Tanzanian's chairman to provide $1-million financing

2008-10-01 14:19 ET - News Release

Mr. James Sinclair reports

TANZANIAN ROYALTY CHAIRMAN TO PROVIDE $1 MILLION PRIVATE PLACEMENT

Tanzanian Royalty Exploration Corp.'s James E. Sinclair has agreed to provide $1-million by way of a private placement, with the proceeds being applied to general working capital. Mr. Sinclair has agreed to purchase 327,225 common shares at a purchase price of $3.056 per share, for proceeds totalling $1-million. The price reflects the greater of the weighted average trading price of the company's shares for the five consecutive trading days ended Sept. 30, 2008, of $3.056, and the closing price on Sept. 30, 2008, of $2.85.

The placement common shares are subject to certain mandated hold periods and the certificates representing such shares are legended accordingly. No warrants, options or other rights have been issued or granted in connection with these placements.

The private placement is subject to regulatory approval.