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Banro Welcomes The DRC Government’s Final Ratification Of The Fiscal Arrangement Under Its Mining Convention

Wednesday, August 12th, 2009

Banro Corporation (NYSE AMEX – “BAA”; TSX – “BAA”) is pleased to report that the government of the Democratic Republic of the Congo (the “DRC”) has ratified, with minor modification, the Fiscal Agreement reached between the government and the Company in February 2009. The Company continues to receive full cooperation and support from the DRC’s central and provincial governments as it moves forward to develop its wholly-owned gold projects in the DRC.
In its press release of February 25, 2009, the Company announced that it had received official confirmation from the Government of the DRC that all aspects of the Company’s Mining Convention and its mining licences conform to Congolese law.
The Company has agreed to enhance its existing commitment to the DRC and the local communities of South Kivu and the Maniema provinces through:
An advance payment of US$2 million to the DRC government to be made when the Company completes the equity and debt financing process for construction of the Twangiza project. These funds will also be used to support social infrastructure development in the Twangiza and Luhwindja communities and will be credited against future taxes;
A pledge of US$200,000 to settle legacy issues with SOMINKI SARL and the transfer to the central government of certain real estate assets redundant to the Company’s operations;
4% of future net profits, after return of capital, allocated through the central government to the communities of South Kivu and Maniema provinces for the building of infrastructure projects, including roads and bridges, schools and health care facilities;
A royalty of 1% on gold revenues.
Company President and C.E.O. Mike Prinsloo said: “Following this ratification the Company and the government of the DRC remain fully committed to working together towards the development of Banro’s gold projects. This will ensure that the benefits of mineral development contribute to the sustained social and economic development of the communities of South Kivu and Maniema provinces where we operate. Banro has already demonstrated an outstanding commitment to community development through both the Banro Foundation and the Company’s policy of creating capacity-building jobs and opportunities for local Congolese.”
For further information visit: www.banro.com

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