Mr. James Bruchs reports

GCWIHABA PROSPECTING LICENSES UPDATE

The date for respondents to file an appeal to the judgment rendered on Dec. 15, 2023, in the High Court, Republic of Botswana, in Gcwihaba Resources Pty. Ltd. v. Minister of Minerals and Energy and the Attorney-General of Botswana, MAHMN-000075-22, lapsed on Feb. 15, 2024.

Prospecting licences PL020-024/2018 were collected from the Department of Mines (DOM) on Feb. 19, 2023. An examination of the licences revealed several discrepancies or disparities that need to be addressed, and DOM will be engaged to effect the needed changes. Upon resolution of the issues, Tsodilo Resources Ltd. will withdraw its contempt motion filed on Jan. 23, 2024.

Tsodilo's chairman and chief executive officer, James M. Bruchs, stated: "It is a great relief to put this behind us. Staff and contractors have been standing by, ready to finish the work needed to complete the preliminary economic assessment. Also, since the decision was issued on Dec. 15, 2023, there has been renewed interest from investors and third parties wanting information on the project. At the Mining Indaba in Cape Town, [South Africa], earlier this month, we were able to present our Xaudum iron formation (XIF) and other metals projects to interested parties without having to belabour the licence issues, and as I have mentioned previously, but it is worth repeating, since 2014, the Botswana government has publicly expressed its support for the XIF project, and we look forward to working with the Ministry of Minerals and Energy and the Ministry of Environment and Tourism as we continue our work to bring the XIF into production."

Environment and green steel

Tsodilo adopted the International Finance Corporation's Environmental, Health and Safety Guidelines for Mining when IFC became a shareholder more than a decade ago, and the company has worked diligently to advance the XIF project within those guidelines. Further to this, Tsodilo became a member of the ResponsibleSteel organization as building a sustainable steel industry requires co-operation and mutual commitment from companies at all levels of the steel supply chain, representatives of civil society and other stakeholders, and ResponsibleSteel provides the forum for this multistakeholder approach. Its members include some of the leading players in the industry working together to minimize the impact of steel manufacturing on people and the planet. Working closely with government ministries and ResponsibleSteel furthers Tsodilo's goal of becoming the supplier of an ultrahigh-grade 67-per-cent iron product to the industry and doing what it can to reduce greenhouse gas emissions by becoming part of the green steel movement.

Xaudum iron formation

About the XIF project:

• The project is located in the northwestern district of Botswana and extends for a known length of about 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 with an average grade of 29.4 per cent iron, 41.0 per cent silicon dioxide, 6.1 per cent aluminum oxide 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 with and moderated to volumes from drilling data within block 1, and its 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. See the 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 press release of Dec. 17, 2013, on the company's website.
• Further exploration will focus on block 2a, where the company expects an increase in the resource.
• Additional information 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 northwestern district of Botswana. The company has a 100-per-cent stake in Bosoto Pty. Ltd., 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.