News Releases

April 20, 2009
Tsodilo Resources Limited Discovers Copper, Nickel and Cobalt Sulfide Mineralization Within its License Blocks in Northwest Botswana
TORONTO, ONTARIO- Tsodilo Resources Limited ("Tsodilo" or the "Company") (TSX Venture Exchange: TSD) is pleased to announce that it has encountered copper, nickel and cobalt ("Cu-Ni-Co') sulfide mineralization in disseminated and massive sulfides from eighteen (18) core drill holes within its license blocks.

The Tsodilo Hills base and precious metal license area is centered at 22°00'E, 18°42'S and lies within the Damara Belt about 40 kilometers north-west of the location of the Matchless Amphibolite Belt (MAB) proposed by Ludtke (1984) and Meixner (1983). The nature of the mineralization encountered bears strong geophysical, geological and mineralogical similarities to the Cu-Ni-Co deposits situated in the Lufilian Arc in Zambia. The apparent similarities between the Tsodilo Hills license areas and the Lufilian Arc are further supported by detailed comparison of the available structural, lithological, soil geochemistry, geophysics and age data for the two regions that were completed by the Company in parallel with its drilling activities.

The Lufilian Arc, which hosts the Zambian Copper Belt (>25 million tons of copper produced in Zambia) and its extension into Katanga, Democratic Republic of Congo, is a huge metallogenic province with copper, cobalt and uranium riches, discovered more than 80 years ago. Its relationships of the mineralization to Pan-African (Neoproterozoic) age tectonics have been recognized from early days. These ore deposits were generated from deep sources during north-directed thrusting and regional-scale fluid flow through basement rocks with precipitation from these pregnant fluids at structural traps within the overlying sediments, such as the carbonates and graphitic shales of the Kalumbila Cu-Ni-Co deposits. Ongoing studies indicate that the Zambian Copper Belt is contiguous with the north-east trending Damaran Belt which contains the sulphide rich meta-ophiolites of the MAB. These belts together define the Neoproterozoic suture zone between the Kalahari and Congo-Tanzania-Bengweuela shields.

Tsodilo's efforts to trace the MAB into northwestern Botswana and determine the relationship with the Lufilian Arc began over two years ago on the simple premise that if it could connect these two metalliferous features, which hold tremendous mineral deposits, as they transverse northwestern Botswana then the area in question merited a serious exploration effort. This newly discovered NW trending branch that links the Damaran Belt to the Lufilian Arc is the direct consequence of the Company's systematic evaluation of the region. The Company's license position covers the entirety of the feature and should provide ideal targets for copper and cobalt mineralization.

"We had to connect the dots and doing so underneath the Kalahari cover was not an easy task", remarked James M. Bruchs, President and CEO of Tsodilo Resources Ltd. The effort to do so was led by Dr. Iuma Martinez, Tsodilo's Director of Geographical Information System, in co-operation with Dr. Maarten de Wit of AEON (Africa Earth Observatory Network) at the University of Cape Town, South Africa.. AEON under the direction of Dr. Maarten de Wit is a center for Earth-systems science that provides a research and educational environment for consilience between earth and life sciences, engineering, resource economics and the human sciences. AEON is developing earth stewardship as a science and cultivates cutting edge globally competitive research and analytical learning, using advanced tools and technologies to promote an interdisciplinary view and exploration of our Earth and society, particularly in Africa. Tsodilo acknowledges with appreciation the invaluable effort, supervision and resources provided to its staff by Dr. de Wit and his colleagues at AEON. Dr. de Wit's report can be viewed at http://www.tsodiloresources.com/i/pdf/2009-03-23_THDMPAB.pdf.

Mr. Bruchs states, "We intersected our first sulfide mineralization in the second quarter of 2008 while drilling on our diamond licenses but we had to work in the dark somewhat as we did not have the base and precious metals license over this area at the time we made the discovery. We quickly filed our applications which were granted towards the end of 2008. We believe these licenses and those under application which together extend from Namibia in the west to the Caprivi border near Zambia in the east, cover the width and breath of the MAB and the Lufilian Arc as the structures exist in Botswana."

Tsodilo has drilled 25 deep diamond core holes into large and extensive magnetic anomalies within the newly defined belt. Eighteen of these holes intersected massive and disseminated sulphide mineralized zones varying in thickness from 5 mm to 5 meters. Rock types of various compositions, ranging from white carbonates interlayered with black graphitic shales, to metabasalts, gabbros and serpentinites, and to granitic gneiss and paragneiss basement are all mineralized. Drill holes averaged 250 meters in depth and were core from collar to end of hole. The entire cores recovered are mineralized with pyrite, chalcopyrite, bornite and magnetite and photos of the core for several of these holes can be viewed at /s/PhotoGallery.asp.

