza Project has a favourable stripping ratio of 2.34, which is
an important contributing factor to Twangiza's low operating costs.
    The estimated total open pit mine operating cost of US$5.31 per tonne of
ore is equivalent to US$1.59 per tonne of rock mined, based on an owner
operated mining option.
    This Feasibility Study of Twangiza does not include Inferred Mineral
Resources in the open pit outlines.
    "The highest gold production from the open pits and the lowest cost
production occur in the early years, because of the higher throughput of the
oxide ore and the low strip ratio. Hence our objective is to add additional
oxide and porphyry transitional ounces to maximize and uplift the production
profile over the first 7 years of production life, to a production profile in
excess of 300,000 ounces, with as much oxide as possible from the neighboring
deposits." said Mr. Prinsloo.

    This study has been done with specific focus on the non-refractory
portion of the ore body by SRK at Banro's request. SRK has however included
some of the transitional and fresh sedimentary ore types in the measured and
indicated categories. Owing to their refractory nature, these reflect lower
processing plant recoveries (36% for the transitional sedimentary and 52% for
the fresh sedimentary).


    Metallurgical test work, including recovery and comminution studies on
composite drill core samples, has been undertaken on the oxide, transitional
(non-refractory) and fresh rock (non-refractory sulfide) ore categories by SGS
Lakefield. The results indicate that the oxide sediments and porphyry,
transitional and fresh rock feldspar porphyry host rock are all
non-refractory, while some of the transitional and fresh rock sedimentary ores
are of a refractory nature or contain some refractory material.
    This Feasibility Study treats all of this sedimentary rock as refractory,
as not enough drilling and delineation has been done to date, to define the
non-refractory percentage portion of the ore. Additional drill holes for
further metallurgical testwork and definition of the sedimentary rock, to
clearly define the refractory portion thereof, will be completed going
forward. For this Feasibility Study, the conservative position has been taken
of categorizing all the transitional sedimentary and fresh sedimentary as
refractory at recovery percentages of 36% and 52% respectively. This approach
should give further upside to Twangiza in the latter years of production.
    Optimization and variability metallurgical results to date indicate the
following metallurgical overall recoveries for the various ore types (with
reserve tonnages and yields shown):

    -  Twangiza Oxide Main: 90.2% (13.8 Mt at 2.14 g/t gold)
    -  Twangiza Oxide North: 91.2% (3.8 Mt at 2.12 g/t gold)
    -  Twangiza Transitional Main (non-refractory): 79.5% (4.8 Mt at
       1.86 g/t gold)
    -  Twangiza Transitional North (non-refractory): 93.2% (2.2 Mt at
       2.06 g/t gold)
    -  Twangiza Fresh Main (non-refractory): 74.8% (18.4 Mt at 1.32 g/t gold)
    -  Twangiza Fresh North (non-refractory): 81.4% (1.4 Mt at 2.19 g/t gold)

    Based on the comminution testwork, leach optimization and variability
testwork performed, SENET designed a comminution circuit consisting of single
stage crushing followed by a SAG and ball mill operating in closed circuit
with hydrocyclones. A conventional Gravity-CIL (carbon-in-leach) processing
facility was allowed for with an annual throughput of 5.0 million tonnes of
oxides or 3.75 million tonnes of transitional and fresh ore, or combinations
thereof. The gravity circuit will recover 20-25% of the feed to the plant as
free gold. This Feasibility Study is based on an optimized single stream CIL
plant as compared to the Pre-Feasibility Study which was based on a 3 stream
CIL plant. Metallurgical testwork has begun on alternative processing routes,
such as Leachox, to pursue the extraction of gold from the refractory ores in
the transitional and fresh sedimentary ore types as described above.
    Scouting bottle-roll test work was performed at excess conditions on the
transitional and fresh refractory sedimentary Main and North ores. The
following overall recoveries were obtained and used for design purposes, for
all the deeper tonnage in both pits.

