Mr. Martin Jones reports

BANRO ENTERS INTO GOLD DORE PURCHASE AND FINANCING ARRANGEMENT WITH BAIYIN

Banro Corp. has entered into a gold dore purchase agreement in connection with a $10-million (U.S.) loan facility with Baiyin International Investment Ltd. Baiyin is an affiliate of RFW Banro Investments Ltd., a subsidiary of the Baiyin Stream Partnership I LP (a mining investment fund managed by Resources FinanceWorks Ltd.), which currently owns approximately 16.6 per cent of the outstanding common shares of Banro. The Baiyin Stream Partnership I LP is led by Baiyin Nonferrous Group Co. Ltd., a strategic Chinese mining group based in Gansu, China.

Under the dore agreement Baiyin will purchase approximately 50 per cent of the gold dore produced by Twangiza from Oct. 1, 2016, until the date the facility is repaid and 50 per cent of the gold dore produced by Namoya from Dec. 1, 2016, until the date the facility is repaid. The gold dore purchases are at market prices and the economics of the dore agreement are consistent with the current economics of the company's offtake and refining arrangements while providing diversification in the offtake and refining arrangements employed.

The facility will be financed in two equal tranches, the first $5-million (U.S.) tranche of the loan facility has been financed on closing, with the remaining $5-million (U.S.) tranche to be financed on Sept. 1, 2016. The facility represents a loan of $10-million (U.S.) with an initial term of two years from the date that each tranche is financed and automatically renews for an additional 24 months from each tranche's maturity date unless either party provides 90 days notice of its desire to not extend. The facility bears an interest rate of 10 per cent per annum for the period that the first tranche is outstanding and 11 per cent per annum following the financing of the second $5-million (U.S.) tranche. The loan may be prepaid at any time without penalty.

The proceeds from the facility are planned to be used to support current operating activities at Namoya and Twangiza, for first half 2016 projects including underground exploration programs and stacking expansion at Namoya, and for general corporate purposes.

We seek Safe Harbor.