Mr. John Clarke reports

BANRO ANNOUNCES Q1 2016 FINANCIAL RESULTS

Banro Corp. has released its financial and operating results for the first quarter of 2016.

Highlights:

• $98.75-million financing closed in February, 2016;
• Banro's mineral reserves as at Dec. 31, 2015, have grown year on year by 9 per cent, after depletion, to 3.18 million ounces of gold (48.61 million tonnes at 2.03 g/t Au);
• First-quarter 2016 consolidated (combined Twangiza and Namoya) gold production of 44,192 ounces with a cash cost of $767 per ounce, combined mine site all-in sustaining cost of $855 per ounce, and consolidated all-in sustaining cost of $949 per ounce, in line with expectations and 2016 production guidance;
• Q1 2016 revenue of $47-million;
• Commercial production declared at Namoya effective Jan. 1, 2016;
• Twangiza produced 26,638 ounces of gold in Q1 2016 with a cash cost of $639 per ounce;
• Namoya produced 17,554 ounces of gold in Q1 2016 with a cash cost of $959 per ounce.

All dollar amounts in this press release are expressed in thousands of dollars and, unless otherwise specified, in U.S. dollars.

"These results are in line with expectations for the first quarter, as indicated in our 2016 production guidance," said Banro president and chief executive officer John Clarke. "We are pleased to see the increase in gold production and revenues in Q1 2016 over the same quarter of 2015, but we look forward to much better results in the remainder of the year. Consolidated production from the two mines is heavily weighted in the mine plan to the second half of the year, with production progressively improving toward steady-state capacity levels at Namoya and increased production at Twangiza due primarily to enhanced access to higher-grade ore."

Financial

Effective Jan. 1, 2016, commercial production was declared at Namoya. As such, the financial results for the three months ended March 31, 2016, reflect the activity of both Twangiza and Namoya. The attached table provides a summary of financial and operating results for the three-month periods ended March 31, 2016, and 2015 as well as the three months ended Dec. 31, 2015.

                      SELECTED FINANCIAL DATA

                                      Q1 2016   Q1 2015    Q4 2015

Revenues                             $ 46,540  $ 41,003   $ 34,606
Total mine operating expenses (1)     (44,408)  (24,281)   (25,232)
Gross earnings from operations          2,132    16,722      9,374
Net (loss)/income                     (23,134)    6,780    (19,446)
EBITDA                                  9,992    20,042      4,312
Basic net (loss)/earnings per share
($/share)                               (0.09)     0.03      (0.08)
Key operating statistics
Average gold price received ($/oz)      1,109     1,208      1,106
Gold sales (oz)                        41,967    33,956     31,303
Gold production (oz)                   44,192    35,943     30,440
Mine site all-in sustaining cost
per ounce ($/oz)                          855       581        745
Cash cost per ounce ($/oz)                767       527        601
Gold margin ($/oz)                        342       681        505
Financial position
Cash including restricted cash         25,029     3,024      2,262
Gold bullion inventory at market
value (2)                               7,231     4,922      2,398
Total assets                          897,240   903,489    871,731
Long-term debt                        190,489   204,055    168,127

(1) Includes depletion and depreciation.
(2) This represents 5,845 ounces of gold bullion inventory shown at
    March 31, 2016, closing market price of $1,237 per ounce of gold.

