Trade Symbol: TSX: TNX AMEX: TRE VANCOUVER, Sept. 24 /PRNewswire-FirstCall/ -- Tanzanian Royalty is pleased to announce that a Phase 3 Reverse Circulation (RC) drill program has confirmed the presence of several high grade gold shoots within two previously established shear zones at the Company's Kigosi Project in the Lake Victoria Goldfields of Tanzania. According to Tanzanian Royalty President, John Deane, "We can now confirm the existence of up to six high grade shoots within the two reef systems reported last year, namely the Luhwaika Main and Luhwaika West Reefs." "These are the highest grade drill results reported so far from the Kigosi Project which the Company is advancing at a very rapid pace," noted Tanzanian Royalty's Chairman and CEO, Jim Sinclair, Among the higher grade gold intercepts was 2.0 metres grading 34.25 g/t (1.0 oz/ton) in hole KG20RC-244; 2.0 metres at 7.25 g/t (0.21 oz/ton) in hole KG20RC-237; 2.0 metres averaging 6.65 g/t (0.2 oz/ton) in hole KG20RC-164; 1.0 metre averaging 13.15 g/t (0.38 oz/ton) in hole KG20RC-204; and 1.0 metre grading 7.31 g/t (0.21 oz/ton) in hole KG20RC-217. Sinclair said the Company was "highly encouraged by the widespread distribution of gold values within the two shear zones" and he pointed out that "drilling was continuing in an effort to identify additional shoots along the established mineralized trend." Kigosi remains a standalone project within the Company's large portfolio of mineral properties in Tanzania and is being developed exclusively in-house. The objective of the Phase 3 program was to test the strike continuity of the Luhwaika reef system to the southeast, to infill drill the mineralization previously identified towards the northwest, and finally to establish the controls and trends for gold mineralization that extends along a strike length of 900 metres. The Phase 3 drill program consisted of 126 holes aggregating 5,362 metres, bringing the total drilled metres at Kigosi to 10,015 in 249 holes. Drilling was conducted along eight control lines with a central baseline having a strike length of 2.8 kilometres. The two shear zones hosting the high grade shoots have been traced along a strike length of 1.2 kilometres. Both shear zones remain open towards the northwest where an Induced Polarization (IP) survey indicates they could extend for at least 4.0 kilometres along strike. The near surface shoots, which have been drilled to vertical depths of less than 70 metres, exhibit a shallow westerly plunge (approx 5 degrees) and a strike of between 300 and 310 degrees. Below is a summary of the shoot statistics followed by a table of drill results. The results presented below include the most significant gold mineralization intersected by drilling on eight lines ranging from 300-600 metres in length. ------------------------------------------------------------------------- # of Thick- Shear Shoot RC Length Width ness Grade Comments System Name holes (m)(1) (m)(2) (m)(3) (g/t) ------------------------------------------------------------------------- Luhwaika Falcon 4 greater 10-20 1-2 2.59-8.83 Open to west Main than 550 ------------------------------------------------------------------------- Luhwaika Bateleur 15 greater 10-20 1-3 1.99-34.25 Open to west Main than 1100 ------------------------------------------------------------------------- Luhwaika Eagle 7 450 10-20 1-2 2.10-6.65 closed Main ------------------------------------------------------------------------- Luhwaika Flamingo 2 greater 10 1 3.96-4.46 Open to west West than 400 ------------------------------------------------------------------------- Luhwaika Pelican 7 500 10-30 1-2 2.77-16.46 closed West ------------------------------------------------------------------------- Luhwaika Albatross 1 greater ? 1 20.30 Open to west West than 100 ------------------------------------------------------------------------- (1) Horizontal length of shoot projected to surface (2) True width of shoot within the shear zone (3) Range of thicknesses carrying gold in shoot The shoots are separated by lower grade (less than 2g/t) envelopes that are between 10 and 30 metres wide along the plane of the shear zones. A Phase 4 drill program is currently focused on drilling out the two main reefs and their gold bearing shoots towards the northwest. At least 4,000 metres of drilling is planned for this next phase of drilling. The Company is also completing additional IP gradient surveys at Kigosi where a further three parallel chargeable zones have been discovered to date within the vicinity of the Luhwaika workings. A summary of the Phase 3 drill highlights is given below: ------------------------------------------------------------------------- Hole # From To Intercept Gold Including Comments (m) (m) (m) g/t ------------------------------------------------------------------------- Line 1250N ------------------------------------------------------------------------- KG20RC-164 3 5 2 6.65 Gravels ------------------------------------------------------------------------- ------------------------------------------------------------------------- Hole # From To Intercept Gold Including Comments (m) (m) (m) g/t ------------------------------------------------------------------------- Line 1350N ------------------------------------------------------------------------- KG20RC-132 4 6 2 1.77 Main Zone ------------------------------------------------------------------------- KG20RC-136 21 22 1 2.01 Main Zone ------------------------------------------------------------------------- KG20RC-137 35 37 2 1.71 Main Zone ------------------------------------------------------------------------- KG20RC-138 47 48 1 1.81 Main Zone ------------------------------------------------------------------------- KG20RC-139 2 5 3 1.15 Main Zone ------------------------------------------------------------------------- KG20RC-139 36 38 2 1.15 West Zone ------------------------------------------------------------------------- KG20RC-139 62 63 1 3.93 Main Zone in shoot ------------------------------------------------------------------------- KG20RC-140 1 5 4 0.75 West Zone ------------------------------------------------------------------------- KG20RC-140 78 84 6 0.77 West Zone ------------------------------------------------------------------------- ------------------------------------------------------------------------- Hole # From To Intercept Gold Including Comments (m) (m) (m) g/t ------------------------------------------------------------------------- Line 1510N ------------------------------------------------------------------------- KG20RC-143 1 3 2 1.67 Gravels ------------------------------------------------------------------------- KG20RC-144 0 3 3 1.61 Gravels ------------------------------------------------------------------------- KG20RC-145 2 5 3 1.80 Gravels ------------------------------------------------------------------------- KG20RC-146 11 13 2 7.47 Main Zone in shoot ------------------------------------------------------------------------- KG20RC-148 32 35 3 1.28 Main Zone ------------------------------------------------------------------------- KG20RC-150 66 68 2 1.43 Main Zone ------------------------------------------------------------------------- KG20RC-151 79 81 2 1.92 Main Zone ------------------------------------------------------------------------- KG20RC-153 1 7 6 0.92 West Zone in shoot ------------------------------------------------------------------------- ------------------------------------------------------------------------- Hole # From To Intercept Gold Including Comments (m) (m) (m) g/t ------------------------------------------------------------------------- Line 1750N ------------------------------------------------------------------------- KG20RC-188 0 2 2 3.54 Gravels ------------------------------------------------------------------------- KG20RC-189 0 2 2 2.29 Gravels ------------------------------------------------------------------------- KG20RC-190 0 1 2 1.52 Gravels ------------------------------------------------------------------------- KG20RC-195 27 29 2 3.59 Main Zone in shoot ------------------------------------------------------------------------- KG20RC-196 36 37 1 2.00 Main Zone in shoot ------------------------------------------------------------------------- KG20RC-197 0 5 5 0.74 Gravels ------------------------------------------------------------------------- KG20RC-201 11 13 2 2.41 West Zone in shoot ------------------------------------------------------------------------- KG20RC-202 22 25 3 1.07 West Zone ------------------------------------------------------------------------- KG20RC-204 44 47 3 4.66 West Zone in shoot ------------------------------------------------------------------------- KG20RC-205 59 61 2 0.94 West Zone ------------------------------------------------------------------------- ------------------------------------------------------------------------- Hole # From To Intercept Gold Including Comments (m) (m) (m) g/t ------------------------------------------------------------------------- Line 1850N ------------------------------------------------------------------------- KG20RC-171 0 3 3 2.10 Gravels ------------------------------------------------------------------------- KG20RC-176 0 2 2 1.45 Gravels ------------------------------------------------------------------------- KG20RC-176 5 6 1 6.09 Main Zone in shoot ------------------------------------------------------------------------- KG20RC-177 14 16 2 1.62 Main Zone ------------------------------------------------------------------------- KG20RC-178 26 28 2 2.60 Main Zone in shoot ------------------------------------------------------------------------- KG20RC-184 18 22 4 0.94 West Zone ------------------------------------------------------------------------- KG20RC-185 33 34 1 1.20 West Zone ------------------------------------------------------------------------- KG20RC-186 43 46 3 2.73 West Zone in shoot ------------------------------------------------------------------------- ------------------------------------------------------------------------- Hole # From To Intercept Gold Including Comments (m) (m) (m) g/t ------------------------------------------------------------------------- Line 1950N ------------------------------------------------------------------------- KG20RC-217 19 28 9 1.71 Main Zone in shoot ------------------------------------------------------------------------- KG20RC-218 40 42 2 1.26 Main Zone ------------------------------------------------------------------------- KG20RC-226 37 38 1 1.46 West Zone ------------------------------------------------------------------------- KG20RC-227 45 52 7 1.15 West Zone ------------------------------------------------------------------------- ------------------------------------------------------------------------- Hole # From To Intercept Gold Including Comments (m) (m) (m) g/t ------------------------------------------------------------------------- Line 2150N ------------------------------------------------------------------------- KG20RC-237 2 6 4 4.13 Main Zone in shoot ------------------------------------------------------------------------- KG20RC-238 3 5 2 1.37 Gravel ------------------------------------------------------------------------- KG20RC-239 3 6 3 14.21 Gravel ------------------------------------------------------------------------- KG20RC-244 44 50 6 12.80 Main Zone in shoot ------------------------------------------------------------------------- KG20RC-245 55 58 3 1.12 Main Zone ------------------------------------------------------------------------- KG20RC-249 0 3 3 1.50 Gravel ------------------------------------------------------------------------- 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). Analysis Fire assay with flame AAS finish was conducted by SGS Laboratories in Mwanza. Duplicates and Standards were inserted in the sample stream approximately every 20 samples. The duplicates have a correlation coefficient of 91%, which is accounted for by the large nugget effect within the sampling. 17% of the standards from SGS fall outside the acceptable 3rd standard deviation. Due to this, to validate the assay results 80% of the high gold values were sent to Humac Laboratories as a check. The Humac fire assay results gave a 87% correlation with the SGS results and the Humac aqua regia gave a 92% correlation with the SGS results. This is considered acceptable. 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. 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 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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