TORONTO, ONTARIO - Tsodilo Resources Limited (TSX Venture Exchange: TSD) is pleased to announce the closing of the private placement previously announced on September 16, 2004.

In a non-brokered private placement, 113,938 units of the Company (the "Units") were issued at a price of $1.12 per Unit for proceeds to the Company of $127,610.56. 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 $1.12 for a period of two years. Proceeds from this financing will be added to the Company's working capital.

The common shares, warrants and warrant shares are subject to a hold period of 12 months by agreement, in accordance with applicable securities laws, expiring on October 14, 2005 and the share certificates evidencing such securities will bear a legend to that effect. Consequently, the common shares, warrants and warrant shares may only be resold during such 12 month period in accordance with appropriate statutory exemptions from the prospectus requirements of the securities laws and if appropriate consents or discretionary orders have been obtained.

Tsodilo Resources is an international diamond exploration company engaged in the search for economic kimberlites at its Ngami 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 has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release. This news release may contain assumptions, estimates, and other forward-looking statements regarding future events. Such forward-looking statements involve inherent risks and uncertainties and are subject to factors, many of which are beyond the Company's control, that may cause actual results or performance to differ materially from those currently anticipated in such statements.

FOR FURTHER INFORMATION PLEASE CONTACT:

James M. Bruchs - President and Chief Executive Officer: E-Mail JBruchs@TsodiloResources.com
Peter W.A. Walker - Vice President, Exploration: E-mail PWalker@TsodiloResources.com
Head Office Telephone +1 416 572 2033 Facsimile + 1 416 572 4164