Tanzanian Royalty Reports High Grade Gold Values From Diamond Drilling Program at Buckreef Project

The Company is pleased to report that a diamond drilling program at its Buckreef Gold Project in Tanzania has returned some of the highest grade gold values encountered to date. The 2012 drill program commenced on January 5, 2012 after a short holiday break and is focused on testing high priority targets along the northeast extension of the Main Buckreef deposit. The latest results include two holes that were drilled from the Eastern Porphyry and Buckreef North areas. Both holes returned excellent gold values with one particular intercept (46 metres) ranking among the longest ever reported in this area. According to Joseph K. Kahama, Chairman and Chief Operating Officer (Tanzania), “The holes lend support to our hypothesis about the potential to develop resources along strike and down dip from known deposits at Buckreef. We have every intention to accelerate drilling given the potential impact of these results on the feasibility study for Buckreef which is scheduled for completion later this year.” Hole BMDD103 encountered an intercept of 10.5 metres grading 2.27g/t gold from 75.5 metres which included 1.1 metres averaging 8.89g/t gold from 75.5 metres and 1.5 metres grading 5.32g/t gold from 80 metres. This intercept is situated about 50 metres from the previous drilling toward the southwest of the structure. It is the last diamond drill hole completed in this phase of drilling in the Eastern Porphyry area.