February 27, 2004
Tsodilo Resources Limited Report For the Three And Nine Months Ended December 31, 2003
TORONTO, CANADA - Tsodilo Resources Limited (TSX Venture Exchange: TSD) is pleased to provide an update on the results of its activities for the nine months ended December 31, 2003. All activity remains focused on the Ngamiland and Gcwihaba diamond properties in northwest Botswana. Both projects are managed by Tsodilo, and have been identified as prime targets for locating the source of two important kimberlitic heavy mineral concentrations immediately to the west, in Namibia, that contain both G10 garnets and diamonds. Tsodilo has a 75% interest in the 18,000 square kilometer Ngamiland project, with Trans Hex Group; and to the south, an agreement in principal has been reached with SouthernEra Resources for their participation as to 50% on the licenses held in our 7,000 square kilometer Gcwihaba project.
In the 3rd Quarter, Tsodilo announced that as a result of drilling on select targets within the Ngamiland concession, two kimberlites had been discovered; target A12 with a surface area of 12 -16 hectares and target A37 with a surface area of 80 -- 120 hectares. Both of these kimberlites are significantly larger than any known kimberlites in the Nxau Nxau area. This is encouraging, as in southern Africa the largest pipes in a cluster are typically the economic pipes. Samples from these two bodies have been sent for micro-diamond analysis. In addition, further soil sampling has commenced on over 100 targets in both the Newdico and Gcwihaba license areas, prior to further gravity and magnetic surveys.
At December 31, 2003 Tsodilo had net working capital of $156,000 (March 31, 2003: a deficiency of $35,000). Exploration expenditure incurred during the period totaled $158,000, while Tsodilo recorded a net loss from operations in the nine months ended December 31, 2003, entirely attributable to general and administration expenses, of $306,000 compared to $276,000 in 2003.
The necessary funding for exploration is raised in the capital markets through the issuance of stock by way of private placements. Currently, there are 7,644,917 issued and outstanding (10,411,076 on a fully diluted basis) common shares. The Company has no debt. 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.
FOR FURTHER INFORMATION PLEASE CONTACT: James M. Bruchs -- President and Chief Executive Officer: E-Mail email@example.com Dr. Andrew E. Moore -- Vice President, Exploration: E-Mail firstname.lastname@example.org Stephen Woodhead -- Chief Financial Officer: E-Mail email@example.com Head Office: Telephone +1 416 572 2033 Facsimile + 1 416 572 4164