    -  Twangiza Transitional Main (refractory): 36.4% (3.2 Mt at
       3.13 g/t gold)
    -  Twangiza Transitional North (refractory): 36.5% (0.4 Mt at
       2.91 g/t gold)
    -  Twangiza Fresh Main (refractory): 51.7% (12.6 Mt at 1.87 g/t gold)
    -  Twangiza Fresh North (refractory): 51.8% (0.3 Mt at 1.85 g/t gold)

    Site Selection and Related Infrastructure

    Due to the non-availability of an appropriate drill rig towards the end
of 2008, some geohydrological and surface geotechnical drill holes have not
been drilled and therefore a conclusive geotechnical investigation and
geohydrological investigation to a "Bankable Feasibility Study" level could
not be completed within the planned timeframe. These holes will however be
drilled and the associated laboratory and interpretive analysis will be
conducted as soon as practically possible, to ensure confirmation of the
assumptions used for this Feasibility Study. By strict definition this
Feasibility Study is therefore not complete and as such may not be considered
at the time of this press release to be at a "Bankable Feasibility level". The
pre-feasibility work and conclusions in both of these areas, have however been
further strengthened with additional assumptions and work, over the past seven
    The mineral resources, selected process route and other areas are however
conclusive to the "Bankable Feasibility level". Subject to any implications
(positive or negative) of the respective geotechnical and geohydrological
investigations, the financial analysis is also conclusive.
    All sites have at this stage been selected to optimum technical and
economical considerations. The final site selection could however be
influenced by the outcomes of the geotechnical and geohydrological
investigations. However, with all the work completed at Twangiza to date, it
is not expected to change significantly. The tailings dam site selection is
still under review in an endeavour to further reduce project capital costs.


    Knight Piesold Ltd. of Vancouver, Canada, has undertaken studies to
investigate the potential for a stand-alone hydroelectric power generation for
the Twangiza Project. These investigations/studies have indicated that the
development of a hydroelectric facility to supply power to the Twangiza
Project is both feasible and viable. The study is based on a 30 MW,
run-of-river hydroelectric scheme on the Ulindi River (Ulindi II site, 35 km
from Twangiza site), utilizing a 600 meter natural drop in the river over a
distance of approximately 8 kilometers.
    Although capital costs are higher (for the hydroelectric alternative
compared to diesel generation), operating costs are significantly lower,
(especially processing power costs) resulting in cost savings over the life of
the project, which gives Twangiza a competitive advantage.
    In addition, the hydroelectric facility, besides having a residual value
on mine closure also has the potential to obtain carbon credits which can claw
back on the capital investment for the power project. This carbon credit
benefit has not been reflected in the financials as it has not been concluded
at this stage. Although it is anticipated that a hydroelectric facility could
satisfy the majority of the project's power requirements, back up diesel power
generating facilities of 6MW would be required for essential processing plant
equipment and for emergencies. The cost of these diesel facilities has been
included in the project's capital cost.
    The capital to fund the hydroelectric power facility is planned to be
raised as a separate exercise to the Project capital and will be housed in a
Banro subsidiary that will supply power to the Twangiza mine over its life.
The hydroelectric project is planned to be developed separately but in
parallel to the Twangiza mine development.
    "Going the hydroelectric route not only complements Banro's environmental
friendly policies, but also presents an opportunity to reduce costs over the
life of the Twangiza Project. The access to its own stand-alone hydro power
plant, supplying a cheaper form of power, is a distinct competitive advantage
for the Twangiza Project. We will seek third party funding for all or part of
the hydroelectric power plant, which will be repaid on a kWh rate over the
first 10 years of the project. The hydro cost of US$0.084/kWh compares very
favorably to the US$0.54/kWh of diesel generated power," said Mr. Prinsloo.


    AMEC (UK) undertook the water supply dam design, which suggests that a
robust process water supply can be achieved through the joint operation of a
fresh water dam facility, designed to intercept surface runoff (rainfall) for
gravity discharge to the process plant, together with supernatant water
reclaimed from the tailings management facility pond.

