Florida-based Investment Fund Increases Share Position in Tanzanian Royalty to 10.3% Through Open Market Purchases

The Company wishes to announce that Geier International Strategies Fund
LLC has disclosed through an SEC filing that it now owns10.3%or
9,681,791 shares of Tanzanian Royalty Exploration Corporation.

The Florida-based investment fund increased its shareholding through
open market purchases from 8.77%orapproximately 8.2
million shares as reported in its SEC filing in December 2010.

According to James E. Sinclair, President and CEO of Tanzanian Royalty,
'The open market purchases by Geier International represents a strong
vote of confidence in the Company and its program to develop commercial
gold production in Tanzania from its Buckreef Gold Mine Re-development
Project. We are confident of a long and mutually rewarding relationship
with Geier and its investment team.?

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.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 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