Tanzanian Royalty Enters Into Exclusivity Agreement With Company From the People's Republic of China

Vancouver, Canada (ots/PRNewswire) - Tanzanian Royalty Exploration
(AMEX: TRE/TSX: TNX) ("TRE") is pleased to announce that it has
signed a letter of intent with a company from the People's Republic
of China (the "PRC company") to enter into negotiations with a view
to concluding a definitive option agreement providing for the
exploration, development and production of mineral products from a
portfolio of properties held by TRE in the Republic of Tanzania.

The PRC company was approved by the China-Africa Business Council
whose President, the Hon. Minister Hu Deping, witnessed the signing.

Following a series of preliminary discussions that culminated in
high level meetings in Beijing, China between Tanzanian Royalty
Chairman and CEO , James E. Sinclair and executives from the PRC
company, TRE granted the company an exclusivity period of 150 days
to evaluate the properties in question within the context of
concluding an option agreement acceptable to both parties.

Any definitive agreement with the PRC company would cover
properties held by TRE that are currently not the subject of option
agreements with other parties. The licenses under consideration for
exploration and production of mineral products will include but not
be limited to nickel, gold and diamonds.

During the exclusivity period, TRE has agreed not to solicit or
engage in negotiations, or enter into any agreement or understanding
with any third party regarding the granting of option rights in
connection with nickel mineral products from the Kabanga Nickel Belt
or any other nickel- prospective areas held by TRE in Tanzania. With
respect to mineral products other than nickel, TRE has agreed to
grant the company the right of first offer to enter into definitive
agreements under similar commercial terms and conditions if any
third party proposes to enter into a definitive agreement with TRE
to explore, develop and produce such mineral products.

The letter of intent is a non-binding proposal with respect to the
basis upon which the parties intend to enter into negotiations, and
the parties are not legally bound to conclude any transaction in
connection with the properties unless and until they sign a binding
Definitive Agreement.

In addition to the above, TRE and the PRC company have both
expressed an interest in jointly pursuing other minerals-related
opportunities in Tanzania, including the acquisition of new
licenses. At some point, both parties have also agreed to actively
consider cooperative opportunities in capital markets as well as
cross-board representation possibilities.

Tanzanian Royalty Exploration is a unique, publicly-traded,
financial minerals exploration company whose business strategy is to
develop royalty income under partnership arrangements from its world
class gold, diamond and nickel assets in the Lake Victoria
Greenstone and Kabanga/Kagera Nickel Belts of Tanzania.

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.

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.

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