Banro Increases Oxide and Free-milling Ounces of Gold by 45%

Banro Increases Oxide and Free-milling Ounces of Gold by 45% 
Banro's total Mineral Resource now 10.18 Moz Measured & Indicated and
7.01 Moz in Inferred 
TORONTO, ONTARIO -- (Marketwire) -- 01/31/13 -- Banro Corporation
("Banro" or the "Company") (TSX:BAA)(NYSE Amex:BAA)(NYSE MKT:BAA) is
pleased to provide an update of its Mineral Resource and Mineral
Reserve estimates at its wholly-owned projects on the Twangiza-Namoya
gold belt in the Democratic Republic of the Congo ("DRC").
Exploration drilling during 2012 at the four core projects, Twangiza,
Namoya, Lugushwa and Kamituga, has resulted in positive growth in
Mineral Resources and Mineral Reserves, particularly oxide and
free-milling material, in line with the core strategy of the Company,
whilst also ensuring the replacement of Mineral Reserves depleted
thus far at the Twangiza Gold Mine.  
Highlights 


 
--  Banro's Measured & Indicated (M&I) Mineral Resource has grown to 10.18
    million ounces ("Moz") of gold, an increase of 41%, and the Inferred
    Mineral Resource has grown to 7.01Moz of gold, an increase of 56%. 
--  Banro's total oxide and free-milling Mineral Resource (both types of
    materials may be efficiently treated by heap leach and CIL methods)
    increased by 45%, representing 4.17Moz in the M&I category and 0.87Moz
    in the Inferred category. 
--  At Namoya, M&I Mineral Resources increased by 17.7% to 1.86Moz of gold,
    resulting in a 68.5% relative increase in the M&I Mineral Resource
    contained within the optimized pit to 1.50Moz. 
--  The Proven & Probable Mineral Reserve estimate for Twangiza, based on
    drilling and improved economic assumptions, increased by 36% to 1.54Moz 
--  At Lugushwa, the Indicated Mineral Resource consisting solely of oxide
    material is 0.73Moz. Lugushwa's Inferred Mineral Resource is now
    4.88Moz, of which 0.40Moz consists of oxide material. 

 
"During 2012, the Company made significant progress with its
exploration activities at its Twangiza, Namoya, Lugushwa and Kamituga
project areas, increasing the Company's Mineral Resources,
specifically oxide and free-milling material at Twangiza and Namoya,
which have, or soon will have, established mining infrastructure. The
increase in the overall Mineral Resources is substantial and
underpins Banro's strategy to build value by adding new Resources and
replacing the mined ounces," commented Dan Bansah, Banro's Vice
President, Exploration.  
Banro's exploration update published on November 15, 2012,
highlighted significant drill intersections at the properties. The
exploration focused on shallow infill and extension drilling at
Lugushwa, definition drilling at Namoya, delineation drilling of the
east and west flanking structures at Twangiza, and exploration
drilling at Kamituga.  
The encouraging results of the shallow infill drilling at Lugushwa
facilitated the estimation of over 0.73 million ounces of high
confidence Indicated oxide resources and an additional 0.40 million
ounces of Inferred oxide material. This estimated oxide Resource will
form the framework for Banro to undertake a preliminary economic
assessment of Lugushwa's oxide material, which was rescheduled to
incorporate the additional exploration data which could potentially
enhance the economics of this project. In Namoya, while assessing the
potential for additional Resources, definition drilling at Namoya was
undertaken to improve geological confidence prior to the mine being
brought into production in Q4 2013. In addition, the positive
metallurgical studies of the free-milling primary material at Namoya
has resulted in a 68.5% increase of the M&I Mineral Resource
contained within the optimized pit (the "In-pit M&I Mineral
Resources"), from 0.89 million ounces to 1.50 million ounces at a
grade of 1.78 g/t Au for 26.20 million tonnes of material (the
Measured component of this is 22.86 million tonnes at 1.86g/t Au and
the Indicated component is 3.34 million tonnes at 1.26g/t Au). These
Mineral Resources, and the potential beneath the pit (Figure 1), will
be the catalyst for the Namoya Phase II expansion study due for
completion in 2013. The encouraging results obtained from the
delineation drilling of the east and west flanking structures at
Twangiza, coupled with its improved economics, has allowed for the
growth in Mineral Reserves and the replacement of ounces depleted
since start-up. Exploration drilling at Kamituga has confirmed the
potential of a number of targets including Kibukila, Filon 20 and
G22. Infill drilling of these targets will be the core business
objective for Kamituga during 2013.  
Banro's Mineral Resources and Mineral Reserves disclosed in this
press release are reported in accordance with National Instrument
43-101 (Standards of Disclosure for Mineral Projects), which
incorporates by reference the CIM Definition Standards on Mineral
Resources and Mineral Reserves. The Mineral Resources reported in
this press release are inclusive of the Mineral Reserves component.  
Mineral Resource and Mineral Reserve Declaration at December 31, 2012 