A preliminary investigation of recently acquired airborne time-domain electromagnetic data (VTEM) revealed an anomalous area approximately 25 kilometers sub-parallel and northwest of the MAB location center-line. More recent profiles suggest that the previous identified anomalous region represents MAB material within a NW-SE trending fracture/shear zone. We utilized Geotech's VTEM system, which has low-noise characteristics that enhanced our ability to accomplish deep penetration, high spatial resolution, discriminate resistivity changes, and detect weaker anomalies.

The petrographic and chemical analyses of these rocks are still in progress. However, field based elemental analysis of the cores indicate high concentrations of iron, copper, nickel and cobalt (see table below). The XRF analysis was performed by AngloGold Ashanti Limited, Johannesburg, South Africa.

Table 1: Cu, Co, Ni, Cr and Ag values (ppm) as measured in cores by handheld XRF
(Thermo Niton XL3t-500.)


Index Cu Cu
Error
Ni Ni
Error
Co Co
Error
Fe Cr Cr
Error
Ag Ag
Error
19 -77 68 485 283 -2396 2470 2028669 -787 131 26 14
20 392 59 -204 132 6996 913 549866 -482 79 22 10
21 125 20 72 34 47 44 3460 -68 22 7 5
22 3203 124 374 121 -781 884 613833 -384 85 13 9
23 -1 14 38 32 109 106 25079 192 36 1 4

Modal mineralogy (QEMSCAN(r)) results obtained for holes 1821-C3, 1822-C4 and 1822-C8 were compared with data from MAB deposits and associated amphibolite hosted sulphide mineralogy published by Schmidt and Wedephol (1983) and Killick (1982). The analyses indicated high iron sulphide values ranging from 7.8 to 13.2 %, with chalcopyrite being the primary fe-sulphide. These high fe-sulfide values confirm the proximity of current drilling to the MAB.

The Company's staff and consultants have determined that there is a correlation of the drilling results obtained so far with airborne and ground geophysics which suggests that the response of both the magnetic and electromagnetic data give better mineralization targets. Its strategy is therefore to exploit this relationship where both data sets are available in order to locate potential targets. Tsodilo will focus more on the use of conductivity depth images (CDI) derived from airborne electromagnetic data to identify conductors. The magnetic anomaly patterns will also be studied to see if there is an emergence of a "type" anomaly that could be used as an indicator of potential sites. This will allow Tsodilo the latitude to continue using magnetic data where airborne electromagnetic data is not available. Drill-holes will be distributed in a manner that will allow us to focusing on certain target areas for detailed evaluation.

"The team's work is characterized by well conceived, integrated efforts with the objective of predicting and targeting. Their approach was first and foremost looking at the big picture, and not driven by specific deposit models or singular techniques. These efforts have been rewarded with observations and interpretations that are supported by geophysical and drilling data. The results of the recent coring program validate their interpretation of the connection between the MAB and Lufilian Arc, and document sulfide mineralization consistent with those metallogenic belts.

The Company's large land package has the potential to host not just a single target but a mining district. The recent work adds significant value because the Company can now build upon the understanding and prioritize target selection", states Dr. Patrick M. Okita, Director - Base and Precious Metals Exploration.

The geological structure of the area is complex and hence a considerable amount of drilling to complement airborne magnetic data interpretation will be required. Ongoing drilling will be directed at defining the true thickness of the mineralized zone(s) and their structural arrangement, distribution of potential host rocks, and scale and boundary controls of the sulphide system(s).

"History has shown that junior exploration companies do make big discoveries and we are cautiously optimistic that this will be the case here", commented Mr. Bruchs.

The Company has an 94% stake in Newdico (9,400 square kilometers under diamond license) while Trans Hex Group, a South African diamond mining and marketing company, holds the remaining 6%. The southern and northern Gcwihaba project area (4,310 square kilometers under diamond license and 11,400 square kilometers under base and precious metals licenses) is 100% held by the Company. Tsodilo manages the exploration of both the Newdico and Gcwihaba license areas. Overall field project supervision of the Company's exploration program is the responsibility of McDonald Kahari, Pr. Sci. Nat., B.Sc. (Physics and Geology), M.Sc. (Exploration Geophysics), a qualified professional registered with the South African Council for Natural Scientific Professions and a Qualified Person under NI 43-101 and he has reviewed and approved the contents of this release. The Company has offices in Toronto, Canada and Gaborone and Maun, Botswana. 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
E-Mail: JBruchs@TsodiloResources.com
Head Office: Telephone +1 416 572 2033
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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/
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