Drilling in East Porphyry Area at Tanzanian Royalty′s Buckreef Project Confirms Existence of New Gold Zone

Tanzanian Royalty wishes to report that it has received impressive assay
results from the ongoing diamond and reverse circulation (RC) drilling
programs on the Eastern Porphyry Prospect at its Buckreef Gold Project
in the Lake Victoria goldfields of Tanzania. The drilling programs
commenced in September 2011.

According to Joseph K. Kahama, Chairman and Chief Operating Officer,
'The drill program has served to verify the significance of the results
obtained by previous operators including IAMGOLD which were not in the
public domain but were discovered during our Buckreef data review
process.?

'The latest drill results not only support and enhance the earlier drill
programs, they confirm the existence of a fifth gold zone at Buckreef
along with the potential to enhance our production expectations for this
development stage gold project.?

Highlights from the recent drill program are included in the following
table:

* Drill intercepts are estimated to be 70-80% of true widths

DD
= Diamond Drilling

RC = Reverse Circulation Drilling

Past results are included in the following table:

The Buckreef Project consists of four prospects, namely the historic
Buckreef Gold Mine at the western limit of the project area, the Tembo
and Bingwa prospects, and the Buziba prospect 20km to the east. The
Eastern Porphyry prospect is located some 800m in the footwall of the
Main Zone of the historic Buckreef mine which operated briefly as an
underground gold producer.

Buckreef contains National Instrument 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 t/g (954,000 oz); Inferred, 17.173 million tonnes
grading 1.51 g/t (835,000 oz).

The diamond core drilling program has so far seen the completion of four
drill-holes aggregating 520m, while 17 holes aggregating 1,183m have
been completed in the RC drilling program.

Down-the?hole lithological sequences include a series of mafic basaltic
rock units alternating with dolerite and a series of narrow felsic
porphyry units with pronounced shearing and alterations of the mafic
packages at the contacts with the felsic porphyry units. Mineralization
is localized within the sheared, quartz-carbonate-pyrite altered zones.

The objective of the diamond drilling component in the program was to
determine the geological and structural framework of the East Porphyry
prospect while the RC drilling program was aimed at establishing the
strike and down-dip continuity of mineralization identified in previous
drill programs.

James E. Sinclair, President and CEO of Tanzanian Royalty, states that
the 'existence of multiple gold deposits within the confines of the
broader Buckreef project area suggests a high probability of making
additional discoveries that are certain to boost the economic viability
of this important gold project.?

The Company plans an aggressive work program in 2012 that will include
an exploration budget for diamond and RC drilling of approximately $2
million. In addition, more funding has been approved for both a
Pre-feasibility and a Definitive Feasibility Study in 2012. The
Preliminary Economic Assessment (PEA) for Buckreef is now scheduled for
completion in January 2012.

Tanzanian Royalty is well financed and has approximately $30 million in
cash. This will allow for the completion of a full feasibility study,
leaving excess capital available for the time the Company begins debt
financing negotiations with international lenders for mine development.

Exploration Plans

The Company intends to continue the resource definition and upgrade
drilling program at the Buckreef Project in the coming months including
the further investigation of the down dip potential in the established
Buckreef Main Reef and other gold zones. The diamond drilling program in
the East Porphyry target area will support the completion of a
comprehensive structural analysis that will guide future exploration
programs. In addition to routine geological work, the Company intends to
complete large diameter metallurgical test holes at the Bingwa and Tembo
prospects for mineral resource upgrading as part of the feasibility
study.

Analysis

Samples from the RC and diamond drill-holes were submitted to SGS Lab in
Mwanza for 50g fire assay (FA) with AAS finish (0.01ppm LLD). Duplicates
and Standards were inserted in the sample stream approximately every 20
samples. The average percentage of recovery core is 95%. Core sampling
was done on 1m intervals with the core cut in half lengthwise using a
diamond core cutter. Sample intervals of 1m or less but greater than
0.5m depended on geology. The planning, execution and monitoring of
quality control programs at the Buckreef Gold project are under the
supervision of Messrs. Charles Mnguto and Phillip Kaniki who are both
registered Professional Geologists. Charles is the Head of Geology while
Phillip is the Geology Resource Manager for Tanzanian Royalty

Qualified Person

The Company's Qualified Person, Mr. Peter Zizhou, has reviewed and
approved the contents of this news release. Mr. Zizhou is the General
Manager (Exploration & Admin) 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

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 SEC filings.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 SEC filings, including our annual
report on Form 20-F and Registration Statement on Form F-10, as amended,
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