Tanzanian Royalty Reports High Grade Gold Assays from Buckreef Project and Significant Expansion of Gold Bearing Horizon at Depth

The Company is pleased to announce the receipt of additional assay
results from the ongoing drill program at its Buckreef Gold Project in
the Lake Victoria Goldfields of Tanzania.

The latest drill results include the highest grade gold values reported
to date from the Buckreef Main Zone where drilling continues to confirm
an increase in grade and thickness at depth, leaving open the
possibility of expanding open pit mining and of underground mining to
compliment open pit production.

Hole BMDD127 returned an intercept of 19.0 metres grading 10.58g/t gold
from 155 metres which included 9.0 metres averaging 19.06 g/t gold from
156 metres and 5.0 metres grading 25.97g/t gold from 160 metres. The
gold mineralization occurs within sheared mafic rocks intercalated with
felsic porphyry with strong quartz-carbonate-pyrite alteration which is
the main control of high grade gold mineralization.

Joseph K Kahama, Chairman and Chief Operating Officer (Tanzania)
describes Hole BMDD127 as 'exceptional and certainly beyond anything we
have encountered before at Buckreef.? In addition, he confirms that the
drilling has intersected 'a number of mineralized zones of significant
thicknesses at vertical depths down to 200m along with the presences of
several gold-bearing structures.?

'With the current exploration program focused on testing the upside
potential in the deeper levels of the Buckreef deposit, we expect to
increase our knowledge regarding the continuity and grade of these
zones,? he adds. 'We also expect to further increase the confidence
level we have in the Buckreef gold project, lending support to
increasing our resource base and leaving additional potential in
mineralized zones below a vertical depth of 200m which remains largely
untested.?

Three additional holes from the Buckreef Main Zone also returned
excellent gold values over good thicknesses:

Hole BMDD124 encountered an intercept of 14.0 metres grading 1.75g/t
gold which included 3.0 metres averaging 3.72g/t gold from 206 metres;

Hole BMDD125 returned an intercept of 4.0 metres grading 1.49g/t gold
from 191 metres;

Hole BMDD126 had an intercept of 26.0 metres grading 4.5g/t gold which
included 4.0 metres grading 17.6g/t gold from 215 metres.

All drill intercepts are approximately 50% to 60% of true width.

In early March 2012, the Company engaged a second diamond drill rig from
Simba drilling which has been mobilized to the site and is fully
operational. Drilling progress rates have improved significantly and are
now in line with expectation to complete the program by May 2012. Three
drill rigs are currently operating at Buckreef, two diamond drill rigs
and one RC rig.

Sample Protocol and QA/QC

The sample chain of custody is managed by Buckreef′s technical team
under the supervision of Anthony Minde. Core samples are picked up from
the drill site at the end of every shift by company personnel for direct
delivery to the secured drill core storage house located next to the
Buckreef exploration office. The storage is accessible only by approved
personnel.

Intervals of core to be analyzed are split in half with a mechanized
core cutter with one half sent to the laboratory for geochemical
analysis and the remaining half kept in storage for future reference and
usage. Samples to be assayed remain under the control of company
personnel until submitted to SGS laboratory in Mwanza for 50g fire assay
(FA) with AAS finish (0.01ppm LLD). The average percentage of core
recovery is 95%. Sample intervals of 1.0m or less but greater than 0.5m
depended on geology. SGS laboratory is ISO 90001 and 17025 accredited
and employs a Laboratory Information Management System for sample
tracking, quality control and reporting. In addition to SGS internal
standards materials and blank samples, the Company regularly inserts
into every batch its own certified standards, coarse blanks and
duplicates in the sample stream for approximately every 20 samples.

Qualified Person

The Company′s Qualified Persons, Mr. Phillip Kaniki and Charles Mnguto,
have reviewed and approved the contents of this News Release. Mr.
Phillip Kaniki has a Bachelor of Science degree in Geology from the
University of Dar es Salaam (1997) and is a registered scientist with
MAusIMM (Reg. No 221963). Mr. Charles Mnguto has a Bachelor of Science
degree (Hons) in Geology from the University of Dar es Salaam (1995) and
is a registered scientist with MAusIMM (Reg. No 307793).

Respectfully Submitted,

Joseph Kahama

Chairman and Chief Operating Officer (Tanzania)

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.

Tanzanian Royalty Exploration

David Duval, 1-800-811-3855

Investor
Relations

Email: investors@TanzanianRoyalty.com

Website:
www.TanzanianRoyaltyExploration.com

or

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