News Releases

January 23, 2002
Update For The Quarter Ended December 31, 2001
TORONTO, CANADA -- In November 2001 TRANS HEX INTERNATIONAL LTD. (CDNX: THI) was advised by its principal shareholder and major creditor, Trans Hex Group Limited, a substantial South African diamond producer, that all future funding for Trans Hex International and its exploration properties, not committed in terms of specific Project Finance Loan Agreements, had been suspended with immediate effect, and of its intention to apply to the Canadian courts for a court approved winding up of the Company. An independent committee of the board of directors was formed to consider the Company's response and an independent technical consultant was appointed to conduct an evaluation of the Company's properties. In December 2001 the independent committee received the evaluation of this consultant of Trans Hex International's exploration interests in Southern Africa. The independent consultant arrived at an estimated value in the range of $467,000 to $563,000 for the Company's 98% interest in the Ngami kimberlite project in Botswana and estimated values of $268,000, $1,200,000 and $14,000, respectively, for Trans Hex International's interest in each of the Skeleton Coast and Northbank projects in Namibia and the Limpopo project in Zimbabwe. The estimated value attributable to the Company's interest in the Northbank property of $1,200,000 assumes that the current legal proceedings involving the property result in a decision that is ultimately favourable to the joint venture and is before deducting the outstanding balance on the Project Finance Loan Agreement due to Trans Hex Group, of $478,000. The consultant determined that a negative decision would eliminate all of the value attributable to the Northbank Project. The independent committee also received preliminary proposals, entered into confidentiality agreements and exchanged information with parties with a view to maximizing shareholder value through an alternative to the proposed winding up. Negotiations in respect of a transaction alternative to the proposed winding up have commenced and are continuing.

At the Barra Grande project in Brazil rehabilitation of the sample and plant sites commenced during the period and is expected to be completed by the end of January 2002. At the Ngamiland project in Botswana, the Company suspended its reconnaissance sampling program for kimberlite indicator minerals due to insufficient financial resources. Diamond indicator minerals have been found proximate to three magnetic anomalies, which had not been previously investigated. Consequently the three anomalies may represent the presence of three previously unknown kimberlites. Sampling at the Skeleton Coast project in northern Namibia has been postponed indefinitely. The case concerning Northbank before the High Court of Namibia is postponed until March 2002, while judgment in Northbank's appeal hearing against an earlier judgment denying its application for costs to be guaranteed by Aussenkehr Farms and their co-applicants in respect of the main application has not yet been delivered.

At December 31, 2001 the Company had a net working capital deficiency of $585,000, compared with working capital of $395,000 at March 31, 2001; with cash and equivalents on hand of $621,000 (March 31, 2001: $1,488,000), including $222,000 in Brazil. Loans from a related party of $5,082,000 (March 3, 2001: $2,697,000) are due by subsidiaries of the Company in terms of Project Finance Loan Agreements negotiated with Trans Hex Group for the funding of the Barra Grande ($4,604,000) and Northbank ($478,000) projects. Trans Hex Group fulfilled its obligations in respect of the loan agreement relating to the Barra Grande project, by providing the funds required for the rehabilitation of the sample and plant sites, while at December 31, 2001 approximately $43,000 remains available to be drawn down by the Company in terms of the loan agreement relating to the Northbank project. Accounts payable and accrued liabilities include a current amount due to Trans Hex Group of $900,000 (March 31, 2001: $834,000). The writing off of previously capitalized exploration expenditure resulted in Trans Hex International recording a net loss of $8.85 million in the nine months ended December 31, 2001 (61 cents per common share), $1.05 million thereof in the third quarter, compared to a net loss of $818,000 (6 cents per common share) in the period April 1 to December 31, 2000.

FOR FURTHER INFORMATION PLEASE CONTACT:
D.M. (Niel) Hoogenhout - Chairman and C.E.O. Tel +1.416.572-2033 Fax +1.416.572-4164 E-Mail mailto:nhoogenhout@transhex.com

Stephen Woodhead - Chief Financial Officer Tel +1.416.572-2033 Fax +1.416.572-4164 E-Mail mailto:swoodhead@transhex.com
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/
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