 
Table 1: Mineral Resources                                                  
                                                                            
----------------------------------------------------------------------------
Mine/Project           Category         Tonnes          Grade           Gold
                                                                            
                                          (Mt)       (g/t Au)          (Moz)
----------------------------------------------------------------------------
Twangiza (Oxide)                                                            
----------------------------------------------------------------------------
                       Measured           9.51           2.39           0.73
----------------------------------------------------------------------------
                      Indicated          16.38           1.61           0.85
----------------------------------------------------------------------------
           Measured & Indicated          25.89           1.90           1.58
----------------------------------------------------------------------------
                       Inferred           4.66           0.85           0.13
----------------------------------------------------------------------------
Twangiza (Transition & Fresh)                                               
----------------------------------------------------------------------------
                       Measured           6.29           2.21           0.45
----------------------------------------------------------------------------
                      Indicated         134.24           1.29           5.56
----------------------------------------------------------------------------
           Measured & Indicated         140.53           1.33           6.01
----------------------------------------------------------------------------
                       Inferred          21.21           1.09           0.74
----------------------------------------------------------------------------
Namoya (Oxide & Free-milling)                                               
----------------------------------------------------------------------------
                       Measured          24.58           1.96           1.55
----------------------------------------------------------------------------
                      Indicated           6.36           1.52           0.31
-----------
-----------------------------------------------------------------
       Measured  and  Indicated          30.94           1.87           1.86
----------------------------------------------------------------------------
                       Inferred           6.64           1.59           0.34
----------------------------------------------------------------------------
Lugushwa (Oxide)                                                            
----------------------------------------------------------------------------
                      Indicated          17.03           1.32           0.73
----------------------------------------------------------------------------
                       Inferred           8.86           1.39           0.40
----------------------------------------------------------------------------
Lugushwa (Transition & Fresh)                                               
----------------------------------------------------------------------------
                       Inferred         107.60           1.34           4.48
----------------------------------------------------------------------------
Kamituga                                                                    
----------------------------------------------------------------------------
             Inferred (Surface)           4.14            2.4           0.32
----------------------------------------------------------------------------
         Inferred (Underground)           3.12           6.00           0.60
----------------------------------------------------------------------------
  TOTAL MEASURED AND INDICATED          214.39           1.48          10.18
----------------------------------------------------------------------------
TOTAL INFERRED                          156.23           1.40           7.01
----------------------------------------------------------------------------
                                                                            
TABLE 2: Mineral Reserves                                                   
                                                                            
----------------------------------------------------------------------------
Mine/Project              Category      Tonnes               Grade      Gold
                                                                            
                                          (Mt)            (g/t Au)     (Moz)
----------------------------------------------------------------------------
Twangiza (Oxide)                                                            
----------------------------------------------------------------------------
                           Proven       9.98        2.36                0.76
----------------------------------------------------------------------------
                         Probable      15.60        1.56                0.78
----------------------------------------------------------------------------
          Total Proven & Probable      25.58        1.87                1.54
----------------------------------------------------------------------------
                                                                            
Note: Rounding of numbers may result in computational discrepancies. Mineral
Reserve included in Mineral Resource.                                       

