TSX: TNX AMEX: TRE VANCOUVER, May 29 /PRNewswire-FirstCall/ -- Tanzanian Royalty Exploration Corporation advises that Mr. James E. Sinclair has completed the first tranche of the private placement announced on August 10, 2006 (the "Placement") whereby Mr. Sinclair agreed to purchase common shares of the Corporation representing an aggregate value of $3,000,000. Such shares are to be purchased in 8 quarterly tranches of $375,000 each, commencing February 1, 2007. The first tranche of the Placement closed on May 28, 2007 and consisted of 66,254 common shares of the Corporation having a purchase price of $5.66 per share for proceeds totaling $375,000. The purchase price reflects the weighted average trading price of the Corporation's shares for the five consecutive trading days ended April 30, 2007. In addition to the first tranche proceeds of $375,000, Mr. Sinclair has made an interest free advance of $500,000 to the Corporation to be applied towards the Placement. Inclusive of the interest free advances, Mr. Sinclair's total share placements to date aggregate in excess of $12.9 million. All private placement common shares are subject to certain mandated hold periods and resale restrictions and the certificates representing such shares are legended accordingly. No warrants, options or other rights have been issued or granted in connection with the Placement. Each tranche is subject to regulatory approval. 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 # 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 # 0-50634, for a more information concerning these risks, uncertainties, and other factors. CONTACT: Investor Relations at 1-800-811-3855; Visit our website: http://www.tanzanianroyaltyexploration.com/ DATASOURCE: Tanzanian Royalty Exploration Corporation CONTACT: Investor Relations at 1-800-811-3855; Visit our website: http://www.tanzanianroyaltyexploration.com/

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