Tanzanian Royalty and Songshan Mining Co. Ltd. of Inner Mongolia, China Conclude 30-Year 3% Royalty Option Agreement on Kabanga Nickel Properties in Tanzania

• Press Release
• Source: Tanzanian Royalty Exploration Corp.
• On 2:35 pm EDT, Tuesday March 10, 2009

SOUTH SURREY, BC--(MARKET WIRE)--Mar 10, 2009 -- Tanzanian Royalty Exploration Corporation (Toronto:TNX.TO - News) (AMEX:TRE - News) (AMEX:TRE - News) is pleased to announce the successful conclusion of its efforts to initiate a business relationship in China.

Related Quotes Symbol Price Change TNX.TO 3.90 0.00 {"s" : "tnx.to,tre","k" : "c10,l10,p20,t10","o" : "","j" : ""}

The company has entered into a royalty option agreement with Songshan Mining Co. Ltd. of Duolun, Inner Mongolia, China. Under the agreement, Songshan Mining is granted an option to acquire Tanzanian Royalty's interest in its Kabanga nickel licenses located in northwestern Tanzania, subject to a 30-year 3% net smelter royalty in favour of Tanzanian Royalty. Songshan Mining currently operates two iron mines in Inner Mongolia, China.

"It is our wish to be associated with mining exploration participants that represent the region of significant new primary demand," states Tanzanian Royalty Chairman and CEO, James E. Sinclair. "China is well positioned, in my view, to suffer less and recover first from present world economic conditions. It has a long-term economic plan, and is motivated by the need for resources, not year-to-year price fluctuations, when identifying properties of interest." China and Tanzania have long enjoyed good political and business relations.

The company's Kabanga properties comprise a project area with targets for nickel, cobalt and PGE mineralization. It is in this belt that Barrick's Kabanga project is located. The total land area covered by the company's Kabanga project area is approximately 4,200 square kilometers.

The project area is situated within Proterozoic-age sediments of the Karagwe-Ankolean sequence of NW Tanzania, and is strategically situated to the N of the world class Kabanga Nickel mine, and the Kapalagulu PGE deposit. Principal rock types include metamorphosed sandstones, quartzites, shales, red beds, dolomitic limestones and cherts. The region is tightly folded, with fold axes trending NNE. Individual licenses have been selected proximal to strong aeromagnetic anomalies, believed to be an important stratigraphic control on Ni-Cu-PGE mineralization in the region, and known gabbro/norite bodies.

Of the licenses the company wishes to deal as Royalty Option Agreement, in terms of tenure (land mass) we now have dealt 60% to others. Those licences the company still wishes to deal as Royalty Option Agreement represents 25.4% of our tenure, and those the company wishes to hold for its own account and are advancing represents 14.4% of our tenure, with 0.2% represented by borders.

 
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 Alternext US LLP 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.

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