• Revenues for the three months ended March 31, 2016, were $46,540, a 14-per-cent increase compared with the corresponding prior-year period of $41,003. During the first quarter of 2016, revenue-generating ounces of gold sold increased by 24 per cent to 41,967 ounces compared with sales of 33,956 ounces during the first quarter of 2015 due to the contribution of sales from Namoya, partially offset by lower production at Twangiza. The average gold price per ounce sold during the first quarter of 2016 was $1,109 compared with an average price of $1,208 per ounce obtained during the first quarter of 2015 due to lower market prices and stream revenues recognized.
• Mine operating expenses, including depletion and depreciation, for the three months ended March 31, 2016, were $44,408 compared with the corresponding prior-year period of $24,281. The increase is a result of the operating expenses attributable to Namoya, which were treated as capitalized development costs throughout 2015.
• Gross earnings from operations for the three months ended March 31, 2016, were $2,132, compared with $16,722 for the corresponding period of 2015. The 14-per-cent increase in revenue was offset by an 83-per-cent increase in mine operating expenses as a result of the contribution from two mines, in line with management expectations of the progressive ramp-up of Namoya to steady-state production and Twangiza's production profile being weighted to the second half of the year.
• Net loss for the quarter of $23,134 was driven by the combination of non-cash items totalling approximately $10,000 relating primarily to fair value losses on mark-to-market derivative liabilities, such as the gold forward sale agreements, preferred shares driven by improvements in the gold price environment and warrants driven by the increase in the share price of the company, which were outside the normal course of operating activities in the quarter.
• The earnings before interest, taxes, depreciation and amortization at Twangiza were $10,353 for the first quarter of 2016 compared with the $21,638 for the corresponding prior-year period, reflecting the lower production and lower gold price realized. Namoya EBITDA of $1,055 was significantly lower than the contribution from Twangiza, as Namoya focuses on higher levels of production in its mining and stacking operations coupled with the lagging effect of gold produced through the heap-leach process. As a result, the consolidated EBITDA for the first quarter of 2016 was $9,992 as compared with $20,042 for the first quarter of 2015.
• Cash costs per ounce on a sales basis for the first quarter of 2016 were $767 per ounce of gold, a 46-per-cent increase from $527 per ounce of gold in the first quarter of 2015. Cash costs for Q1 2016 were higher than the corresponding prior-year period mainly due to the contributions from Namoya having a high cost per ounce as the operation ramps up to full production levels as well as higher per-ounce costs from Twangiza due to lower production levels.
• Mine site all-in sustaining costs for the first quarter of 2016 were $855 per ounce (compared with $581 per ounce of gold in the first quarter of 2015) driven by higher cash costs and higher levels of sustaining capital expenditures per ounce. The higher sustaining capital per ounce was driven by the decrease in production at Twangiza from Q1 2015.
• In February, 2016, the company closed financing transactions for gross proceeds totalling $98,750. With the completion of these transactions, the company extinguished certain gold forward sale arrangements for approximately $31,761 and deposited $26,230 with the trustee for the payment of interest on the company's senior secured notes until their maturity in March, 2017.

Operational -- Twangiza:

• During the first quarter of 2016, Twangiza experienced one lost-time injury (LTI) relating to employees and three LTIs relating to contractors for a LTI frequency rate of 0.58.
• During the first quarter of 2016, the plant at the Twangiza mine processed 414,930 tonnes of ore (compared with 428,844 tonnes during the first quarter of 2015). Ore was processed during the first quarter of 2016 at an indicated head grade of 2.61 g/t Au (compared with 3.21 g/t Au during the first quarter of 2015) with a recovery rate of 77.2 per cent (compared with 80.7 per cent during the first quarter of 2015) to produce 26,638 (compared with 35,943 during the first quarter of 2015) ounces of gold. Gold production at Twangiza was in line with the mine plan, where production is heavily weighted to the latter half of 2016.
• The Twangiza mineral reserves as at Dec. 31, 2015, increased 11 per cent after depletion to 1.82 million ounces (27.67 million tonnes at 2.05 g/t Au) from 1.64 million ounces (22.38 million tonnes at 2.28 g/t Au) (Dec. 31, 2014) (see Banro's April 19, 2016, press release). This increase in reserves after depletion is a function of changes in cut-off grade, reversal of previous bulk density adjustments and revision of the pit design.

