Mr. Kal Matharu reports

TANZANIA ANNOUNCES $9 MILLION FINANCING

Tanzania Minerals Corp. has entered into an agreement with Primary Capital Inc. as lead agent on behalf of a syndicate of agents, to offer for sale, on a private placement basis, up to 16,364,000 units of the company, at a price of 55 cents per unit, for gross proceeds of up to $9,000,200. Each unit will consist of one common share of the company and one-half one share purchase warrant. Each full warrant will entitle the holder to purchase an additional common share at a price of 75 cents per share for a period of 24 months from the date of closing. In the event that the common shares of the company are traded on the TSX Venture Exchange at a price of $1.10 or more for 20 consecutive trading days following the issuance of the warrants, the warrants will expire on the earlier of the expiry date and 4:30 p.m. PT on the date which is 30 calendar days after the company provides notice to the holders of the warrants that the acceleration event has occurred, provided that such notice cannot be provided until the four-month hold period on the securities has expired.

The company will pay the agents a 7-per-cent cash commission and issue a total number of non-transferable broker warrants entitling the holders to acquire that number of units equal to 7 per cent of the units sold under the private placement, at 61 cents per unit, for a period of two years from the date of closing. Such units will have the same terms as the units under the private placement described above.

"We are very pleased with this financing and it will allow us to aggressively move forward into the next phase of our business model," says the company's chief executive officer, Kal Matharu.

The closing of the private placement is subject to regulatory approval including that of the TSX Venture Exchange. All securities issued will be subject to a four-month hold period.

The proceeds of the private placement will be used for the company's general working capital purposes.