September 22, 2006
TORONTO, ONTARIO - Tsodilo Resources Limited (the "Company") (TSX Venture Exchange: TSD) is pleased to announce that it has negotiated a non-brokered private placement of 754,000 units of the Company (the "Units") at a price of CDN$0.70 per common share for proceeds to the Company of CDN$527,800 Each Unit consists of one common share of the Company and one a warrant of the Company, each such warrant entitling the holder to purchase one common share of the Company at a price of CDN$0.70 for a period of two years. The Company has negotiated certain finder's fees payable in accordance with the policies of the TSX Venture Exchange with respect to 500,000 units of the placement. Closing of this transaction is subject to regulatory approval. Proceeds from this financing will be added to the Company's working capital.
Tsodilo Resources Limited is an international diamond exploration company engaged in the search for economic kimberlites at its Newdico (Pty) Limited ("Newdico') and Gcwihaba Resources (Pty) Limited ("Gcwihaba") projects in northwest Botswana. The Republic of Botswana is the largest producer of diamonds, by value, in the world. Tsodilo has an 89% stake in Newdico (16,800 sq. km under diamond license) while Trans Hex Group, a South African diamond mining and marketing company, holds the remaining 11%. The southern Gcwihaba project area (6,703 sq. km under diamond license and 3,780 sq. km under base and precious metals licenses) is 100% held by the Company. Tsodilo Resources Limited manages the exploration of both the Newdico and Gcwihaba license areas. Please visit the Company's 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
Head Office: Telephone +1 416 572-2033