    Tailings Management

    AMEC (UK) undertook studies to confirm civil arrangements for a robust
tailings management facility ("TMF"). A preferred surface site aligned within
a natural river valley close to the plant site, has been selected to safely
retain up to 66 Mt of slurried tailings. Appropriate river diversion
arrangements have been appraised to safely route the upstream catchment water
and storm water events around the TMF. In due consideration of the region's
high seismicity, the main embankment has been designed as a downstream gravity
dam, with internal drainage arrangements and an upstream low permeability
zone. The utilization of approved construction material won from the open pit
works has consequently been assumed. Upon completion of the geotechnical,
geochemical and hydrogeological investigations, with their associated
laboratory analysis, the TMF study will be further optimized, with respect to
its arrangement and costs, by addressing potential co-disposal of dried
tailings with stripped waste, operated in parallel with a reduced slurry TMF

    Accessibility and Transport/Logistics

    SENET and FH Bertling Logistics have undertaken surveys 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
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 - by road.
    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 - by road.
    3. Road from Johannesburg (RSA) on the Great North road through Zambia to
       Mpulungu (southern most point of Lake Tanganyika) - barge to Bujumbura
       (Burundi - northern point of Lake Tanganyika) and truck over the
       Rwandan border - Bukavu (DRC) N2 through to Site - by road.

    The upgraded section of the N2 road from Bukavu to Kasongo has passed the
Twangiza turnoff and the Ulindi 2 hydro site turnoff, and is being extended
toward Kamituga, Lugushwa and Namoya, three of Banro's other projects.
    The study findings propose option 1 as the preferred choice of access to
the Twangiza project, with options 2 & 3 as alternatives and back-up. Option 1
remains the most viable based on the optimization of a number of
considerations, including port facility capacities, long-term political
stability of transit countries as well as the suitability of existing roads
and infrastructure.


    There is no gold refining capability in East Africa and thus doré
produced at Twangiza is to be refined off-shore, either in South Africa,
Europe or Dubai. Initial discussions have been held with refineries and
although no agreements have been entered into, it is anticipated that the doré
will be treated at the Rand Refinery in South Africa. It is estimated that
collection and transport from the mine, insurance and refining of the doré
will be charged at $US5.00 per ounce.

    Environmental and Social Aspects

    SRK (SA) is implementing baseline environmental surveys at Twangiza. The
present phase of the environmental assessment work comprises detailed
characterization of the environmental baseline, quantification of impacts and
development of management plans. Field surveys or seasonal measurement of
relevant parameters in the fields of hydrology, soils, air quality, noise,
aquatic ecology and terrestrial flora and fauna were undertaken by appropriate
specialists. The air quality and noise impacts of the project have also been
    Socio-economic studies included developing a social baseline and impact
assessment, and health and safety study, as a basis for developing management
plans. Through a process of census survey and public consultation, the
refinement of social impact management plans has been completed, and the
following products having been developed:
    -  Social Baseline and Impact Assessment (SIA);
    -  Resettlement Action Plan (RAP);
    -  Stakeholder Engagement Plan (SEP);
    -  Community Development Plan (CDP).

    All the data and material collated in the course of all these studies, in
combination with the outstanding requirements regarding water supply and
project water balance, ground water modeling, geotechnical and geochemical
test work, will be compiled into an Equator Principles compliant
environmental, socio-economic, health and safety impact assessment (ESHIA).
The impact assessment will inform an environmental and social management plan
(ESMP) which will set standards for the project compliant with both DRC mining
legislation and the World Bank's Pollution Abatement and Control Handbook.

    Capital Costs

    The tables below summarize the estimated capital costs for the Twangiza
Project and the Hydroelectric project as estimated by the independent
consultants, and includes preliminary quotations from equipment providers,
further substantiated by their experience on current projects in Africa.
    The Feasibility Study costs currently utilize an owner-operated mining
fleet, although contractor mining was investigated. This investigation into
the contractor mining option reflected considerably lower financial returns
than the owner-operated mining fleet. At this stage the contractor mining
option, although having a lower initial capital cost, results in considerably
higher operating costs, a function of the current inflated contractor rates
quoted for work in Eastern DRC.
    All financial analysis for the Life of Mine includes the total design,
construction and commissioning, production and closure. Additionally, the
assumption is made that a dedicated hydroelectric facility would be developed
within a Banro subsidiary and the total costs have been highlighted separately
from the Twangiza project below.

