======================================================================
Tanzanian Royalty Enters Into Management Services Agreement With
Sloane Developments For Prospecting Licenses in Tanzania
======================================================================
The Company announces that it has entered into a Management Services
Agreement with Sloane Developments which holds the right to earn a
beneficial interest ranging from 90 to 100% in ten prospecting licenses
held by Tanzanian Royalty in the Lake Victoria greenstone belt of
Tanzania.
Under the Management Services Agreement, a wholly-owned subsidiary of
Tanzanian Royalty will carry out field and exploration work on the
Kisunge and Shilalo Hills targets within the Luhala Project Area and
similar work at the Golden Horseshoe Reef Project.
The majority of the exploration work will consist of Reverse
Circulation (RC) and
Diamond drilling along with limited ground
geophysics. In addition, Tanzanian Royalty has agreed to assist with
grassroots exploration on other licenses in the agreement subject to
the availability of staff and equipment.
The Management Services Agreement includes an administration fee on
pre-defined exploration and related costs covered by the agreement,
which is scheduled to run for a one year period.
The earn-in portion of the previously announced option agreement with
Sloane (See Jan. 30, 2007 News Release) includes prescribed annual cash
payments, firm exploration expenditures and a minimum amount of
Diamonddrilling over the life of the agreement. In addition, Tanzanian Royalty
will receive a sliding scale net smelter royalty for any mineral
discovery that achieves commercial production.
The exploration component of the option agreement with Sloane calls for
a work commitment of $US1 million within a two-year period of which
$400,000 will be expendable in the first year and the remaining amount
in the second. Further provisions in the option agreement call for the
completion of a bankable feasibility study and the announcement of a
production decision before the fifth anniversary of the agreement and
the achievement of commercial production before the seventh
anniversary.
Respectfully Submitted,
"James E. Sinclair"
James E. Sinclair
Chairman and Chief Executive Officer
For further information, please contact Investor Relations at
1-800-811-3855 Visit our website: www.TanzanianRoyaltyExploration.com
The Toronto Stock Exchange and American Stock Exchange have not
reviewed and do not accept responsibility for the adequacy or accuracy
of this release
Cautionary Note to U.S. Investors - The United States Securities and
Exchange Commission permits U.S. mining companies, in their filings
with the SEC, to disclose only those mineral deposits that a company
can economically and legally extract or produce. We use certain terms
on this news release, such as "measured", "indicated", and "inferred"
"resources" that the SEC guidelines strictly prohibit U.S. registered
companies from including in their filings with the SEC. U.S. Investors
are urged to consider closely the disclosure in our Form 20-F, File No.
0-50634, which may be secured from us, or from the SEC's website at
http://www.sec.gov/edgar.shtml.
Certain information presented in this release may constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements are based on numerous assumptions, and involve known and
unknown risks, uncertainties and other factors, including risks
inherent in mineral exploration and development, which may cause the
actual results, performance, or achievements of the Company to be
materially different from any projected future results, performance, or
achievements expressed or implied by such forward-looking statements.
Investors are referred to our description of the risk factors affecting
the Company, as contained in our Form 20-F, File No. 0-50634, for a
more information concerning these risks, uncertainties, and other
factors.
======================================================================
Copyright (c) 2007 TANZANIAN ROYALTY EXPLORATION CORPORATION (TNX) All
rights reserved. For more information visit our website at
http://www.tanzanianroyaltyexploration.com/ or send
mailto:info@tanzanianroyaltyexploration.com
We have no wish to send you unwanted messages. If you would like to
stop receiving our email broadcasts, please click Reply and type
UNSUBSCRIBE in the subject line.
======================================================================
.