Tanzanian Royalty Reports That Laboratory Probe Results Confirm the Presence of Diamondiferous Indicator Minerals in its Nzega and Igunga Pipes South of Mwadui

Vancouver, Canada (ots/PRNewswire) - The Company is pleased to
report that a range of diamondiferous kimberlite indicator minerals,
including G10 and G3 garnets, have been identified in four
kimberlite pipes on its Nzega and Igunga Project Areas in Tanzania.

According to Tanzanian Royalty Chairman and CEO, Jim Sinclair,
"The continuing stream of positive diamond indicator mineral results
from our exploration activities in Tanzania suggests the potential
for new diamond discoveries there is very real indeed. We are
currently pulling out all the stops to capitalize on the successes we
have achieved to date".

NZEGA PROJECT AREA

The Nzega Project Area is known to host diamondiferous kimberlite
pipes immediately south of the Company's prospecting licenses where
small-scale mining activities are presently being carried out.

The two kimberlites discovered by the Company last year (See Dec.
8, 2005 News Release) are located about 15 kilometres north of these
diamondiferous pipes. Visual results from Mineral Services in South
Africa were received in March 2006 and they proved to be very
encouraging (See April 03, 2006 news release). Visually identified
grains from both kimberlites (NZ151K1 & K2) were subsequently
submitted for mineral composition analysis, producing the encouraging
results described below.

To view the discrimination plots associated with this analysis,
please visit our website at: www.tanzanianroyalty.com

NZ151K2

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GARNETS

A total of 156 garnet grains were submitted for electron
microprobe analysis. Of this total, 34 are eclogitic garnets (G3)
while the remainder are classified as G9 (lherzolitic) and
megacrystic garnets as indicated in Figure 1a on the Company's
website.

Diamonds are generally of two types: peridotitic or "P-type"
diamonds and eclogitic or "E-type" diamonds. The former crystallize
within peridotitic source rocks in the Earth's upper mantle and are
enriched in chrome. On the other hand, E-type diamonds crystallize
within eclogitic source rocks in the earth's mantle that are
essentially bi-minerallic. In addition to providing an environment
for the generation of diamonds, peridotitic and eclogitic rocks are
also the source of the indicator minerals that typically occur in
kimberlites and are the object of indicator mineral sampling
programs.

No G10 garnets were recovered from this pipe. Nonetheless, it is
important to note that G3 garnets are equally as significant as G10
garnets . While G3 garnets are transported from an eclogitic source,
G10 garnets are disaggregated from a peridotitic source. Garnet
inclusions in eclogitic diamonds are characterized by high sodium
(greater than 0.07 wt% Na2O) enrichment and elevated titanium
(Danchin and Wyatt, 1979; Gurney, 1984). G3 garnets with greater
than 0.07 wt% Na2O and TiO2 are defined as Group 1 eclogitic garnets
which are commonly associated with diamonds.

NZ151K2 is mostly typified by Na2O ranging from 0.0 to 0.09 wt%,
with group 2 eclogitic garnets dominating the population as
indicated in Figure 1b on the Company's website. A few grains fall
within Group 1 eclogitic garnets, suggesting the possibility of
diamonds occurring within the pipe.

ILMENITES

A total of 31 ilmenites were probed and all of them are
kimberlitic in nature. Kimberlitic ilmenites are dominated by
Mg-rich varieties (4 to 15 wt% MgO). Although the relationship
between ilmenites and diamonds is not fully understood, the former
are used to determine the diamond preservation potential (DPP) of the
kimberlite.

Ilmenites with relatively high MgO and low Fe2O3 are considered to
be indicative of reducing conditions in the parental magma. As
reducing conditions prevent the oxidation of diamonds, kimberlites
containing ilmenites with relatively high MgO and Cr2O3 contents are
considered to have high diamond preservation potential.

Ilmenites from NZ151K2 are characterized by high MgO (4.79 to
14.76 wt %) contents and elevated Cr2O3 (0.08 - 3.84 wt%) as
illustrated in Figure 1c on the Company's website. Such a
concentration predicts diamond preservation if diamonds were sampled
by the kimberlite magma passing through the diamond stability field.

Based on these microprobe results, the NZ151K2 is most likely an
eclogitic diamondiferous kimberlite that warrants further evaluation.

NZ151K1

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This pipe is located approximately two kilometres north of
NZ151K2. Unfortunately, only a few kimberlitic grains were recovered
from this kimberlite, the majority of which were ilmenites.

ILMENITES

A total of 21 ilmenites were probed and all are kimberlitic.
Ilmenites from NZ151K1 are characterized by high MgO (4.90 to
12.99wt %) contents and elevated Cr2O3 (0.0 - 3.56 wt %) as
illustrated in Figure 2 on the Company's website. Such a
concentration predicts diamond preservation if diamonds were sampled
by the kimberlite.

Based on the ilmenite microprobe results, NZ151K1 has a high
preservation potential if this kimberlite sampled a diamondiferous
source. However, the lack of potential indicators such as chromites
and garnets lowers the ranking of this particular kimberlite. G10
garnets were recovered about 400 metres west of this pipe during the
Company's initial stream sampling program. Due to its proximity to
NZ151K2 and G10 garnets, further work including re-sampling has been
proposed.

