Tanzanian Gold Announces the Sale of $2,993,390 of Common Shares and Warrants



VANCOUVER, British Columbia, Tanzanian Gold Corporation’s (TSX:TNX) (NYSE American:TRX) (the “Company’s”) Board of Directors is pleased to announce the entering into subscription agreements for the sale of 5,545,325 common shares and warrants to purchase 2,772,637 common shares raising in $2,993,390 in the aggregate with certain investors. The common shares and warrants were sold at a fixed combination price of $0.5398 for each common share and a one-half purchase warrant with the right of each whole warrant to purchase one common share at $1.50 for a period of three years.

The proceeds from the sale of common shares and warrants will be used for capital expenditures, continued exploration, general corporate purposes and working capital.

The common shares and warrants, and common shares underlying the warrants, are being offered pursuant to an effective shelf registration statement on Form F-3, which was previously filed with the Securities and Exchange Commission and declared effective on November 25, 2020. The sale of the common shares and warrants is expected to close on or around December 23, 2020, subject to the satisfaction of customary closing conditions, including acceptance of the listing of the common shares by the NYSE American and the Toronto Stock Exchange.

Respectfully Submitted,

“James E. Sinclair”

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