Tanzanian Royalty Announces Awarding of Contract for RC Drilling Program at Buckreef Gold Project in Tanzania

Tanzanian Royalty is pleased to announce that Aqua Drill Tech (U) Ltd.
has been awarded a contract to complete 7,200 metres of Reverse
Circulation (RC) drilling at the Company′s Buckreef Gold Project in the
Lake Victoria Goldfields of Tanzania.

Aqua Drill will utilize a SuperRock 1000 with a high pressure Sullair
900 cfm/350 psi trailer-mounted compressor for the drill program which
is expected to begin in early March. The objective of the RC drilling
program is to define, delineate and upgrade resources at Buckreef in
support of an updated 43-101 compliant resource report.

'We are pulling out all the stops to build on our recent successes at
Buckreef,? said Joseph K. Kahama, Chairman and Chief Operating Officer
(Tanzania), who also noted that 'The Company′s ability to expand
resources along strike and at depth can only enhance the long term
viability of Buckreef and the benefits accruing to all stakeholders
including the people of Tanzania with whom we have entered into an
historic partnership.?

The main focus of this RC drilling program is to confirm the significant
gold mineralization encountered in four recent diamond drill holes in
the Eastern Porphyry prospect. (See January 10, 2012 News Release).
These diamond drill holes were completed in December 2011 and were
designed to establish and understand the structure controlling
mineralization at Eastern porphyry target. The diamond drilling program
was also designed to investigate the down-dip extension of previously
confirmed high grade mineralization to a vertical depth of 200m which is
expected to be the final depth of the open pit at commercial production
and the lateral extension of footwall and hanging wall zones of the
Buckreef deposit.

The second phase of the RC drill program will include infill drilling
and step-out drilling to test the strike extension of the Buckreef North
and the NE extension of the Tembo mineralization.

In addition to infilling gaps and upgrading some of the Inferred
resource to the Indicated category, the diamond drilling is seeking to
define additional resources in the Hanging Wall and Footwall zones. This
phase of diamond drilling is budgeted at 6,821 metres.

Buckreef is an advanced stage gold project with 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 g/t
(954,000 oz); Inferred, 17.173 million tonnes grading 1.51 g/t (835,000
oz).

Qualified Person

The Company′s Qualified Persons, Mr. Phillip Kaniki and Charles Mnguto,
have reviewed and approved the content of this news release. Mr. Phillip
Kaniki has a Bachelor of Science in Geology degree from the University
of Dar es Salaam (1997) and is a registered scientist with MAusIMM (Reg.
No 221963). Mr. Charles Mnguto has a Bachelor of Science in Geology
(Hons) degree from the University of Dar es Salaam (1995) and is
registered scientist with MAusIMM (Reg. No 307793).

Respectfully submitted,

Joseph K. 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

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

www.TanzanianRoyalty.com