TRX.TO · 2017-08-11 12:00:00

U.S.A. 06784 Toronto, Ontario

Corporate Updates

CONNECTICUT OFFICE: TORONTO OFFICE:

PO Box 577 Bay Adelaide Centre, East Tower

Sherman, CT 22 Adelaide Street West, Suite 3400

Phone: 1.844.364.1830 Canada M5H 4E3

Fax : 1.860.799.0350 Toll Free: 1.844.364.1830

www.tanzanianroyalty.com

Buckreef Gold Project Not Effected by New Laws

in Tanzania

FOR IMMEDIATE RELEASE August 11, 2017

TORONTO, ONTARIO – Tanzanian R oyalty Exploration Corporation

(TSX:TNX)(NYSE MKT:TRX) hereinafter (the "Company") announces that it is not

affected by new laws in Tanzania.

"The new mining laws in Tanzania appear to be an action to gain a fair share of the

financial rewards for the people and nation of Tanzania while still providing incentives to

the investors. The proposed le gislation is not nati onalization." stated James E. Sinclair,

Executive Chairman.

Jim Sinclair co-authored a book titled "BOOM," written in the 1990s with Mr. F. V ogl,

former Director of Communications for th e World Bank. "Boom" outlines the authors'

prediction for the economic development of China, Tanzania and India as those countries

move into the modern Global economy. Many of the new laws adopted in Tanzania (and

elsewhere) were outlined in the book. The auth ors' premise, which is being borne out in

present legislative trends stat es that to participate in the development of a foreign

economy investing companies must enter into mutually beneficial contracts.

The Company executed a joint venture contr act granting 45% for STAMICO, the State

Mining Company, and 55% for the Company as investor. The Company carried all the

costs for the Buckreef Project up front. Thes e front end costs of the project shall be

reimbursed out of production. Ta nzanian Royalty paid to th e Government of Tanzania

US$3,000,000, a non-refundable up front fee, for the privilege of operating in Tanzania.

Public companies are required to comply with reporting regul ations. Reporting is

necessary for transparency. Reporting transparency is required not only for all exploration

results but also for all economic and minera l information published on the Canadian and

USA government regulatory sites, SEDAR & EDGAR.

To date, the Company has invested Cdn$21,981,125 in the Buckreef Gold Project.

The most recent Canadian National Inst rument 43-101 report filed by the Company

provides that an economic analysis has been carried out on the Buckreef Gold Project for

a range of gold prices with $1,250 per ounce selected as the base case. The analysis

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%.

Based on this economic analysis, the estima ted value of STAMICO's holdings in the

Buckreef Project is substantial. STAMIC O acts as agent for the Tanzanian federal

government. The NI 43-101 revealed 1,064,000 ounces of gold to be mined at the

Company's Buckreef Project, which will benefit the Company and Tanzania.

"We believe the Company is in total compliance with all new mining standards. The

Company was in compliance with the new laws in Tanzania prior to the adoption of these

laws. There are no outstanding differences or disputes between the government of

Tanzania and the Company. Due to corpor ate foresight, the Company's actions and

policies were well ahead of the new laws Ta nzania has currently promulgated. The new

laws will not impact our Company. These new laws will impact companies in our

industry who have a history of exploiting Tanz ania without benefit to the nation or it's

people. Our arrangement with the Tanzanian government should be a role model for the

entire industry. We also take great comf ort in the various economic and investor

protection Treaties in place between Tanzania and Canada. We welcome and look forward

to our continued good relationship with Tan zania, together with our exciting mining

prospects there." stated James E. Sinclair, Executive Chairman.

For more information and updates, please see the Company website at:

www.tanzanianroyalty.com

Respectfully Submitted,

"James E. Sinclair"

James E. Sinclair

Executive Chairman

For further information, please contact Investor Relations:

Michael Porter

Porter, LeVay & Rose

212-564-4700

[email protected]

Cautionary Note Regarding Forward-looking Statements

Certain of the statements made herein may contain forward- looking statements or inform ation within the meaning of

the United States Private Securities Litigation Reform Act of 1995 and app licable Canadian securities laws. Often, but

not always, forward-looking statements and forward-lookin g information can be identified using words such as "plans",

"expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives thereof or

variations of such words and phrases or statemen ts that certain actions , events or results "may", "could", "would", "might" or

"will" be taken, occur or be achieved. Forw ard-looking statements or information herein include, but are not limited to

the Positive Feasibility Study on Buckreef.

