TORONTO, CANADA - Tsodilo Resources Limited (TSX Venture Exchange: TSD) ("Tsodilo" or the "Company") is pleased to announce that it has reached agreement with IFC, a member of the World Bank Group, whereby IFC will enter into an equity subscription agreement (the "Financing") with the Company. The non-brokered private placement of 2,710,702 units of the Company (the "Units") will consist of one common share priced at C$1.85 and one purchase warrant per unit, each such warrant entitling the holder to purchase one common share of the Company for a period of five years at C$2.17. The pricing of the Unit's common share and warrant is consistent with the TSX Venture Exchange private placement policy guidelines.

The purpose of the proposed investment is to assist in the financing of the Company's ongoing exploration of its Botswana diamond and metals licenses in northwest Botswana. The key features of the proposed investment are:

• An equity investment of C$5 million with a warrants package
• Potential for additional funding during the exploration stage and at Feasibility Study and development stages

The Financing is scheduled to close on or before June 25, 2010, and is subject to successful completion of IFC's mandatory 30-day disclosure period; IFC Board approval; completion of a share subscription agreement; and, TSX Venture Exchange approval. Upon closing of the Financing, IFC is expected to become the second largest shareholder in Tsodilo.

James M. Bruchs (Chairman) said "This proposed investment is of a sufficient magnitude to allow the Company to release value in our diamond and metals projects. To have IFC as a strategic investor would give the Tsodilo management team the confidence and support to embark on an aggressive exploration campaign directed towards resource definition and thereafter mine development. Our goal is to develop our projects in an environmentally and socially responsible manner and to meet IFC's environmental and social performance standards in the future development of our projects, we are confident that we will do so. For us, IFC is a "Partner of Choice" and we look forward to a long, constructive and beneficial relationship."

In accordance with the standard procedures of IFC, a summary of the proposed investment has now been disclosed to the public by IFC in advance of consideration by the IFC Board of Directors of the proposed investment.

The IFC disclosure documents are posted on the IFC website for 30 days prior to the IFC Board of Directors' consideration of the proposed investment and can be accessed on the IFC website at: www.ifc.org. The documents can also be accessed shortly on the Company's web site at:

http://www.tsodiloresources.com/i/pdf/2010-05-11_IFCTSDSPI29374.pdf
http://www.tsodiloresources.com/i/pdf/2010-05-11_IFCTSDESRS29374.pdf


ABOUT IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. They foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. The IFC's new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit www.ifc.org.

Tsodilo Resources Limited is an international diamond and metals exploration company engaged in the search for economic kimberlites and metal deposits at its Newdico (Pty) Limited ("Newdico') and Gcwihaba Resources (Pty) Limited ("Gcwihaba") projects in northwest Botswana. The Company has an 95% 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 5%. The southern and northern Gcwihaba project area (6,856 square kilometers under diamond license and 13,400 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 supervision of the Company's exploration program is the responsibility of Dr. Mike de Wit, President and COO of the Company and a "qualified person" as such term is defined in National Instrument 43-101.

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.

This press release contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to the development of the Company's projects) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things, changes in equity markets, political developments in Botswana and surrounding countries, changes to regulations affecting the Company's activities, uncertainties relating to the availability and costs of financing needed in the future, the uncertainties involved in interpreting exploration results and the other risks involved in the mineral exploration business. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

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 - Chairman and Chief Executive Officer - JBruchs@TsodiloResources.com
Mike de Wit - President and Chief Operating Officer - MdeWit@TsodiloResources.com
Head Office - Telephone +1 416 572 2033 Facsimile + 1 416 987 4369