    Table IIIa - Total Project Capital Costs (excluding hydroelectric power

                                                    Feasibility  Feasibility
                                                       Study        Study
    TWANGIZA PROJECT CAPEX SUMMARY                    US$ 000      US$ 000


    Plant & Equipment                                  62,924       57,789
    Haul Roads                                          1,397        3,500
    Pre-strip Costs                                     7,803        6,646
    Other                                               3,994        2,944
    Total Mining                                       76,118       70,879

    Process Plant

    Earthworks & Civils                                31,866       49,348
    Mechanical Equipment, Structural & Piping          56,556       87,699
    Electrical & Instrumentation                        7,560       14,790
    Tailings Dam                                       31,030       16,848
    Other                                              48,412       22,699
    Total Process Plant                               175,424      191,383

    Mine Infrastructure

    Standby Diesel Generators, Fuel Farm &
     First Fill                                         5,315       10,817
    Buildings & Accommodation Facilities               12,684        8,382
    Access Roads                                       25,827       17,298
    Light Vehicles & Mobile Equipment                   2,730        2,784
    Other                                               7,383        9,000
    Total Infrastructure                               53,940       48,281

    Management Costs

    EPCM (Engineering, Procurement, Construction
     Management)                                       32,332       34,661
    Working Capital (Stock holding, Production
     Build-Up Costs)                                    6,546        6,783
    Relocation Costs (Resettlement)                    13,115       11,316
    Owners Preproduction Costs (Banro Project /
     Construct Team)                                    5,717        8,034
    Administration Tax & Insurances                     7,580       10,650
    Total Management Costs                             65,290       71,445
    Contingency                                        38,881       50,503
    TOTAL MINE INITIAL PROJECT CAPITAL COSTS          409,654      432,490

    Table IIIb - Hydroelectric Power Plant Capital Costs

                                                    Feasibility  Feasibility
                                                       Study        Study
    CAPEX SUMMARY HYDROELECTRIC POWER                US$ '000     US$ '000
    Power Plant                                       100,585       81,738
    EPCM                                                8,047        6,539
    Contingency                                        20,117       16,348
    HEP Admin Tax                                       5,029        4,087
    Total Hydroelectric Power Costs                   133,778      108,711
    Banro's 50% contribution                           66,889          N/A

    Table IIIc - Total Project Capital Costs (Including 50% of Hydroelectric
    Power Plant)

                                                    Feasibility  Feasibility
                                                       Study        Study
    CAPEX GRAND TOTAL PROJECT COSTS                  US$ '000     US$ '000
    Total Mine Initial Project Capital Costs          409,654      432,490
    Total Hydro Power Costs                            66,889      108,711
    TOTAL PROJECT INITIAL COSTS                       476,543      541,202
    Ongoing/Sustaining Capital (Tailings Dam
     Raises, Mine Equipment & Mine Closure Costs)(*)        0       39,380
    GRAND TOTAL PROJECT COST                          476,543      580,582
    (*)The Ongoing/Sustaining Cost of US$67.583 million for this Feasibility
    Study has not been capitalized, as it was in the Pre-Feasibility Study.
    The financial analysis in the Feasibility Study includes this as an
    operating cost, which is reflected in the total operating cash costs.

    Operating Cash Costs

    The following operating cash costs were estimated and incorporated into
the financial analysis:

    Table IV - Total Operating Cash Costs for Initial 7 years

                                              Feasibility    Pre-Feasibility
                                                 Study            Study
    OPEX : First 7 Years                     US$/t   US$/oz   US$/t   US$/oz
    Mining                                    6.48   136.08    5.39   109.67
    Processing                               11.56   243.12    8.72   191.31
    G & A                                     1.07    22.14    2.09    44.89
    Refining                                  0.26     5.00    0.26     5.00
    Total                                    19.37   406.34   16.46   350.87

    Table V - Life of Mine Total Operating Costs

                                              Feasibility    Pre-Feasibility
                                                 Study            Study
    OPEX : LoM : HEP                         US$/t   US$/oz   US$/t   US$/oz
    Mining                                    5.31   121.90    4.32    91.76
    Processing                               11.92   273.65    9.48   201.29
    G & A                                     1.26    28.93    2.19    46.60
    Refining                                  0.22     5.00    0.24     5.00
    Total                                    18.71   429.47   16.23   344.65

