Tanzanian Royalty Comments on Past Disclosure

As a result of a review by the British Columbia Securities Commission,
Tanzanian Royalty Exploration Corporation (TSX: TNX; NYSE-MKT: TRX) (the
'Company?) is issuing this news release to clarify our disclosure.

Further to the Company′s press release on April 25, 2012, the Company
filed a National Instrument 43-101 ('NI 43-101?) Preliminary Economic
Assessment of the Buckreef Gold Mine Re-Development Project in Tanzania
prepared by Venmyn Independent Projects (Pty) Limited (the 'PEA?).
While both the Company and Venmyn worked as expeditiously as possible to
finalize the report, the report was filed on June 20, 2012, more than 45
days after the date of the press release. The economic analysis in the
report was carried out on measured, indicated and inferred resources.
The April 25, 2012 press release inadvertently neglected to include the
following cautionary language: the preliminary economic assessment is
preliminary in nature, includes inferred mineral resources that are
considered too speculative geologically to have the economic
considerations applied to them that would enable them to be categorized
as mineral reserves, and there is no certainty that the preliminary
economic assessment will be realized.

At the request of the British Columbia Securities Commission, the PEA
was updated and a revised PEA was filed on August 24, 2012. The PEA was
updated (i) to indicate that the Company entered into a joint venture
agreement in October 2011 with the State Mining Corporation of Tanzania
(Stamico) with regards to the Buckreef project and to clarify that a
definitive agreement relating to the Busolwa Prospect has not yet been
reached; (ii) to include a note to the Mineral Resources table in the
Executive Summary section to indicate that the Mineral Resource estimate
excludes historical production and to provide additional detail
regarding Venmyn′s review of historical information and the work
completed by Venmyn in respect of Busolwa; and (iii) to restate the
economic analysis section of the PEA using a base case gold price of US
$1500/oz, and to include additional gold price sensitivity disclosure in
the economic analysis section, as follows:

'The NPVs of the DCF models are most sensitive to the gold price, as
shown in Figures 28 to 31, and Table 1 provides a summary of the effect
of gold price changes on the project valuation of Case 1.'

Table 1 : Gold Price Sensitivity Matrix

As indicated in the above sensitivity matrix, at a base case gold price
of US$1500/oz and a 5% discount rate, the net present value and internal
rate of return of the project is US $296,490,000 and 41% on a pre-tax
basis and US$220,410,000 and 36% on a post-tax basis, respectively.

The Company has updated its website to remove its AGM presentation and
other corporate presentations and information, including a project
location map, which reported resource estimates contrary to NI 43-101
and did not include detailed breakdown information as to resource
categories. The Company′s website and corporate presentations reported
the grade and tonnage of a deposit using resource categories other than
those mineral resource categories required pursuant to NI 43-101, did
not report the grade and tonnage of each category separately, and added
inferred resources to other categories. The following tables set out the
mineral resources estimates for the Company′s Buckreef, Itetemia, Kigosi
and Luhala projects.

To view the graphic 'Summary NI 43-101 Compliant Mineral Resources of
the Buckreef Project (Cut-Off 0.5g/t AU) ? Dec 2011? please click on the
following link:

http://www.fscwire.com/pr/tanzaniantable2aug242012.jpg

To view the graphic 'NI43-101 Mineral Resource Statement for the
Itetemia Project ? 1.0g/t Cut-Off at 31^st January 2012?
please click on the following link:

http://www.fscwire.com/pr/tanzaniantable3aug242012.jpg

To view the graphic 'Kigosi Project Resource Statement ? 1st September
2009? please click on the following link:

http://www.fscwire.com/pr/tanzaniantable4aug242012.jpg

To view the graphic 'NI43-101 Mineral Resource Statement for the Luhala
Project ? 1.0g/t cut-off January 2012? please click on the following
link:

http://www.fscwire.com/pr/tanzaniantable5aug242012.jpg

The Company′s corporate presentation, website and news release included
disclosure which reported the gross value of metal in a deposit, which
disclosure is restricted under NI 43-101 and is hereby retracted. The
Company′s corporate presentation, website and news release also reported
estimates of exploration potential without providing the information and
cautionary language required by NI 43-101. The Company′s AGM
presentation should have indicated that the basis for the estimate of
exploration potential was the projected lateral continuation and
continuation at depth of the mineralization encountered closer to
surface on the Buckreef property, and should have stated that the
potential quantity and grade is conceptual in nature, that there has
been insufficient exploration to define a mineral resource and that it
is uncertain if further exploration will result in the target being
delineated as a mineral resource. The Company′s January 10, 2012 news
release used the term 'ore body? to describe the Company′s mineral
deposits rather than the term 'deposit?. No feasibility report has yet
been completed for any of the Company′s projects and the Company did not
intend to imply otherwise. The term 'ore? implies economic viability has
been proven and reserves established, and should therefore not have been
used by the Company.

In the Company′s press release dated October 28, 2011 announcing the
entering into of a Definitive Joint Venture Agreement with the State
Mining Corporation of Tanzania (Stamico) for the development of the
Buckreef Gold Project in Tanzania, the Company refers to the intention
of the parties to work towards bringing the Buckreef project into
commercial production within a 30 month period. The press release failed
to specify that any production decision will be conditional on a
positive feasibility study and no different intention should be
construed.

In the Company′s corporate presentation, it inadvertently referred to
the requirements of NI 43-101 as implying a qualitative characteristic
and used other descriptive language to describe its exploration results
which could be construed as overly promotional.

Qualified Person

The Company′s Qualified Person, Mr. Peter Zizhou, has reviewed and
approved the contents of this news release. Mr. Zizhou has a Master of
Science (Exploration Geology) degree from the University of Zimbabwe
(2000) and is a registered professional natural scientist with SACNASP
(Reg. No. 400028/08).

Respectfully submitted,

James E. Sinclair

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.

Tanzanian Royalty Exploration Corporation

James Sinclair,
1-800-811-3855

Investor Relations