Tanzanian Royalty Announces Closing of $30 million Bought Deal Offering

Tanzanian Royalty Exploration Corporation (TSX: TNX; NYSE-Amex:
TRX) (the 'Company?) is pleased to announce that it has closed a
USD$30 millionfinancing pursuant to an underwriting agreement
with Casimir Capital Ltd. (the 'Underwriter?). The Company issued
5,263,158 units (the 'Units?) to the Underwriter on a bought deal
basis at a price of US$5.70 per Unit, for distribution to the public in
Canada and the United States.

Each Unit consists of one common share ('Common Shares?) of the
Company and one Common Share purchase warrant ('Warrants?)
exercisable at a price of US$6.25 per warrant share for a period of two
years following closing of the Offering. In connection with the offering
of the Units, the Company filed a short form prospectus in the Provinces
of British Columbia, Ontario and Alberta and a registration statement in
the United States under the multi-jurisdictional disclosure system.

The initial use of the funds will be for the completion of a Preliminary
Economic Assessment and, subject to the results of the assessment, a
Definitive Feasibility Study on the Company′s Buckreef Gold Project in
Tanzania.

Buckreef is an advanced stage gold project with NI-43-101 compliant gold
resources at a 0.5 g/t cutoff grade in the following categories:
Measured, 5.176 million tonnes grading 2.05 g/t (341,000 oz); Indicated,
24.97 million tonnes averaging 1.19 g/t (954,000 oz); Inferred, 17.173
million tonnes grading 1.51 g/t (835,000 oz).

According to James E. Sinclair, President and CEO, 'The Preliminary
Economic Assessment for Buckreef that is currently underway will address
the optimization of gold output at various production rates and the
assumptions used in this analysis will constitute an exploration target
that our geological staff can aim for. Based on what we see so far,
management believes that full scale commercial gold production at
Buckreef in the future could greatly exceed previously anticipated
levels.?

'I want to assure the Company′s shareholders that we intend to pursue
development of the Buckreef Project very aggressively in the months
ahead and we will keep everyone fully apprised of our activities,?
Sinclair emphasized.

Joseph Kahama, the Company′s Tanzania-based Chairman and Chief Operating
Officer, believes the Company′s partnership with the State Mining
Company of Tanzania (Stamico) for Buckreef will become a model for the
future.

'Stamico is firmly committed to Buckreef and sees it as a cooperative
project between the private sector and government that will generate
meaningful benefits to all stakeholders,? said Kahama. 'I firmly believe
this is the beginning of a long and mutually rewarding relationship
between Tanzanian Royalty and Stamico, one that will see us both become
major players in the country′s mining industry in the ensuing years.?

In consideration of its services rendered under the Offering, the
Underwriter received a cash commission of 7% of the gross proceeds of
the Offering and compensation warrants exercisable for a period of two
years following closing entitling the Underwriter to purchase, at a
price of US$5.91 per share, 368,421 Common Shares, being 7% of the
aggregate number of Units sold pursuant to the Offering.

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

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 periodic reports and registration
statement filed with the SEC. 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 and registration statement
filed with the SEC, for more information concerning these risks,
uncertainties, and other factors.

Tanzanian Royalty Exploration Corporation

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