September 28, 2006
Closing of Private Placement
September 28 2006 TORONTO, ONTARIO - Tsodilo Resources Limited (the "Company") (TSX Venture Exchange: TSD) is pleased to announce the closing of the private placement previously announced on September 22, 2006.
In a non-brokered private placement, 771,518 units of the Company (the "Units") were issued at a price of CDN$0.70 per Unit for proceeds to the Company of CDN$540,062.60. Each Unit consists of one common share of the Company and one 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 common shares, warrants and warrant shares are subject to a statutory hold period under securities laws of four (4) months, expiring on January 27, 2007 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. 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. 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