Tanzanian Royalty Reports High Grade Assays from Kigosi Project And Laboratory Results From its Kimberlite Exploration Program



    Trade Symbol:
    TSX: TNX
    AMEX:   TRE

    VANCOUVER, June 4 /CNW/ - Tanzanian Royalty is pleased to announce that a
Phase 2 Reverse Circulation (RC) drilling program has confirmed the presence
of two previously interpreted reef (vein) systems along with high grade gold
values at its Kigosi Project in the Lake Victoria Goldfields of Tanzania.
    The two shear zones that host the reefs have been traced along a strike
length of at least one kilometre and are still open in both directions along
strike and down dip.
    The Phase 2 drill program consisted of 109 holes aggregating
4,057 metres. It focused on an area immediately adjacent to artisanal workings
within the Luhwaika prospect area. Drilling was conducted along five control
lines with a central baseline having a strike length of 2.8 kilometres. The
lines varied in length from 300 metres near artisanal mine workings to
approximately 1,100 metres on line 3250N where regional drilling was conducted
to test coincident IP and soil anomalies.
    The objective of this second phase of drilling was to test the strike
continuity of the Luhwaika reef system which had never been drilled before.
The program also provided the Company with an opportunity to evaluate
surrounding gold-in-soil and geophysical anomalies. This particular phase of
exploration was a continuation of the Phase 1 program that was prematurely
abandoned towards the end of 2006 due to heavy rains. A third phase of
drilling is presently under way at Kigosi.
    The results presented below include the most significant gold
mineralization intersected by drilling on all five lines. According to
Tanzanian Royalty President, John Deane, "We can now confirm the existence of
the two reef systems reported last year, namely the Luhwaika Main and Luhwaika
West Reefs, and that they can be confidently traced out over a strike length
of at least one kilometre."
    The fifth line, line 3250N, intersected a quartz vein that hosted gold
mineralization approximately 800 metres north of the last line drilled. Infill
drilling will be required to establish if the gold mineralization in this
quartz vein connects with the two known reefs.
    Deane also said that because several zones of high-grade gold
mineralization occur within the reef systems, the next phase of drilling will
utilize 100 metres line spacing in order to identify the controls and trends
for these high grade zones. "The reefs tend to flatten near surface, producing
a gravel zone that may also hold potential to host gold-bearing mineralization
that can be extracted at very low cost," he added.

    
    A summary of the drill highlights is given below:

    Water hole (105m south of line 1450N

    Hole No.     From  To   Intercept   Gold    Including      Comments
                  (m)  (m)     (m)      g/t

    KG20RC-W1      2    4       2      10.45                   Gravels

    Line 1450N

    Hole No.     From  To   Intercept   Gold    Including      Comments
                  (m)  (m)     (m)      g/t

    KG20RC-083     2    4       2      10.40                   Gravels
    KG20RC-085     6    7       1       4.01                   Luhwaika Main
    KG20RC-087    20   21       1       1.62                   Luhwaika Main
    KG20RC-088     0    3       3       2.48                   Gravels
    KG20RC-088    31   33       2       3.02   1m @ 4.89    Luhwaika Main
    KG20RC-091     2    4       2       3.28                   Gravels
    KG20RC-093     1    3       2       1.62                   Gravels
    KG20RC-094     4    5       1       1.02                   Gravels

    Line 1650N

    Hole No.     From  To   Intercept   Gold    Including      Comments
                  (m)  (m)     (m)      g/t

    KG20RC-123    80   82       2      10.71   1m @ 20.30   Luhwaika West

    Line 2050N

    Hole No.     From  To   Intercept   Gold    Including      Comments
                  (m)  (m)     (m)      g/t

    KG20RC-104     2    4       2       3.03                   Gravels
    KG20RC-107     4    9       5       2.39   1m @ 6.71    Luhwaika Main
    KG20RC-109    15   16       1       7.21                   Luhwaika Main
    KG20RC-110    25   27       2       3.50   1m @ 6.39    Luhwaika Main
    KG20RC-111    38   39       1       0.94                   Luhwaika Main
    KG20RC-116     2    4       2       4.79                   Gravels
    KG20RC-117     8    9       1       0.91                   Luhwaika West
    KG20RC-120    43   44       1       1.01                   Luhwaika West