CONCLUSION - NZEGA KIMBERLITES

Based on the probed results from the two newly discovered
kimberlites and the established presence of diamondiferous pipes in
the area, the Nzega Project Area remains prospective for the
discovery of diamondiferous kimberlites. Geotherm (thermal gradient)
as well as micro diamond analysis are proposed to further constrain
these results before bulk sampling is undertaken. The lack of
mineral indicator grains from NZ151K1 precludes drawing a firm
conclusion on the diamondiferous potential of this kimberlite. It is
noteworthy, however, that G10 garnets were recovered during the
initial loam sampling program although their source has not been
defined by either NZ151K1 or NZ151K2. That being the case, more
samples will need to be submitted for analysis.

IGUNGA PROJECT AREA

Two kimberlites were discovered in this area last year during the
successful drilling program mentioned earlier. Visual results from
Mineral Services were received in March 2006 and they were very
encouraging (See April 03, 2006 news release). Samples submitted for
micro-probing from these two kimberlites (IG147K1 & K2) returned
encouraging results as described below:

IG147K2

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GARNETS

A total of 75 garnet grains were submitted for probing. Out of
this total, four grains (5% of the total grains analyzed) are G10
garnets. The rest are G9 (lherzolitic) garnets as illustrated in
Figure 3a on the Company's website. In summary, this kimberlite
sampled a depleted peridotitic source which may also indicate higher
diamond contents.

ILMENITES

A total of 59 ilmenites were probed and all are kimberlitic
ilmenites. Ilmenites from IG147K2 are characterized by high MgO
(4.32 to 15.56 wt%) contents and elevated Cr2O3 (0.11 to 5.22 wt% )
as illustrated in Figure 3b on the Company's website. Elevated
values in MgO and Cr2O3 indicate good diamond preservation potential
(Gurney (1984).

Based on all the probe results, the IG147K2 is most likely a
diamondiferous kimberlite where most of the diamonds should have been
preserved on their way to the surface. The mineral chemistry of this
particular pipe warrants more work by the Company.

IG147K1

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GARNETS

Two garnets were recovered from this kimberlite. These grains (one
G9 and one G3) are not enough to assess the potential of the
kimberlite with confidence. More samples are therefore needed.

CHROMITES

Like garnets, chromite xenocrysts are known to have formed co-
genetically with diamonds. Potential chromites indicating a
diamondiferous source have a chrome content ranging from 60 to 70
wt% Cr2O3, with an average MgO concentration of 8 to 16 wt% and a
TiO2 content of less than 0.7 wt%.

A total of 15 chromites were probed and are confirmed as
kimberlitic chromites. Chromites from IG147K1 are characterized by
MgO wt% ranging from 5.99 to 13.43 and Cr2O3 wt% content of 30.78 to
63.92 wt%. TiO2 ranges from 0.00 to 4.66 wt%. A few grains from this
kimberlite plot in the diamond inclusion and intergrowth fields as
illustrated in Figures 4a & b on the Company's website. A few grains
suggest the kimberlite sampled within the diamond stability field
thereby upgrading this kimberlite.

ILMENITES

A total of 61 ilmenites were probed and all are kimberlitic
ilmenites. Ilmenites from IG147K1 are characterized by high MgO
(7.87 to 15.16 wt%) contents and elevated Cr2O3 (0.0 to 3.9 wt%) as
illustrated in Figure 5 on the Company's website. A few grains are
indicating elevated values in MgO and Cr2O3. This suggests moderate
diamond preservation potential if diamonds were sampled from the
first instance (Gurney, 1984).

CONCLUSION - IGUNGA PROJECT AREA

Based on the probed results from two kimberlites, the Igunga
Project Area has the potential to host diamondiferous kimberlites.

Analysis

Mineral composition analysis was conducted by Mineral Services of
South Africa.

Qualified Person

The Company's Qualified Person is Mr. John Deane, the President of
Tanzanian Royalty Exploration, M.Sc., University of Cape Town (1993),
a registered scientist with SACNASP (Reg. No. 400005/05).

Respectfully Submitted,

James E. Sinclair

Chairman and Chief Executive Officer

The Toronto Stock Exchange and American Stock Exchange 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 permits U.S. mining companies, in their
filings with the SEC, to disclose only those mineral deposits that a
company can economically and legally extract or produce. We use
certain terms on this news release, such as "measured", "indicated",
and "inferred" "resources" that the SEC guidelines strictly prohibit
U.S. registered companies from including in their filings with the
SEC. U.S. Investors are urged to consider closely the disclosure in
our Form 20-F, File No. 0-50634, which may be secured from us, or
from the SEC's website at http://www.sec.gov/edgar.shtml.

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http://files.newswire.ca/508/tnxnews27june06.doc

ots Originaltext: Tanzanian Royalty Exploration Corporation
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Contact:
For further information: please contact Investor Relations at
+1-800-811-3855; Visit our website:
www.TanzanianRoyaltyExploration.com; To request a free copy of this
organization's annual report, please go to http://www.newswire.ca and
click on Tools for Investors.