Tanzanian Royalty Amends Price and Term of Warrants

Tanzanian Royalty Exploration Corporation (TSX:TNX)(NYSE Amex:TRX) has
agreed to amend the exercise price and term of warrants previously
issued pursuant to its August 12, 2011 prospectus financing under which
it raised USD$30,000,000 in an offering of 5,263,158 units consisting of
one common share and one common share purchase warrant.

James E. Sinclair, President and CEO of Tanzanian Royalty, describes the
warrant adjustment as a 'tangible way of showing our appreciation to a
loyal and supportive shareholder who has stood shoulder-to-shoulder with
us during a period of volatile market conditions.?

The exercise price of the 5,263,158 common share purchase warrants has
been reduced from USD$6.25 to USD$4.00, and the term of the warrants has
been extended one year to expire August 12, 2014. In addition, if the
weighted average trading price of the common shares increases to
USD$6.50 after March 11, 2012, the company will be entitled to require
that the holders exercise the warrants, failing which the warrants will
terminate. The 368,421 compensation warrants issued under the prospectus
financing have been amended in the same manner and re-priced from
USD$5.91 to USD$4.00. All of the warrants are held by arm′s length
investors. The amendments become effective on December 7, 2011.

Respectfully submitted,

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 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

David Duval,
1-800-811-3855

Investor Relations

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

Website:
www.TanzanianRoyaltyExploration.com