Banro Corporation - Lugushwa - Overview

Overview Resources & Reserves Twangiza Lugushwa Namoya Kamituga

Drilling has intercepted wide zones of gold mineralization at Lugushwa, which has an Inferred Mineral Resource of 2.7 million ounces.

The three Lugushwa PEs, covering an area of 641 square kilometers, are located approximately 150 kilometres southwest of the town of Bukavu. To date, Banro has delineated an Inferred mineral resource of 2.7 million ounces of gold.

Senior project geologist Abakari Jumanne checks drill core

The most recent technical report with respect to the Lugushwa Property that has been filed by Banro on SEDAR is the report of Michael B. Skead (who is Vice President, Exploration of Banro) dated March 30, 2007 and entitled "Third NI 43-101 Technical Report, Lugushwa Project, South Kivu Province, Democratic Republic of the Congo." A copy of this report may be accessed at www.sedar.com or by clicking on the link below.

Third NI 43-101 Technical Report, Lugushwa Project, South Kivu Province, Democratic Republic of the Congo (3.6 mb)

History

Partial view of the Lugushwa field camp

Alluvial gold was first discovered at Lugushwa in the 1920s, although mining of these deposits does not appear to have begun until 1958. Limited exploration for primary gold deposits began in 1963 and led to the discovery of several deposits, including the Mapale G7, Simali, and 'Filon de Luxe,' deposits and the D18-19 and G20-21 Lugushwa deposits, plus some smaller zones. The majority of the primary gold mineralization was based on selective surface and underground development along specific mineralized quartz veins and stockworks. No significant open pit mining for primary gold mineralization has ever been conducted at Lugushwa.

Between 1958 and 1996, at least 457,000 ounces of gold were produced from alluvial sources, with a further 10,000 ounces of gold being produced from primary sources.

Mineralization

The geological setting of the main mineralized trend at Lugushwa consists of meta-pelites, meta-siltstones,quartzite and dioritic sills. Mineralized quartz veins and stockworks occur as a network of interlocking conjugate sets with trends oriented from NE-SW and E-W to ESE-WNW with steep dips towards the SW and NW, and moderate dips towards the north respectively. Mineralization also occurs in the host rock between the quartz veins associated with disseminated sulphides. Drilling in 2007 provided a clearer understanding of the mineralized controls, and it is now considered that the gold mineralization at Lugushwa is related to a series of stacked shoots which are found along the axes of shallowly plunging, northeast trending folds.

Banro's independent geological consultant, SRK, undertook a site visit during December 2004 to the Lugushwa project area and completed an updated Mineral Resource estimate for the property, using a 1.0 g/t cut-off grade, which is set out in the table below.

Lugushwa Total Inferred Resource
Tonnage	Grade, Au (g/t)	Gold (oz)
37,000,000	2.3	2,735,000

2007 Exploration Program, Maps and Photographs

2006 Exploration Program, Maps and Photographs

2005 Exploration Program, Maps and Photographs

2008 - 2010 Exploration & Development Programs

Banro continued its program of infill drilling in 2008, as well as surface exploration to identify new targets for exploration. Assay results were received for an additional 26 core holes which were drilled at the D18 prospect with the objective of improving the geological interpretation of the deposit and upgrading Inferred Mineral Resources to the Indicated resource category for inclusion in the preliminery economic assessment ("scoping study"). This study, which will assess all mineralization identified to date at Lugushwa, is planned for completion in 2010.

Exploration in 2009 - 2010 is focused on extending the Lugushwa grid and includes an intensive soil, rock and stream sampling program which has successfully identified new targets for follow-up drilling. This work complements the analysis of the comprehensive airborne magnetic and radiometric surveys and LiDAR survey in 2007, which has also helped to identify several new targets for follow-up work.

Metallurgical testwork is also being undertaken to optimize recoveries of oxide, transitional and sulphide ore types.

Recent press releases with respect to the Lugushwa exploration program were issued on:

February 22, 2007

August 23, 2007

November 17, 2008

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