Tanzanian Royalty Awards Contract for Preliminary Economic Assessment of Surface Rubble Deposit at Kigosi Gold Project

Tanzanian Royalty Exploration Corporation is pleased to announce that it
has entered into a contractual agreement with Consulmet Metals (Pty)
Limited of South Africa to complete a Preliminary Economic Assessment
(PEA) for a gravity recovery plant on its Kigosi Gold Project in the
Lake Victoria Goldfields of Tanzania.

A favorable conclusion to the PEA would see the commencement of a
Definitive Feasibility Study that would support the Company′s mining
license submission and provide a basis for plant design and related work
which would be completed on a 'turnkey? basis.

The Consulmet group of companies have supplied in excess of 100 plants
within the minerals, metals and chemical processing industries, some to
large international mining companies. At the very minimum the Phase 1plant
will consist of the following process circuits: Crushing, Milling,
Gravity separation, Calcining, Smelting, Tailings disposal, Reagent
make-up, mixing, distribution and dosing; and Utilities including water,
air and electricity.

The PEA will focus on a surface rubble deposit that was discovered on
Kigosi during the original inclined-hole RC exploration drilling program
on the Luhwaika prospect which was conducted on a 30m x 100m grid system.

This rubble deposit is of particular economic interest due to its near
surface, tabular extent and unconsolidated nature which lends itself to
low cost mining and gold recovery methods. Higher grade areas within the
quartz rubble are directly attributable to the erosion of the Luhwaika
reefs whose economic potential will also be evaluated in the immediate
future.

According to James E. Sinclair, President and CEO, 'The existence of
this economically significant rubble deposit opens up the possibility of
achieving low cost commercial production from Kigosi within the next
year. Cash flow from any such operation could be used to facilitate
development of our Buckreef Project and perhaps even create an
opportunity to generate a meaningful financial return to our
shareholders to whom we are greatly indebted.?

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 & Admin) ?of Tanzanian Royalty Exploration
Corporation. 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.

Form 20-F, File No. 001-32500

Trade Symbol:

TSX:
TNX

NYSE Amex Equities: TRX

Tanzanian Royalty Exploration

David Duval, 1-800-811-3855

Investor
Relations

Email: investors@TanzanianRoyalty.com

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