News Releases

October 15, 2002
Changes In Capital Structure
TORONTO, CANADA - Tsodilo Resources Limited (TSX Venture Exchange: TSD) is pleased to announce the closing of the private placement previously announced on September 26, 2002.

In a non-brokered private placement, 372,120 units of the Company (the "Units") were issued at a price of $0.25 per Unit for proceeds to the Company of $93,030. 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 $0.25 for a period of two years. Mr. James M. Bruchs, Chief Executive Officer and a director of the Company, was the beneficial purchaser of 83% of the Units to hold 1,799,200 common shares or 35.16% of the issued and outstanding common shares of the Company, with another director, Mr. Patrick McGinley, purchasing the remainder of the Units. Proceeds from this financing will be added to the Company's working capital.

In terms of the Stock Option Plan of the Corporation, the board of directors has granted 200,000 options to the directors following their reappointment at the Annual Meeting of shareholders on September 19, 2002, at $0.23 per common share. These options are valid for five years and vest in equal instalments on September 19, 2002 and September 19, 2003.

The total issued and outstanding common shares of the Corporation after the closing of the private placement amount to 5,117,139 common shares. Fully diluted common shares, including 1,207,420 warrants issued in terms of the private placements that closed on June 14, 2002 and today and 460,000 stock options, granted on June 25, 2002 and September 19, 2002, total 6,784,559 common shares.

Tsodilo Resources is an international diamond exploration company engaged in the search for economic kimberlites at its Ngamiland project in northwest Botswana. The design and conduct of the Company's exploration program is the responsibility of Dr. Andrew Moore, a professional geologist registered with the South African Council for Natural Scientific Professions.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

FOR FURTHER INFORMATION PLEASE CONTACT:

James M. Bruchs -- President and Chief Executive Officer: E-Mail mailto:jbruchs@tsodiloresources.com
Dr. Andrew E. Moore -- Vice President, Exploration: E-Mail mailto:amoore@tsodiloresources.com
Stephen Woodhead -- Chief Financial Officer and Corporate Secretary: E-Mail mailto:swoodhead@tsodiloresources.com
Head Office: Telephone +1 416 572 2033 Facsimile + 1 416 572 4164
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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