Tanzanian Royalty Receives Approval for Enlargement of Special Mining License at Buckreef Gold Project

Tanzanian Royalty Exploration is pleased to announce that the government
of Tanzania has approved the application for the expansion of the area
covered by the Special Mining License for the Company′s Buckreef Gold
Project. As a result, the mining license for Buckreef has been expanded
from 3.45 square kilometres to approximately 16.04 square kilometres -
almost five times its original size.

The Special Mining License now covers the entire Buckreef property and
gives the Company the exclusive right to prospect and mine minerals for
a period of 25 years, with an option to renew for a similar period of
time.

According to James E. Sinclair, President and CEO of Tanzanian Royalty,
'Ministerial decisions of this nature assume there is a reasonable
expectation that sufficient deposits or reserves of minerals are
available to justify their commercial exploitation.?

'We have every reason to believe that the current resources established
at Buckreef are economically viable and that ongoing exploration and the
incorporation of satellite deposits in the region into our production
plans will positively impact our operations.?

Tanzanian Royalty is currently in the process of completing a
Preliminary Economic Assessment (PEA) for the Buckreef Project which is
due out early in the New Year. Following the completion of a
Pre-feasibility study, the Company intends to fast track the open pit
development process at Buckreef in order to facilitate the ramp-up to
mining and full commercial production.

The Buckreef Project contains National Instrument 43-101 compliant gold
resources at a 0.5 g/t cutoff grade in the following categories:
Measured, 5.176 million tonnes grading 2.05 g/t (341,000 oz); Indicated,
24.97 million tonnes averaging 1.19 t/g (954,000 oz); Inferred, 17.173
million tonnes grading 1.51 g/t (835,000 oz).

The geological continuity and grade distribution of the Buckreef
mineralization is well constrained and the upside potential to define
additional Mineral Resources in extensions of known deposits is
presently being confirmed by drilling, the Company reports.

Tanzanian Royalty holds a 55% interest in the Buckreef Project with the
State Mining Corporation of Tanzania (Stamico) holding the remainder.

Respectfully Submitted,

Joseph Kahama

Chairman and Chief
Operating Officer (Tanzania)

For further information, please contact Investor Relations at
1-800-811-3855

Visit our website: www.TanzanianRoyalty.com

The Toronto Stock Exchange and NYSE Amex Equities have not reviewed and
do not accept responsibility for the adequacy or accuracy of this release

Cautionary Note to U.S. Investors - The United States Securities and
Exchange Commission limits disclosure for U.S. reporting purposes to
mineral deposits that a company can economically and legally extract or
produce. We use certain terms on this news release, such as 'reserves?,
'resources?, 'geologic resources?, 'proven?, 'probable?, 'measured',
'indicated', or 'inferred' which may not be consistent with the reserve
definitions established by the SEC.U.S. Investors are urged to
consider closely the disclosure in our SEC filings.You can
review and obtain copies of these filings from the SEC's website at http://www.sec.gov/edgar.shtml

This news release contains certain forward-looking statements and
forward-looking information. All statements, other than statements of
historical fact, included herein are forward-looking statements and
forward-looking information that involve various risks and
uncertainties. There can be no assurance that such statements will prove
to be accurate, and actual results and future events could differ
materially from those anticipated in such statements. Important factors
that could cause actual results to differ materially from the Company's
expectations are disclosed in the Company's documents filed from
time-to-time with the British Columbia, Alberta and Ontario provincial
securities regulatory authorities.

Certain information presented in this release may constitute
'forward-looking statements? within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements are based on numerous assumptions, and involve known and
unknown risks, uncertainties and other factors, including risks inherent
in mineral exploration and development, which may cause the actual
results, performance, or achievements of the Company to be materially
different from any projected future results, performance, or
achievements expressed or implied by such forward-looking statements.
Investors are referred to our description of the risk factors affecting
the Company, as contained in our SEC filings, including our annual
report on Form 20-F and Registration Statement on Form F-10, as amended,
for more information concerning these risks, uncertainties, and other
factors.

Tanzanian Royalty Exploration

David Duval, 1-800-811-3855

Investor
Relations

or

Connecticut Office:

Tel: (860)
364-1830

Fax: (860) 364-0673

or

South Surrey Office:

Toll
Free: 1-800-811-3855

Tel: (604) 536-7873

Fax: (604) 536-2529

Email:
investors@TanzanianRoyalty.com

Website:
www.TanzanianRoyaltyExploration.com