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Gold/Mining/Energy : Banro Resources ( BNRS-CDN) -- Ignore unavailable to you. Want to Upgrade?

To: dvid who wrote (42)	8/6/1998 5:46:00 PM
From: Brian MacDonald	Read Replies (1) \| Respond to of 73

PRESS RELEASE Banro Disputes Unilateral Action (Toronto, August 6, 1998.) Banro Resource Corporation (BNRS: CDN) reports that on July 31, 1998, the Company discovered that without prior warning or consultation, the Government of the Democratic Republic of the Congo (DRC), had purported, by Presidential Decree to: Dissolve Banro's 93 percent-owned Congolese subsidiary Societe Aurifere du Kivu et Maniema Sarl (Sakima); and Terminate the 25-year Mining Convention dated February 1997 between the Government, Banro and Sominki, Sakima's predecessor Company. Sakima is the registered legal holder of 47 Mining Concessions totaling 10,271 square kilometers in South Kivu and Maniema Provinces in the eastern Congo. Sakima and its predecessor have owned the titles to these concessions since the early 1900's. According to the Decree, the Government moved to dissolve Sakima and terminate the Convention because of "certain irregularities in the liquidation of Sominki and the creation of Sakima." The Company has not been informed of the nature of the alleged irregularities. As a result of the Decree, the Congolese Government has unilaterally expropriated Sakima's assets. The Company characterizes the events of the past couple of days as perplexing. "The Decrees are clearly inconsistent," said Bernard van Rooyen, Chairman, President and CEO of Banro. "We have meticulously honoured all of our commitments under the Mining Convention. As well, Sakima and its predecessor, Sominki, have conformed to all the legal provisions governing their operations." The Congolese Government's action directly contravenes the Mining Convention and the Laws of the DRC. According to the Dispute Resolution Clause of the Convention, all disputes are to be arbitrated at the International Centre for the Settlement of Disputes (ICSD). The venue for this arbitration will be Washington D.C. "The Dispute Settlement Clause of the Convention is significant," said Mr. van Rooyen. "It plainly states that the Government must first notify the Company of any contravention of the Mining Convention and, if valid, allow the Company six months to remedy the situation. If the dispute still exists after six months, it is to be arbitrated at the ICSD. Accordingly, the Company will vigorously defend its rights under the Convention." The Canadian Government, on behalf of the Company, has officially protested the Congolese Government's action. Yesterday Banro was advised that officials in President Kabila's office had admitted that "a grave error had been committed and ways of rectifying it were under consideration." The Company awaits a meeting with the President to seek further clarification. In related news, military authorities in North Kivu, South Kivu and Maniema Provinces, the site of Banro's Concessions, renounced their allegiance to President Kabila's Government. It has been reported that these forces currently control all three provinces. "At the end of the day we feel this situation will be resolved in our favour," said Mr. van Rooyen. "We have scrupulously covered all of the bases in order to protect shareholder interests and we are confident that our position will be vindicated." As a result of the events of the past several days the Company has postponed its planned exploration activities until further notice. Banro Resources Corporation is a gold exploration and development company with 47 mining concessions encompassing an area of 10,271 square kilometers in the Democratic Republic of the Congo. The Company's common stock is quoted on the Canadian Dealing Network (CDN) under the symbol "BNRS." The Company has 13,671,181 common shares issued and outstanding. -30- For further information on Banro, see our web site at HYPERLINK banro.com banro.com or contact: Bernard van Rooyen Chairman, President and CEO Johannesburg, South Africa 011-2711-4765031 Or A.T. Kondrat Mike Campbell Cliff Jones Executive Vice-President Media Relations Investor Relations Phone: (416) 366-2221 Fax: (416) 366-7722 Toll free: 1-800-714-7938