Tanzanian Royalty Announces “Pay-Down to Zero” on Recently Announced/Restructured Convertible Note Financing. Minimal Impact on Share Float, opines CEO Sinclair

July 6th, 2015

TORONTO, ONTARIO–(Marketwired July 6th 2015) – Tanzanian Royalty Exploration Corporation
(TSX:TNX)(NYSE MKT:TRX) (the “Company”) is pleased to announce that it has fully paid off and retired
the financing relating to the recently announced terms of its convertible senior note with an institutional
lender, the first drawdown under which had successfully closed on December 29, 2014. No further payments
are due.

Under the original financing terms, notes in the principal amount of US$10,000,000 were issued at an 8%
discount, yielding an initial funding amount of US$9,200,000. The initial (closing) drawdown was
US$1,766,558, and the balance of the funded amount (less expenses of issue) was placed in escrow to be
available for future drawdowns, subject to the Company meeting certain financial ratios. The notes were to
bear interest at 8% per annum, payable monthly.

 

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