Tanzanian Royalty Comments on Past Resource Disclosures Pertaining to Buckreef Project

As a result of a review by the British Columbia Securities Commission,
Tanzanian Royalty Exploration Corporation (TSX: TNX; NYSE-Amex: TRX)
(the 'Company?) is issuing this news release to clarify certain
aspects of past resource disclosures pertaining to the Buckreef project.

In a news release dated April 15, 2011, the Company reported a resource
estimate for its Buckreef project area that included measured mineral
resources of 303,000 ounces; indicated mineral resources of 730,000
ounces; and inferred mineral resources of 960,000 ounces. Pursuant to an
amended and restated technical report dated June 30, 2011, prepared in
compliance with National Instrument 43-101 (NI 43-101) and filed by the
Company on SEDAR, the mineral resource estimate for the Buckreef project
area has been adjusted slightly as set out in the following table:

Summary NI 43-101 Compliant Mineral Resources of the Buckreef Project
(0.5g/t Au Cut-off) ? June 2011

These resources occur within four principal zones on the project:
Buckreef, Tembo, Bingwa and Buziba. In accordance with the
recommendations contained in the amended and restated technical report,
the Company plans to undertake a preliminary economic assessment of the
Buckreef project, and if such assessment is favourable, to proceed to a
definitive feasibility study.

The Company also wishes to clarify that the current resources for the
Buckreef project calculated in accordance with NI 43-101, including its
Quality Control guidelines, are not segregated based on mode of
occurrence (e.g., a 'gravel? or quartz rubble colluvial deposit, oxide,
sulphides). The Company wishes to specifically retract the statement
made in its news release of April 15, 2011 '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? and
clarify that the reference to 'defined gravel resources? should not be
construed as implying that the Company is reporting a resource estimate
occurring within a quartz rubble colluvial deposit in accordance with
such instrument but was simply stating the potential existence of such a
deposit on one of the main prospects within the project, Buziba. This is
currently the subject of a detailed pitting and trenching program to
assess the extent of this quartz rubble colluvial deposit and results
will be reported in due course.

The Company would also like to clarify certain statements made in news
releases dated April 25 and July 12, 2011, respectively, regarding the
purchase of plant and equipment for the mining of 'gravel resources? or
'surface gravels? at its Buckreef, Kigosi and Lunguya properties. As
noted above, the statements should not be construed as implying that
resources meeting the NI 43-101 standard, including its Quality Control
guidelines, occur within surface or sub-surface quartz rubble colluvial
deposits. Rather, the Company intended to disclose and wishes to clarify
that such plant and equipment, when purchased, would be used to test the
surface and sub-surface areas to assess the potential existence of such
deposits.

The Kigosi project comprises the Luhwaika reef prospect, the Igunda reef
prospect, the Msonga gold prospect and the lineman surface quartz rubble
colluvial prospect. During the course of previous RC exploration
drilling conducted on the Luhwaika Prospect as reported in the April
2009 technical report prepared in compliance with NI 43-101 and filed by
the Company on SEDAR, the Company established the presence of a
consistent and sizable surface to near surface quartz rubble colluvial
deposit with potential economic significance. In 2010 and early 2011,
the Company conducted preliminary trenching and pitting to assess the
rubble deposit. The results established a strong gold nugget effect and
variability in gold grades in the rubble as had been noted in the 2009
report. In May 2011 the Company decided to suspend further testing at
Kigosi and to move the gravity separation unit to Buckreef for use in
that project′s ongoing pitting and trenching program.

In a news release dated December 21, 2010, the Company stated that it
'anticipated gold output? at Kigosi and Lunguya and that there would be
'modular type gravity plants operating? on those properties in 2011. As
noted, the Company operated mobile gravity separator equipment at Kigosi
until suspending exploration of its surface areas in May of 2011. The
Company wishes to clarify that additional equipment purchased out of the
proceeds of the offering announced on July 12, 2011 will be deployed
exclusively at the Buckreef for the foreseeable future to assess
potential quartz rubble colluvial deposits at that project.

In a May 24, 2011 news release the Company′s Qualified Person provided
details of a previously completed but non-reported reconnaissance
pitting program on its Buziba West Prospect within the Buckreef project
area. The release included a reference to a specific area covered by the
pitting program in addition to a weighted average grade and average
thickness for the area tested. The Company cautions that the historical
pitting results and other exploration in this area are insufficient to
estimate quantity or grade of a potential mineral deposit and additional
exploration work is required before determining any potential quantity
and gold grade ranges.

In addition, it has come to the Company′s attention that on June 21,
2011 Mr. Chris Gibson made certain comments on a third party website.
Such comments included references to: a pending gold resource estimate
at the Company′s Kigosi project; disclosure of a resource estimate and
economic analysis of the Buckreef project not compliant with NI 43-101;
economically viable low-cost surface gravels at the Buckreef, Kigosi,
Lunguya and Ushirombo projects entering production in 2011 and 2012; the
existence of NI 43-101-compliant technical reports documenting ore
grades at other Company properties such as Lunguya and Ushirombo; and
other royalty properties of the Company being advanced to production at
significant investment by major industry partners. Mr. Gibson does not
speak for the Company and any and all such comments were not issued by
or on behalf of the Company, were not sanctioned by the Company, and the
Company expressly disclaims and dissociates itself from such comments.

Qualified Person

The Company′s Qualified Person, Mr. Peter Zizhou, supervised the
preparation of the technical information and has 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

Chairman and Chief Operating Officer (Tanzania)

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

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

Tanzanian Royalty Exploration

Investor Relations:

David
Duval, 1-800-811-3855

www.TanzanianRoyaltyExploration.com

or

Connecticut
Office:

Tel: (860) 364-1830

Fax: (860) 364-0673

Email:
investors@TanzanianRoyalty.com

Website:
www.TanzanianRoyaltyExploration.com

or

South
Surrey Office:

Toll Free: 1-800-811-3855

Tel: (604)
536-7873

Fax: (604) 536-2529