Mr. James Bruchs reports

TSODILO RESOURCES LIMITED - REPUBLIC OF NAMIBIA APPROVES FEASIBILITY STUDY FOR THE TRANS-ZAMBEZI RAILWAY EXTENSION GROOTFONTEIN-RUNDU-KATIMA MULILO

Tsodilo Resources Ltd. has been informed by the Ministry of Works and Transport (Namibia) that the Namibian cabinet has approved the final feasibility study for the Trans-Zambezi railway extension Grootfontein-Rundu-Katima Mulilo.

Minister of Works and Transport Minister John Mutorwa commented: "Namibia is at the forefront of co-ordinating the extension of the Grootfontein-Katima Mulilo railway project. We are now at the stage where the finance ministry is in the lead to see how we can fund this because it's not only a Namibian railway line. It is like a road that will connect us to other countries, such as Zambia and Botswana, through Ngoma up to Kasane, and link up with Zimbabwe and Zambia, where the bridge is, up to the Democratic Republic of Congo."

The cross-border rail project aims to link new mines and mining activities to the railway network along the Walvis Bay-Ndola-Lubumbashi development corridor to enable transportation of minerals from the copperbelt to Walvis Bay. This corridor is perfectly positioned to service the two-way trade between the SADC region and Europe, North and South America, and emerging markets in the east.

"Namibia cabinet's approval is a crucial and big step forward. The rail extension is an important development for Tsodilo as it opens up a proximate rail transportation system for the delivery of our Xaudum iron formation project's potential iron products, such as iron concentrate, iron pellets, potential direct reduced iron (DRI) products and ferrosilicone (FeSi) throughout central, eastern and southern Africa, as well as international markets. Rail transportation is complementary to our goal of becoming the supplier of an ultrahigh-grade 67-per-cent-iron product to the industry and doing what we can to reduce greenhouse gas emissions (GHG) by becoming part of the green steel movement," commented Tsodilo's chairman and chief executive officer, James M. Bruchs.

The proposed rail extension between Grootfontein and Katima Mulilo is significant as the extension is planned to pass through Divundu in Namibia, which is located 35 kilometres (22 miles) from its licence location in northern Botswana.

Xaudum iron formation (XIF)

About the XIF project:

• The project is located in the northwest district of Botswana, is proximate to the Namibian border and lies 22 miles from the town of Divundu in Namibia. The Walvis Bay-Ndola-Lubumbashi development corridor (previously known as the Trans-Caprivi) line linking Zambia and Namibia is planned to pass through Divundu, providing access to Walvis Bay, Namibia's deep-sea port. The project is also located within 43 miles of the proposed Mucusso line to Angola's Namibe Port.
• Preliminary work on the Xaudum iron project has defined a Canadian Institute of Mining, Metallurgy and Petroleum-compliant inferred mineral resource estimate of 441 million tonnes with an average grade of 29.4 per cent Fe, 41.0 per cent SiO2, 6.1 per cent Al2O3 and 0.3 per cent phosphorus for the Block 1 magnetite XIF.
• Block 1 is a fraction of the potential XIF magnetite resource. An extrapolated exploration target has defined the XIF to be in the order of five billion to seven billion tonnes at 15 to 40 per cent Fe. This exploration target was generated by inversion modelling of ground magnetic geophysical data which were compared and moderated with volumes from drilling data within Block 1, and the potential quantity and grade are conceptual in nature. To date, there has been insufficient exploration to define a mineral resource other than in Block 1, and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
• Metallurgical magnetic separation results (Davis Tube recovery) show that an average concentrate of 67.2 per cent Fe, 4.2 per cent SiO2, 0.5 per cent Al2O3 and 0.07 per cent P is obtained at P80 grind size of 80 microns although higher grades are possible at finer P80s.
• Further exploration will be focused on Block 2a, where the company expects an increase in the resource.
• Additional informational of the project can be found on the company's website, and further technical information can be found in a report prepared by SRK Consulting (U.K.) Ltd. for Gcwihaba Resources Pty. Ltd. titled "Mineral Resource Estimate for the Xaudum Iron Project (Block 1), Republic of Botswana," with an effective date of Aug. 29, 2014, and filed on SEDAR+ under the company's profile.

About Tsodilo Resources Ltd.

Tsodilo is an international resource exploration company engaged in the search for economic metal and diamond deposits at its Gcwihaba and Bosoto Pty. Ltd. projects in Botswana. The company has a 100-per-cent stake in its Gcwihaba project area consisting of five metal (base, precious, platinum group and rare earth) prospecting licences, all located in the North-West district of Botswana. The company has a 100-per-cent stake in Bosoto, which holds the BK16 kimberlite project in the Orapa kimberlite field (OKF) in Botswana. Tsodilo manages the exploration of the Gcwihaba and Bosoto projects. Overall supervision of the company's exploration program is the responsibility of McDonald Kahari (PrSciNat), a qualified person as such term is defined in National Instrument 43-101.

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