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Private Placement with Tanzanian Royalty Closes

17.08.2010  |  Business Wire


Tanzanian Royalty Exploration Corporation advises that the private
placement announced on July 9, 2010 has closed.


The placement consists of a $1,095,000 three-year promissory note
bearing interest at 3% per annum, convertible into 255,484 common
shares. The conversion price of $4.286 per share represents the five-day
weighted average trading price of the common shares on the Toronto Stock
Exchange for the period ended July 9, 2010, less a discount of 15%.
Following closing, $95,000 of the outstanding principal will be
converted into 22,166 common shares, which shares will be refundable to
the Corporation if the remaining principal is not fully converted by
December 9, 2011.


Respectfully Submitted,

'James Sinclair?

James E. Sinclair

Chairman and Chief
Executive Officer


For further information, please contact Investor Relations at
1-800-811-3855

Visit our website: www.TanzanianRoyaltyExploration.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 Form 20-F, File No. 001-32500.
You can review and obtain copies of these filings 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 No. 001-32500, for more information concerning these
risks, uncertainties, and other factors.


Tanzanian Royalty Exploration Corporation

Connecticut Office:

Tel:
(860) 364-1830

Fax: (860) 364-0673

or

South Surrey Office:

Toll
Free: 1-800-811-3855

Tel: (604) 536-7873

Fax: (604) 536-2529

Email:
investors@TanzanianRoyaltyExploration.com

Website: www.TanzanianRoyaltyExploration.com



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