Tanzanian Royalty Reports Higher Gold Grades at Depth Including 11 metres @ 9.20 g/t

May 1st, 2012

The Company is pleased to announce the receipt of more positive assay results from its ongoing diamond drilling program at the Buckreef Gold Project in Tanzania, confirming continuity of the higher-grade gold mineralization at depth.

According to Joseph K. Kahama, Chairman and Chief Operating Officer (Tanzania), “These higher grade zones can add considerable value to the project economics and increase the potential to add to our future growth profile”. He went on to say that “drilling to date on the deeper Buckreef extensions has validated the geological interpretation and that the current drilling program is progressing well”.

Recent drilling highlights include:

  • BMDD134 encountered an intercept of 2.0 metres grading 9.61g/t gold from 52 metres which included 1.0 metres grading 18.1g/t gold.
  • BMDD135 encountered an intercept of 19.0 metres grading 1.36g/t gold from 171 metres which included 7.0 metres averaging 2.07g/t gold from 174 metres, 5 metres grading 2.21g/t gold from 230 metres which include 1 metres averaging 4.75g/t gold.
  • BMDD136 encountered an intercept of 6.0 metres grading 1.23g/t gold from 143 metres.
  • BMDD137 intersected 11 metres grading 9.20g/t gold from 194 metres which includes 5 metres averaging 17.57g/t gold.

All holes are estimated to be 50-60% of true widths.

The gold mineralization occurs within sheared mafic rocks with strong quartz-carbonate-pyrite alteration which is the main control of high grade gold mineralization.

Sample Protocol and QA/QC

The samples chain of custody is managed by Buckreef 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 locate next to the Buckreef exploration office. The storage is accessible only by approved personnel.

Intervals of core to be analyzed are split with a mechanized core cutter in half with one half to be sent to the laboratory for geochemical analysis and the remaining half to be kept in the storage for future reference and uses. Samples to be assayed will 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 recovery core is 95%. Sample intervals of 1m 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 duplicate samples in the sample stream approximately every 20 samples.

Qualified Person

The Company’s Qualified Persons, Mr. Phillip Kaniki and Charles Mnguto, have reviewed and approved the content of this news release. Mr. Phillip Kaniki has a Bachelor of Science in Geology degree 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 in Geology (Hons) degree from the University of Dar es Salaam (1995) and is 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.