Tanzanian Royalty and Stamico Join Forces to Develop Advanced Stage Buckreef Mine Project in Tanzania

The Company is pleased to announce that it was the successful bidder for
the Buckreef Gold Mine Re-development Project in northern Tanzania.
Under the signed, binding heads of agreement with the State Mining
Corporation of Tanzania (Stamico), Tanzanian Royalty will have the right
to earn a 55% interest in the Buckreef Project, with Stamico holding the
balance. A Definitive Joint Venture Agreement governing ownership and
management of the Buck Reef properties is expected to be signed in due
course.

According to James E. Sinclair, Chairman and CEO of Tanzanian Royalty,
'The Company′s fiscal position has never been better and we intend to
fast track development of the Buckreef Project with a view to achieving
commercial production within a period of 30 months or less.?

The Buckreef Gold Mine Re-development Project as presently constituted
is an advanced stage gold exploration project containing measured gold
resources of 265,000 ounces, indicated resources of 444,000 ounces and
inferred resources of 826,000 ounces as noted in the table below. This
mineral resource estimate was prepared in accordance with National
Instrument 43-101 standards of disclosure for mineral projects.

*All resources are at a 1 g/t cut-off grade

Mr. Sinclair describes the Buckreef Project as a 'company builder that
will move Tanzanian Royalty into the league of gold producers at a time
when gold prices are breaking out and the future for precious metals has
never looked better.?

A total of 15 licenses are included in the project area which he said
'exhibit potential to substantially boost the resource base at Buckreef,
providing the foundation for raising production rates on an incremental
basis in the future.?

Joseph Kahama, the Company′s Tanzania-based President, predicted that
the partnership with Stamico 'will become a template for other mining
companies operating in the country? and he added that the benefits to
the Tanzanian people 'will be tangible and long lasting.?

'In the shorter term, we also see potential to mine and process surface
gravels at Buckreef which will serve to augment anticipated gold output
from our Kigosi and Lunguya projects, both of which will have modular
type gravity plants operating on them in 2011,? he noted.

The Buckreef Project is located approximately 115 kilometres southwest
of Mwanza on Lake Victoria and covers the eastern portion of the
Rwamagaza Greenstone Belt, one of several Archean greenstone belts lying
within the Tanzanian Craton of east Africa.

The Buckreef area has a long history of small-scale mining and
exploration work, most of which was undertaken by the United Nations,
the Tanzanian Mineral Resources Division, Williamson Diamonds and
Iamgold Corporation which brought the Buckreef property to its current
stage of exploration and development.

Gold mineralization at Buckreef was developed along a prominent fault
zone that ranges from five to 30 metres in width. Finely disseminated
pyrite occurs in a halo surrounding pervasive quartz veining, the extent
of which is directly related to the grade of the gold mineralization
present.  In several areas, drilling has confirmed the existence of
higher grade gold mineralization at depth and a number of high priority
regional exploration targets remain to be followed up.

Qualified Person

The Company's Qualified Person, Mr. Peter Zizhou, has reviewed and
approved the contents of this news release. Mr. Zizhou is the
Exploration Manager of Tanzanian Royalty Exploration Corporation
Limited. 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,

'Joseph Kahama?

Joseph Kahama

President

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

Visit our website: www.TanzanianRoyaltyExploration.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 Form 20-F, File No. 001-32500.You can review and obtain copies of these filings from the SEC's
website at http://www.sec.gov/edgar.shtml.

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 Form 20-F, File No.
001-32500, for more information concerning these risks, uncertainties,
and other factors.

Tanzanian Royalty Exploration Corporation

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

Email:investors@TanzanianRoyaltyExploration.com

Website:
www.TanzanianRoyaltyExploration.com