U.S.A. 06784 Toronto, Ontario

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CONNECTICUT OFFICE: TORONTO OFFICE:

PO Box 577 Bay Adelaide Centre,

East Tower

Sherman, CT 22 Adelaide Street West,

Suite 3400

U.S.A. 06784 Toronto, Ontario

Phone: 1.844.364.1830 Canada M5H 4E3

Fax : 1.860.799.0350 Toll Free:

1.844.364.1830

www.tanzanianroyalty.com

Pathway Towards Commercial Gold Production

Tanzanian Royalty’s recently re leased Mine Feasibility Study

(MFS) defines 1.064 million ounc es of open pit minable gold,

and initiates discussion on development of the underground

Mine potential.

FOR IMMEDIATE RELEASE TORONTO, ONTARIO – July 13, 2017

Tanzanian Royalty Exploration (“TRX” or the “Company”) (NYSE: TRX) (TSX: TNX)

is providing an update to its shareholders , discussing the findings of its recently

completed Mining Feasibility Study ("MFS" or the "Study") on its JV-owned Buckreef

Gold Mine Project (the "Pro ject"). The Study was led by an external consultant team

from MaSS Resources Ltd. of Tanzania, with technical support prov ided by an internal

team and combined previous published Pr eliminary Economic Assessment study results

by Venymn of South Africa, as well as other historical feas ibility studies conducted over

the years on this historic deposit. The Buckreef project is in the Geita District in Lake

Victoria Greenstone Belt in central Tanzania, East Africa. The full study can be found on

the home page of the Company’s website: www.tanzanianroyalty.com

“We want to take this opportunity to inform our loyal investors of not only the next steps

towards mining production but also direct their attention to th e discussion of the

underground potential of Buckreef.," stated Jeffrey Duval, Acting Chief Executive

Officer of TRX. We have included a sma ll portion of the underground discussion in this

release and are excited with the potential that our last the deep drilling program

uncovered. The results mirrored favorably with the historical records from the old

Buckreef underground workings

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“As you can see in the slide above, the underground mineralisation extends several

hundred meters below the bottom of the open p it mine and the drill hole is open in all

directions. It is this feature that has us most excited for the future.”

“We are also pleased to have achieved third-party validation of the tremendous economic

potential for the open pit portion of the Buckreef Project.

“The Company maintains a 55% economic interest in the Buckreef project, which infers a

55% interest in the 1.064 million ounces of gold reserves at Buckreef, which has been

validated by independent consultants. When one compares our current stock price levels

to the Company’s economic interests at Buck reef, measured at gold prices levels

throughout the last several years, our stock pr ice is trading at significantly discounted

levels.

"The Study results reflect the continued refinement of pit optimized mining reserves,

mine production schedule, process plant ore feed schedule and financial projections &

analysis based on comprehensive cost estimations for process plant (design, fabrication,

construction and operation) and mining (equipment purchase and mine production) on the

Buckreef Project.

The Company has begun active negotiations to complete financing on a straight loan

basis. This will ensure that we have the n ecessary capital to complete the reconditioning

and construction of new modules for our modern Gravity/CIL plant. We have brought in a

team of experts with decades of experience in building and maintaining these types of

plants. We have the utmost confidence in their ability to complete the project under

budget and ahead of schedule. Importantly, th is Gravity/CIL plant will allow us to run

pay dirt at an efficiency rate of 90% or hi gher in the recovery of gold. We anticipate the

plant being built in approximately 8 months.

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The Company has successfully operated in Tanzania since 1992. The significant

experience of our technical team, as well as th e consultants in Tanzania contributes to the

integrity of the results. The soon-to-commence grade control drilling will be essential to

further refine the mineable reserves during the pre-stripping deve lopment plan, and in

advance of our process plant construction,” concluded Mr. Duval.

Highlights

 Conventional open pit mining methods selected in pit designs.

 Over LoM, a total of 17.49Mt of ore with a strip ratio of 8.1:1 will be mined.

 Pre-existing stockpile (R OMPAD) ore totaling 119,726t grading 1.89g/t to be

used for process plant commissioning.

 1.064Moz of gold to be mined over the life of the project.

 Recoveries of 89% for primary ore and 93%for saprolite ore, utilizing a simple

EDS comminution, flotation and leaching pr ocess with gravity recovery circuit

for free Au component collection.

 0.91Moz of gold will be produced over the life of the project.

 Initial capital cost outlay estimated at US $32.5 Million with a Life of mine cost

over the three phases of US $59.6 milli on and sustaining capital, excluding

closure costs.

 Cash operating costs of US $696/oz pr oduced equivalent US $35.95 per tonne

milled.

 Generation of a positive NPV of US $243 m illion at a 5% discount rate and an

IRR of 53.7%

Major Assumptions

 Gold price of US $1250/oz

 Effective Tax Rate of 15.25%

 Royalty Rate of 4.3%

 Transport refining cost of $15.00/oz Au

 Discount rate of 5%

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Mineral Resources and Reserves

The mineral resources and reserves of the Bu ckreef deposits were classified using logic

consistent with the CIM definitions referred to in National Instrument 43-101.

The mineral resource block model, which serv es as the basis of the Mineral Resources

and Mineral Reserves in the Study, were developed utilizing 3D lithology models. Table

1 summarizes the Mineral Resources for th e Buckreef project as of February 14,

2014. The mineral resource is reported at a 0.5 g/t Au cut-off grade.

Table 1 – Buckreef Mineral Resources

The pit optimization was produced using NP V Scheduler software which utilizes the

industry standard Lerchs Grossman algorithm for analysis. Updated cost and recovery

inputs in conjunction with new geotechnical parameters and ramp design from the

preliminary economic assessment study were incorporated in the final pit design process.

