Tanzanian Royalty Reports Impressive Gold Values Over Substantial Widths at Itetemia Project in Tanzania

Vancouver, Canada (ots/PRNewswire) - Tanzanian Royalty Exploration
Corporation is pleased to announce that assay results have been
received from the first of four diamond drill holes currently being
drilled on the Golden Horseshoe Reef (GHR) at its Itetemia Project
in Tanzania. The GHR is situated on a sub-parallel structure
immediately to the east of Barrick's Bulyanhulu gold mine.

Assay results for GHDD-029 in the GHR include the following:
-------------------------------------------------------------------------
Golden Horseshoe Reef
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Hole No. From To Intercept Gold Including
(Metres) (Metres) (Metres) (grams/tonne)
-------------------------------------------------------------------------
GHDD-029 194.60 215.18 20.58 3.69 2.5m (at) 6.13g/t
-------------------------------------------------------------------------
4.0m (at) 6.75g/t
-------------------------------------------------------------------------

The true width of these intercepts is estimated to be 50% of the
down hole intersections.

The steeply-dipping to near-vertical mineralized zone consists of
a higher-grade hanging wall (2.50 m (at) 6.13 g/t) and a similar
grading footwall (4.00 m (at) 6.75 g/t), with a 13 metre intervening
section averaging 2.33 g/t. Duplicate results are still pending.

The mineralization is typically characterized by fine-to-medium-
grained sulphides (predominantly pyrite and pyrrhotite) and increased
silica and carbonate alteration.

According to Tanzanian Royalty Chairman and CEO, Jim Sinclair,
"These initial results suggest a broad distribution of economically
attractive gold values in the GHR and reaffirm our belief that its
full potential remains to be fully established."

Since the return of the Itetemia prospecting licenses from Barrick
East Africa Limited in 2004, no further exploration work had taken
place. As part of the Company's re-evaluation of this important
asset, historic drill hole data was assembled and examined in
considerable detail.

Zones of anomalous gold mineralization were identified from the
data and grade composites were re-calculated using a minimum cutoff
grade of 6 g /t and a minimum intersect thickness of one metre. Bulk
gold content for each composite was subsequently calculated and
plotted onto a longitudinal section of the GHR. A spatial
distribution analysis of the bulk gold content was then performed,
focusing on the higher grade composites exceeding 31 gm/t.

This procedure helped recognize a well-defined, higher grade "pay
shoot" with a pitch of 55-60 degrees to the west. A search envelope
was subsequently defined that emphasized the pay shoot and allowed
for the bulk gold content data to be contoured on a longitudinal
section. (See longitudinal section attached).

The latest phase of drilling at Itetemia is targeting specific
depths or pierce points along the modeled pay shoot. Three holes
have been completed to date (GHDD-029, GHDD-030 and GHDD-031) and
the fourth (GHDD- 032) is nearing target depth.

"The first three drill holes completed thus far succeeded in
intersecting the GHR zone within 50 metres of the planned pierce
points and within the 31gm/t envelope," said the Company's
president, John Deane.

For longitudinal section please see

http://files.newswire.ca/508/tnx05july06.doc

Future Plans

Should the remaining three drill holes confirm the existence of
the modeled pay shoot, an infill diamond drilling program will be
considered as a means of providing a greater constraint on the
assumed pay shoot, along with a higher drill hole density for
resource estimation purposes.

Given the present drill hole density, the precise strike extent of
this higher-grade pay shoot remains to be clearly defined at depth.
However , higher grade values near surface have been established by
drilling for at least 250 metes along strike, Deane noted.

Other Projects

In addition to the exploration activity at Itetemia, Tanzanian
Royalty is undertaking a Reverse Circulation (RC) drilling program
on several kimberlite targets on its 853 square kilometers Mwadui
Project. The world famous Mwadui diamond mine is centrally located
within the project area.

Analysis

Fire assay with flame AAS finish was conducted by SGS Laboratories
in Mwanza, Tanzania. Duplicates and Standards were inserted in the
sample stream sent to SGS and subsequent analysis shows the
standards to fall within analytically acceptable (5% standard
deviation) limits.

Qualified Person

The Company's Qualified Person is Mr. Peter Chadwick, M.Sc.
University of Cape Town (1993), a registered scientist with SACNASP
(Reg. No. 400082/ 93) and a Fellow of the Society of Economic
Geologists. Mr. Chadwick personally undertook the re-evaluation of
the Golden Horseshoe Reef in addition to the geological logging and
sampling of the drill core.

Respectfully Submitted,

"James E. Sinclair"

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.

ots Originaltext: Tanzanian Royalty Exploration Corporation
Im Internet recherchierbar: http://www.presseportal.de

Contact:
For further information: Investor Relations, at +1-800-811-3855;
Visit our website: www.TanzanianRoyaltyExploration.com