    Line 2450N

    Hole No.     From  To   Intercept   Gold    Including      Comments
                  (m)  (m)     (m)      g/t

    KG20RC-033     3    5       2       0.99                   Gravels
    KG20RC-038     6    8       2       1.10                   Luhwaika Main
    KG20RC-039    14   16       2       8.83  1m @ 14.10    Luhwaika Main
    KG20RC-040    24   27       3       0.94   1m @ 2.59    Luhwaika Main
    KG20RC-041    31   33       2       6.33   1m @ 9.40    Luhwaika Main
    KG20RC-042    39   41       2       0.78                   Luhwaika Main
    KG20RC-043    51   53       2      12.55  1m @ 23.00    Luhwaika Main
    KG20RC-045     1    3       2      38.15                   Gravels
    KG20RC-045    74   75       1       1.13                   Luhwaika Main

    Line 3250N

    Hole No.     From  To   Intercept   Gold    Including      Comments
                  (m)  (m)     (m)      g/t

    KG20RC-076    23   24       1       2.66                   Quartz vein
    

    The above intersections are estimated to be very close to true
    thicknesses with all the drill inclinations being -60 degrees and the dip
    of the reef being -22 degrees. All holes are drilled perpendicular to the
    assumed strike of the reef(s).

    Drilling within the Luhwaika Main Reef indicates a dip of -22 degrees
towards the southwest and a true thickness of 1-2 meters. Mineralization is
hosted by a sheared, highly silicified and sericitized granite with gold
values ranging up to 23.0 g/t (0.67 oz/t).
    The Luhwaika West Reef, which sub-outcrops approximately 200 meters to
the southwest of the Luhwaika Main Reef, is essentially a mineralized quartz
vein, dipping 30 degrees to the southwest with a true thickness of 2-3 meters
and with gold values ranging up to 11.63 g/t (0.34 oz/t)

    Diamond Analytical Results

    The Company has received results from eight 50 kilogram kimberlite
samples that were sent in for micro-diamond analysis in the latter part of
2006. These samples were collected from RC drilling over eight separate
kimberlites that were discovered on two of the Company's diamond licenses.
Receipt of the analytical results took much longer than expected because of
the heavy backlog of work in diamond laboratories worldwide. Two of the eight
sample composites returned very low quantity (one from each sample) micro
diamonds while the remaining six were non-diamondiferous. These results
indicate that none of these pipes will be of economic interest and no further
work will be conducted on them. Nonetheless, the Company intends to evaluate
other licenses in its portfolio that are prospective for diamonds.

    Analysis

    Fire assay with flame AAS finish was conducted by Humac Laboratories in
Mwanza, Tanzania, and SGS Laboratories in Mwanza. Duplicates and Standards
were inserted in the sample stream sent to both Humac and SGS, and subsequent
analysis shows that 95% of the standards fall within analytically acceptable
(5% standard deviation) limits. Duplicates have a correlation coefficient of
87%, which is accounted for by the large nugget effect within the sampling.
The figures used in this press release are the average grades taken for
between one and three duplicates run by the labs on each analysis.
Micro-diamond analysis was conducted at the SGS Lakefield Research laboratory
in Lakefield, Ontario.

    Qualified Person

    The technical information contained in this document has been reviewed
and approved by John Deane, President, Tanzanian Royalty Exploration
Corporation Limited, a qualified person as defined by NI 43-101. He has an
M.Sc. from the University of Cape Town (1993) and is a registered scientist
with SACNASP (Reg. No.400005/05).

    Respectfully Submitted,

    "James E. Sinclair"
    James E. Sinclair
    Chairman and Chief Executive Officer

    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 permits U.S. mining companies, in their filings with the
SEC, to disclose only those mineral deposits that a company can economically
and legally extract or produce. We use certain terms on this news release,
such as "measured", "indicated", and "inferred" "resources" that the SEC
guidelines strictly prohibit U.S. registered companies from including in their
filings with the SEC. U.S. Investors are urged to consider closely the
disclosure in our Form 20-F, File No. 0-50634, which may be secured from us,
or 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.





For further information:

For further information: Investor Relations at 1-800-811-3855, Visit our
website: www.TanzanianRoyaltyExploration.com

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TANZANIAN ROYALTY EXPLORATION CORPORATION

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