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Press release from Filing Services Canada

Tanzanian Royalty Refutes Posting on Seeking Alpha Website that Grossly Misrepresents the Company and its Assets

Friday, June 10, 2011

Tanzanian Royalty Refutes Posting on Seeking Alpha Website that Grossly Misrepresents the Company and its Assets15:15 EDT Friday, June 10, 2011FSC / Press ReleaseTanzanian Royalty Refutes Posting on Seeking Alpha Website that Grossly Misrepresents the Company and its AssetsSouth Surrey, British Columbia CANADA, June 10, 2011 /FSC/ - Tanzanian Royalty Exploration Corp (TNX - TSX, TRE - NYSE-Amex),The Company wishes to respond to a recent posting on the internet website, Seeking Alpha, which purports to present itself as so-called "analysis." It is the Company's opinion that the posting is part of a coordinated attempt with a major short seller to depress the Company's share price as it investigates financing opportunities for its feasibility stage Buckreef Gold Project in Tanzania. As reported in the Company's news release dated April 15, 2011, Buckreef hosts approximately 2.0 million ounces of gold resources - all of which are compliant with the NI 43-101 standard. No reference whatsoever was made in the Seeking Alpha report to this extremely important feasibility stage asset or the gold resources contained on the Buckreef property. According to James E. Sinclair, President and CEO of Tanzanian Royalty, "The Seeking Alpha pulp piece is rife with gross inaccuracies unbecoming of a CFA who describes himself as a 'former hedge fund trader and analyst specializing in REIT, hotel, home building, real estate, financial, and consumer discretionary stocks.'" Among the report's most blatant shortcomings is the use of dated financial statements. In this regard, the author refers to his use of financials as being "the latest report" when in fact they are no less than six months old. "A cursory review of the Company's website and its SEDAR filings would have provided the author with our latest financial statements which in fact are dated February 28, 2011. In addition, our news release of December 21, 2010 described in considerable detail the Buckreef acquisition as did a SEDAR-filed 43-101 compliant technical report prepared by an international consulting firm," he noted. The statement "even if Tanzanian Royalty Exploration managed to find gold" is so ridiculous in the context of the Company's published resources that it hardly justifies comment, Sinclair added.In what must certainly rank among the dumbest comments presented by any analyst in modern times, Sinclair points out that the author manages no less to refute his own argument with the statement: "Looking at the valuation, and for simplicity's sake ignoring present value, the current market cap would imply that the company will find 900,000 ounces of gold." "Well in actual fact the Company's 55% interest in Buckreef works out to 1.1 million ounces to our credit which, using the author's premise, would suggest the Company's stock is actually undervalued," Sinclair said.What is also alarming Sinclair asserts is the fact the author, James Emerson, claims to be an adjunct professor of Finance and Accounting at SUNY, Empire State College in New York. "With people like him imparting their standards on students is it any wonder that so many people in his field have fallen into disrepute in recent years?The Company intends to take legal action against the author and Seeking Alpha based on the belief that the article was a premeditated attempt in conjunction with other parties to depress the Company's stock price and do material harm to the Company and its shareholders. "We've seen a recent example of this type of egregious analysis with another TSX listed company and we don't mind playing a leading role in exposing these practices to the general public, regulators, and to professional organizations who claim their members adhere to the highest industry standards," Sinclair said.James E. Sinclair President and Chief Executive OfficerConnecticut Office: 93 Benton Hill Road Sharon, CT 06069 Tel: (860) 364-1830 Fax: (860) 364-0673South Surrey Office: Suite 404 - 1688 -152nd Street South Surrey, BC V4A 4N2 Tel: (604) 536-7873 Fax: (604) 536-2529 Website: To view this press release as a web page, please click on the following link: Tanzanian Royalty Exploration Corp (TNX - TSX) (TRE - AMEX) Maximum News Dissemination by Filing Services Canada Inc.