Important Permit for Continued Operations on the Kigosi Licenses Has Been Received from the Tanzanian Ministry of Natural Resources

Joseph Kahama, Chairman and COO (Tanzania) of Tanzanian Royalty
Exploration Corporation said that a contract for continued operations
will now be negotiated with the Ministry. Having operated there now for
more than nine years the tenets of the contract should mirror previous
arrangements. Therefore this exercise should be simple.

James Sinclair, President and CEO commented that receipt of this permit
is a very important event for the company. We have been waiting for
receipt of this document to allow us to move forward on the Kigosi
project full speed.

The Kigosi Project is located within the Kigosi-Miyabi and ?Ushirombo
greenstone belts ?in northwestern Tanzania. The Kigosi-Miyabi
granite-greenstone belt hosts small-scale artisanal workings at Luhwaika
and Igunda both of which sub-crop intermittently along a strike length
of approximately 4.8 kilometres in the Kigosi Project Area. Further to
the southeast ?these artisanal workings are aligned with the Miyabi Gold
Project owned by African Eagle.

Tanzanian Royalty has been actively exploring Kigosi since November
2005 ?following the receipt of a ?permit from the Ministry of Wildlife and
Nature Conservation. During this intervening period, the Company
conducted extensive exploration in the form of soil geochemistry,
geophysics, RAB, RC and diamond drilling throughout the property.

The recent 43-101 compliant resource report for the Kigosi Project is
available on SEDAR.

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

James Sinclair, 1-800-811-3855

Investor
Relations

Email: investors@TanzanianRoyalty.com

www.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