 
Mineral Resource  
Banro's Measured & Indicated (M&I) Mineral Resource has grown to
10.18Moz, an increase of 41%, and Inferred Mineral Resources have
grown to 7.01Moz, an increase of 56%, this taking into account
depletion at the Twangiza Gold Mine. The growth in the Mineral
Resource is attributed to some changes in economic assumptions, which
resulted in only a 22% increase of the Mineral Resource, although the
main increase was as a result of significant drilling intersections.
The Resource estimate discussed in this press release consists of
insitu Mineral Resources at a 0.4 g/t Au cut-off falling within a
US$2,000 per ounce (2011: US$1,700 per ounce) optimized pit shell.  
The underground Mineral Resources at Kamituga are those situated
below the Mobale open pit, estimated using historical underground
information at a cut-off grade of 1.5 g/t Au. The Mineral Resource
estimates for Kamituga were prepared by SRK (UK) using historical
data and were included in the February 2005 NI 43-101 technical
report prepared by SRK (UK) for Banro. These estimates have not been
updated. Banro has since 2011 carried out extensive exploration
including some amount of drilling to verify the historical results.
This work will be continued during 2013 for an updated estimate for
Kamituga to be undertaken by December 2013.   
The grade tonnage curve for the Namoya In-pit M&I Mineral Resources
is illustrated in Figure 2, and demonstrates that the Namoya project
can be mined at a significantly higher grade than the Resource grade
without impacting significantly on the contained gold. This is based
on the fact that if one increases the cut-off from 0.5g/t Au to
1.00g/t Au, grades increase from 2.04g/t Au to 2.79g/t Au, with
contained gold reducing by only some 12% and could even be increased
above 3.0g/t Au without compromising the mine life significantly.
This indicates that high-grading the deposit is a feasible option and
mine planning could focus on a higher grade, lower tonnage mine
design in times of a falling metal market without destroying the
economics of the project. The Namoya In-pit M&I Mineral Resources at
the various cut-off grades are summarized in Table 3. 
Mineral Reserve  
The Proven and Probable Mineral Reserve of Twangiza has increased by
36% from 1.13 Moz to 1.54 Moz. This 36% increase of 0.41 Moz, after
mining depletion, is primarily a function of delineation drilling at
Twangiza West, which resulted in increased confidence of estimated
Mineral Resources, and changes in economic assumptions with improved
costs from 2011 to 2012. The current open pit Mineral Reserve was
estimated using a weighted average breakeven grade of 0.54 g/t Au at
a gold price of US$1,500 per ounce (2011: US$1,200 per ounce). Margin
dilution and ore loss were included into the estimation of Mineral
Reserves. Twangiza stockpile Reserves were calculated at a cut-off
grade of 0.75 g/t Au.  
TABLE 3: Current In-pit Mineral Resources at Various Cut-off Grades
for the Namoya Project 


 
----------------------------------------------------------------------------
CUT-OFF GRADE                     TONNES         Av. GRADE      GOLD CONTENT
(g/t Au)                            (Mt)          (g/t Au)             (Moz)
----------------------------------------------------------------------------
0.50                               25.56              2.04              1.67
----------------------------------------------------------------------------
0.75                               20.26              2.41              1.57
----------------------------------------------------------------------------
1.00                               16.24              2.79              1.46
----------------------------------------------------------------------------
1.25                               13.34              3.15              1.35
----------------------------------------------------------------------------
1.50                               10.96              3.54              1.25
----------
------------------------------------------------------------------
1.75                                9.18              3.91              1.15
----------------------------------------------------------------------------
2.00                                7.86              4.25              1.07
----------------------------------------------------------------------------
2.25                                6.81              4.58              1.00
----------------------------------------------------------------------------
2.50                                5.93              4.91              0.94
----------------------------------------------------------------------------
2.75                                5.16              5.25              0.87
----------------------------------------------------------------------------
3.00                                4.56              5.56              0.82
----------------------------------------------------------------------------

 
Key Assumptions  
Below are the key assumptions, parameters and methods used to
estimate the Lugushwa and Namoya Mineral Resources:  


 
--  wireframing was restricted to borehole intersections above a 0.3 to
    0.5g/t Au cut-off grade for Lugushwa and 0.4g/t Au for Namoya, Twangiza
    East and West; 
    
--  gold grades have been determined using Ordinary Kriging interpolation
    into a 3-Dimensional block model constrained by mineralization
    wireframes; 
    
--  the mineralization models were constrained within the wireframe with
    primary block dimensions of 20m N-S (along strike), 20m E-W (across
    strike) and 10m in the vertical direction; 
    
--  estimation used dynamic anistotropy; 
    
--  Datamine Studio 3TM was the modelling package; and 
    
--  at all times, the relationship between geology and preliminary mining
    and economic factors was taken into account. 

 
Drill cores for assaying were taken at a maximum of one metre
intervals and were cut with a diamond saw with one-half of the core
placed in sealed bags and sent to the Company's sample preparation
facility in Bukavu, DRC. The core samples were then crushed down to
minus 2 mm, and split with half of the sample pulverised down to 90%
passing 75 microns. Approximately 150 grams of the pulverised sample
was then shipped to the SGS Laboratory (which is independent of the
Company) in Mwanza, Tanzania where the samples were analysed for gold
by fire assay using a 50g charge. As part of the Company's QA/QC
procedures, internationally recognised standards, duplicates and
blanks were inserted into the sample batches.  
Drill core samples were respectively taken from Lugushwa, Namoya,
Twangiza East and West to determine relative density measurements for
the various deposits and the oxide, transitional and fresh rock
components.  
The key assumptions used for the determination of the In-pit M&I
Mineral Resources at Namoya are tabled below: 


