Mr. James Bruchs reports

TSODILO RESOURCES LIMITED - GCWIHABA PROSPECTING LICENSES UPDATE

Tsodilo Resources Ltd. has filed an interlocutory application in the High Court, Republic of Botswana, for an order in the following terms.

Calling upon the first respondent, minister of minerals and energy, to show cause why he ought not to be held in contempt of court by reason of his failure to comply with the judgment of this court dated Dec. 15, 2023 (see Tsodilo Resources' news releases), in particular that he failed:

1. To renew, within 14 days of the judgment, the applicant's licence (020/2018) and:
   1. To align the effective dates of contiguous licences PL 021-024/2018 with that of the renewed licence.
2. Declaring that the first respondent is found to be in contempt of the judgment of this court as handed down on Dec. 15, 2023;
3. Imposing a fine on the first respondent, such as this court may deem appropriate, for every day that the judgment remains unsatisfied;
4. Imposing a period of imprisonment, such as this court may deem appropriate, on the first respondent, suspended on conditions deemed appropriate by this court;
5. For avoidance of doubt, it is hereby clarified that the licences to be issued by the first respondent shall be the first two-year renewal across all licences effective from April 1, 2024;
6. Directing the respondents to bear the costs of this application on the attorney and own client scale; and
7. Granting the applicant further and/or alternative relief.

The purpose of this application is to compel compliance with the judgment granted by this honourable court on Dec. 15, 2023.

Today's application, as well as the court's decision of Dec. 15, 2023, are available on the company's litigation landing page(s) on its website.

"We believe that the matter will be resolved in short order, and we can resume the evaluation and development of the XIF project," commented James Bruchs, Tsodilo's chairman and chief executive officer.

Xaudum iron formation (XIF)

About the XIF project:

• The project is located in the northwest district of Botswana and extends for a known length of approximately 40 kilometres.
• The XIF 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 XIF project has defined a CIM (Canadian Institute of Mining, Metallurgy and Petroleum)-compliant inferred mineral resource estimate of 441 million tonnes (Mt) with an average grade of 29.4 per cent Fe (iron), 41 per cent SiO2 (silicon dioxide), 6.1 per cent Al2O3 (aluminum oxide) and 0.3 per cent P (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 tonnes to seven billion tonnes at 15 per cent to 40 per cent Fe. This exploration target was generated by inversion modelling of ground magnetic geophysical data which was compared and moderated with volumes from drilling data within block 1, and its potential quantity and grade is 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. See the company's press release of June 2, 2014, on the company's website for further details.
• 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. See the company's press release of Dec. 17, 2013, on the company's website.
• 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 Resources is an international resource exploration company engaged in the search for economic metal and diamond deposits at its Gcwihaba Resources Pty. Ltd. 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 northwest 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. This press release has been reviewed and approved by Mr. Kahari.

We seek Safe Harbor.