Tanzanian Royalty Announces Completion of NI 43-101 Resource Report for Kigosi Gold Project and Joint Venture With State Mining Corporation

Tanzanian Royalty Exploration is pleased to announce that it has
received an updated NI 43-101 compliant technical report from Venmyn
Rand (Pty) of South Africa for its Kigosi Gold Project in northern
Tanzania. The updated technical report provides a summary of all
scientific and technical information accumulated for the Kigosi property
and includes a confirmation statement of mineral resources.

In addition, the Company has negotiated a resource sharing joint venture
for Kigosi with the State Mining Corporation (Stamico) of Tanzania that
conforms with the government′s policy of direct participation in
minerals industry projects.

The gross resource estimate for the Kigosi Gold Project of 586,391
ounces includes weight averaged Measured and Indicated resources for the
Luhwaika and Igunda prospects of 12,859,909 tonnes grading 0.99 g/t
gold, representing 408,091 troy ounces. The resource assessment also
defines weight averaged Inferred Resources for these two prospects of
8,930,000 tonnes grading 0.62 g/t or 178,300 ounces.

The Kigosi Project is subject to certain license-specific underlying
agreements that include option fees to the original property vendors. At
the present time the net ounces attributable to Tanzanian Royalty for
the Kigosi Project in all categories are 338,439 troy ounces. Upward
adjustments will be made to this net resource figure as time sensitive
option payments are made to the underlying property vendors.

The Venmyn report will be posted on www.SEDAR.com.

Tanzanian Royalty is delighted to announce that it has entered into a
joint venture with Stamico that will enable the state corporation to
earn a 15% carried interest in the Kigosi Project. The Company confirms
the arrangement is consistent with the government′s expressed desire to
generate greater economic benefits for its citizens by expediting and
accelerating mining resource revenues.

The joint venture with Stamico is consistent with Tanzanian Royalty′s
longstanding policy of engaging the government as a fully carried
partner in its entire portfolio of mineral prospects. Only a small
percentage of the Kigosi Project has been explored in any detail,
providing the joint venture with additional room for resource
development along established mineral trends, the Company confirms.

According to James E. Sinclair, President and CEO, 'Mineral rich
developing countries are quite properly seeking a greater participation
in wealth generating sectors of their economies. In fact, some countries
have already incorporated their levels of participation in mining
legislation. On the other hand, free market methods enable companies
like Tanzanian Royalty to recognize through negotiations the host
country's work input and its ongoing task of interacting with local
stakeholders regarding the presence of exploration and mining-related
activity and the net benefit this activity represents to the community
as a whole.'

Tanzanian Royalty has already broken new ground in its relationship with
the Tanzanian government vis-à-vis its development agreement for the
advanced-stage Buckreef Gold Project which has been constituted as a
55/45 joint venture with Stamico.

'Our latest joint venture with the government for Kigosi recognizes that
the Tanzanian government and its citizens want to be meaningful equity
participants in the development of the nation′s mineral resources. We
genuinely value our relationship with the government and the Tanzanian
people and are honored to have them participate on this basis,? he adds.

Qualified Person

The Company′s Qualified Person, Mr. Peter Zizhou, has reviewed and
approved the contents of this news release. Mr. Zizhou is the General
Manager (Exploration & Administration) of Tanzanian Royalty Exploration
Corporation Limited. He has a Master of Science (Exploration Geology)
degree from the University of Zimbabwe (2000) and is a registered
scientist with SACNASP (Reg. No.400028/08).

Respectfully Submitted,

'James E. Sinclair?

President and CEO

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

South Surrey Office:

Tel: 604-536-7873

Fax:
604-536-2529

Toll Free: 1-800-811-3855

investors@TanzanianRoyalty.com

www.tanzanianroyalty.com