Operational -- Namoya:

• Effective Jan. 1, 2016, commercial production was declared for the Namoya mine. The continuing progress at Namoya over the fourth quarter of 2015, in particular the sustained production achieved during December when the full fleet was operational, indicated that Namoya was capable of operating in a manner consistent with management expectations.
• During the first quarter of 2016, Namoya was LTI free.
• During the first quarter of 2016, the plant at the Namoya mine stacked 414,120 tonnes of ore (compared with 255,323 tonnes during the first quarter of 2015). Ore stacked during the first quarter of 2016 had an indicated head grade of 1.94 g/t Au (compared with 1.97 g/t Au during the first quarter of 2015). Namoya produced 17,554 ounces of gold during the first quarter of 2016 (compared with 9,254 ounces of gold during the first quarter of 2015).
• The Namoya mineral reserves as at Dec. 31, 2015, increased 7 per cent after depletion to 1.36 million ounces (20.94 million tonnes at 2.02 g/t Au) from 1.27 million ounces (20.53 million tonnes at 1.92 g/t Au) (Dec. 31, 2014) (see Banro's April 19, 2016, press release). The increase in Namoya reserves after depletion is a result of revisions in pit designs and the additional drilling of the Namoya Summit Filon-B deposit.

Exploration:

• During the first quarter of 2016, exploration activities were limited to the continuation of the near-mine exploration drilling at Namoya, including the evaluation of the results obtained from the work performed in the latter half of 2015. High-grade results from the second phase of the Namoya exploration program resulted in the discovery of new mineralization at the Namoya hangingwall area and Filon C in the northeastern and eastern reaches of the summit (see Banro's Feb. 24, 2016, press release).

Corporate development:

• In February, 2016, the company closed a $67,500 gold streaming transaction relating to the Twangiza mine with RFW Banro Investments Ltd., a subsidiary of the Baiyin Stream Partnership I LP (a mining investment fund managed by Resources FinanceWorks Ltd.), a $22,500 term loan financed by RFWB and investment funds managed by Gramercy Funds Management LLC, and a $8,750 equity private placement to RFWB. With the closing of these transactions, the company restricted funds for the remaining three interest payments under the company's senior notes.
• The Twangiza transaction provided for the payment by the purchaser of a deposit in the amount of $67,500 and the delivery to the purchaser over time of a certain percentage of the life-of-mine gold production (effective Jan. 1, 2016) from the Twangiza mine, or any other projects located within 20 kilometres from the current Twangiza gold mine, based on the gold price at the time of delivery. The entitlement percentage is 11 per cent based on a gold price between $1,150 and $1,500 per ounce, 12.5 per cent based on a gold price of less than $1,150 per ounce, and 9.5 per cent based on a gold price greater than $1,500 per ounce. When total gold production from the Twangiza mine has reached 1.14 million ounces from the commencement of the stream, the entitlement percentages above will be reduced by 50 per cent. The continuing payments by the purchaser to Twangiza upon delivery of the gold are $150 per ounce. At any time after the third anniversary of the closing of the Twangiza transaction, Twangiza may, at its discretion, terminate the stream by paying to the purchaser in cash a buyback price equal to an amount which would result in the purchaser achieving an implied internal rate of return of 17.5 per cent on the cash flows arising from the stream during the period from the closing of the Twangiza transaction to the date that is 12 months following the date of payment of the buyback price.
• The term loan facility represents a loan of $22,500 with an initial maturity date of Nov. 30, 2016, but which may be extended until Nov. 30, 2020, provided certain financial tests are met. The facility bears interest at a rate of 8.5 per cent per annum for the first 21 months of the term and then at a rate of the three-month London interbank offered rate plus 8.0 per cent for the last two years of the term, with the interest payable quarterly and the principal repayable in full at the end of the term of the facility. The loan may be prepaid at any time without penalty. At any time following the second anniversary of the loan, the lenders may require repayment. Banro issued to the lenders a total of 10 million common share purchase warrants of Banro (five million warrants each to RFWB and to Gramercy in proportion to their advance of the term loan), with each such warrant entitling the holder to purchase one common share of Banro at a price of 22.75 cents for a period of three years.
• Under the private placement transaction, Banro issued 50 million common shares and 2.5 million warrants to RFWB, for total gross proceeds to the company of $8,750. These warrants have the same terms as the warrants issued under the term loan transaction as set forth above. RFWB holds approximately 16.6 per cent of the outstanding common shares of Banro following completion of this private placement. For so long as RFWB holds at least 10 per cent of the outstanding common shares of Banro, RFWB has the right to nominate one person for election to the Banro board of directors at the annual shareholders meeting.
• In February, 2016, concurrent with the closing of the above transactions, RFWB purchased from Gramercy $40,000 of the outstanding Banro senior secured notes issued by Banro on March 2, 2012, and $20,000 of the outstanding preferred shares issued by subsidiaries of Banro on Feb. 28, 2014.

