Tsodilo awarded licenses in Botswana

Tsodilo Resources Limited reports that the Botswana Geological Survey has now granted five Prospecting License No. 046 / 2007 — No. 052 / 2007 to the Company’s local, wholly-owned operating subsidiary Gcwihaba Resources (Pty) Ltd. (Gcwihaba). These license areas are situated north and east of the Company’s current Newdico (Pty) Ltd. (Newdico) diamond licenses in the Ngamiland area of northwest Botswana.

In Botswana, which remains the world’s leading producer of diamonds by value, the northwest corner of the country is rapidly developing into a very active diamond exploration play, reflected by a surge of exploration activity and new Prospecting Licenses. The Company’s Newdico and Gcwihaba licenses are adjacent to claims recently acquired by DeBeers Prospecting Botswana Pty Limited in Botswana, and that Company’s affiliate, Namdeb Diamond Corporation (Pty) Limited, in neighboring Namibia. The activity in northwest Botswana has been stimulated in part by an increasing consensus that the Congo craton, which hosts important economic diamond deposits, extends into northwest Botswana. Furthermore, this area is strategically located close to two major secondary surface concentrations of diamonds and G10 garnets in the vicinity of Omatako and Tsumkwe, to the west of the Company’s licenses in Namibia.

Initial target selection in these license areas was based upon screening of remote sensing and aeromagnetic data as well as geochemical data. The initial target selection was performed by Dr. Christopher M. H. Jennings during his tenure as Chairman of the Company, and was further defined, refined and prioritized by Scott Hogg of Scott Hogg & Associates Ltd., a Toronto-based geophysical contractor. The new license blocks contain numerous clusters of bulls-eye circular features aligned along several lineaments. These features possess characteristics closely comparable to those associated with known Kalahari kimberlites and other kimberlites discovered by the Company in our adjoining license blocks.

According to James M. Bruchs, President and CEO, said, we are delighted to have been granted these key diamond licenses in Botswana, which represents the world’s leading source of high-quality diamonds and has been recognized for its favorable exploration and investment climates. These new licenses complete our acquisition of licenses in northwest Botswana. We are the largest license holder in Ngamiland with approximately 25,000 square kilometers under license and we remain confident that the kimberlite sources of the two sizeable secondary surface concentrations of diamonds and G10 garnets which lie down slope to the west of the Company’s licenses area will prove to be situated within the Company’s prospecting licenses. We are not alone in this area as DeBeers in one form or another has adjoining licenses to the east, north and west of our property and with nothing of (kimberlite) significance to the south of us, we feel pretty good about where we are.

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