The base case US $1,100 gold shell was selected for the ultimate pit design. The final pit

contains approximately 17.5Mt of ore (sap rolite and primary), with 142Mt of waste

resulting in an overall strip ratio of 8:1.

Table 2 summarizes the Project Mineral Reserves effective as of April 27,

2017. Reserves were calculated using a US $1,100 per oz gold price and the

corresponding cut-off grade of 0.59 g/t for all ore categories.

Table 2 – Buckreef Mineral Reserves

Mining

The deposit is projected to be mined util izing owner-operated c onventional open pit

mining methods. Mining will be completed usi ng 5 meter benches in the saprolite zone

and 10 meter benches in the primary sulphide zone. Updated pit wall angle designs and

Tanzanian mining regulations were incorporated into the mine plan.

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The mine is estimated to produce sufficient or e to maintain an initial process plant feed

scheduled at 60tph (Yr1-Yr4) with upgrad es to 120tph (Yr5-Yr9) and 180tph (Yr10

onwards). Targeted ore production during commercial production is 1,500,000 tonnes per

year LOM. Stockpiling of ore over LOM will resu lt in surplus ore to be processed up to

Year 17.

Mineral Processing

The process design for the Buckreef Project is based on extensive metallurgical test-

work. Results from the work have established that high gold recoveri es can be achieved

with a conventional process of comminution (using the latest EDS system as a

replacement for the conventional ball & roller mill circuit), gravity concentrate, flotation

and flotation concentrate leaching circuit.

Buckreef project ores are projected to be treated at a rate of 1.5Mt per annum with

process plant capacity upgrades in Yr-5 and Yr-10. Overall recoveries from the flotation

and cyanide leach circuits are expected to be 89% and 93% for primary ore and saprolite

ore, respectively. Over the life of the mine an average of 53,534 oz Au per annum will be

produced as doré.

Project Economics

Cost estimates were developed to a feasib ility level of accuracy . Budget quotations for

mobile and plant equipment were obtained fr om international suppl iers. Unit rates for

material commodities (earthworks, concrete, and steel) in Tanzania were verified from

contractor and supplier quotations and based on current practice in Tanzania.

Construction and labor costs a pplicable for the region were bu ilt up from first principles

for salaries, burdens and overhead. Continge ncy was applied to each item based on the

source and accuracy of the estimate data, resu lting in an overall in itial contingency of

10%. The Project Capital Cost Summary is included in Table 3.

Table 3 – Project Capital Cost Summary

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Operating costs were also developed from first principles, inclusive of labor,

consumables, fleet maintenance and repair, and general and administration costs, and data

from current operations in Tanzania. The estimated Operating Cost is summarized in

Table 4.

Table 4 – Operating Cost Summary

The Project economic analysis has been carried out for a range of gold prices with $1,250

per ounce selected as the base case. The an alysis demonstrates that the Project is

expected to generate a positive NPV at a 5% discount rate of US $243 million and a

positive IRR of 53.7%. Sensitivity of the Project NPV and IRR to changing metallurgical

recovery or operating costs to fluctuations in gold price are illustrated in Figure 1 below.

Figure 1: Sensitivity Analysis

Gold price is very sensitive to project NPV . An increase in gold prices by 20% will result

in double the project NPV . Though a decrease in gold price has a negative impact on

project NPV , the project remains viable with a 30% decrease in Gold price

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Metallurgical recovery follows the same tre nd as gold price variations. A decrease in

recovery results into low project NPV . This is an important parameter to be monitored as

slight negative change in recovery has big impact on project profitability

The project is sensitive to OPEX. A decreas e in operating cost result into cash-flow

saving and hence increase in project NPV . While the base case demonstrates a positive

return at the Feasibility cap ital and operating costs, the chart demonstrates further

opportunities for improving the economics of the Project by investigating Capital and

Operating cost savings. TRX is confiden t that the capital and operating costs can be

further optimized, improving the value of the project.

Permitting

The SML renewal permitting process for the Buckreef Project continues to advance with

positive support of the local communities and government authorities of Geita

Municipality and Republic of Tanzania. Th e preparation of documents for the renewed

10-year permit was completed in October 201 6 and the offer letter confirming approval

and granting renewal of the SML was received in February 2017. The Environmental

Management Plan (EMP) was approved in October 2016. The original Environmental

Impact Assessment (EIA) cer tification was granted in October 2014, and encompassed

the mining, ore processing and support infrastructure.

Underground Mining Potential

Mining of the Buckreef open pit will commen ce in year 0 (pre-stripping). Production

from the underground can commence towards the end of current LOM of the open pit via

development of an access decline/ramp without leaving a crown pillar below the pit floor.

An accurate cutover point between open pit and underground can be calculated by

comparing the cost to mine one tonne of mineralized material considering waste

movement and development costs by both methods.

Underground Mineralization

The main Buckreef prospects are near surface deposits that are amenable to be mined by

open pit methods which in this project ar e assumed to extend to a depth of 150-200

meters below surface. This is an arbitrary cuto ff point and it is most likely that further

optimization of the mineralization through grad e control drilling woul d result in either

deeper or wider pits given the grades and vein thickness (Figure 13.15). The two vein

systems being considered are assumed to be robust in terms of con tinuity and thickness.

The extents of the zone are 300m long and 15m wide at depths below 150m. The dip is

assumed to be sub-vertical to vertical.

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Figure 0.1a Schematic Section of Mineralisation at Buckreef

One of the veins has already been mined in the past and openings extend down to 150m

from surface. Considerable caution would need to be exercised if mining near the old

workings as voids may not have been su rveyed correctly and ground conditions around

old workings are often unstable.

Figure 13.15b: Section view - West East Buckreef Main Pit

Ore body

Section: West -East