Tanzanian Royalty Signs Kigosi Access Agreement

Tanzanian Royalty Exploration Corporation (the 'Company?) is pleased to
announce the signing of an Agreement for the Access and Mineral
Operations at the Kigosi Project (the 'Agreement?). The Agreement has
been signed by the Ministry of Natural Resources and Tourism and by the
Company. The Kigosi Project is a joint project comprising State Mining
Corporation ('Stamico?) on behalf of The Government of The United
Republic of Tanzania with 15% and the Company, where the Company also
represents its underlying contracts with local Tanzanian companies.

On behalf of the Project, the Company has further lodged applications
for a Certificate of Environmental Compliance after having undertaken a
full Environmental and Social Impact Assessment study which was
undertaken by the Environmental Association of Tanzania (ENATA) and
approved by the National Environment Management Council (NEMC) at the
Project.

The Company has a number of projects at various stages of development
and is proud that it is in partnership with Stamico on behalf of the
Government of The United Republic of Tanzania and the people of Tanzania
on three key Projects of Kigosi (Stamico 15%); Buckreef (Stamico 45%);
and Northwestern Base metals Company Limited (Stamico 15%).

Chairman of The Board of Directors, Joseph K. Kahama, said that the
signing marks an important day in the history of the company and for its
commitment in partnering with the people of Tanzania who are 15%
partners in the Kigosi Project. 'We always strive seriously to take our
partnership with the people of Tanzania to greater heights and together
work towards socioeconomic development of our country', he said.

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 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.usetdas.com/pr/tanzaniandec122012.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