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Tanzanian Royalty Announces "Pay-Down to Zero" on Recently Announced/Restructured Convertible Note Financing. Minimal Impact on Share Float, Opines CEO Sinclair

TORONTO, ONTARIO--(Marketwired - Jul 6, 2015) - Tanzanian Royalty Exploration Corporation (TNX.TO)(NYSE MKT:TRX) (the "Company") is pleased to announce that it has fully paid off and retired the financing relating to the recently announced terms of its convertible senior note with an institutional lender, the first drawdown under which had successfully closed on December 29, 2014. No further payments are due.

Under the original financing terms, notes in the principal amount of US$10,000,000 were issued at an 8% discount, yielding an initial funding amount of US$9,200,000. The initial (closing) drawdown was US$1,766,558, and the balance of the funded amount (less expenses of issue) was placed in escrow to be available for future drawdowns, subject to the Company meeting certain financial ratios. The notes were to bear interest at 8% per annum, payable monthly.

Explains C.E.O Jim Sinclair:

"As of July 6th, 2015, the Company in pleased to announce full repayment against the notes. The total current debt has now been reduced to zero. Recall that the original purpose of the financing was to bridge us to 'first pour' on our very first producing mine. The first of several, I might expect, since we already have additional mining licenses in place on two other sites, as well as additional prospects in advanced stages of discovery, and pending applications for mining licenses for those as well."

"I am positively delighted now, because, in my view, the retirement of this loan resulted in a more modest dilution in total shareholder equity than...