Tanzanian Royalty Exploration announces the formation of a new company to explore the Kabanga Nickel, Cobalt and Platinum Group Metals belt

Tanzanian Royalty Exploration Corporation is pleased to announce the
formation of a new company to explore the Kabanga nickel, cobalt and
platinum group metals belt in Tanzania. The name of this company is
Northwestern Basemetals Company Limited. It will be owned 75% by
Tanzanian Royalty Exploration Corporation, 15% by Stamico, the State
Mining Corporation of Tanzania, and 10% by Beijing Songshanheli Mining
Investment Co., a Beijing mining company. Jinchuan Mining will not
participate.

Mr. Sinclair, CEO of Tanzanian Royalty Exploration ?Corporation, will be
CEO of the new company. He was in the past the Chairman of Kabanga
Nickel now owned by Barrick Gold and ?its partner Xstrata Plc (Glencore
International Plc). Sinclair said, 'My history goes way back on this
belt. I was exploring it prior to Barrick′s purchase and have always had
significant confidence in its ultimate development.'

'Tanzania looks right across the Indian Ocean at the growing markets of
India and China. Developments of the infrastructure in this area have
been significant in the past year including roads and electricity.
Historically nickel foundries are established to service their clients
so that development in India and China can be expected. If current
trends continue, ?India and China will grow into membership of the three
largest markets on the planet for these products. With our Chinese and
Tanzanian partners I am delighted to again be spearheading this
initiative.'

Respectfully ?submitted,

James E. Sinclair

President and
Chief Executive Officer

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

Visit our website: www.TanzanianRoyalty.com

The Toronto Stock Exchange and NYSE MKT LLC 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.

To view this press release as a webpage, please click on the following
link:

http://www.fscwire.com/pr/tanzaniannov282012.htm

Tanzanian Royalty Exploration Corporation

James Sinclair,
1-800-811-3855

investors@TanzanianRoyalty.com

Website:
www.TanzanianRoyaltyExploration.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