TORONTO, ONTARIO - Tsodilo Resources Limited (TSX Venture Exchange: TSD) and Trans Hex Group Limited (Johannesburg Stock Exchange: TSX and Namibian Stock Exchange: THX) are pleased to report that kimberlite has been intersected in each of two holes drilled on the magnetic target designated A12, at their Ngamiland joint venture property in northwest Botswana. This is the first target to be investigated in the current drilling programme and is located to the north of a group of kimberlites previously discovered in the Nxau Nxau region of the Ngamiland project area.

Drilling has demonstrated that the A12 target has a restricted (45 metres) cover of Kalahari sediments. The upper sections of the kimberlite are dominated by shales and sandstones, while breccias are prominent at deeper levels. Based on a preliminary examination of drill chips, Mr. Paul Zweistra of Mineral Logic, an independent kimberlite consulting geologist based in Cape Town, South Africa, has confirmed that these rocks represent the upper sections of a kimberlite crater sequence; in other words a relatively uneroded kimberlite pipe. A more detailed petrological examination is currently being carried out to refine our understanding of the nature of the crater sequence.

The first hole drilled (A12-1) was terminated in breccias at a depth of 147 metres, while the second (A12-2) was terminated at the planned depth of 200 metres. Several sections of the deeper portions of this hole were dominated by quartzites over lengths of two to three metres, which are interpreted to be inclusions derived from the wall rock, separated by zones interpreted to represent crater infill.

Ground gravity and magnetic surveys carried out over A12 suggest that the kimberlite is slightly elongate, measuring approximately 400 metres north-south and 400 to 500 metres east-west, indicating a surface area in the order of 12 to 16 hectares and thus significantly larger than any of the kimberlites previously discovered in the Nxau Nxau area. This is considered to be encouraging, as in southern Africa economic pipes occurring in a cluster are typically the largest.

Tsodilo Resources and Trans Hex are encouraged by these results. A recent report of the recovery of an alluvial macrodiamond in Namibia, immediately to the west of our Ngamiland prospecting licences, supports our contention that the underlying mantle structure is favourable for the discovery of economic kimberlites.

Drilling will be continued in early October, after a scheduled break by the drilling company, when it is planned to drill four holes on each of the targets designated A37 and A38.

Tsodilo Resources is an international diamond exploration company engaged in the search for economic kimberlites at its Ngamiland and Gcwihaba projects 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.

Trans Hex is a world leader in the exploration, mining and marketing of high quality diamonds from both alluvial and marine operations. The Group operates mines along the mid and lower Orange River, off the South African and Namibian coasts and in Angola. Trans Hex has a 25% interest in the Ngamiland project.

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

Trans Hex Group Limited
George Zacharias -- Company Secretary: E-Mail georgez@transhex.co.za