Toronto, Ontario — January 13, 2026 — Leads & Copy — Tsodilo Resources Limited (TSXV: TSD) (OTCQB: TSDRF) (FSE: TZO) announced the verification of significant critical minerals and rare earth element (“REE”) mineralization from its 100%-owned Gcwihaba Metals Project (“Gcwihaba” or the “Project”), located in northwest Botswana.
The C26 and C27 targets were initially identified as geophysical anomalies through ground magnetic and gravity surveys. Diamond core drilling of these anomalies confirmed skarn-hosted REE mineralization 20-50 meters below surface.
Tsodilo’s Chairman and CEO, James M. Bruchs, said the 1.49% TREO intercept at C27 represents the highest grade recorded so far for Gcwihaba. Bruchs said the results validate the company’s systematic exploration approach and demonstrate evidence of a polymetallic REE skarn system with both vertical extent and grade.
The skarns and other project area proximate targets contain a polymetallic assemblage including fifteen rare earth elements and critical minerals such as copper, cobalt, nickel, vanadium, and silver.
The company has defined a conceptual exploration target ranging from 81 to 97 million tonnes at grades between 0.05% and 1.49% TREO, based on integrated geophysical modelling, drilling results, and geological modelling of the confirmed skarn deposits. The REE exploration target measures four kilometers in length.
The C26 and C27 skarn features contains 15 of the 15 REE elements listed on the U.S. Department of Interior, U.S. Geological Survey’s 2025 list of Critical Minerals and 5 other critical minerals as well.
The company plans to commence a 15,000m drill program in 2026 to obtain a compliant NI43-101 resource statement.
C26 and C27 skarn Neodymium-praseodymium (NdPr) content represents approximately 15% of Total Rare Earth Oxides (TREO) comparable to MP Materials’ Mountain Pass mine (15.7%). NdPr is essential for high-performance permanent magnet applications in electric vehicles, wind turbines, and defense systems.
Beyond rare earth elements, the skarn system has returned encouraging base and precious metal values, including copper up to 0.41% in the C26 skarn, cobalt up to 320 ppm, and silver up to 5.1 g/t in the C27 skarn. The 2026 drilling program will focus on defining high-grade REE zones while further evaluating the polymetallic potential of the system to support preparation of an initial mineral resource estimate.
Rare earth elements are used in permanent magnets for electric vehicles, wind turbines, and defense technologies. Global supply is concentrated in China, with demand projected to grow at 9.2% annually through 2030. Rare earth elements and cobalt are included in the US Department of the Interior Critical Minerals List (“CML”). The C26 and C27 skarns mineralization contain all fifteen rare earth elements on the 2025 US Department of the Interior Critical Minerals List (“CML”), including neodymium and praseodymium, plus five additional CML minerals including cobalt, copper, nickel, vanadium, and silver. In total, 20 of 60 CML minerals have been identified.
The company has completed twelve NQ-size exploration drill holes (totaling 3,303 meters) to date across the C26 and C27 skarn targets. A total of 1,612 diamond core samples from nine drill holes were analyzed for multi-element geochemistry, with 1,224 samples (76%) returning detectable REE mineralization. Four drill holes returned high-grade REE intercepts up to 1.49% TREO at the C27 skarn anomaly.
C27 Skarn deposit returned 1.49% TREO over 2m (159.5-161.5m) including 984 ppm Nd, 388 ppm Pr, 92 ppm Cu, 36 ppm Co, and 1.1 g/t Ag in Hole 1822C27_6. 1.23% TREO over 1m (146.4-147.4m) including 1,195 ppm Nd, 438 ppm Pr, 430 ppm Cu, 71 ppm Co, and 0.2 g/t Ag in Hole 1822C27_2. 45m @ ≥0.1% TREO (74.4-243.4m) averaging 0.29% TREO, 330 ppm Nd, 123 ppm Pr, 517 ppm Cu, 75 ppm Co, and 0.7 g/t Ag in Hole 1822C27_2.
