Trade Symbol: TSX: TNX AMEX: TRE VANCOUVER, Sept. 8 /PRNewswire-FirstCall/ -- The Company is pleased to report that the Phase 7 drill program was completed on its Luhala Gold Project in August. According to Tanzanian Royalty Chairman and CEO, Jim Sinclair, "The latest results confirm our most optimistic expectations for Luhala and leave open the opportunity to expand known zones of gold mineralization down dip and along strike." "Clearly, we are entering a new phase of exploration at Luhala which, coupled with our exploration successes elsewhere in the Lake Victoria Greenstone Belt, points to a banner year for the company." The Phase 7 program consisted of nine diamond drill holes representing some 991 metres of drilling, all of which tested the eastern limb of the Kisunge Main Zone. Final assay results for these holes are presented below: Kisunge Main Zone Eastern Limb: ------------------------------------------------------------------------- Hole From To Intercept Gold Including (m) (m) (m) (grams/tonne) ------------------------------------------------------------------------- LKD-08 45.20 66.65 21.45 0.60 1.50m @ 2.07 g/t ------------------------------------------------------------------------- LKD-09 48.25 49.25 1.00 2.34 ------------------------------------------------------------------------- LKD-10 54.80 60.30 5.50 1.14 1.30m @ 3.22 g/t 63.00 67.50 4.50 1.97 2.40m @ 2.77 g/t ------------------------------------------------------------------------- LKD-11 - - - - ------------------------------------------------------------------------- LKD-12 54.00 63.10 9.10 1.22 2.44 @ 3.90 g/t ------------------------------------------------------------------------- LKD-13 15.00 18.00 3.00 1.05 42.30 50.70 8.40 4.35 3.0m @ 7.89 g/t ------------------------------------------------------------------------- LKD-14 118.50 123.50 5.00 0.56 ------------------------------------------------------------------------- LKD-15 36.60 39.67 3.07 6.87 1.44m @ 10.95 g/t ------------------------------------------------------------------------- LKD-16 29.90 38.10 8.20 0.86 4.06 @ 1.55 g/t ------------------------------------------------------------------------- The true width varies from 70-100% of intercept length. Holes LKD-08, 9, 10, 11 and 14 were drilled to test a thick, high grade zone intersected previously in shallow RC holes and obtain an azimuth and plunge to the mineralized shoot. Drilling has indicated that this gold shoot has a shallow plunge with a northerly azimuth. Hole LKD-09 defines the southern cut-off to the mineralization, and LKD-11 marks the northern cut-off, suggesting a strike length of at least 150 metres. Drill holes LKD-12, 13, 15 and 16 were drilled south of the above-noted mineralization in an area where RC drill rig access was not possible due to the steepness of the hill. Higher grade gold intersections (between 3.90g/t and 10.95g/t) were obtained along a strike of some 150 metres, with the zone being open in both northerly and southerly directions. The trend of this mineralization appears to be north-south but the plunge is unknown. Drill hole LKD-16 was collared at the same location as LKD-13 but with a vertical dip. The purpose of this hole was to obtain the dip to the mineralization which was determined to be quite shallow at approximately -10 degrees to the east. Invaluable structural information was obtained from this diamond drilling program and due to the shallow dip to the gold-bearing body the Company is planning an additional RC drill program that will commence in the next few weeks. This program will test the depth extensions to this higher-grade zone obtained in this drilling on the Kisunge Main Zone eastern limb, as well as the depth extensions to the southern limb of the Main Zone. Holes are also planned to test the depth extensions of known mineralization on the Shilalo West and Shilalo South hills. The new Kiginga Anomaly is also now accessible and will also be further drill tested. The RC drill is currently testing aeromagnetic anomalies in the Lunguya, Ushirombo and Ushirombo West Project Areas as part of our kimberlite exploration program. This work is expected to be completed by mid-September 2006. Qualified Person The Company's Qualified Person is Mr. John Deane, the President of Tanzanian Royalty Exploration Corporation Limited. He has an M.Sc. from the University of Cape Town (1993) and is a registered scientist with SACNASP (Reg. #400005/05). Analysis Fire assay with flame AAS finish was conducted by Humac Laboratory in Mwanza, Tanzania. Standards were inserted in the sample stream sent to Humac. Duplicates of selected pulps from the mineralized zones have been forwarded to SGS laboratory in Mwanza, and results are pending. Results from the Standards indicate that 95% of the standards fall within 10% standard deviation limits. Respectfully Submitted, "James E. Sinclair" James E. Sinclair Chairman and Chief Executive Officer Please see a diagram of the Luhala Project Area - Kisunge Hill by clicking below: http://files.newswire.ca/508/Luhala_Gold_Project.pdf Visit our website: http://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 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 # 0-50634, which may be secured from us, or from the SEC's website at http://www.sec.gov/edgar.shtml. CONTACT: Investor Relations at 1-800-811-3855 DATASOURCE: Tanzanian Royalty Exploration Corporation CONTACT: Investor Relations at 1-800-811-3855

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