Tanzanian Royalty Adopts Shareholder Rights Plan

Tanzanian Royalty Exploration Corporation ('Tanzanian Royalty? orthe
'Company?) (TSX:TNX)(NYSE Amex:TRX) today announced that its board of
directorshas approved the adoption of a shareholder rights plan
(the 'Rights Plan?) designed toencourage the fair and equal
treatment of shareholders in connection with any take-overbid
for the outstanding common shares of the Company.

The Company′s board is not aware of any specific take-over bid for
Tanzanian Royalty that has been made or is contemplated.

In the event that a take-over bid is made for the Company′s common
shares in the future, the Rights Plan is intended to provide the
Company′s board with adequate time to assess a take-over bid, to
consider alternatives to a take-over bid and to provide Tanzanian
Royalty shareholders with time to assess a take-over bid.

Under the Rights Plan, offers that satisfy certain standards designed to
protect shareholder interests will be considered to be 'Permitted Bids?.
Specifically, a Permitted Bid must be made to all Tanzanian Royalty
shareholders and must be outstanding for a minimum period of 60 days,
among other conditions. If a bid does not qualify as a Permitted Bid,
shareholders other than the acquiring person and joint actors will
become entitled to exercise the Rights to acquire Tanzanian Royalty
common shares at a significant discount to the prevailing market.

The Rights Plan is subject to regulatory approval and Tanzanian Royalty
intends to put the Rights Plan before the shareholders for ratification.
A copy of the Rights Plan will be filed shortly on SEDAR at www.sedar.com
and on EDGAR at www.sec.gov,
and can also be obtained from the Company upon written request.

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