Tanzania Minerals Closes $9 Million Brokered Private Placement

VANCOUVER, Dec. 8 /CNW/ - Tanzania Minerals Corp. (the "Company") (TSX-V: TZM) (FRANKFURT: CA87600X1087) is pleased to announce that, further to its previous announcement on November 22, 2010, the Company has closed its brokered private placement (the "Offering") of 16,364,000 units of the Company at a price of $0.55 per unit for aggregate gross proceeds of $9,000,200. Each unit consists of one common share of the Company and one half of one share purchase warrant, each full warrant entitling the holder to purchase an additional common share of the Company at a price of $0.75 per share for a period of 24 months until 4:30 pm (Vancouver time) on December 7, 2012, subject to acceleration in the event that if, after April 8, 2011, the closing price of the Company's common shares on the TSX Venture Exchange (or such other stock exchange on which the Issuer's shares are listed), for a period of twenty (20) consecutive trading days equals or exceeds $1.10 per share, the Company may provide written notice to the Holder of early expiry of the warrants and thereafter, the warrants will expire at 4:30 pm (Vancouver time) on the earlier of the date which is thirty (30) days after the date of the written notice to the holder and December 7, 2012.

Primary Capital Inc. acted as lead agent on behalf of a syndicate of agents including Clarus Securities Inc. and Union Securities Ltd. (the "Agents") in connection with the Offering. The Agents will receive an aggregate cash commission equal to 7% of the gross proceeds and broker warrants entitling the holders to acquire an aggregate of 1,145,480 units of the Company at an exercise price of $0.61 per unit until 4:30 pm (Vancouver time) on December 7, 2012.  Such units issued under the broker warrants will have the same terms as the units under the Offering described above.

All securities issued in connection with the Offering will be subject to a four month and a day hold period until April 8, 2011.

The proceeds of the Offering will be used for the Company's general working capital purposes.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, "forward‐looking statements". Forward‐looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The Company cautions readers that forward‐looking statements, including without limitation those relating to the Company's future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward‐looking statements.

For further information:

Kal Matharu
Director and CEO
[phone]