SOURCE: Tanzanian Royalty Exploration Corp.

November 21, 2008 16:55 ET

Tanzanian Royalty Announces C$740,000 Private Placement Subscription Agreement

SOUTH SURREY, BC--(Marketwire - November 21, 2008) - Tanzanian Royalty (AMEX: TRE) advises that it has entered into a private placement subscription agreement for $740,000 with Van Tongeren Management LLC (the "Placee"). The subscription, first initiated by the Placee on October 29, 2008, is for 352,381 common shares at a price of $2.10 per share, representing the five-day weighted average trading price of the common shares on the Toronto Stock Exchange for the period ended October 28, 2008 less a discount of ten (10%) percent. The funds will be utilized for working capital.

The private placement common shares are subject to certain mandated hold periods and resale restrictions and the certificates representing such shares will be legended accordingly.

The proposed private placement is subject to regulatory approval.

Respectfully Submitted,
"James E. 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 American Stock Exchange 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 a more information concerning these risks, uncertainties, and other factors.

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