Tanzanian Royalty Chairman Completes $1 Million Private Placement

Tanzanian Royalty Chairman Completes $1 Million Private Placement

South Surrey, British Columbia CANADA, October 27, 2009 /FSC/ - Tanzanian Royalty Exploration Corp (TNX - TSX, TRE - American),
Tanzanian Royalty advises that Mr. James E. Sinclair has agreed to reprice the $1 million private placement announced on October 12, 2009.  Since the announcement, Tanzanian Royalty's share price has increased.  Tanzanian Royalty and Mr. Sinclair have agreed to reprice the private placement to reflect the current share price.  The placement will consist of 306,749 common shares of the Corporation having a purchase price of $3.26 per share for proceeds totaling $1,000,000.  The purchase price reflects the closing price of the Corporation's shares on the Toronto Stock Exchange on October 26, 2009.  The private placement has now closed.  

In addition, Mr. Sinclair has made available to the Corporation an interest free advance of $160,000.  Mr. Sinclair has confirmed his intention to continue providing funding to the Corporation as and when required.

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 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 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.


93 Benton Hill Road                      South Surrey Office:
Sharon, CT  06069                        Suite 404 - 1688 152nd Street
Tel:  (860) 364-1830                     South Surrey, BC  V4A 4N2
Fax:  (860) 364-0673                     Toll Free: 1-800-811-3855
                                         Tel: (604) 536-7873
                                         Fax: (604) 536-2529

Email: investors@TanzanianRoyaltyExploration.com
Website: www.TanzanianRoyaltyExploration.com



Source: Tanzanian Royalty Exploration Corp (TNX - TSX) (TRE - AMEX)  http://www.tanzanianroyaltyexploration.com
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