Subsequent event:

• In April, 2016, the company announced a mineral resources and mineral reserves update, increasing the company's mineral reserves 9 per cent to 3.18 million ounces after depletion of 210,000 ounces at Twangiza and Namoya, effective as of Dec. 31, 2015. Refer to the mineral resources and mineral reserves section below for additional details.

Mineral resources and mineral reserves

In April, 2016, the company announced its annual update of the mineral resource and mineral reserve estimates at its wholly owned projects on the Twangiza-Namoya gold belt in the Democratic Republic of the Congo. The annual review of mineral resources and mineral reserves at Twangiza and Namoya resulted in a replacement of depleted ore and an increase in mineral reserves at both operations.

• The Twangiza proven and probable mineral reserves increased by 11 per cent to 1.82 million ounces of gold (27.67 million tonnes at 2.05 g/t Au) after depletion due to changes in cut-off grade, reversal on bulk density and revision of the pit design. This gives Twangiza a 14-year mine life.
• The combined Namoya proven and probable mineral reserves have increased by 7 per cent to 1.36 million ounces of gold (20.94 Mt at 2.02 g/t Au) after depletion, revision of the pit designs, addition of gold in process and additional drilling results at the Namoya Summit-Filon B portion of the Namoya Summit deposit.
• Banro's overall mineral reserves have grown by 9 per cent to 3.18 million ounces of gold (48.61 Mt at 2.03 g/t Au) at a $1,200-per-ounce gold price.

                                 As at Dec. 31, 2015     As at Dec. 31, 2014
Mineral reserves              Tonnes    Grade   Gold  Tonnes    Grade   Gold
                                 (Mt) (g/t Au)  (Moz)    (Mt) (g/t Au)  (Moz)

Twangiza
Proven                          6.21     2.19   0.44    7.47     2.41   0.58
Probable                       21.47     2.01   1.39   14.91     2.22   1.06
Proven and probable            27.67     2.05   1.82   22.38     2.28   1.64
Namoya
Proven                         17.90     2.10   1.21   18.44     1.98   1.17
Probable                        3.04     1.53   0.15    2.09     1.43   0.10
Proven and probable            20.94     2.02   1.36   20.53     1.92   1.27
Total mineral reserve
Proven                         24.10     2.12   1.65   25.91     2.10   1.75
Probable                       24.50     1.95   1.54   17.00     2.12   1.16
Total proven and probable      48.61     2.03   3.18   42.91     2.11   2.91

(1) Rounding of numbers may result in computational discrepancies.

Refer to Banro's April 19, 2016, press release for additional details relating to the mineral resources and mineral reserves update.

Qualified person

Daniel K. Bansah, the company's head of projects and operations, and a qualified person, as such term is defined in National Instrument 43-101, has approved the technical information in this press release.

Q1 2016 financial results conference call information

Banro will host a conference call at 11 a.m. EST on May 12, 2016. Please use the following dial-in numbers.

Q1 2016 financial results conference call information:

Toll-free (North America):  1-877-291-4570

Conference ID:  10056027

Toronto local and international:  1-647-788-4919

Conference ID:  10056027

Q1 2016 financial results conference call replay:

Toll-free replay call (North America):  1-800-585-8367

Conference ID:  10056027

Toronto local and international:  1-416-621-4642

Conference ID:  10056027

The conference call replay will be available from 2 p.m. EST on May 12, 2016, until 11:59 p.m. EST on May 26, 2016.

We seek Safe Harbor.