Mr. James Sinclair reports

FEASIBILITY STUDY REVEALS 1.064 MILLION OUNCES OF GOLD AVAILABLE TO BE MINED AT THE BUCKREEF PROJECT

Tanzanian Royalty Exploration Corp. has filed on SEDAR a feasibility study (MFS) for the Buckreef project. The study positively establishes that 1,064,000 ounces of gold reserves are available to be mined over a 15-year initial life of mine through conventional open-pit mining methods.

"Today is a great day in the history of the company as this study assigns a net positive value of $243-million (U.S.) at the Buckreef project, using a 5-per-cent discount rate and a gold price of $1,250 (U.S.) per ounce. We are completely delighted with results of this independent feasibility study. We have steadfastly pursued our goals at Buckreef, and this study clearly indicates the value of the Buckreef project which we expected was present. We anticipate even more mineral reserves to become known after implementing the planned close-spaced grade control drilling program," said executive chairman James E. Sinclair.

The completion of the MFS was led by an independent consulting team from MaSS Resources Ltd. of Tanzania and is dated effective as of April 27, 2017. The MFS was prepared in accordance with National Instrument 43-101. Additional technical support was provided by the company's internal technical team incorporating and updating the previously published preliminary economic assessment study results by Venymn of South Africa. Other historical data over the years on this historical deposit were also included for continuity. The Buckreef project is in the Geita district in the Lake Victoria greenstone belt in central Tanzania, East Africa.

"Our initial capital costs are estimated at a modest $32-million (U.S.). That amount includes the first year's prestripping program. The mining and processing components are simple, straightforward operations utilizing common earthmoving methods and equipment. Our plant design makes use of standard gravity/CIL [carbon in leach] plant technology used worldwide," said acting chief executive officer Jeffrey Duval. "Shareholders will be extremely pleased with the results of our MFS. We encourage shareholders to take time to review the study in its entirety, particularly to gain a thorough understanding of the project design, and to note the discussion on the potential for future underground development of Buckreef. The MFS validates everything we have known about our Buckreef project, and is now officially defined in this study," Mr. Duval concluded.

The highlights of the MFS include:

• 1,064,000 ounces of open-pittable gold reserves to be mined over the life of the project;
• Conventional open-pit mining methods selected in pit designs;
• Over an initial 15-year life of mine, a total of 17.49 million tonnes of ore with a strip ratio of 8.12 to 1 (waste to ore) will be mined;
• Overall recoveries from the flotation and cyanide leach circuits are expected to be 89 per cent and 93 per cent for primary ore and saprolite ore, respectively;
• Over the life of the mine, an average of 53,534 ounces of gold per year will be produced as dore;
• Pre-existing stockpile (ROMPAD) ore totalling 119,726 tonnes grading 1.86 grams per tonne to be used for process plant commissioning;
• Discussion of future underground development potential;
• Life-of-mine capital cost outlay estimated at $59.6-million (U.S.) and sustaining capital, excluding closure costs;
• Cash operating costs of $696 (U.S.) per ounce;
• Generation of a positive NPV (net present value) of $243-million (U.S.) at a 5-per-cent discount rate and an IRR (internal rate of return) of 53.7 per cent.

For further information, including the key assumptions, parameters and methods use to estimate the mineral reserves on the Buckreef project, please see the MFS in its entirety under the company's profile on SEDAR.

The MFS is an in-depth independent study that addresses the continued refinement of pit-optimized mining reserves, the mine production schedule, the process plant ore feed schedule, and the financial projections and analysis based on comprehensive cost estimations for process plant (design, fabrication, construction and operation) and mining (equipment purchase and mine production), among other things for the Buckreef project.

"We are very pleased and excited that our expectations of our Buckreef project have been validated and confirmed by the MFS. Our corporate team, together with our consultants, worked tirelessly. The dedication of all of us throughout this process is the foundation of our impending success with the Buckreef project," stated Mr. Duval.

Mr. Sinclair concluded: "It is a credit to our shareholders who remained loyal during the most difficult of times, who will ultimately be rewarded by our success at the Buckreef project. We are very happy for our outstanding MFS, which shows 1,064,000 ounces of gold reserves minable at our Buckreef project. We are also incredibly grateful for the continued support of our valued shareholders throughout this process."

The company's qualified person, Peter Zizhou, has reviewed and approved the contents of this news release. Mr. Zizhou is the chief operating officer of Tanzam2000, a subsidiary of Tanzanian Royalty Exploration Corp. Ltd. He has a master of science (exploration geology) from the University of Zimbabwe (2000) and is a registered scientist with SACNASP (registration No. 400028/08).

About Tanzanian Royalty Exploration Corp.

Tanzanian Royalty is a mineral resource company that engages in the acquisition, exploration and extraction of gold and other natural resources in the United Republic of Tanzania, Africa. The company, after successfully exploring for gold, has identified three development projects: Buckreef, Kigosi and Itetemia. In early 2016, in conjunction with the company's first gold pour, the company was deemed a commercial gold producer by the Tanzanian government. The company is presently focused on its Buckreef gold project in north-central Tanzania.

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