Trade Symbol: TSX: TNX AMEX: TRE VANCOUVER, Aug. 24 /PRNewswire-FirstCall/ -- Tanzanian Royalty Exploration Corporation (AMEX:TRE/TSX:AMEX: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 the remainder of its nickel licenses in the Kagera/Kabanga nickel belt in Tanzania. The 12 licenses that are presently subject to contract negotiations comprise the entire 4,482 square kilometres portfolio of nickel licences held by Tanzanian Royalty in the Kagera/Kabanga nickel belt. The decision to enter 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 moved quickly to expedite their due diligence on these properties given the highly competitive environment that exists in Tanzania for quality mineral projects of this nature." "We have certainly been impressed with their field capabilities and their obvious determination to acquire and exploit the potential of mineral assets in Tanzania that serve their national interests." 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 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 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: please 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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