Tsodilo Resources Limited Announces Grant of Stock Options

TSODILO RESOURCES LIMITED

Tsodilo Resources Limited Announces Grant of Stock Options

FOR IMMEDIATE RELEASE January 3, 2017

TORONTO, CANADA - Tsodilo Resources Limited (TSX Venture Exchange: TSD)

("Tsodilo" or the "Company") reports that in terms of the Stock Option Plan of the Company

and a policy adopted by the board of directors in September 2002, 260,000 stock options

were granted to officers and senior employees on January 2, 201 7, at CDN $ 0.69 per

common share. These options are valid for five years and vest in four equal installments on

January 2, 2017, July 2, 2017, January 2, 2018 and July 2, 2018.

About Tsodilo Resources Limited: Tsodilo Resources Limited is an international diamond

and metals exploration company engaged in the search for economic diamond and metal

deposits at its Bosoto (Pty) Limited ("Bosoto") and Gcwihaba Resources (Pty) Limited

("Gcwihaba") projects in Botswana and its Idada 361 (Pty) Limited ("Idada") project in

Barberton, South Africa. The Company has a 100% stake in Bosoto (Pty) Ltd. which holds

the BK16 kimberlite project in the Orapa Kimberlite Field in Botswana. The Company has a

100% stake in its Gcwihaba project area consisting of twenty -one (21) metal (base, precious,

platinum group, and rare earth) prospecting licenses and eight (8) radioactive mineral licenses

all located in the North -West district of Botswana. Addition ally, Tsodilo has a 70% stake in

Idada Trading 361 (Pty) Limited which holds the gold and silver exploration license in the

Barberton area of South Africa. Tsodilo manages the exploration of the Gcwihaba, Bosoto

and Idada projects.

The Company has offices in Toronto, Canada and Gaborone and Maun, Botswana. Please

visit the Company's website, www.TsodiloResources.com, for additional information and

background on our projects.

This press release contains forward-looking statements. All statements, other than statements

of historical fact, that address activities, events or developments that the Company believes,

expects or anticipates will or may occur in the future (including, without limitation,

statements relating to the development of the Company's projects) are forward -looking

statements. These forward-looking statements reflect the current expectations or beliefs of the

Company based on information currently available to th e Company. Forward -looking

statements are subject to a number of risks and uncertainties that may cause the actual

results of the Company to differ materially from those discussed in the forward -looking

statements, and even if such actual results are reali zed or substantially realized, there can be

no assurance that they will have the expected consequences to, or effects on the Company.

Factors that could cause actual results or events to differ materially from current

expectations include, among other thin gs, changes in equity markets, political developments

in Botswana and surrounding countries, changes to regulations affecting the Company's

activities, uncertainties relating to the availability and costs of financing needed in the future,

the uncertainties involved in interpreting exploration results and the other risks involved in

the mineral exploration business. Any forward -looking statement speaks only as of the date

on which it is made and, except as may be required by applicable securities laws, the

Company disclaims any intent or obligation to update any forward -looking statement,

whether as a result of new information, future events or results or otherwise. Although the

Company believes that the assumptions inherent in the forward -looking statements are

reasonable, forward -looking statements are not guarantees of future performance and

accordingly undue reliance should not be put on such statements due to the inherent

uncertainty therein.

Neither the TSX Venture Exchange ("TSXV") nor its Regulation Services Provider (as that

term is defined in the policies of the TSXV) accepts responsibility for the adequacy or

accuracy of this news release. This news release may contain assumptions, estima tes, 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 perfor mance to differ materially

from those currently anticipated in such statements.

FOR FURTHER INFORMATION PLEASE CONTACT:

James M. Bruchs Chairman and Chief Executive Officer [email protected]

Dr. Mike de Wit President and Chief Operating Officer [email protected]

Head Office Telephone +1 416 572 2033 Facsimile + 1 416 987 4369

Website http://www.TsodiloResources.com