Tanzanian Royalty Reports High Grade Results From Kigosi Project

Vancouver (ots/PRNewswire) - Tanzanian Royalty Exploration
Corporation is pleased to announce that impressive assay results
have been returned from six, shallow reverse circulation drill holes
completed late last year on its Luhwaika prospect within the Kigosi
Project Area in the Lake Victoria goldfields of Tanzania.

"These results confirm our high initial expectations for the
Kigosi property and we are confident they will provide a basis for
further successes in the coming months," said the Company's
President, John Deane.

The Luhwaika prospect is hosted within the Kigosi-Miyabi
greenstone belt near the dominant Kigosi-Haneti litho-tectonic
boundary. This geological boundary is seen as an important regional
control for gold mineralization and has been compared to the Cadillac
fault zone in the Abitibi Greenstone Belt of Canada, historically a
major gold producing region. The Miyabi gold project of Golden Eagle
Resources is situated within the same geological boundary to the
southeast of the Company's Luhwaika/Igunda workings.

Overview

As reported previously, the Phase 1 RC drill program at Kigosi is
focusing on an area immediately adjacent to artisanal workings at
both the Luhwaika and Igunda prospect areas. However, because of
heavy rains access to the Igunda prospect is not possible at the
present time so the drill program is currently restricted to three
800 meter-spaced traverse lines within the Luhwaika Prospect. The aim
of this phase of drilling is to test the strike continuity of the
Luhwaika reef system which has never been drilled in the past.

The Luhwaika workings are the largest in the entire project area,
with sporadic artisanal activity spread along a strike length of
approximately 1,200 meters. The gold mineralization is spatially
related to a granite-greenstone contact and appears to be hosted by
zones of stockwork granite and a highly altered quartz-sericite
schist.

"To my knowledge, there has never been a significant gold
depositdiscovered in Tanzania that didn't have artisanal workings
associated with it so we are off to a very good start," said Jim
Sinclair, Chairman and CEO of Tanzanian Royalty.

As observed from shallow (up to 20 meters deep) artisanal shafts,
it appears that at least two sub-parallel zones exist, namely the
Luhwaika Main Reef and the Luhwaika West Reef. These zones are
confirmed by soil geochemical data which extended the Luhwaika
mineralization to over 3.0 kilometers along strike in a
north-northwesterly direction. Please refer to the following link h
ttp://www.tanzanianroyaltyexploration.com/i/maps/LuhwaikaIgunda-Geo.j
pg for a map showing the Luhwaika reef.

Wall rock alteration adjoining the reef includes silicification,
sericitization and sulphidation (predominantly pyrite). Local zones
of intense hematization can be observed, separated by quartz
stockwork and veined biotite-granite containing up to 15% pyrite
disseminations.

The results presented below are highlights of 15 shallow RC holes
totaling 596 meters drilled along a single traverse line. Drilling
was stopped to allow for the year-end break in fieldwork and will
recommence within the next two weeks.

"I have to congratulate our exploration staff who managed to
complete this initial phase of drilling in what can only be described
as a highly unusual rainy season. It's a testament to their desire to
make Kigosi an outstanding success that they completed this amount of
work under such adverse conditions," Sinclair said.

Luhwaika Main Reef - Kigosi Project Area
Hole No. From To Intercept Gold including
(m) (m) (m) (g/t)
KG20RC-008 16.00 18.00 2.00 6.13
KG20RC-009 0.00 4.00 4.00 3.03
KG20RC-009 17.00 18.00 1.00 1.11
Luhwaika West Reef - Kigosi Project Area
Hole No. From To Intercept Gold including
(m) (m) (m) (g/t)
KG20RC-011 23.00 26.00 3.00 3.51 1m 8.90g/t
KG20RC-012 9.00 11.00 2.00 5.76
KG20RC-012 17.00 18.00 1.00 8.15
KG20RC-013B 34.00 37.00 3.00 11.63
KG29RC-014 50.00 53.00 3.00 4.04

Drilling within the Luhwaika Main Reef, indicates the reef to be
flat, with a gentle dip towards the southwest and a true thickness of
1-2 meters. Mineralization is hosted by a sheared, highly silicified
and sericitized granite, with gold values ranging from 1.11 to 6.13
g/t.

The Luhwaika West Reef, which sub-outcrops approximately 200
meters to the southwest of the Luhwaika Main Reef, is essentially a
mineralized quartz vein, dipping 30 degrees to the southwest, with a
true thickness of 2-3 meters and with gold values ranging from 3.51
to 11.63 g/t.

As stated by John Deane, "we are highly encouraged by the drill
results received so far and we look forward to resuming this drill
program by the end of this month, weather and access permitting."

Analysis

Fire assay with flame AAS finish was conducted by Humac
Laboratories in Mwanza, Tanzania. Duplicates and 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.

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) and a Fellow of the Society of Economic Geologists
with 23 years post-graduate experience. Mr. Chadwick personally
undertook and managed the Kigosi drill program, in addition to the
geological logging and sampling of the rock chips.

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: Investor Relations at +1-800-811-3855; Visit
our website: www.TanzanianRoyaltyExploration.com