Tanzanian Royalty Enters Into Contract Negotiations for Mineral Licenses With Company From People's Republic of China

Vancouver, Canada (ots/PRNewswire) - Tanzanian Royalty Exploration
Corporation (AMEX: TRE ; TSX: TNX) is pleased to announce that it
has entered into contract negotiations with a company from the
People's Republic of China (the "PRC Company") for 13 Prospecting
licenses in Tanzania.

The decision to proceed directly into contract negotiations for
the licenses at this stage follows the signing of a Letter of Intent
(LOI) with the PRC Company in May 2007. The LOI granted the PRC
Company an exclusivity period of 150 days to evaluate the properties
within the context of concluding option agreements that are
acceptable to both parties.

According to Tanzanian Royalty Chairman and CEO, Jim Sinclair,
"The Chinese have pulled out all the stops to expedite their due
diligence on these licenses and they are keen to negotiate
contractual arrangements for them while they assess the other
licenses that are covered under the LOI."

The 13 licenses include gold properties in the Ushirombo, Lunguya,
and Nyanzaga areas of Tanzania and nickel licenses in the
Kagera/Kabanga nickel belt, he added.

While there is no guarantee that negotiations between Tanzanian
Royalty and the PRC Company will lead to the signing of any formal
contracts, Sinclair emphasized that the Chinese interest in Tanzania
is genuine and reflects the nation's strategy of securing long term
sources of supply for key commodities such as nickel, copper, gold
and other industrial metals. "The Chinese have a long history in
Tanzania but their business priorities have changed in recent years
with industrial commodities leapfrogging to the forefront," he
noted.

"Tanzanian Royalty's timely acquisition of its diverse asset base
in one of the world's great mineral producing regions - along with
the political capital it has built up in Tanzania over the years -
bodes well for its future," Sinclair commented. "And few would argue
with the supposition that the Chinese are the partners of choice in
today's minerals industry."

Tanzanian Royalty Exploration Corporation 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 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.

Visit our website: http:// www.TanzanianRoyaltyExploration.com/

ots Originaltext: Tanzanian Royalty Exploration Corporation
Im Internet recherchierbar: http://www.presseportal.de

Contact:
For further information: Investor Relations at +1-800-811-3855,
Email: investors@TanzanianRoyaltyExploration.com