Banro International Capital Inc. completes purchase of SOMINKI - S.A.R.L., Zaire.

TORONTO--(BUSINESS WIRE)--Jan. 31, 1996--Pursuant to it's press release, dated January 29, 1996, the company reports that it's wholly owned subsidiary, African Mineral Resources Inc., (AMRI) in conjunction with it's joint venture partner, Mines D'Or du Zaire (MDDZ), has completed the purchase of 64% of the outstanding shares of Societe Zairoise Miniere et Industrielle due Kivu (SOMINKI) of Kinshasa, Zaire, for the total purchase price of US $3,500,000.

As a result, AMRI and MDDZ will jointly control 72% of SOMINKI with the Government of Zaire owning the balance of 28%.

SOMINKI was created in 1976 as a result of the amalgamation of 9 mining companies operating in the Kivu Province of Zaire, some of which date back to the early 1900's.

The company is well established and owns a vast infrastructure in Kivu province. SOMINKI produces its own hydro electricity from its 6 power plants, maintains hundreds of kilometers of roads, numerous airstrips, maintenance facilities and employs over 5,000 people for which it provides housing, medical care, education and recreation.

SOMINKI has 47 mining concessions covering 1,003,372 hectares and 10 mining permits covering an area of 23,770 hectares with total holdings of 1,027,142 hectares or 10,271 square kilometers within a 100,000 square kilometer area in eastern Zaire.

The company operates an underground gold mine and 300 ton per day processing plant along with a number of alluvial and elluvial gold and cassiterite (tin) mining operations. The company produced approximately 10,000 ounces of gold and 650 tons of tin generating revenues of US $6,200,000 for 1995.

More importantly are the underdeveloped gold deposits that have been examined by AMRI's independent consulting geologists CME & Company of Vancouver, B.C. CME reports the following:

1) Mobale - Underground mine in production since 1923 and has produced in excess of 800,000 ounces of gold with 1995 production yielding in excess of 8,000 ounces. The 300 ton per day gravity flotation mill is presently operating at less than 20% capacity due to lack of investment capital. Previous engineering studies suggest the proven, probable and possible reserves could surpass total historical production to date.

2) Twangiza - Proven and probable open pit mineable oxide reserves are estimated at 5.5 million tonnes of 4.3 g/t or 759,000 troy ounces gold with possible mineable sulphide reserves of 2.7 million tonnes or 148,000 troy ounces gold. Geological potential has previously been estimated at 1.2 million troy ounces gold at depth below the 2100 level and along the strike of the 4 kilometer mineralized trend.

3) Namoya - Former underground producer from 1955 - 1961 producing 128,000 troy ounces gold. Current mineable sulfide reserves are estimated at over 300,000 troy ounces. This area has a large geological potential especially within a 3 square kilometer mineralized zone containing five deposits. An access adit on the 1065 level to the Mt. Mwendamboko deposit revealed a 400 meter length of 2 grams per ton, disseminated mineralization within hydrothermally altered schists and volcanics which requires further exploration to delineate additional reserves. The potential is considered excellent.

4) Lugushwa - Proven, probable and possible reserves are 30,000 troy ounces with potential primary resource of over 300,000 troy ounces. Resource on two of the known hard rock occurrences total 3,000,000 tons of 4.5 grams per ton or 434,000 troy ounces gold and 2,500,000 tons of 4 grams per ton or 321,500 troy ounces gold.

The deposits within the Namoya - Twangiza trend includes at least 10 known deposits discovered from surface geochemical prospecting. The belt represents an area equivalent in size to the Ashanti belt and displays similar characteristics in frequency of deposit and mineralogical associations. Little or no modern exploration technology has been applied to the evaluation of this areas potential.

AMRI and it's joint venture partner MDDZ will immediately initiate a preliminary development program for the SOMINKI project.

Further details to be released in due course.

CONTACT: Banro International Capital Inc., Toronto

Arnold T. Kondrat, 416/366-2221; Fax: [phone]