Tanzanian Royalty Chairman Agrees to Reprice Second Tranche of $3 Million Private Placement

    TSX: TNX
    AMEX:   TRE

    VANCOUVER, Aug. 14 /CNW/ - Tanzanian Royalty Exploration Corporation
advises that Mr. James E. Sinclair has agreed to reprice the second tranche of
the private placement. As announced on August 10, 2006, 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.
    Since July 31, 2007, the end of the second quarterly tranche period,
Tanzanian Royalty's share price has increased meaningfully. The original 2nd
tranche purchase price of $5.267 reflects the weighted average trading price
of the Corporation's shares for the five consecutive trading days for the
quarterly period ended July 31, 2007. Tanzanian Royalty and Mr. Sinclair have
agreed to reprice the second tranche to reflect the current share price. The
second tranche will consist of 63,345 common shares of the Corporation having
a purchase price of $5.92 per share for proceeds totaling $375,000. The
revised purchase price reflects the closing price of the Corporation's shares
on August 13, 2007. The second tranche private placement has now closed.
    The private placement common shares are subject to certain mandated hold
periods and resale restrictions and the certificates representing such shares
are legended accordingly. No warrants, options or other rights have been
issued or granted in connection with this placement.
    Each tranche is subject to regulatory approval.

    Respectfully Submitted,

    "James 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

    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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