News Releases

March 07, 2005
Closing of Private Placement
TORONTO, ONTARIO - Tsodilo Resources Limited (the "Company") (TSX Venture Exchange: TSD) is pleased to announce the closing of the private placement previously announced on February 23, 2005.

In a non-brokered private placement, 461,570 units of the Company (the "Units") were issued at a price of $1.15 per Unit for proceeds to the Company of $530,806.00. Each Unit consists of one common share of the Company and half a warrant of the Company, each full such warrant entitling the holder to purchase one common share of the Company at a price of $1.15 for a period of two years. The Firebird Global Master Fund, Ltd ("FGMF") acquired 434,782 of the units. FGMF is a contrarian portfolio equity fund that invests in markets throughout the world and is managed by Mr. James Passin. With the closing of this private placement, FGMF beneficially owns over 10% of the outstanding common shares of the Company.

Proceeds from this financing will be added to the Company's working capital. Proceeds from this financing will be added to the Company's working capital.

The common shares, warrants and warrant shares are subject to a statutory hold period under securities laws of four (4) months, expiring on July 3rd, 2005 and the certificates evidencing such securities will bear a legend to that effect. Consequently, the common shares, warrants and warrant shares may only be resold during such four (4) month period in accordance with appropriate statutory exemptions from the prospectus requirements of the securities laws or if appropriate consents or discretionary orders have been obtained.

Tsodilo Resources is an international diamond exploration company engaged in the search for economic kimberlites at its Newdico and Gcwihaba projects in northwest Botswana. The Republic of Botswana is the largest producer of diamonds, by value, in the world. Tsodilo currently has a 75% stake in Newdico while Trans Hex Group, a South African diamond mining and marketing company, holds the remaining balance. The southern Gcwihaba Project area is 100% held by Tsodilo subsidiary Gcwihaba

Resources (Pty) Limited. Tsodilo manages the exploration of both license areas. The design and conduct of the Company's exploration program is the responsibility of Peter Walker, a professional geologist registered with the South African Council for Natural Scientific Professions. Please visit the website, www.TsodiloResources.com, for additional information and background on our projects.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release. This news release may contain assumptions, estimates, and other forward-looking statements regarding future events. Such forward-looking statements involve inherent risks and uncertainties and are subject to factors, many of which are beyond the Company's control, which may cause actual results or performance to differ materially from those currently anticipated in such statements.

FOR FURTHER INFORMATION PLEASE CONTACT:
James M. Bruchs - President and Chief Executive Officer:
E-Mail JBruchs@TsodiloResources.com
Head Office:
Telephone +1 416 572 2033
Facsimile + 1 416 5724164
COREBOX
Tsodilo Resources Limited
Canada Trust Tower, BCE Place
161 Bay Street, P.O. Box 508
Toronto, ON Canada M5J 2S1
Telephone: (416) 572-2033
Fax: (416) 987-4369
Website: www.TsodiloResources.com/
Email: