Tanzanian Royalty Reports Encouraging Gold Intersections for the Remaining Three Diamond Drill Holes at the Itetemia Project in Tanzania

Vancouver, Canada (ots/PRNewswire) - Tanzanian Royalty Exploration
Corporation is pleased to announce that assay results have been
received from the remaining three diamond drill holes of the four
hole program, recently completed 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. The objective of the four hole program was to
determine if the high grade pay shoot has continuity up to 700
metres down plunge. The results of the first, shallowest diamond
hole are reported in an earlier press release on July 5, 2006.

Assay results for GHDD-030, GHDD-031 and GHDD-032 include the following:
Golden Horseshoe Reef
Hole No. From To Gold
(metres) (metres) Intercept (grams/tonne) Including
GHDD-030 280.00 286.00 6.00 2.66
GDHH-031 406.00 416.00 10.00 6.73 4.00m (at)
11.07 g/t
GHDD-032 604.00 605.00 1.00 1.68
609.92 610.73 0.81 1.45

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

GHDD-030 intersected the main mineralized zone some 270 metres
below surface. It is characterized by disseminated to massive
sulphide mineralization, predominantly pyrite with lesser
pyrrhotite, in a silicified dacitic host. The mineralized zone has
been both diluted and disrupted by a 9 metre thick pegmatite dyke,
which has been subsequently modeled to be flat-dipping. The combined
intersect is 2.66 g/t Au over a true width of 3 metres.

GHDD-031 intersected the GHR pay shoot at a vertical depth of
almost 400 metres below surface, yielding an impressive 6.73 g/t
over a true thickness of 5 metres, and includes a high-grade
component of 11.07 g/t over a true thickness of 2 metres.

GHDD-032, intersected the projected GHR zone at a vertical depth
of 550 metres below surface. The main pay shoot was not intersected,
and the best intersects are 1.68 and 1.45 g/t Au over sub-metre
intersect widths. The zone itself has also thinned to a true width
of 3 metres. Measurement of the bedding core angles for all four
holes shows a consistent 30 degrees in the top three holes, with the
deeper hole GHDD-032 flattening to 40 degrees. This suggests a
distinct flattening of the GHR at depth, and it is quite likely that
this drill hole has undershot the pay shoot.

As reported in the July 5, 2006 press release, the steeply-dipping
to near-vertical mineralized zone, as intersected in the first drill
hole ( GHDD-029), consists of two separate but high-grade ore zones,
with a low- grade middling. The results presented here suggest that
these two separate zones of mineralization might merge into a single
mineralized zone at depth.

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 established."

This drill program has succeeded in confirming the existence of a
continuous high-grade pay shoot at GHR down to a depth of 450
metres, having a total down plunge distance of 550 metres, bar the
effects of the pegmatite dyke in GHDD-030.

"We remain highly excited about the potential of GHR, and the
results of this drill program will help focus future diamond
drilling, and add value to the project in the coming months," said
the Company's president, John Deane.

Future Plans

The Company plans on RC drilling the gaps in the top 150 metres of
the GHR to obtain the true strike, estimated at 300 metres, and
grade of the deposit so a decision can be made on the deeper
drilling.

Other Projects

Tanzanian Royalty is continuing with a Reverse Circulation (RC)
drilling program on several kimberlite targets. To date one new
kimberlite has been intersected on its Nyamigunga PL bringing the
total number of kimberlites on the license to eight. Composite 25 kg
samples from the larger pipes will be submitted for micro-diamond
analysis next month. Furthermore, a ten hole diamond drill program
has recently commenced along the eastern flanks of Kisunge Hill on
the Luhala Project. This is aimed at testing the down-dip extension
of high-grade gold mineralization, proven by earlier in-house RC
drilling.

Analysis

Fire assay with flame AAS finish was conducted by Humac
Laboratories in Mwanza, Tanzania. Standards were inserted in the
sample stream sent to Humac and subsequent analysis shows the
standards to fall within analytically acceptable (5% standard
deviation) limits. Duplicates of pulps and rejects have been
received and fall within the 95% correlation coefficient.

Qualified Person

The Company's Qualified Person is Mr. Peter Chadwick, M.Sc.
University of Cape Town, a registered scientist with SACNASP (Reg.
No. 400082/93) since 1993, 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
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Contact:
For further information: please contact Investor Relations at
+1-800-811-3855; Visit our website:
www.TanzanianRoyaltyExploration.com