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Press release from Business Wire

Tanzanian Royalty Announces Completion of NI 43-101 Resource Report for Kigosi Gold Project and Joint Venture With State Mining Corporation

Thursday, December 01, 2011

Tanzanian Royalty Announces Completion of NI 43-101 Resource Report for Kigosi Gold Project and Joint Venture With State Mining Corporation07:30 EST Thursday, December 01, 2011 SOUTH SURREY, British Columbia (Business Wire) -- Tanzanian Royalty Exploration is pleased to announce that it has received an updated NI 43-101 compliant technical report from Venmyn Rand (Pty) of South Africa for its Kigosi Gold Project in northern Tanzania. The updated technical report provides a summary of all scientific and technical information accumulated for the Kigosi property and includes a confirmation statement of mineral resources. In addition, the Company has negotiated a resource sharing joint venture for Kigosi with the State Mining Corporation (Stamico) of Tanzania that conforms with the government's policy of direct participation in minerals industry projects. The gross resource estimate for the Kigosi Gold Project of 586,391 ounces includes weight averaged Measured and Indicated resources for the Luhwaika and Igunda prospects of 12,859,909 tonnes grading 0.99 g/t gold, representing 408,091 troy ounces. The resource assessment also defines weight averaged Inferred Resources for these two prospects of 8,930,000 tonnes grading 0.62 g/t or 178,300 ounces. The Kigosi Project is subject to certain license-specific underlying agreements that include option fees to the original property vendors. At the present time the net ounces attributable to Tanzanian Royalty for the Kigosi Project in all categories are 338,439 troy ounces. Upward adjustments will be made to this net resource figure as time sensitive option payments are made to the underlying property vendors. The Venmyn report will be posted on www.SEDAR.com. Tanzanian Royalty is delighted to announce that it has entered into a joint venture with Stamico that will enable the state corporation to earn a 15% carried interest in the Kigosi Project. The Company confirms the arrangement is consistent with the government's expressed desire to generate greater economic benefits for its citizens by expediting and accelerating mining resource revenues. The joint venture with Stamico is consistent with Tanzanian Royalty's longstanding policy of engaging the government as a fully carried partner in its entire portfolio of mineral prospects. Only a small percentage of the Kigosi Project has been explored in any detail, providing the joint venture with additional room for resource development along established mineral trends, the Company confirms. According to James E. Sinclair, President and CEO, "Mineral rich developing countries are quite properly seeking a greater participation in wealth generating sectors of their economies. In fact, some countries have already incorporated their levels of participation in mining legislation. On the other hand, free market methods enable companies like Tanzanian Royalty to recognize through negotiations the host country's work input and its ongoing task of interacting with local stakeholders regarding the presence of exploration and mining-related activity and the net benefit this activity represents to the community as a whole." Tanzanian Royalty has already broken new ground in its relationship with the Tanzanian government vis-à-vis its development agreement for the advanced-stage Buckreef Gold Project which has been constituted as a 55/45 joint venture with Stamico. “Our latest joint venture with the government for Kigosi recognizes that the Tanzanian government and its citizens want to be meaningful equity participants in the development of the nation's mineral resources. We genuinely value our relationship with the government and the Tanzanian people and are honored to have them participate on this basis,” he adds. Qualified Person The Company's Qualified Person, Mr. Peter Zizhou, has reviewed and approved the contents of this news release. Mr. Zizhou is the General Manager (Exploration & Administration) of Tanzanian Royalty Exploration Corporation Limited. He has a Master of Science (Exploration Geology) degree from the University of Zimbabwe (2000) and is a registered scientist with SACNASP (Reg. No.400028/08). Respectfully Submitted, “James E. Sinclair” President and CEO For further information, please contact Investor Relations at 1-800-811-3855 Visit our website: www.TanzanianRoyalty.com The Toronto Stock Exchange and NYSE Amex Equities 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 limits disclosure for U.S. reporting purposes to mineral deposits that a company can economically and legally extract or produce. We use certain terms on this news release, such as “reserves”, “resources”, “geologic resources”, “proven”, “probable”, "measured", "indicated", or "inferred" which may not be consistent with the reserve definitions established by the SEC.U.S. Investors are urged to consider closely the disclosure in our SEC filings.You can review and obtain copies of these filings from the SEC's website at http://www.sec.gov/edgar.shtml This news release contains certain forward-looking statements and forward-looking information. All statements, other than statements of historical fact, included herein are forward-looking statements and forward-looking information that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time-to-time with the British Columbia, Alberta and Ontario provincial securities regulatory authorities. Certain information presented in this release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on numerous assumptions, and involve known and unknown risks, uncertainties and other factors, including risks inherent in mineral exploration and development, which may cause the actual results, performance, or achievements of the Company to be materially different from any projected future results, performance, or achievements expressed or implied by such forward-looking statements. Investors are referred to our description of the risk factors affecting the Company, as contained in our SEC filings, including our annual report on Form 20-F and Registration Statement on Form F-10, as amended, for more information concerning these risks, uncertainties, and other factors. Tanzanian Royalty ExplorationDavid Duval, 1-800-811-3855Investor RelationsorConnecticut Office:Tel: 860-364-1830Fax: 860-364-0673South Surrey Office:Tel: 604-536-7873Fax: 604-536-2529Toll Free: 1-800-811-3855investors@TanzanianRoyalty.comwww.tanzanianroyalty.com