Insight conference toronto december 4, 2012

Harnessing CSR Initiatives to Alleviate Poverty in the eastern Democratic Republic of the Congo

Insight CSR Conference December 4, 2012

United States

India

China

U.K.

Japan

Germany

FranceSpain

http://geology.com/world/democratic-republic-of-the-congo-map.gif

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1.1. Level of economic & social development among Level of economic & social development among lowest in the worldlowest in the world

2.2. Lack of transportation, energy and other basic Lack of transportation, energy and other basic infrastructureinfrastructure

3.3. Central and provincial governments are ineffectual Central and provincial governments are ineffectual and intrusive ~ red tape is endemic at all levels and intrusive ~ red tape is endemic at all levels

4.4. Problems of instability and conflict slowly improving Problems of instability and conflict slowly improving

Congolese Development ChallengesCongolese Development Challenges

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Banro has the potential to develop into a mid tier gold producer through the development of a single gold belt

Canadian-based exploration and development company listed on the TSX and NYSE MKT: Symbol BAA

Active in the eastern DRC since November 2004

Market capitalization of $900 M

Four open pit, oxidized, advancing gold projects, with resource base of 11 million ounces and growing

First gold plant, Twangiza, entered commercial production Sept 1, 2012

Second gold plant, Namoya, under construction with start-up mid-2013

Capability to exceed 400,000 oz per annum within 5 years through existing pipeline

Corporate OverviewCorporate Overview

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Twangiza Phase I achieved commercial production on September 1, 2012


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Creation of capacity-building jobs ~ goal of 95% Creation of capacity-building jobs ~ goal of 95% Congolese in skilled employeesCongolese in skilled employees

Nurturing local and African supply chainsNurturing local and African supply chains

World-class standards in environmental management World-class standards in environmental management (IFC/Equator Principles - 2 and DRC Mining Code(IFC/Equator Principles - 2 and DRC Mining Code

Comprehensive CSR programs at mine development Comprehensive CSR programs at mine development sites ~ voluntary resettlement, alternative sites ~ voluntary resettlement, alternative livelihoods, literacy & numeracy training etc.livelihoods, literacy & numeracy training etc.

Occupational health and safety ~ targeting OSHAS Occupational health and safety ~ targeting OSHAS 18001 and ISO 14001 certification 18001 and ISO 14001 certification

and and

Longer-term community developmentLonger-term community development

What does CSR encompass at What does CSR encompass at Banro? Banro?

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Employment of Congolese CitizensEmployment of Congolese Citizens

In less than a decade, Banro has gone from having no presence in eastern DRC to being the largest private employer in the region

• Currently more than 4 000 jobs created by Banro and it’s contractors

• Congolese well represented on Twangiza management team and strong bench under development through direct exposure and coaching

Banro is committed to building the business and industrial skills base of Congolese in it’s communities

• Vocational training and skills development at the workplace

• Strengthening university faculties in business relevant disciplines

• Scholarships for high potential learners

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Project Development = Increased Employment

= 10 people

Up to 4,219 Congolese citizens employed at various sites

Job Creation

• For every one employee working in mining, 10 other indirect jobs are created in the local economy

Teaching Literacy/Numeracy Skills and Teaching Literacy/Numeracy Skills and Promoting Alternative LivelihoodsPromoting Alternative Livelihoods

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Investment in the eastern DRC 2004 - 2011Investment in the eastern DRC 2004 - 2011

Twangiza-Namoya Gold Belt (DRC)

L a

c

T a

n g

a n

y i

k a

L a k e K i v u

Uvira

Mwenga

Walungu

Bukavu

Kibombo

Shabunda

Pangi

Kindu

Kasongo

Kabambare

NAMOYA

KAMITUGA

7500

00 m

E75

0000

mE

9500000 mN

9550000 mN

9600000 mN

9650000 mN

9700000 mN

6000

00 m

E

6500

00 m

E

7000

00 m

E

6500

00 m

E

6000

00 m

E

7000

00 m

E

4500

00 m

E45

0000

mE

5000

00 m

E50

0000

mE

5500

00 m

E55

0000

mE

9600000 mN

9650000 mN

4000

00 m

E

9700000 mN

4000

00 m

E

9500000 mN

9550000 mN

Fizi

TWANGIZA

Rivers

Main Roads and Towns

Secondary/other roads

Permits for Exploitation

Permits Applied for

Exploration permits

Deposit location and Name

Legend

N

0 50

Kilometres

N2

N2N5

N5

LUGUSHWA

$9.2MInvested

$51.9MInvested

$298.7MInvested

$36MInvested

Total $395.8M

Invested

+$180MTo be invested

2012 - 2013

Congolese Businesses

Amicongo

Airtel

Raw Bank

Biopharm

Chez Bibas

Diphil Services

Erinys DRC

Panzi Hospital

Namoya Lamuka

Cinamula

Ginki

Vodacom

Hotel Orchid

Swala Aviation

Hopital General de Bukavu

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Developing the Congolese Supply Chain

