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Banro Acquires Refurbished Process Plant to Fast Track Gold Production at its Twangiza Project

Friday, August 14th, 2009

Banro Corporation (NYSE AMEX – “BAA”; TSX – “BAA”) is pleased to announce that it has entered into an agreement to purchase a refurbished gold processing 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.
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 forward.
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.
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