Tanzanian Royalty Reports High Grade Assays From Kigosi Project and Laboratory Results From its Kimberlite Exploration Program

Vancouver, Canada (ots/PRNewswire) - Tanzanian Royalty (TSX: TNX,
AMEX: TRE) is pleased to announce that a Phase 2 Reverse Circulation
(RC) drilling program has confirmed the presence of two previously
interpreted reef (vein) systems along with high grade gold values at
its Kigosi Project in the Lake Victoria Goldfields of Tanzania.

The two shear zones that host the reefs have been traced along a
strike length of at least one kilometre and are still open in both
directions along strike and down dip.

The Phase 2 drill program consisted of 109 holes aggregating
4,057 metres. It focused on an area immediately adjacent to artisanal
workings within the Luhwaika prospect area. Drilling was conducted
along five control lines with a central baseline having a strike
length of 2.8 kilometres. The lines varied in length from 300 metres
near artisanal mine workings to approximately 1,100 metres on line
3250N where regional drilling was conducted to test coincident IP and
soil anomalies.

The objective of this second phase of drilling was to test the
strike continuity of the Luhwaika reef system which had never been
drilled before. The program also provided the Company with an
opportunity to evaluate surrounding gold-in-soil and geophysical
anomalies. This particular phase of exploration was a continuation of
the Phase 1 program that was prematurely abandoned towards the end of
2006 due to heavy rains. A third phase of drilling is presently under
way at Kigosi.

The results presented below include the most significant gold
mineralization intersected by drilling on all five lines. According
to Tanzanian Royalty President, John Deane, "We can now confirm the
existence of the two reef systems reported last year, namely the
Luhwaika Main and Luhwaika West Reefs, and that they can be
confidently traced out over a strike length of at least one
kilometre."

The fifth line, line 3250N, intersected a quartz vein that hosted
gold mineralization approximately 800 metres north of the last line
drilled. Infill drilling will be required to establish if the gold
mineralization in this quartz vein connects with the two known reefs.

Deane also said that because several zones of high-grade gold
mineralization occur within the reef systems, the next phase of
drilling will utilize 100 metres line spacing in order to identify
the controls and trends for these high grade zones. "The reefs tend
to flatten near surface, producing a gravel zone that may also hold
potential to host gold-bearing mineralization that can be extracted
at very low cost," he added.

A summary of the drill highlights is given below:
------------------------------------------------------------------------
Water hole (105m south of line 1450N)
------------------------------------------------------------------------
Hole No. From To Intercept Gold Including Comments
(m) (m) (m) g/t
KG20RC-W1 2 4 2 10.45 Gravels
------------------------------------------------------------------------
Line 1450N
------------------------------------------------------------------------
Hole No. From To Intercept Gold Including Comments
(m) (m) (m) g/t
KG20RC-083 2 4 2 10.40 Gravels
KG20RC-085 6 7 1 4.01 Luhwaika Main
KG20RC-087 20 21 1 1.62 Luhwaika Main
KG20RC-088 0 3 3 2.48 Gravels
KG20RC-088 31 33 2 3.02 1m (at) 4.89 Luhwaika Main
KG20RC-091 2 4 2 3.28 Gravels
KG20RC-093 1 3 2 1.62 Gravels
KG20RC-094 4 5 1 1.02 Gravels
------------------------------------------------------------------------
Line 1650N
------------------------------------------------------------------------
Hole No. From To Intercept Gold Including Comments
(m) (m) (m) g/t
KG20RC-123 80 82 2 10.71 1m (at)20.30 Luhwaika West
------------------------------------------------------------------------
Line 2050N
------------------------------------------------------------------------
Hole No. From To Intercept Gold Including Comments
(m) (m) (m) g/t
KG20RC-104 2 4 2 3.03 Gravels
KG20RC-107 4 9 5 2.39 1m (at) 6.71 Luhwaika Main
KG20RC-109 15 16 1 7.21 Luhwaika Main
KG20RC-110 25 27 2 3.50 1m (at) 6.39 Luhwaika Main
KG20RC-111 38 39 1 0.94 Luhwaika Main
KG20RC-116 2 4 2 4.79 Gravels
KG20RC-117 8 9 1 0.91 Luhwaika West
KG20RC-120 43 44 1 1.01 Luhwaika West
------------------------------------------------------------------------
Line 2450N
------------------------------------------------------------------------
Hole No. From To Intercept Gold Including Comments
(m) (m) (m) g/t
KG20RC-033 3 5 2 0.99 Gravels
KG20RC-038 6 8 2 1.10 Luhwaika Main
KG20RC-039 14 16 2 8.83 1m (at) 14.10 Luhwaika Main
KG20RC-040 24 27 3 0.94 1m (at) 2.59 Luhwaika Main
KG20RC-041 31 33 2 6.33 1m (at) 9.40 Luhwaika Main
KG20RC-042 39 41 2 0.78 Luhwaika Main
KG20RC-043 51 53 2 12.55 1m (at) 23.00 Luhwaika Main
KG20RC-045 1 3 2 38.15 Gravels
KG20RC-045 74 75 1 1.13 Luhwaika Main
------------------------------------------------------------------------
Line 3250N
------------------------------------------------------------------------
Hole No. From To Intercept Gold Including Comments
(m) (m) (m) g/t
KG20RC-076 23 24 1 2.66 Quartz vein
------------------------------------------------------------------------

The above intersections are estimated to be very close to true
thicknesses with all the drill inclinations being -60 degrees and the
dip of the reef being -22 degrees. All holes are drilled
perpendicular to the assumed strike of the reef(s).

Drilling within the Luhwaika Main Reef indicates a dip of -22
degrees 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 up to 23.0 g/t (0.67
oz/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 up to 11.63
g/t (0.34 oz/t)

Diamond Analytical Results

The Company has received results from eight 50 kilogram kimberlite
samples that were sent in for micro-diamond analysis in the latter
part of 2006. These samples were collected from RC drilling over
eight separate kimberlites that were discovered on two of the
Company's diamond licenses. Receipt of the analytical results took
much longer than expected because of the heavy backlog of work in
diamond laboratories worldwide. Two of the eight sample composites
returned very low quantity (one from each sample) micro diamonds
while the remaining six were non-diamondiferous. These results
indicate that none of these pipes will be of economic interest and no
further work will be conducted on them. Nonetheless, the Company
intends to evaluate other licenses in its portfolio that are
prospective for diamonds.

Analysis

Fire assay with flame AAS finish was conducted by Humac
Laboratories in Mwanza, Tanzania, and SGS Laboratories in Mwanza.
Duplicates and Standards were inserted in the sample stream sent to
both Humac and SGS, and subsequent analysis shows that 95% of the
standards fall within analytically acceptable (5% standard deviation)
limits. Duplicates have a correlation coefficient of 87%, which is
accounted for by the large nugget effect within the sampling. The
figures used in this press release are the average grades taken for
between one and three duplicates run by the labs on each analysis.
Micro-diamond analysis was conducted at the SGS Lakefield Research
laboratory in Lakefield, Ontario.

Qualified Person

The technical information contained in this document has been
reviewed and approved by John Deane, President, Tanzanian Royalty
Exploration Corporation Limited, a qualified person as defined by NI
43-101. He has an M.Sc. from the University of Cape Town (1993) and
is a registered scientist with SACNASP (Reg. No.400005/05).

Respectfully Submitted,

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.

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 Form 20-F, File
No. 0-50634, for a more information concerning these risks,
uncertainties, and other factors.

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