News Releases

January 26, 2004
Appointment Of Director Closing Of Private Placement
TORONTO, ONTARIO - Tsodilo Resources Limited (TSX Venture Exchange: TSD) is pleased to announce the appointment of Mr. Richard S. Kelso as an additional director, as well as the closing of the private placement previously announced on December 24, 2003. Both matters being subject to regulatory approval.

Based in Washington, D.C. Mr. Kelso has more than 30 years of experience in the financial services industry, a master's degree in International Finance from the American Graduate School of International Management and a bachelor's degree in International Affairs from the George Washington University.

In a non-brokered private placement, 166,864 units of the Company (the "Units") were issued at a price of $0.75 per Unit for proceeds to the Company of $125,148. Each Unit consists of one common share of the Company and half a warrant of the Company, each full such warrant entitling the holder to purchase one common share of the Company at a price of $0.75 for a period of two years. None of the participants are classified as Insiders, and the proceeds from this financing will be added to the Company's working capital. The common shares, warrants and warrant shares are subject to a statutory hold period under securities laws of 12 months and the certificates evidencing such securities will bear a legend to that effect.

In terms of the Stock Option Plan of the Company and a policy adopted by the board of directors in September 2002, 110,000 stock options were granted to officers and senior employees on January 1, 2004 at $0.75 per common share. These options are valid for five years and vest in four equal instalments on January 1, 2004, July 1, 2004, January 1, 2005 and July 1, 2005.

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.

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
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