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

    Table VI - Financial Assumptions

                                                  Banro            Banro
                                               Assumptions      Assumptions
                                 Unit          January 2009      July 2008
                                               Feasibility    Pre-Feasibility
                                                  Study            Study
    Gold Price                  (US$/oz)             850              850
    Discount Rate                  (%)                 5                5
    Fuel Prices
    Diesel                      US$/liter            1.2              1.6
    Power Costs
    HEP Costs (Before Payback)   US$/kWh           0.084            0.025
    HEP Costs (After Payback)    US$/kWh           0.028            0.025
    Tax Free Holiday              Years               10               10
    Tax Rate Year 0-10             (%)                 0                0
    Tax Rate
     (greater than) 10 years       (%)                30               30
    Royalty (Government)           (%)                 0                0
    Administration Tax             (%)                 5                5
    Depreciation                   (%)                 0                0
    Depreciation Period           Years               10               10
    Conversions Factors
    Kilograms to Ounces        (kg/troy oz)      32.1505          32.1505
    Diesel Fuel Density          (t/ m(3))          0.85             0.85
    Hydro Density                (t/ m(3))          0.97             0.97
    Exchange Rate                Rand: US$             9                8

    Refining Charges, Dore
     Transport and
     Insurance                    US$/oz               5                5

    Percent Capital
     Expenditure (Year 1)           %                 30               30
    Process Plant Residual Value    %                  5                5
    Power Plant Residual Value      %                 30               30
    Mining Equipment
     Residual Value                 %                  5                5
    Vehicles                        %                 10               10

    Table VII below shows the percentage variances of the key components
causing the differences between the Pre-Feasibility Study and this Feasibility

    Table VII - Material Factors

                                                         Approximate % Price
                                                         Increase / Decrease
                                                        since Pre-Feasibility
                                                         Study of July 2008 -
                                                         Current Feasibility
                                                        Study of January 2009
    1. Diesel Costs - Price Per Litre                            -25%
    2. Transport (Logistics) - Total Capital Costs              -7.2%
       -  20 Foot Container Price for Freight                   +1.4%
       -  40 Foot Container Price for Freight                   -2.2%
    3. Civils and Infrastructure
       -  Earthworks (Decreased Process Plant
          footprint) : Total Costs                             -43.9%
       -  Civils (Decreased Process Plant
          footprint) : Total Costs                             -21.1%
       -  Access Roads (including Earthworks, Layers,
          Drainage & Bridges etc.)                             +49.3%
    4. Steel Costs (Total)                                     -63.3%
       -  Structural Steelwork Costs Per Tonne                 -40.6%
    5. Reagents
       -  Lime Costs - Costs Per Delivered Tonne               +23.8%
       -  Cyanide - Costs Per Delivered Tonne                  +31.2%
    6. Power (30mW Unchanged Output From PFS)                  +23.1%
    7. Tailings Dam (Initial and Ongoing Capital)              +90.7%
    8. Resettlement Costs                                      +15.9%

    Project Economics and Financial Analysis

    As part of this Feasibility Study, the following three separate options
were investigated to determine the most viable financial return:
    -  Treating all of the ore as and when it gets mined;
    -  Delaying and stockpiling the refractory portion of the ore for
       treatment in later years;
    -  Treating only the oxides and fresh porphyry ore.

    This Feasibility Study concludes that the most attractive option is to
treat all of the ore as and when it gets mined, and the financial analysis
reflects these findings accordingly.

    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 includes 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. The Hydroelectric Project costs have
been run through the financial model at 50% of the overall capital costs,
assuming a 50% third party investment, being repaid at a kWh rate over the
first 10 years of the project life. Further savings could be achieved through
the potential of recouping some of the capital investment through carbon
credits, the benefits of which have not been included in these financials.
    Calculated sensitivities show the upside leverage to gold prices and the
robust nature of the projected economics to operating assumptions.


