TORONTO, ONTARIO - Tsodilo Resources Limited ("Tsodilo") (TSX Venture Exchange: TSD) is pleased to announce the discovery of a new kimberlite on its Newdico (Pty) Limited license block in Botswana.

A15

Drill target A15 is a coincident magnetic and gravity anomaly with an indicated diameter of approximately 800 - 1,000 meters. The magnetic anomaly is dipolar and roughly circular, indicative of a pipe-like intrusive body. (See, geophysical gravity and magnetic images on the Company's website under Images - Geophysical) The target was tested with a vertical reverse circulation drill hole. After drilling through loose sand and a thick section of silcrete (Kalahari formation), numerous coarse kimberlitic ilmenites and pyrope garnets of up to 5 mm in size were visually identified in weathered kimberlite from 34 meters depth.

Drilling commenced on October 22nd, 2004 and ceased on October 25, 2004. Due to technical problems of drilling with a high groundwater inflow, the drillhole was stopped at 116m depth still in primary kimberlite. The primary kimberlite appears to be a tuffisitic kimberlite breccia (TKB) but is highly weathered throughout the section drilled. The weathered TKB contains xenoliths of basement shales, quartzite, granite and basalt throughout the section.

Target A15 is located approximately 25km east of the Namibia / Botswana border in the Company's Newdico license block. The kimberlite lies within the Nxau Nxau kimberlite field where 22 kimberlites have been identified to date. Target A15 lies approximately 1.5 km from a kimberlite body (anomaly 40/97/07, drillhole THC 16) discovered by the Ashton / Reunion joint venture in February of 1998. This kimberlite tested positive for micro-diamonds but was determined to be uneconomic. Previous geochemical loam sampling work over A15 resulted in the collection of numerous picro-ilmenites and a lesser amount of kimberlitic garnet grains.

Drill cuttings will be sent to Mineral-Logic in Cape Town, South Africa, for integrated petrographic and indicator-mineral analysis and if warranted to the Saskatchewan Research Council for micro-diamond analysis and interpretation. The results will be released on completion of the processing.

1821-15C and A33

Targets 1821-15C and A33 were drilled from October 18th - 21st. No kimberlite or crater facies sediments were intersected in the holes. Previous soil sampling had recovered kimberlitic indicator minerals over these targets and both detailed gravity and magnetic surveys indicated a possible kimberlite source. The anomalies remain unexplained and further assessment of the data will be done before further drilling is performed.

SOIL SAMPLING

On October 21, 2004, the Company received the final report on the results of the recent kimberlite indicator mineral loam sampling program. The results will be reviewed and entered into the Company's GIS data base, after the current drill program is completed, in order to analyze and evaluate the results and determine whether further work or an extension of the program is warranted. Loam sampling is one of the many tools that the Company utilizes in selecting targets to perform detailed ground geophysics and in the selection of additional targets to be drill tested.

Due to the upcoming Presidential election in the Republic of Botswana, work will cease until November 2, 2004 to give the drilling crew time off to participate in the country's democratic process. Drilling will resume on the Namibian / Botswana border when work recommences.

Tsodilo Resources is an international diamond exploration company engaged in the search for economic kimberlites at its Newdico and Gcwihaba projects in northwest Botswana. The Republic of Botswana is the largest producer of diamonds, by value, in the world. 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 subsidiary Gcwihaba Resources (Pty) Limited. Tsodilo manages the exploration of both license areas. The design and conduct of the Company's exploration program is the responsibility of Peter Walker, a professional geologist registered with the South African Council for Natural Scientific Professions. Please visit the website, www.TsodiloResources.com, for additional information and background on our projects.

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, which 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