Tanzanian Royalty Re-Purchases Rights to Kigosi Property in Tanzania

Vancouver, Canada (ots/PRNewswire) - Tanzanian Royalty Exploration
Corporation is pleased to announce that it has negotiated the
repurchase of its rights to the Kigosi property, including all
related camp and equipment, along with the purchase of a
non-associated property, the Dongo, from AngloGold-Ashanti in a
transaction valued at USD$900,000.

The price of the acquisition will be satisfied by the issuance to
AngloGold Ashanti of 180,148 common shares of Tanzanian Royalty
Exploration Corporation, based upon the weighted average trading
price of the common shares over the five trading days preceding the
date of execution of the agreement. Issuance of the common shares is
subject to all required regulatory and stock exchange approvals.

Jim Sinclair, Chairman and CEO of Tanzanian Royalty Exploration
said, "It has always been our view that exploration work undertaken
on the Kigosi property supports our pre-agreement conclusion that
Kigosi is a valuable exploration asset - even more so for a company
our size with a unique royalty business strategy.

"As soon as the current drilling program is completed at our
Luhala Gold Project, the Company's drill rig will be moved to Kigosi
to begin drilling on the reef that was previously exploited by
artisanal miners dating back almost a century."

The Kigosi Project Area encompasses approximately 1,095 square
miles and includes 15 individual Prospecting Licenses immediately
southwest of the Ushirombo Belt in the Sukumaland Greenstone Terrain
of northwestern Tanzania. The area consists essentially of granite
with greenstones in the northwest and east.

As reported previously by the Company in its news release of March
18, 2004, the licenses cover at least three gold-bearing vein
occurrences, two of which are located at the north end of a three
kilometre long northwest trending structure that may have
concentrated the high grade gold values reported previously at the
northern and southern limits of this prominent geological feature.

One of the strongest gold occurrences identified by the Company,
Luhwaika, returned grab samples ranging from 0.01 to 233 grams (7.5
ounces) gold per tonne. The numerical average for 25 samples taken at
this site by the Company was 11.8 grams (0.38 ounce) per tonne, while
the average excluding the high-grade value (233 grams) was 2.5 grams
(0.08 ounce) per tonne. A swarm of narrow veins has been discovered
300 metres away at Luhwaika West, which the Company believes could
represent a bulk tonnage gold deposit target.

Grab samples taken by the Company at Igunda, a shear-hosted,
steeply dipping narrow vein occurrence three kilometres southeast of
Luhwaika, ranged from 0.02 to 35.6 grams (1.1 ounce) per tonne.
Nineteen grab samples from this occurrence returned a numerical
average of 3.58 grams (0.12 ounce) per tonne, while the average
excluding the high-grade value (35.6 grams) was 1.7 grams (0.05
ounce) per tonne.

Grab samples collected proximal to artisanal pits by the Company
yielded gold values in the range of 5-10g/t and included the high
grade sample of 233g/t Au.

"We are also pleased that Anglogold-Ashanti has offered us its
Dongo property, which will augment our exploration portfolio with an
asset that fits our investment criteria as a junior explorer and
supports our ultimate objective of deriving royalty income from
producing assets," Sinclair stated.

Analysis

Fire assays were conducted by SGS Laboratories in Mwanza,
Tanzania.

For further details on the Kigosi property and information on
other projects in the Company's exploration portfolio, please visit
our website at: www.TanzanianRoyaltyExploration.com.

Respectfully Submitted,
"James E. Sinclair"
James E. Sinclair
Chairman and Chief Executive Officer

For further information, please contact Investor Relations at
1-800-811-3855
Visit our website: www.TanzanianRoyaltyExploration.com
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 US Investors - The United States Securities and
Exchange Commission permits US 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 US registered
companies from including in their filings with the SEC. US 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.

Trade Symbol:

TSX: TNX

AMEX: TRE

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