    Table VIII - Gold Price (Base Case: US$850/oz)

            Gold Price                    IRR          NPV US$ million
              US$/oz                             at different discount rates
                                           %          0%        5%       10%
               750                       12.7%       328       154        44
               850                       20.5%       593       342       185
               950                       27.4%       858       530       325

    Table IX - Capex (Base Case: US$476.543 Million)

          CAPEX Change                    IRR          NPV US$ million
               %                                 at different discount rates
                                           %          0%        5%       10%
              -10%                       24.4%       641       388       229
              +10%                       17.3%       545       296       140

    Table X - Operating Cash Costs (Base Case: US$429/oz)

           OPEX Change                    IRR          NPV US$ million
               %                                 at different discount rates
                                           %          0%        5%       10%
              -10%                       23.0%       707       419       239
              +10%                       17.8%       479       265       130

    Table XI - Fuel Price (Base Case: US$ 1.20 /litre)

        Fuel Price Change                 IRR          NPV US$ million
               %                                  at different discount rates
                                           %          0%        5%       10%
              -10%                       20.8%       605       350       191
              +10%                       20.2%       581       334       178

    Project Opportunities

    Project estimates are based on costs received during the period of
October to December 2008, before the full impact of the global economic crisis
could have been translated into lower commodity input prices for mining
projects. In light of this, it is believed that, going forward, further
economic savings could be achieved as a result of supply and demand shifts
within the mining project environment (due to cancelation and/or delay of
numerous projects worldwide).
    "This Feasibility Study can be reviewed and further optimized going
forward as input parameters change. Banro believes that contractor rates,
civil and earthwork rates, steel prices, diesel prices and transport costs
will become more favourable compared to the inputs to this Study," observed
Mr. Prinsloo.
    Gold prices have continued to improve and consensus estimates have risen
in recent months, with potential upside to the base case view of $850/oz,
taken in this Feasibility Study.
    In order to achieve further reductions, the supply of diesel, lime and
cement will be explored, with the objective of sourcing suppliers from within
the DRC and/or in neighboring countries.

    Project Risks

    Apart from the risks captured within the cautionary and forward looking
statements in this press release, an additional risk as described under the
"Site Selection and Related Infrastructure" heading above, associated with the
outcomes of the outstanding geotechnical investigation and geohydrological
investigation could, either favorably or adversely, impact on the following
areas of the project:

    -  Civil design criteria for the process plant and related
    -  Civil design criteria for the tailings disposal facility site
       selection and containment design;
    -  Civil design criteria for the tunnel of the hydroelectric power
    -  Environmental impact.

    Development Timetable

    Construction of the process plant and associated infrastructure for the
Twangiza Project is expected to take between 24 to 30 months. Development of
the Hydro Electric or Ulindi II Project, which will be done in parallel to the
mine development, has an expected timeline of approximately 28 months.
    Banro intends to refresh and optimize this Feasibility Study and to
initiate discussions with potential strategic partners and project finance
lenders, including both multilateral agencies and commercial banks, on the
above development timetable. Details of this Feasibility Study in the form of
a National Instrument 43-101 technical report will be filed on SEDAR in due
    Additional information with respect to the Twangiza Project is contained
in the technical report of SENET dated August 13, 2008 and entitled
"Pre-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

    Qualified Person

    This Feasibility Study 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. Mr. Senior was also the qualified person
throughout the preparation of the pre-feasibility study.

    A list of other "Qualified Persons" working on the feasibility study
    -  Martin Pittuck, SRK (UK) (Mineral Resources)
    -  Wally Waldeck, SRK (SA) (Mining and Mineral Reserves)
    -  Mark Sturgeon, SRK (SA) (Mining and Mineral Reserves)
    -  Jeremy Haile, Knight Piesold (Hydroelectric Power)
    -  Ciaran Molloy, AMEC (Tailings and Water Dams)

    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
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, projected timing of possible production 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: 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; 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 28, 2008 filed on SEDAR 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.

    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.
    Mineral resources are not mineral reserves and do not have demonstrated
economic viability. There is no certainty that mineral resources can be
upgraded to mineral reserves through continued exploration.
    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 (except
in certain limited circumstances). Inferred mineral resources are excluded
from estimates forming the basis of a feasibility study.

    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.

For further information:

For further information: please 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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