 
----------------------------------------------------------------------------
Input Data                    Units                                         
----------------------------------------------------------------------------
Gold price                    US$1,500 per ounce                            
----------------------------------------------------------------------------
Mining dilution               5% at zero grade                              
----------------------------------------------------------------------------
Pay limit for high grade      1.0 g/t Au                                    
----------------------------------------------------------------------------
Stockpile ore                 0.4 g/t-1.0 g/t Au                            
----------------------------------------------------------------------------
Waste                         less than 0.4 g/t Au                          
----------------------------------------------------------------------------
Mining recovery               95%                                           
----------------------------------------------------------------------------
Pit slopes                    Minus 40 to 50 degrees                       
----------------------------------------------------------------------------
Metallurgical recovery        Oxides (88%), Transitional (84%), Fresh (80%) 
----------------------------------------------------------------------------

 
The Twangiza resource model was built by SRK and most recently
published in a Banro press release dated March 4, 2011. Apart from
the Twangiza East and West estimates, the current estimates employed
the SRK model but with changes to the economic assumptions with the
improved cost.  
For more details, refer to the technical report of Senet dated March
9, 2011 (as revised on March 24, 2011) and entitled "Economic
Assessment NI 43-101 Technical Report, Twangiza Phase 1 Gold Project,
South Kivu Province, Democratic Republic of the Congo", which has
been filed on, and can be obtained from, SEDAR at www.sedar.com and
EDGAR at www.sec.gov. 
Qualified Persons  
Mr. Andrew N. Clay, Managing Director of Venmyn Deloitte (Pty) Ltd.,
is the "qualified person" (as such term is defined in National
Instrument 43-101) who is responsible for the Lugushwa Mineral
Resource estimates disclosed in this press release. Mr. Clay has
reviewed and approved the contents of this press release. 
Banro Vice President, Exploration, Daniel K. Bansah, MSc (MinEx), who
is a Chartered Professional Member of The Australasian Institute of
Mining and Metallurgy (MAusIMM(CP)) and a "qualified person" (as such
term is defined in National Instrument 43-101), is responsible for
the Twangiza and Namoya Mineral Resource estimates and Twangiza
Mineral Reserve estimates disclosed in this press release as well as
the other technical information contained in this release (including
with respect to Kamituga). Mr. Bansah has reviewed and approved the
contents of this press release. 
Banro Corporation is a Canadian gold mining company focused on
production from the Twangiza oxide mine and development of three
additional 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 Democratic Republic of
the Congo. Led by a proven management team with extensive gold and
African experience, Banro's plans include the construction of its
second gold mine at Namoya, at the south end of this gold belt, as
well as the development of two other projects, Lugushwa and Kamituga,
in the central portion of the belt. The initial focus of the Company
is on oxides, which have a low capital intensity to develop but also
attract a lower technical and financial risk to the Company and as
such maximize the return on capital and limits the dilution to
shareholders as the Company develops this prospective gold belt. All
business activities are followed 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
http://www.sec.gov/edgar.shtml.  
Cautionary Note Concerning Mineral Resource and Mineral 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 Mineral
Resource and Mineral Reserve estimates included in this press release
are well established, by their nature Mineral Resource and Mineral
Reserve estimates are imprecise and depend, to a certain extent, upon
statistical inferences which may ultimately prove unreliable. 
Mineral Resources that are not Mineral Reserves 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.  
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 Mineral Resource and Mineral Reserve
estimates, potential Mineral Resources and Mineral Reserves,
estimates and/or assumptions in respect of future gold production,
gold recoveries, costs and project economics, 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:
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 economic studies of the Company's projects; failure to establish
estimated mineral resources and mineral reserves (the Company's
mineral resource and mineral reserve figures are estimates and no
assurance can be given that the intended levels of gold will be
produced); 
fluctuations in gold prices and currency exchange rates; inflation;
gold recoveries being less than those indicated by the metallurgical
testwork 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) or less
than those expected following the expansion of the Twangiza plant;
uncertainties relating to the availability and costs of financing
needed in the future; 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 26, 2012 filed on SEDAR
at www.sedar.com and EDGAR at www.sec.gov. 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. 
To view Figure 1, please visit
http://media3.marketwire.com/docs/banrofigure1.pdf. 
To view Figure 2, please visit
http://media3.marketwire.com/docs/banrofigure2.pdf. 
Contacts:
Banro Corporation
Simon Village
President & CEO
+44 (0) 788 405 4012 
Banro Corporation
Naomi Nemeth
Investor Relations
+1 (416) 366-9189 or +1-800-714-7938, Ext. 2802 
Banro Corporation
Arnold T. Kondrat
Executive Vice-President
+1 (416) 366-2221
info@banro.com
www.banro.com