Tanzanian Royalty′s Buckreef Gold  Project Resource  Base Climbs to Approximately Two Million Ounces Utilizing Lower Cutoff Grade

The Company is pleased to provide an update on
its  recently  acquired  Buckreef Gold Mine Re-development Project in
Tanzania′s Lake Victoria Greenstone Belt. The Buckreef Project is a
55/45 joint venture between Tanzanian Royalty Exploration and the State
Mining Corporation of Tanzania (Stamico).  This update is based on a
comprehensive  review conducted by the  Company of previous work completed
on the Buckreef  Project  prior to our acquisition.

The review process to date has expanded our knowledge and confidence in
the  continuity of the Buckreef and adjoining deposits. Since the Heads
of Agreement for Buckreef was signed in December 2010, the Company′s
technical staff have been evaluating the extensive database for the
project with the intention of  completing  an exploration and development
program for the Buckreef property.

This program is already at a significantly advanced  stage and will be
facilitated by the fact that approximately $35 million was invested in
the Buckreef project prior to our acquisition.  The technical staff
members involved in this process were part of the geological team that
advanced the Buckreef property on behalf of IAMGOLD.

A key element in this evaluation process  has been the recalculation of
resources for the Buckreef Project in the context of current gold
prices. The economics of the project were considered to be very
attractive at approximately $750 gold when control of Buckreef reverted
to Stamico in 2008. Since that time the gold price has almost doubled
and management believes this factor alone is certain to boost the
economic viability of the various development models being considered
for the Buckreef Project.

The Company is delighted to report that a substantial increase in
resources has been established for the Buckreef Project by reducing the
cutoff grade from 1 g/t to 0.5 g/t. In a news release dated December 21,
2010, the Company announced 43-101 compliant resources in the following
resource categories: measured resources, 265,000 ounces; indicated
resources, 440,000 ounces; inferred resources, 826,000 ounces. All these
resources were calculated at a 1 g/t cutoff grade which is defined 'as
the level of mineral in an ore below which it is not economically
feasible to mine it.?

By applying a 0.5 cutoff grade, the aggregate resource base for the
Buckreef Project has grown by approximately 30%, with the breakdown of
the resources calculated as follows: measured resources, 303,000 ounces;
indicated resources, 730,000 ounces;  inferred resources, 960,000 ounces.
These resources occur within four principal zones on the project:
Buckreef, Tembo, Bingwa and Buziba. This mineral resource estimate was
prepared in accordance with National Instrument 43-101 standards of
disclosure for mineral projects. See NI 43-101 Report filed on SEDAR on
February 21, 2011 for more information.

According to James E. Sinclair, President and CEO, 'As a starting point,
these resources are exceptional by any standard. What is equally as
important is that we have set the wheels in motion to expand and develop
the resource base on the Buckreef Project in target rich areas that
received only cursory exploration in the past. In fact, anaggressive
exploration program will soon be inaugurated to realize and achieve this
important objective.?

Sinclair points out that a number of huge gold deposits occur in
relative close proximity to the Buckreef Project including the Geita and
Bulyanhulu deposits which have contributed to Tanzania becoming the
fourth largest gold producer on the African continent.

'We also have a well defined gravel resource on the Buckreef Project
that could provide an early source of cash flow at a relatively minimal
capital expenditure. This would allow us to  accelerate and  expand
exploration and development on the property,? he said.

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,

'James E. Sinclair?

James E. Sinclair

President and Chief Executive Officer

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

James E. Sinclair

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

investors@TanzanianRoyaltyExploration.com

www.TanzanianRoyaltyExploration.com