Locally sourced goods and services, wages and salaries

• $112 million of Banro’s purchases, services and remunerations to June 30, 2012 were sourced in the DRC, including:

• Foodstuffs

• Construction services, supplies & materials

• Construction supplies and materials

• Banking services

• Clothing

• Salaries and wages

As a result, we have been raising business standards while encouraging:

• The presentation of competitive proposals

• Greater compliance with contracts

• Improved quality/performance measures

• Ethical/corruption-free business

Road Construction and RehabilitationRoad Construction and Rehabilitation

• Annual maintenance of the 50 km Bukavu-Butuza road

• Construction and continuous maintenance of the 37 km Butuza-Twangiza road

• Phase 1 rehabilitation and opening of the 557 km Uvira-Baraka-Fizi-Lulimba-Kilembwe-Salamabila road

• Continuous rehabilitation of the 30 km Kakangala-Elila road

• Continuous rehabilitation of the 11 km Kakangala-Mapale road

• Rehabilitation of the Kamituga airstrip road

• Rehabilitation of the Namoya-Lugushwa and Kamituga airstrips

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L a

c T

a n

g a

n y

i k

a

L a k e K i v u

Uvira

Mwenga

Walungu

Bukavu

Kibombo

Shabunda

Pangi

Kindu

Kasongo

Kabambare

NAMOYA

75

00

00

mE

75

00

00

mE

9500000 mN

9550000 mN

9600000 mN

9650000 mN

9700000 mN

60

00

00

mE

65

00

00

mE

70

00

00

mE

65

00

00

mE

60

00

00

mE

70

00

00

mE

45

00

00

mE

45

00

00

mE

50

00

00

mE

50

00

00

mE

55

00

00

mE

55

00

00

mE

9600000 mN

9650000 mN

40

00

00

mE

9700000 mN

40

00

00

mE

9500000 mN

9550000 mN

Fizi

TWANGIZA

Rivers

Main Roads and Towns

Secondary/other roads

Permits for Exploitation

Permits Applied for

Exploration permits

Deposit location and Name

Legend

N

0 50

Kilometres

N2

N2N5

N5

N5 road provides limited access to Namoya

Upgrading work undertaken by Banro, the UN and CASA

LUGUSHWA

KAMITUGA

Sites identified for Hydro-Electric DevelopmentSites identified for Hydro-Electric Development

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HEP

HEP

HEP

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B a n r o F o u n d a t i o nB a n r o F o u n d a t i o n

1.1. Priorities ~ education, health and community Priorities ~ education, health and community infrastructure projects + humanitarian assistanceinfrastructure projects + humanitarian assistance

2.2. Initiatives to be recommended by local community Initiatives to be recommended by local community leadersleaders

3.3. Projects should benefit communities as a wholeProjects should benefit communities as a whole

4.4. Maximize opportunities to generate local Maximize opportunities to generate local employmentemployment

5.5. Promote social & economic opportunities for women Promote social & economic opportunities for women

6.6. Banro provides governance, funding and materialsBanro provides governance, funding and materials

Guiding PrinciplesGuiding Principles

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HIV Awareness Book HIV Awareness Book for High Schoolsfor High Schools

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On-Going Support for the Don On-Going Support for the Don Bosco Foundation, KinshasaBosco Foundation, Kinshasa

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Education: 2009Education: 2009

Official Opening of the Naluhwindja Secondary School - May 8, 2009

Serving 250 students

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Official Opening of the Saramabila Institute Secondary School October 3, 2009 ~ built to serve 300 students; serving 600

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Official Opening of the Chiburi Primary School November 30, 2010 ~ serving 600 students

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Official Opening of the Kibiswa Primary School April 7, 2011 ~ serving 300 students

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Official Opening of the Tima Primary School at Kamituga March 28, 2012 ~ serving 300 students

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Official Opening of the Namashongo Primary School near Twangiza, March 30, 2012 ~ serving 300 students

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The Original Tima Primary School

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Education: 2011~2012Education: 2011~2012

Makalanga Women’s Centre, Lugushwa ~ inaugurated September 2011

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Modern Kitchen Facility for Luwindja Hospital

Existing Kitchen facility

New Kitchen facility

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Health InfrastructureHealth Infrastructure

New beds & mattresses for the Namoya medical clinic

New latrines for the Namoya medical clinic

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Health Care: 2010Health Care: 2010

The New Kigumo Health Care Centre Official Opening February 26, 2010

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Shipment of medical equipment from Canada to eastern DRC regional hospitals

