TORONTO, CANADA - Tsodilo Resources Limited (TSX Venture Exchange: TSD) ("Tsodilo" or the "Company") is pleased to announce that at its annual meeting of shareholders held September 1, 2004 the following directors were elected: R. Stuart Angus, James M. Bruchs, Christopher Jennings and Patrick McGinley.

Under the terms of its Stock Option Plan, following the annual meeting of shareholders, Tsodilo granted 260,000 options to four directors and one officer at an exercise price of $0.75 per share. These options vest as to 25% immediately, and 25% on each of the sixth, twelfth and eighteenth month anniversaries of the date of the grant. The options are valid for five years.

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 100% held by Tsodilo's subsidiary, Gcwihaba Resources. Tsodilo manages the exploration of both licence areas. The design and conduct of the Company's exploration program is the responsibility of Peter Walker, the Company's Vice-President, Explorations, who is 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
Peter Walker - Vice President, Exploration: E-Mail pwalker@tsodiloresources.com
Head Office: Telephone +1 416 572 2033 Facsimile + 1 416 572 4164