Tanzanian Royalty Reports New High Grade Gold Discovery in Tulawaka Area

Vancouver (ots/PRNewswire) - Tanzanian Royalty Exploration (the
Company) (TSX: TNX; AMEX: TRE) is pleased to report that one of its
royalty partners, MDN Northern Mining (MDN), has made a significant
gold discovery on one of our prospecting licenses under royalty
option agreement with MDN in the Tulawaka area of Tanzania.

Rotary Air Blast (RAB) drilling in the Mnezeki area returned one
of the highest grade gold intercepts reported from the region in
recent years: 30.08 g/t gold (0.88 oz/ton) over 6.0 metres (19.7 ft)
from 41 to 47 metres (134.5 - 154.2 ft.) down hole. The fact a RAB
drill rig was utilized for this phase of drilling precludes the
accurate determination of true width and orientation of the
mineralized intersections.

The drill program had to be stopped because of heavy rains but
will resume in early in 2007 following a thorough reassessment of all
existing data.

"These results confirm that our criteria for selecting properties
and royalty partners within the Lake Victoria Gold Belt are sound
from a business and technical perspective and we expect to see many
more discoveries like this in the future," said Tanzanian Royalty
Chairman and CEO, James E. Sinclair.

The discovery hole tested a previously unknown target within a
north-south trending shear zone which was interpreted from an induced
polarization survey that was coincident with a soil geochemical
anomaly.

The high grade target area is located 20 kilometres east of the
Tulawaka Gold Mine which is owned by Barrick Gold (70%) and MDN
(30%). MDN is earning a 100% interest in this particular property in
exchange for work and other commitments including a sliding scale Net
Smelter Royalty payable to the Company upon commercial production.

Samples were analyzed by fire assay at the SGS laboratory in
Tanzania, certified under international standards. A rigorous program
of analytical grade verification implemented by MDN Northern Mining
included 12% control samples. The drilling was carried out under the
management of geologist Brian Lloyd, and supervised by geologist
Dominique Fournier, Ph.D., who acted as a qualified person in
accordance with NI 43-101.

MDN has made a number of significant gold discoveries on ground
held under option from Tanzanian Royalty and in partnership with
others in the Tulawaka area. On November 15, 2006, MDN announced the
discovery of the Viyonza target 15 kilometres north of the Tulawaka
mine and within the 102.9 square kilometres Nyantimba license.

Among the best gold values reported from this target were 2.0
metres grading 35.95 g/t and 3.0 metres averaging 17.15 g/t. Last
March, MDN reported another gold discovery on its Isozibi target
about 17 kilometres northwest of the Tulawaka process plant.

"Shareholders are probably aware that we have been actively
exploring properties for our own account including Luhala which is
evolving into an attractive situation. At the moment, however, we are
pulling out all the stops to exploit the exploration potential on our
Kigosi Gold Project which I firmly believe has the potential to
eclipse anything in our portfolio thus far," Sinclair said. "We have
our own drill at Kigosi that is working 24/7 subject to maintenance
and repairs and expect to have a continuous stream of results in the
new year".

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
Im Internet recherchierbar: http://www.presseportal.de

Contact:
For further information: please contact Investor Relations at
1-800-811-3855; visit our website:
www.TanzanianRoyaltyExploration.com