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BAA~ Q4 production is the best quarterly gold production since the Company began producing gold.


Banro Provides Q4 2014 Gold Production and Brief Operations & Corporate Update

TORONTO, ONTARIO--(Marketwired - Jan. 5, 2015) - Banro Corporation ("Banro" or the "Company") (NYSE MKT:BAA)(TSX:BAA) is pleased to report its best quarterly gold production since the Company began producing gold. Twangiza poured 8,071 ounces in October, 9,825 ounces in November and 11,549 ounces in December for a fourth quarter 2014 total of 29,445 ounces of gold. Namoya poured 1,749 ounces in October, 3,042 ounces in November and 4,000 ounces in December for a fourth quarter 2014 total of 8,791 ounces of gold. Together, Twangiza and Namoya produced 38,236 ounces of gold during Q4 2014.

Throughout 2014, the management teams at Twangiza and Namoya focused on operational and cost efficiencies. In particular, significant steps were taken to ensure that operations were less hindered during the frequent periods of adverse weather conditions at each site. As a result of the operational efficiency drive, Twangiza production has grown significantly throughout 2014 and strong quarterly production improvement has been experienced at Namoya. The production growth of the two operations, during Q4 2014 in particular, provides a strong foundation for meeting steady state production at Twangiza and Namoya.

The Company's preliminary 2014 fourth quarter production results for the Twangiza mine, in comparison to the same quarter of 2013 and the previous quarter in 2014, are as follows:
Units Q4
2014 Q4
2013 Q3
2014 Full
Year
2014 Full
Year
2013
Total ore mined Tonnes 556,856 366,625 589,288 1,927,744 1,758,972
Total ore milled Tonnes 370,881 282,831 394,500 1,358,726 1,023,981
Head grade g/t Au 3.01 3.15 2.60 2.70 2.98
Recovery % 81.4 84.4 82.2 83.0 83.8
Strip ratio t:t 0.74 1.69 0.74 0.84 1.35
Gold production Ounces 29,445 22,858 27,171 98,184 82,591
Average gold price received US$/ounce 1,206 1,267 1,233 1,240 1,390

Namoya Update

Banro is also pleased to report that it has purchased the agglomeration drum required for the Namoya processing plant enhancement. In order to fast track the time to deliver a drum assembly to site at Namoya, a drum assembly was procured which had been in operation for a few months. The procurement and shipping of a new drum for Namoya could have taken in excess of 12 months.

The drum, its support structure and spare components were shipped by Banro as air cargo to Entebbe in Uganda over the December 2014 holiday period. A road truck convoy is currently en route to Namoya and is scheduled to arrive mid-January 2015. Other equipment necessary for the operation of the drum is scheduled to arrive at site during January 2015. Site civil work for the installation of the drum, its feed conveyors and other ancillary equipment commenced in November and commissioning completion is scheduled for mid-February 2015.

''The inclusion of the agglomeration stage (with cement added as a binder) into the Namoya heap leach circuit is expected to allow for more efficient processing of the fines content of the Namoya ore and ensure more efficient reagent percolation in the heap process, leading to better gold recovery," commented Banro CEO and President John Clarke.

With installation of the drum scheduled for completion during Q1 2015, it is anticipated that the gold production profile for the Namoya operations will be raised incrementally from its current level of approximately 4,000 ounces per month achieved during December 2014 to a monthly rate of up to 6,000 ounces per month by the end of Q1 2015. With heap leach operations taking several months of continuous percolation to fully recover the leachable gold, the full benefits of the improvements to the heap leach circuit are expected to build up during Q2 2015 to a monthly gold production rate of up to 8,000 ounces per month by mid-year 2015.

Corporate Update

Banro also wishes to provide an update on the previously announced gold sale transaction with Gold Holding Ltd. ("Gold Holding") related to the Twangiza mine (reference is made to Banro's November 4, 2014, October 15, 2014 and August 18, 2014 press releases). This transaction contemplates the prepayment by Gold Holding to Banro of US$41 million for its purchase of 40,500 ounces of gold from the Twangiza mine, with the gold deliverable over four years, at 10,125 ounces per year.

"The closing of the transaction with respect to the Twangiza gold sale has been delayed due to ongoing internal issues relating to Gold Holding, but we continue to work with them toward closing, although in a more extended timeline than what was originally contemplated," commented Banro Board Chairman Richard Brissenden. "We expect that this transaction, or alternatives to address our liquidity situation, will be finalized in the near term."

As a result of the delay in closing the Gold Holding transaction and its effect on Banro's liquidity situation, Banro is progressing alternatives and careful cash management. These alternatives include discussing forward gold sale and gold streaming transactions with other potential investors, as well as ongoing discussions with its major trade payable suppliers to settle up to approximately US$16 million in accounts payable by way of forward gold sale arrangements. Further details will be provided once these discussions have been finalized.

As part of the Company's cash management, Banro and its subsidiary, Banro Group (Barbados) Limited, have elected to accrue the fourth quarter 2014 dividends on, respectively, the Series A Preference Shares of Banro and the Preferred Shares of Banro Group (Barbados) Limited.



http://news.banro.com/press-releases/banro-provides-q4-2014-gold-production-and-brief-o-nyse-mkt-baa-201501050986224001