News Releases

May 27, 2004
Tsodilo Resources Limited - Exploration Program Update
TORONTO, ONTARIO -- Tsodilo Resources Limited (TSX Venture Exchange: TSD) is pleased to report on the progress of the Company's Ngamiland diamond exploration program. There are two main thrusts to the program:

- The preliminary evaluation of the recently discovered A12 and A37 kimberlites, and
- A major sampling programme over bulls-eye magnetic targets, aimed at locating virgin kimberlites within the company's Newdico and Gcwihaba licence blocks in northwest Botswana.

Evaluation of A12 and A37 kimberlites
Composite samples of drill cuttings from selected drill holes into the A12 and A37 kimberlites have been despatched to Canada for micro-diamond analysis. Results are expected to be available during July. The next step in the evaluation of these kimberlites is dependant on these results, but provisionally, systematic drilling is planned to define the size and shape of the craters, their kimberlite feeders and provide sufficient volume of sample to estimate their diamond potential.

Exploration Sampling Progress
A Canadian contractor has reprocessed the aeromagnetic data covering the licence blocks held by the company's Botswana subsidiaries, Newdico and Gcwihaba Resources. This new, high-quality data has been screened and over 140 bulls-eye magnetic targets selected for follow-up sampling. These targets are located in three main areas:

1. To the south of the known Nxau Nxau kimberlite field in a magnetically noisy area. These targets could represent a southward extension of the Nxau Nxau kimberlite field, and are located at the headwaters of inferred southwest oriented fossil drainage lines that are believed to have transported the diamonds and G10 garnets recovered near Tsumkwe in Namibia.

2. In the Guma area in the east of the Newdico licence block, where sampling by both Tsodilo Resources and previous workers recovered unexplained kimberlitic ilmenites and garnets.

3. In the south of the Newdico Licence block, where earlier work by Reunion recovered unexplained kimberlitic ilmenites. This cluster of magnetic targets extends into the Gcwihaba licence block.

The association of the different groups of magnetic targets selected for follow-up with unexplained kimberlitic indicator minerals (KIMs) provides encouragement for the existence of two virgin kimberlite fields in addition to the possible southward extension of the known Nxau Nxau cluster. There are also a number of subsidiary clusters of magnetic targets, which could represent outlier kimberlites.

The follow-up sampling program was delayed by an unusually heavy and extended rainy season, but field crews eventually mobilised in early April. Work is now progressing steadily and should be completed in July. Samples are being despatched for treatment at approximately fortnightly intervals for processing at commercial heavy media and mineralogical laboratories. Initial results are anticipated towards the end of June or early in July. Those anomalies with positive indicator mineral results will be followed up with detailed ground magnetic and gravity surveys to assist in the selection of reverse circulation drill sites.

The two sets of results anticipated during June and July will have a very significant bearing on the Company's priority ranking of targets for reverse circulation drilling during the remainder of the year.

Tsodilo Resources is an international diamond exploration company engaged in the search for economic kimberlites at its Newdico and Gcwihaba projects in northwest Botswana. Tsodilo has a 75% stake in Newdico while Trans Hex Group, a South African diamond mining and marketing company, holds the remaining 25%. The southern Gcwihaba Project area is held by Tsodilo subsidiary Gcwihaba Resources and agreement in principal has been reached with SouthernEra Resources for their participation as to 50%. Tsodilo manages the exploration of both licence areas. 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 jbruchs@tsodiloresources.com
Dr. Andrew E. Moore -- Vice President, Exploration:
E-Mail amoore@tsodiloresources.com
Head Office: Telephone +1 416 572 2033 Facsimile + 1 416 5724164
COREBOX
Tsodilo Resources Limited
Canada Trust Tower, BCE Place
161 Bay Street, P.O. Box 508
Toronto, ON Canada M5J 2S1
Telephone: (416) 572-2033
Fax: (416) 987-4369
Website: www.TsodiloResources.com/
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