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New ambulance for the Ifendula Hospital (Twangiza) ~ August 2012

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BF Golf Tournament raised $96,000 for a women’s unit supporting consultation, prenatal family planning, HIV

sensitization & child health

Panzi Hospital ~ Multi-Purpose Womens Unit

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In Support of the new $165,000 Salambila Hospital

being built by the Banro Foundation

Celebrate the Congo Fundraising EventToronto, September 14, 2012

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49

50

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New and Rehabilitated BridgesNew and Rehabilitated Bridges

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Community RoadsCommunity Roads

New Road to Mbwengo in New Road to Mbwengo in TwangizaTwangiza

Rehabilitating the Rehabilitating the Butuza-Burhinyi Butuza-Burhinyi

RoadRoad

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Community Infrastructure: 2009Community Infrastructure: 2009

Official Inauguration of the the Luhwindja potable water project

serving 18,000 people – May 8, 2009

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Community Infrastructure: 2011~2012Community Infrastructure: 2011~2012

Three new Basketball Courts for the Youth of Bukavu

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Community Infrastructure: 2012Community Infrastructure: 2012

Inauguration of the Kama Bridge, Namoya – June 2012

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Community Relations: Sponsoring Major Events

Coming of age of Mwami of Luhwindja

The Great Lakes Arts Festival

Investiture of Mwami of Burhinyi

Humanitarian InitiativesHumanitarian Initiatives

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Distributing food at Bukavu orphanage following the repair of structural damage to the building

Providing foods and medicines for victims of Sange tank explosion

Humanitarian InitiativesHumanitarian Initiatives

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Support for WomenSupport for Women

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World Women’s March, October 2010

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Highlights of 2012 Banro Foundation ProjectsHighlights of 2012 Banro Foundation Projects

• Construction of 3 new schools ~ totalling 10 new & 2 Construction of 3 new schools ~ totalling 10 new & 2 rehabilitated schools by year-end 2012rehabilitated schools by year-end 2012

• Construction of student residence for University of Construction of student residence for University of Kindu ~ multi-year projectKindu ~ multi-year project

• New “Teacher Tuition” program to boost female school New “Teacher Tuition” program to boost female school attendance and retain teachers (all Banro project sites)attendance and retain teachers (all Banro project sites)

• Ongoing support for Maniema scholarship program and Ongoing support for Maniema scholarship program and introduction of new scholarship programs introduction of new scholarship programs

• Financial support for Makalanga Women’s CentreFinancial support for Makalanga Women’s Centre

• On-going financial support for Don Bosco FoundationOn-going financial support for Don Bosco Foundation

Continued …Continued …

EducationEducation

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• Construction of Salambila Hospital ~ 2 year projectConstruction of Salambila Hospital ~ 2 year project

• Construction of Tukolo Health Centre (Kamituga)Construction of Tukolo Health Centre (Kamituga)

• Construction of G3 Biyombi Health Centre (Lugushwa)Construction of G3 Biyombi Health Centre (Lugushwa)

• Completion of multi-purpose women’s health unit at Completion of multi-purpose women’s health unit at Panzi Hospital (Bukavu)Panzi Hospital (Bukavu)

• Purchase of ambulance for Ifendula Hospital Purchase of ambulance for Ifendula Hospital (Luhwindja)(Luhwindja)

Continued …Continued …

Health Health CareCare

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•Completion of hydro-electric plant rehabilitation Completion of hydro-electric plant rehabilitation (Kamituga) ~ 2 year project(Kamituga) ~ 2 year project

•Completion of regional marketplace (Luhwindja) ~ 2 Completion of regional marketplace (Luhwindja) ~ 2 year projectyear project

•Completion of community bridge (Namoya) ~ 2 year Completion of community bridge (Namoya) ~ 2 year projectproject

•Construction of third basketball court for youth Construction of third basketball court for youth (Bukavu)(Bukavu)

•Rehabilitation of water distribution point (Bukavu)Rehabilitation of water distribution point (Bukavu)

•Micro-Financing for women-owned businesses Micro-Financing for women-owned businesses (Luhwindja)(Luhwindja)

Social InfrastructureSocial Infrastructure

2012 BF Budget ~ US$2.1 Million2012 BF Budget ~ US$2.1 Million

Business DevelopmentBusiness Development

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B a n r o F o u n d a t i o nB a n r o F o u n d a t i o n

SustainableSustainable development development through primary education through primary education and skills development, and skills development, improving health care, improving health care, evolving infrastructure and evolving infrastructure and encouragement of local encouragement of local business – leading to business – leading to long-long-term,term, enhanced enhanced opportunities and quality of opportunities and quality of life for local Congolese life for local Congolese communities.communities.

Our VisionOur Vision

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THANK YOU

THANK YOU