C26 Skarn deposit returned 18m @ ≥0.1% TREO (77.6-190.6m) averaging 0.16% TREO, 214 ppm Nd, 63 ppm Pr, 733 ppm Cu, and 1.0 g/t Ag in Hole 1822C26_1. 0.46% TREO over 1m (172.6-173.6m) including 473 ppm Nd, 154 ppm Pr, 927 ppm Cu, and 1.0 g/t Ag in Hole 1822C26_1. 4m @ ≥0.1% TREO (103.4-111.4m) averaging 0.23% TREO, 258 ppm Nd, 82 ppm Pr, 288 ppm Cu, and 1.0 g/t Ag in Hole 1822C26_3. The Company plans to commence further diamond core drilling on the C27 and C26 skarn deposits in 2026.
The skarn deposits occur within carbonate-rich lithologies (marbles) and schists beneath 20 – 50 meters of Kalahari sediments cover. The REE mineralization is developed within endo-skarn formed along carbonate-rich marble lithologies, with bulk skarn mineralogy comprising pyroxene skarn (hedenbergite) and garnet skarn (andradite). REE minerals identified include carbonates (bastnäsite, ancylite), silicates (allanite, britholite), and phosphates (monazite, xenotime). This mineralogical assemblage is characteristic of skarn-hosted REE deposits globally and represents well-established REE mineral types with proven extraction methods.
The intercept grades at Gcwihaba fall within the range of reported grades for skarn-hosted REE deposits, which typically range from 0.02% to 3% TREO (Paulick and Machacek, 2017). The 1.49% TREO intercept at C27 represents the highest grade recorded at the project to date.
The high-grade intersections at C27 and broad mineralized intervals at C26 validate the Company’s geophysical exploration approach using integrated magnetic and gravity surveys beneath Kalahari cover. The results support the conceptual exploration target of 81 to 97 million tonnes, which was generated through ground magnetics data inversion modeling, constrained by drilling results and geological interpretation. This approach provides a framework for systematic resource definition drilling campaign.
The 2026 drilling program will focus on defining high-grade zones exceeding 1% TREO, improving geological confidence, and collecting samples for metallurgical testwork. The planned 2026 drilling campaign comprises approximately 50 NQ-size drill holes totaling 15,000 meters, designed to support preparation of an initial mineral resource statement.
All diamond drill core from the Gcwihaba Metals Project was logged, photographed, and sawn in half using a diamond blade core saw. One half of the core was submitted for geochemical analysis, while the other half was retained in secure storage for reference. Sampling intervals were determined based on geological boundaries and typically ranged one meter. Control samples comprised approximately 10% of all samples submitted, including certified reference standards, analytical blanks, field duplicates, and preparation duplicates. QA/QC results were reviewed in real time, and all data have been verified as meeting acceptable thresholds for accuracy, precision, and contamination before inclusion in this release.
Diamond drill core samples were submitted for multi-element geochemical analysis at ALS Minerals Division, South Africa. Sample preparation comprised fine crushing to 70% passing 2mm (CRU-31), riffle splitting (SPL-21), and pulverizing to 85% passing 75 μm (PUL-31). Samples were analyzed using 38-element fusion inductively coupled plasma mass spectrometry (ICP-MS; method ME-MS81) for rare earth elements and yttrium, and 33-element four-acid digestion inductively coupled plasma atomic emission spectroscopy (ICP-AES; method ME-ICP61) for base and trace metals. Selected samples were also analyzed for precious metals using fire assay fusion ICP (method PGM-ICP23).
The rare earths are an abundant group of seventeen elements composed of scandium, yttrium, and the lanthanides. The elements range in crustal abundance from cerium, the 25th most abundant element of the seventy-eight common elements in the earth’s crust at 60 parts per million, to thulium and lutetium, the least abundant rare-earth elements at about 0.5 part per million. The elemental forms of rare earths are iron gray to silvery lustrous metals that are typically soft, malleable, and ductile and usually reactive, especially at elevated temperatures or when finely divided.
James M. Bruchs, Chairman and Chief Executive Officer, can be reached at JBruchs@TsodiloResources.com or by telephone at +1 416 800-4214.
Source: Tsodilo Resources Limited
