SOUTH SURREY, BC--(MARKET WIRE)--May 1, 2008 -- Tanzanian Royalty Exploration Corporation (Toronto:TNX.TO - News) (AMEX:TRE - News) announces that Mr. James E. Sinclair has agreed to provide C$1,725,000 by way of a private placement with the proceeds being applied to general working capital. Mr. Sinclair has agreed to purchase 332,434 common shares at a purchase price of $5.189 per share for proceeds totaling $1,725,000. The price reflects the greater of the weighted average trading price of the Company's shares for the five consecutive trading days ended April 30, 2008 of $5.189 and the closing price on April 30, 2008 of $5.13.

In addition, Tanzanian Royalty advises that Mr. James E. Sinclair is proceeding with the fifth tranche of the private placement announced on August 10, 2006 whereby Mr. Sinclair agreed to purchase common shares of the Corporation representing an aggregate value of $3,000,000. Such shares are to be purchased in 8 quarterly tranches of $375,000 each, commencing February 1, 2007. The fifth tranche of the Placement will consist of 72,268 common shares of the Corporation having a purchase price of $5.189 per share for proceeds totaling $375,000. The purchase price reflects the greater of the 5-day weighted average trading price of the Company's shares for the quarterly period ended April 30, 2008 of $5.189 and the closing price on April 30, 2008 of $5.13.

The placement common shares are subject to certain mandated hold periods and the certificates representing such shares are legended accordingly. No warrants, options or other rights have been issued or granted in connection with these placements.

The private placements are subject to Regulatory approval.

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 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. 0-50634. 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. 0-50634, for a more information concerning these risks, uncertainties, and other factors.

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