TRE Tanzanian Royalty Exploration Corp. Common Stock

The Company is pleased to announce that it was the successful bidder for the Buckreef Gold Mine Re-development Project in northern Tanzania. Under the signed, binding heads of agreement with the State Mining Corporation of Tanzania (Stamico), Tanzanian Royalty will have the right to earn a 55% interest in the Buckreef Project, with Stamico holding the balance. A Definitive Joint Venture Agreement governing ownership and management of the Buck Reef properties is expected to be signed in due course.

According to James E. Sinclair, Chairman and CEO of Tanzanian Royalty, “The Company’s fiscal position has never been better and we intend to fast track development of the Buckreef Project with a view to achieving commercial production within a period of 30 months or less.”

The Buckreef Gold Mine Re-development Project as presently constituted is an advanced stage gold exploration project containing measured gold resources of 265,000 ounces, indicated resources of 444,000 ounces and inferred resources of 826,000 ounces as noted in the table below. This mineral resource estimate was prepared in accordance with National Instrument 43-101 standards of disclosure for mineral projects.

                       

Buckreef Project Mineral Resources (July 2008)

                      Deposits MEASURED         INDICATED         INFERRED         Tonnes         GoldGrade(g/t)         Contained(ounces)         Tonnes         GoldGrade(g/t)         Contained(ounces)         Tonnes         Gold Grade (g/t)         Contained(ounces) Buckreef         3,066,000         2.7         265,000         1,076,000         2.4         83,000         5,793,000         2.7         507,000 Buziba                             -         6,565,000         1.7         361,000         2,140,000         1.6         110,000 Tembo & Bingwa                             -                             -         1,129,000         3.4         123,000 Minzwel                             -                             -         955,000         2.8         86,000 Total         3,066,000                   265,000         7,641,000                   444,000         10,017,000                   826,000

*All resources are at a 1 g/t cut-off grade

Mr. Sinclair describes the Buckreef Project as a “company builder that will move Tanzanian Royalty into the league of gold producers at a time when gold prices are breaking out and the future for precious metals has never looked better.”

A total of 15 licenses are included in the project area which he said “exhibit potential to substantially boost the resource base at Buckreef, providing the foundation for raising production rates on an incremental basis in the future.”

Joseph Kahama, the Company’s Tanzania-based President, predicted that the partnership with Stamico “will become a template for other mining companies operating in the country” and he added that the benefits to the Tanzanian people “will be tangible and long lasting.”

“In the shorter term, we also see potential to mine and process surface gravels at Buckreef which will serve to augment anticipated gold output from our Kigosi and Lunguya projects, both of which will have modular type gravity plants operating on them in 2011,” he noted.

The Buckreef Project is located approximately 115 kilometres southwest of Mwanza on Lake Victoria and covers the eastern portion of the Rwamagaza Greenstone Belt, one of several Archean greenstone belts lying within the Tanzanian Craton of east Africa.

The Buckreef area has a long history of small-scale mining and exploration work, most of which was undertaken by the United Nations, the Tanzanian Mineral Resources Division, Williamson Diamonds and Iamgold Corporation which brought the Buckreef property to its current stage of exploration and development.

Gold mineralization at Buckreef was developed along a prominent fault zone that ranges from five to 30 metres in width. Finely disseminated pyrite occurs in a halo surrounding pervasive quartz veining, the extent of which is directly related to the grade of the gold mineralization present. In several areas, drilling has confirmed the existence of higher grade gold mineralization at depth and a number of high priority regional exploration targets remain to be followed up.

Qualified Person

The Company's Qualified Person, Mr. Peter Zizhou, has reviewed and approved the contents of this news release. Mr. Zizhou is the Exploration Manager of Tanzanian Royalty Exploration Corporation Limited. He has a Master of Science (Exploration Geology) degree from the University of Zimbabwe (2000) and is a registered scientist with SACNASP (Reg. No.400028/08).

Respectfully Submitted,“Joseph Kahama”Joseph KahamaPresident

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

The Toronto Stock Exchange and NYSE Amex Equities 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 limits disclosure for U.S. reporting purposes to mineral deposits that a company can economically and legally extract or produce. We use certain terms on this news release, such as “reserves”, “resources”, “geologic resources”, “proven”, “probable”, "measured", "indicated", or "inferred" which may not be consistent with the reserve definitions established by the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No. 001-32500. You can review and obtain copies of these filings 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. 001-32500, for more information concerning these risks, uncertainties, and other factors.