Tanzanian Royalty Exploration reports that negotiations with UK-listed Kibo Mining to extend the schedule of option payments and exploration expenditures for the Itetemia and Luhala gold prospects have failed to produce an equitable agreement. As a result, both properties, along with their respective databases, will be returned to Tanzanian Royalty. According to James E. Sinclair, President and CEO of Tanzanian Royalty, “The Company regrets that Kibo Mining was unable to fulfill the conditions for retaining its options on the Itetemia and Luhala properties even though we were exceedingly generous in allowing them extra time to reach an accommodation with us.” Itetemia comprises prospecting licenses in the Shinyanga Region in northern Tanzania. The property is situated just five kilometres east of Barrick Gold’s Bulyanhulu Gold Mine (16 million ounce gold resource) which has been operating since 2001. The main gold prospect on Itetemia is the Golden Horseshoe Reef (GHR) which Kibo has been evaluating as a potential open pit mining operation. Kibo describes its preliminary economic assessment for Itetemia as “robust” and Mr. Sinclair confirms that an immediate priority for Tanzanian Royalty will be the preparation of a NI 43-101 compliant Technical Report for the project which will “enable further development and enhancement on an accelerated basis of the production model considered by Kibo.” Also returned to the Company was the Luhala Gold Prospect in the Mwanza region of Tanzania. In 2010, Kibo completed a 1,500m drill program at Luhala to test for the continuation of a zone of shallow dipping gold mineralization in the Kisunge East area. Kibo has stated publicly that the results from this drilling “were very encouraging and confirmed the down-dip continuity of mineralization at this locality.” Qualified Person The Company’s Qualified Person, Mr. Peter Zizhou, has reviewed and approved the contents of this news release. Mr. Zizhou is the General Manager (Exploration & Admin) 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,James E. Sinclair President and Chief Executive Officer For further information, please contact Investor Relations at 1-800-811-3855 Visit our website: www.TanzanianRoyalty.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 SEC filings. You can review and obtain copies of these filings from the SEC's website at http://www.sec.gov/edgar.shtml This news release contains certain forward-looking statements and forward-looking information. All statements, other than statements of historical fact, included herein are forward-looking statements and forward-looking information that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time-to-time with the British Columbia, Alberta and Ontario provincial securities regulatory authorities. 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 SEC filings, including our annual report on Form 20-F and Registration Statement on Form F-10, as amended, for more information concerning these risks, uncertainties, and other factors.