Tanzanian Royalty nickel project

Tanzanian Royalty Exploration has announced that Jinchuan Mining has agreed to participate in the exploration and development of the Company's Kabanga nickel properties in northwestern Tanzania. Following the recent conclusion of an option agreement with Beijing Songshanheli Mining Investment Co. Ltd, which previously held the properties under an exclusive agreement with Tanzanian Royalty, Jinchuan Mining has agreed to act as operator and hold complete financial responsibility for all exploration activities on the nickel exploration licenses. The Chinese joint venture partners will hold the right to earn a 100% interest in the Kabanga nickel properties for time-sensitive payments including staged exploration expenditures and a 30yr 3% net smelter royalty in favour of Tanzanian Royalty upon achieving commercial production. Tanzanian Royalty's Kabanga properties comprise a project area of 4200sq/km, with targets for nickel, cobalt and PGM mineralization. The project area is situated to the north of the high grade Kabanga nickel deposit which is currently under development by a joint venture consisting of Barrick and Xstrata. Exploration work on the nickel licenses is expected to begin early this year, with Tanzanian Royalty providing logistical and related assistance to Jinchuan and Beijing Songshanheli in several key areas including government relations, license maintenance, corporate filings and the importing of heavy equipment.