Tanzanian Royalty Boosts Exploration Budget to Expand Drill Program at Buckreef Main and Eastern Porphyry Targets in Northern Tanzania

Tanzanian Royalty Exploration Corporation is pleased to announce that
board approval has been received for an additional drilling program at
its Buckreef Main and Eastern Porphyry targets within the Buckreef
Project Area in the Lake Victoria Goldfields in Tanzania.

The Company recently completed an in-house technical review of its
Eastern Porphyry target, concluding that an expanded drill program would
best support and facilitate the ?confirmation and expansion of the known
mineralization at Eastern Porphyry and the calculation of an initial
resource estimate which will be added to the current Buckreef Project
resource inventory.

According to Joseph K. Kahama, Chairman and Chief Operating Officer
(Tanzania), 'Eastern Porphyry has the potential to significantly grow
our resource base and we see this target, along with Buckreef Main, as
key components in the optimization of commercial production at our
Buckreef Project.'

Kahama notes that this proposal is a follow-up to the drilling program
in 2011 when the Company completed 760 ?meters ?of NQ diamond drilling
comprising four holes in the Eastern Porphyry target area. ?All of the
2011 holes intercepted potential economic mineralization of gold.
Highlights from the Eastern Porphyry drilling are as follows:

BMDD100B returned ?2.25 meters grading 6.3g/t gold;

BMDD101returned 4.8 ?meters at 3.83g/t gold and 2.0 meters averaging
7.47g/t gold;

BMDD102 returned 9.4 ?meters grading 1.25g/t gold and 4.0 meters
averaging 2.73g/t gold;

BMDD103 included 10.5 ?meters grading 2.27g/t gold.

The Eastern Porphyry zone is a gold-rich stockwork hosted in a mafic
sequence intruded by quartz-feldspar porphyry associated with
quartz-carbonate-pyrite alteration.

The Company has also approved an additional drilling program for the
Buckreef Main body, ?targeting the existing Inferred resource at a
vertical depth between 150m to 200m with the objective of upgrading the
Inferred resource to the Indicated category and defining additional
near-surface resources at the Northeast Extension target.

The additional drilling program in the Buckreef Main and Eastern
Porphyry areas will include a total of 9,550m of both Diamond and RC
drilling at ?a total ?cost of US$1.4 million. At the Buckreef Main target,
a total of ?3,000m of Diamond and 2,200m of RC drilling will be completed
at a total cost of US$772,802. This drilling is intended to define the
resource between 150m and 200m vertical depth while testing the down dip
continuity of the ?shear zone-hosted ?gold mineralization associated ?with
quartz-carbonate-pyrite veins emplaced in the mafic volcanic sequence.

At the Eastern Porphyry target, a total of 2,500m of Diamond and 1,850m
of RC drilling at a total cost of US$654,502 are planned to investigate
and define the resource which will be added to the Buckreef Project
resource inventory. ?The above planned drilling program will top up the
2,200m of RC drilling which have already been planned in the area.

The Company anticipates incorporating the results of these drilling
programs into the forthcoming Preliminary and Definitive feasibility
studies for the Buckreef Project.

Buckreef is an advanced stage gold project with 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 g/t
(954,000 oz); Inferred, 17.173 million tonnes grading 1.51 g/t (835,000
oz).

Almost 61% of these resources are in the Measured and Indicated
categories; and based on recent exploration successes infill drilling is
expected to significantly improve this already favorable resource ratio.
The majority of the resources are oxide and non-refractory in nature and
a large proportion appear to be amenable to low cost heap leach recovery
techniques.

Qualified Person

This press release was reviewed ?and approved by the Company's Qualified
Persons, Mr. ?Charles ?Mnguto and Phillip Kaniki. Mr. Charles Mnguto ?is a
Head of Geology, ?has a Bachelor of Science in Geology (Hons) degree from
the University of Dar es Salaam (1995) and is registered scientist with
MAusIMM (Reg. No 307793). Mr. Phillip Kaniki ?is a Resource Evaluation
Manager, ?has a Bachelor of Science in Geology degree from the University
of Dar es Salaam (1997) and is a registered scientist with MAusIMM (Reg.
No 221963).

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

David Duval, 1-800-811-3855

Investor
Relations

Email: investors@TanzanianRoyalty.com

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