Tanzanian Royalty Awards Preliminary Economic Study for Buckreef Gold Project to South Africa′s Venmyn

Tanzanian Royalty is pleased to announce that Venmyn Independent
Projects (Pty) Limited, a subsidiary of Venmyn Rand (Pty) Limited of
South Africa, has been awarded a contract to complete a Preliminary
Economic Assessment (PEA) for 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).

The time-sensitive PEA will address the economic viability of the
Buckreef project as a prerequisite for undertaking a Definitive
Feasibility Study (DFS). The information generated by this preliminary
economic study is vital to the strategic planning of the DFS which the
Company expects will commence immediately after completion of the PEA.

The key components in the PEA include the following: a thorough review
of the historic exploration and resource estimating process followed by
the determination of mineral reserves; the identification of
stakeholders for the Environmental Impact Assessment (EIA); a mining
methodology and preliminary mine design study; a review of historic
metallurgical test work and, if deemed necessary, the development of a
high level process plant design with process flow diagrams and mass
balance calculations; a preliminary estimate of capital and operating
expenditures for the Buckreef Gold Project; an independent valuation and
Discounted Cash Flow analysis of the project based on international
standards; and lastly an independent National Instrument compliant
43-101 Technical Report on the results of the PEA, which would be
suitable for filing with regulatory authorities.

According to Joseph K. Kahama, Chairman and Chief Operating Officer
(Tanzania), 'We are pleased that Venmyn has taken on this important task
which is set to occur during a period of intense activity at Buckreef on
several fronts.?

'At the present time, we have a 58-hole drill program under way on our
Eastern Porphyry Prospect and this will be followed by a diamond
drilling program on our Main Buckreef Prospect. This particular program
is designed to investigate the possible down-dip extension of the high
grade gold shoots below the previously established open pit design
prepared by IAMGOLD a few years ago,? he pointed out.

'Negotiations are under way to bring additional drills to the Buckreef
Project given the value we can add to the project and the company by
discovering new resources at current gold prices,? he emphasized.

James E. Sinclair, President and CEO, noted that exploration data
received from the ongoing drill programs at Buckreef will be integrated
into the PEA and subsequent DFS. In addition, Sinclair said that 'an
in-house assessment confirms the economic benefits of establishing
additional resources at Buckreef through exploration at this time.?

'We have placed a major emphasis on growing our resource base which
would allow us to consider new operating parameters including higher
production rates that under normal circumstances would generate lower
unit production costs,? he added.

The Company is well financed to undertake its corporate objectives in
the coming months, having raised $30 million dollars in August on a
bought deal basis.

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 Corporation

Investor Relations:

David
Duval, 1-800-811-3855

or

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@TanzanianRoyalty.com

www.TanzanianRoyaltyExploration.com