Forward-looking statements and forward-looking informa tion by their nature are based on assumptions and involve

known and unknown risks, uncertainties and other factors which may cause the actual results, performance or

achievements of the Company to be materially different from any future results, performance or achievements expressed

or implied by such forward-looking st atements or information. We have m ade certain assumptions about the forward-

looking statements and information and even though our management believes that the assumptions made and the

expectations represented by such statements or information are reasonable, there can be no assurance that the forward-

looking statement or information will prove to be accurate. Furthermore, should one or more of the risks, uncertainties

or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from

those described in forward-looking statements or informa tion. These risks, uncertain ties and other factors include,

among others, the following: gold price volatility; discre pancies between actual and estimated production, mineral

reserves and resources and metallurgical recoveries; mining operational and de velopment risk; litigation risks;

regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign investment;

currency fluctuations; speculative nature of gold exploration; global economic climate; dilution; share price volatility;

competition; loss of key employees; additional funding require ments; and defective title to mineral claims or property,

as well as those factors discu ssed in the sections entitled " Forward-Looking Statements" and "Risk Factors" in the

Company's Form 20-F Annual Report dated November 25, 2016.

There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results

and future events could differ materially from those anticipated in such statem ents. Accordingly, you should not place

undue reliance on the forward-looking statements or informatio n contained herein. Except as required by law, we do

not expect to update forward-looking statements and information continually as conditions change and you are referred

to the full discussion of the Company's business contained in the Company's reports filed with the securities regulatory

authorities in Canada and the U.S.

Cautionary Note Regarding Mineral Reserves and Mineral Resources

The terms "Mineral Reserve", "Proven Mineral Reserve" and "Probable Mineral Reserve" used in this release are Canadian

mining terms as defined in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects

under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the " CIM") Standards on

Mineral Resources and Mineral Reserves , adopted by the CIM Council on August 20, 2000 as may be amended from

time to time by the CIM. Th ese definitions differ from th e definitions in the United States Securities Exchange

Commission ("SEC") Guide 7. In the United States, a mineral reser ve is defined as a part of a mineral deposit which

could be economically and legally extracted or produced at the time the mineral reserve determination is made.

The terms "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource", "Inferred Mineral Resource"

used in this release are Canadian mining terms as defi ned in accordance with National Instruction 43-101 – Standards

of Disclosure for Mineral Projects under the guidelines set out in the CIM Standards. Mineral Resources which are not

Mineral Reserves do not have demonstrated economic viability.

For a detailed discussion of Buckreef resource and reser ve estimates and related matters see the Company's reports,

including the Form 20-F Annual Report dated November 25 , 2016 and technical reports filed under the Company's

name at our website at: www.TanzanianRoyaltyExploration.com.

Cautionary Note to US Investors Concerning Estimates of Measured, Indicated and Inferred Resources

Note to U.S. Investors. While the terms "mineral resource", "measured mineral resource," "indicated mineral resource", and

"inferred mineral resource" are recognized and required by Canadian regulations, they are not defined terms under

standards in the United States and normally are not permitted to be used in reports and re gistration statements filed

with the SEC. As such, information contained in this re port concerning descriptions of mineralization and resources

under Canadian standards may not be comparable to simila r information made public by U.S companies in SEC

filings. With respect to "indicated mineral resource" and "inferred mineral resource" there is a great amount of uncertainty

as to their existence and a great uncertainty as to their economic and legal feas ibility. It cannot be assumed that all or

any part of an " indicated mineral resource" or " inferred mineral resource" will ever be upgraded to a higher

category. Investors are cautioned not to assume that any part or all mineral deposits in these categories will ever be

converted into reserves.