Trade Symbol: TSX: TNX AMEX: TRE VANCOUVER, June 4 /PRNewswire-FirstCall/ -- Tanzanian Royalty 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 # From To Intercept Gold Including Comments (m) (m) (m) g/t KG20RC-W1 2 4 2 10.45 Gravels Line 1450N Hole # 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 @ 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 # From To Intercept Gold Including Comments (m) (m) (m) g/t KG20RC-123 80 82 2 10.71 1m @ 20.30 Luhwaika West Line 2050N Hole # 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 @ 6.71 Luhwaika Main KG20RC-109 15 16 1 7.21 Luhwaika Main KG20RC-110 25 27 2 3.50 1m @ 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 # 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 @ 14.10 Luhwaika Main KG20RC-040 24 27 3 0.94 1m @ 2.59 Luhwaika Main KG20RC-041 31 33 2 6.33 1m @ 9.40 Luhwaika Main KG20RC-042 39 41 2 0.78 Luhwaika Main KG20RC-043 51 53 2 12.55 1m @ 23.00 Luhwaika Main KG20RC-045 1 3 2 38.15 Gravels KG20RC-045 74 75 1 1.13 Luhwaika Main Line 3250N Hole # 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. #400005/05). 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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