News Releases

February 26, 2003
Report For The Nine Months Ended December 31, 2002
TORONTO, CANADA - Tsodilo Resources Limited (TSX Venture Exchange: TSD) is pleased to provide an update for the nine months ended December 31, 2002. The Corporation's principal activity remains the exploration of the Ngamiland diamond property, in northwest Botswana. The Ngamiland property is proximal to two important kimberlitic heavy mineral concentrations in Namibia, immediately to the west, that contain G10 garnets and diamonds. The Tsodilo property was identified as a prime target for locating the source of these anomalies on the basis of an in-house geomorphological model that interprets the unexplained kimberlitic heavy minerals concentrations as being secondary and deposited by rivers with headwaters in the Tsodilo Ngamiland property.

A gravity survey on selected targets in the west ("Nxau Nxau") and in the east ("Guma") of our license area has begun. At this stage, we have completed the gravity survey of those targets selected in the Guma area and although there is more analysis and groundwork to follow, initial results have identified coincident or near-coincident gravity lows associated with three bulls-eye magnetic targets. Earlier soil sampling programmes recovered kimberlitic ilmenites in near proximity to two of these targets.

During January 2003 an exploration program and budget for the fiscal year April 1, 2003 to March 31, 2004 was approved and adopted for our operating subsidiary in Botswana, Newdico. This was accomplished in cooperation with Trans Hex Group, which holds a 25% interest in Newdico.

As at December 31, 2002 the Corporation had net working capital of $33,000 (March 31, 2002: a deficiency of $904,000). Efforts to raise finance on terms favourable to the Corporation continue. Significantly, Tsodilo has no debt and at February 26, 2003 only 5,353,269 issued and outstanding common shares (March 31, 2002: 14,597,856); with fully diluted common shares currently outstanding of 7,303,754 (March 31, 2002: 15,597,856).

On a consolidated basis Tsodilo recorded a net loss of $80,000 in the quarter ended December 31, 2002 (2 cents per common share), all in the form of General and Administration expenses, compared to a net loss of $1,054,000 (8 cents per common share) in the comparable period of fiscal 2002; which included General and Administration expenses of $469,000. Exploration expenditure incurred during the three months ended December 31, 2002 at the Ngami project totalled $59,000 (2002 exploration expenditure on all projects: $793,000).

In terms of the Stock Option Plan of the Corporation and a policy adopted by the Board of Directors in September 2002, 165,000 stock options were granted to officers and senior employees on January 1, 2003, at $0.41 per common share. These options are valid for five years and vest in four equal instalments on January 1, 2003, July 1, 2003, January 1, 2004 and July 1, 2004.

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 Corporation'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.


James M. Bruchs -- President and Chief Executive Officer: E-Mail
Dr. Andrew E. Moore -- Vice President, Exploration: E-Mail
Stephen Woodhead -- Chief Financial Officer and Corporate Secretary: E-Mail
Head Office: Telephone +1 416 572 2033 Facsimile + 1 416 572 4164
Tsodilo Resources Limited
1 King Street West, Suite 4800
Toronto, ON Canada M5H 1A1
Telephone: (416) 800-4214
Fax: (416) 987-4369