Tsodilo Resources Limited

Tsodilo Resources Limited

March 07, 2005 08:00 ET

Tsodilo Resources Limited: Closing of Private Placement


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: TSODILO RESOURCES LIMITED

TSX VENTURE SYMBOL: TSD

MARCH 7, 2005 - 08:00 ET

Tsodilo Resources Limited: Closing of Private Placement

TORONTO, ONTARIO--(CCNMatthews - March 7, 2005) - Tsodilo Resources
Limited (the "Company") (TSX VENTURE:TSD) is pleased to announce the
closing of the private placement previously announced on February 23,
2005.

In a non-brokered private placement, 461,570 units of the Company (the
"Units") were issued at a price of $1.15 per Unit for proceeds to the
Company of $530,806.00. 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 $1.15 for a period of two years. The Firebird Global Master
Fund, Ltd ("FGMF") acquired 434,782 of the units. FGMF is a contrarian
portfolio equity fund that invests in markets throughout the world and
is managed by Mr. James Passin. With the closing of this private
placement, FGMF beneficially owns over 10% (including warrants held by
FGMF) of the outstanding common shares of the Company.

Proceeds from this financing will be added to the Company's working
capital.

The common shares, warrants and warrant shares are subject to a
statutory hold period under securities laws of four (4) months, expiring
on July 3rd, 2005 and the 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 four (4) month period
in accordance with appropriate statutory exemptions from the prospectus
requirements of the securities laws or 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 Newdico and
Gcwihaba projects in northwest Botswana. The Republic of Botswana is the
largest producer of diamonds, by value, in the world. Tsodilo currently
has a 75% stake in Newdico while Trans Hex Group, a South African
diamond mining and marketing company, holds the remaining balance. 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.

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.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Tsodilo Resources Limited
    James M. Bruchs
    President and Chief Executive Officer
    +1 416 572 2033
    + 1 416 572 4164 (FAX)
    E-Mail: JBruchs@TsodiloResources.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this news release.