TSODILO RESOURCES LIMITED (TSX.V: TSD): NEW DRILLING RESULTS FOR BLOCK 2A CONFIRM SIGNIFICANT UPGRADE POTENTIAL OF THE XAUDUM IRON FORMATION

Tsodilo Resources (TSX.V: TSD) advanced evaluation program on the Xaudum iron formation (XIF) project is progressing as planned. Drill and assay results confirm that Block 2a located 10 kilometers south of Block 1 is a continuation of the same Block 1 magnetite rich units which will result in a significant increase in the resource tonnage for the XIF project upon completion of the Block 2a drill program.

Assay Results for 10 holes drilled in Block 2a show the following:

• Ten (10) evaluation drill holes were drilled within the Block 2a area of the XIF totaling 2,046.40 meters;
• 1,197.70 meters of highly magnetic magnetite rich iron mineralization of the same type as seen in Block 1 were intersected;
• Drilling results indicate that Block 2a contains the same three magnetite resource lithological units that are seen in Block 1 with the following average grades;
• 35.6% Fe is the average Block 2a grade of the major Banded Magnetite BIF unit coded MBA (inclusive of weathered material);
• 35.5% Fe was the average Block 1 grade for MBA;
• 25.1% Fe is the average Block 2a grade of the major Magnetite Diamictite Schist unit coded DIM (inclusive of weathered material);
• 20.8% Fe was the average Block 1 grade for DIM;
• 25.0% Fe is the average Block 2a grade of the minor Magnetite Garnet Schist unit coded MGS (inclusive of weathered material);
• 22.1% Fe was the average Block 1 grade for MGS;
• These results confirm that the units in Block 2a are a continuation of the same magnetite rich iron formation 10 kilometers south of Block 1;
• Based on metallurgical Davis Tube Recovery (DTR) magnetic separation (P80 of 80 micron) results for Block 1, a general average high-grade iron concentrate of 66 - 67% Fe and above can be expected from Block 2a;
• Block 2a will represent a significant increase in the XIF resource tonnages as it is of a similar size to Block 1.

Assay Results

XRF assays results have been returned from ALS Chemex for ten (10) drill holes from Block 2a totaling 755 samples consisting of 1,197.70 meters of intersected mineralization showing significant magnetite rich resource material of the same type as seen in Block 1. The Company has defined a CIM compliant Inferred Mineral Resource Estimate within Block 1 of 441 million tonnes (Mt) with an average grade of 29.4% Fe, 41.0% SiO2, 6.1% Al2O3 and 0.3% P for the magnetite XIF in Block 1. The interval weighted average grades for this magnetite rich iron mineralized Block 2 units are shown in Table 1. The hole-by-hole breakdown is shown in Table 2 below. Block 2a will represent a significant increase in the XIF resource tonnage upon completion of the drilling program.

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Block 2a Drill Plan Continuation

The Company is looking to expand its XIF resource into Block 2a and these assay results represent the first 10 drill hole results from Block 2a. These 10 drill holes show that the Company can expect a significant resource increase in this area. Block 2a has been split into an initial primary area to be drilled (green dots in Figure 1) which will result in an initial resource to coincide with the Company's Preliminary Economic Assessment (PEA). The remaining next stage Block 2a planned drilling (yellow dots in Figure 1) will then be drilled.

Sampling and QAQC (Quality Control and Quality Assurance)

The split mineralized core (half core) is sampled at two-meter intervals, these two-meter samples are measured for density using the Archimedean method of weighing dry and then weighing submerged in water, see Table 1 and Table 2. The density measurements are supplemented with QAQC check samples to ensure precision and repeatability of the density measurements.

The two-meter samples from the split cores are then bagged and labeled, and consigned for crushing, pulverizing (pulp creation) and XRF chemical assay. 755 samples from these holes were analyzed by ALS Chemex for XRF assay analysis, this included QAQC check samples.

All returned XRF assay results are checked that they pass QAQC before they are uploaded into the Company's drillhole database. Standards are checked against control limits; blanks are checked for contamination; and, duplicates are plotted against the original to ensure reproducibility of the process. All QAQC assays have satisfactorily passed the QAQC checks and the assay data has been uploaded into the database.

About the Xaudum Iron Formation Project

• The project is located in the North-West District of Botswana and is proximate to the Namibian boarder and lies twenty-two (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 Company has joined the Walvis Bay Corridor Group (WBCG). Currently the portion of the corridor between Grootfontein (Namibia) to Katima Mulilo located on the Zambia border is the portion of the corridor closest to the Xaudum Iron Project. In March 2021, the Namibian Ministry of Works and Transport commissioned a Feasibility Study for the Trans-Zambezi Railway Extension Grootfontein - Rundu - Katima Mulilo. The proposed rail extension between Grootfontein and Katima Mulilo is significant to Tsodilo as the extension is planned to pass through Divundu. The feasibility study is expected to be completed by the end of 2021 and its results will be considered in our Preliminary Economic Assessment (PEA).
• The project is also located within forty-three (43) miles of the proposed Mucusso line to Angola's Namibe Port.
• Preliminary work on the Xaudum Iron project has defined a CIM compliant Inferred Mineral Resource Estimate of 441 million tonnes (Mt) with an average grade of 29.4% Fe, 41.0% SiO2, 6.1% Al2O3 and 0.3% P 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 5 to 7 billion tonnes at 15 - 40% Fe. This exploration target was generated by inversion modelling of ground magnetic geophysical data which was compared and moderated to 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 Press Release of 9/14/2014 on the Company's website for further details.
• Metallurgical magnetic separation results (Davis Tube Recovery) show an average concentrate of 67.2% Fe, 4.2% SiO2, 0.5% Al2O3, 0.07% P is obtained at P80 grind size of 80 microns, although higher grades are possible at finer P80's. See Press Release of 12/17/2013 on the Company's website.
• Further exploration will be focused on Block 2a where the Company expects an increase in the resource.

Disclaimer: Tsodilo Resources is a paid marketing client and we own stock options

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