TORONTO, ONTARIO - TORONTO, CANADA - Tsodilo Resources Limited (TSX Venture Exchange: TSD) ("Tsodilo" or the "Company") is pleased to announce that it has closed the Private Placement Financing Agreement (the "Financing') previously announced on August 31, 2012, for gross proceeds to the Company of $2,000,000.

The Financing is for 1,818,181 units of the Company (the "Units"). Each Unit is comprised of one common share priced at C$1.10 and one common share purchase warrant per unit, each such warrant entitling the holder to purchase one common share of the Company for a period until the close of business on June 29, 2015 at USD$1.21.

The common shares to be issued as a result of the Financing will have a statutory four month hold period expiring on January 8, 2013.

No commissions have been or will be paid in connection with this Financing.

The proceeds of the Financing will be used by Tsodilo for advancement of the Xaudum iron ore and metals project in Botswana, and for general corporate working capital.

IFC, a member of the World Bank Group, is the sole placee in this Financing and, as a result, will own upon the closing thereof 4,520,883 common shares (representing 16.11% of the issued and outstanding share capital of the Company and up to 30.27% on a partially diluted basis, assuming the exercise of all of IFC's warrants granted to date [2,802,802 priced at C$2.17, expiring June 29, 2015, and 1,818,181 priced at USD$1.21, also expiring on June 29, 2015]).

James M. Bruchs (Chairman) said "IFC is our "Partner of Choice", their participation, professionalism, guidance and expertise combined with the economic, political and social stability afforded by the government of Botswana together with the assistance and support provided by the Ministry of Minerals, Energy and Water Resources and the Department of Geological Survey, create a winning atmosphere for mineral exploration and development."

About Tsodilo Resources Limited

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 a 98% stake in Newdico (3,949 km² under Precious Stone - diamond licenses). The Gcwihaba project area: 3,728 km² under Precious Stone - diamond licenses; 14,914 km² Metal (base, precious, platinum group, and rare earth) licenses; and, 6,925 km² under Radioactive Minerals licenses is 100% held by the Company. Tsodilo manages the exploration of both the Newdico and Gcwihaba license areas. 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
Chairman and Chief Executive Officer
JBruchs@TsodiloResources.com

Dr. Mike de Wit
President and Chief Operating Officer
MdeWit@TsodiloResources.com

Head Office
Telephone +1 416 572 2033
Facsimile + 1 416 987 4369
Website http://www.TsodiloResources.com