Crocodile Gold Increases Measured and Indicated Mineral Resources to 2.1 Million Ounces Gold at Fosterville Gold Mine and 500,000 Ounces Gold at Cosmo Gold Mine

TORONTO, ONTARIO--(Marketwired - May 20, 2014) -

• The Fosterville Gold Mine increased estimated Measured and Indicated Mineral Resources to 2.1 million ounces of gold, a 30% increase. Total estimated Measured and Indicated Mineral Resources increased to 16.6 million tonnes at 3.87 g/t Au.
• Results from exploration drilling at Fosterville indicate significant potential for further Mineral Resource growth through ongoing drilling from surface and underground.
• The Cosmo Gold Mine increased estimated Measured and Indicated Mineral Resources to 500,000 ounces of gold, a 4% increase. Total estimated Measured and Indicated Mineral Resources increased to 4.5 million tonnes at 3.43 g/t Au.
• Results from exploration drilling at Cosmo indicate the deposit remains open at depth down plunge and holds significant potential for further Mineral Resource growth.

Crocodile Gold Corp. (TSX:CRK)(OTCQX:CROCF)(FRANKFURT:XGC) ("Crocodile Gold" or the "Company) has updated the Mineral Reserves and Resources Estimates at the Company's Fosterville Gold Mine as a result of the successful exploration drill program detailed in the Press Release of March 12, 2014. In addition, the Company has updated the Mineral Reserve and Resource statement for the Cosmo Gold Mine. Separate technical reports are being prepared in accordance with NI 43-101 for each of the project areas and will be filed on SEDAR within 45 days of this news release.

Rodney Lamond, President and CEO of Crocodile Gold, commented: "I am pleased to announce that Crocodile Gold has significantly increased the Measured and Indicated Mineral Resource categories for both Fosterville and Cosmo Gold Mines. The substantial increase in Mineral Resources at Fosterville has extended the current Life of Mine plan and provides for potential Mineral Reserve increases as infill drilling continues. At Cosmo, the exploration drilling programs have focused on near term targets and have significantly increased the Measured Mineral Resource category. This increase provides greater confidence in the resource and in Cosmo's mine plans. As the Cosmo deposit remains open at depth, the 2014 exploration drilling program will focus down plunge of the deposit that will potentially provide further Mineral Resource growth."

Reserve and Resource Update from the Fosterville Gold Mine

At the Fosterville Gold Mine, the total Mineral Resources reported are contained in four separate areas: the Central Area, Southern Area, Harrier Area and Robbin's Hill Area. Drilling throughout 2013 was concentrated on near term drilling targets in the Central and Harrier Areas and resulted in the successful delineation of zones of mineralization that have led to growth in total Measured and Indicated Mineral Resources to over 2 million ounces of gold.

Central Area

A total of 205 holes (47,466 metres) were drilled in the Central Area, predominately targeting the Phoenix and Lower Phoenix structures during 2013. This drilling successfully identified additional zones of mineralization (see Press Release dated March 12, 2014) that has led to an increase in total Measured and Indicated Mineral Resource of approximately 374,000 ounces of gold. This is a 42% increase on Measured and Indicated Mineral Resources from the December 2012 Mineral Resource estimate for this area. In addition, 158,000 ounces of gold (an 89% increase) of Inferred Mineral Resource was added to the Central Area as a result of drilling programs undertaken during 2013 and subsequent resource modeling (Figure 1).

On the back of the Mineral Resource expansion in the Central Area, Fosterville experienced significant Mineral Reserve growth, with the addition of 39,000 gold ounces of Proven and Probable Mineral Reserve, after mining depletion of 68,500 ounces. This represents a 26% increase in Mineral Reserve from the December 2012 Mineral Reserve position. The total Mineral Reserve for the Central Area now stands at 189,000 contained ounces of gold; driven by an 11% increase in tonnes and 14% increase in grade for the area.

The Company anticipates continued Mineral Resource growth in the Central Area which contains untested, open plunge resource extension potential on both the Phoenix and Lower Phoenix structures. Additional drilling is planned to further define the resource. Fosterville currently has one surface and three underground diamond drill rigs operating in the Central Area.

Harrier Area

A total of 63 holes (9,890 metres) were drilled in the Harrier Area throughout 2013, testing down plunge extensions of the Harrier system and providing adequate resource definition for near term mine planning. The Harrier Area drilling and modeling produced a less pronounced increase in Measured and Indicated Mineral Resource. However, coupled with the re-interpretation of existing datasets, the Harrier Area yielded an increase of 99,000 ounces of gold (22% increase). In addition, there was a sizeable increase in the Inferred Mineral Resource category in the area. In total, 197,000 ounces where added to the Inferred Mineral Resource base for a 288% increase (Figure 2). This was driven largely by a re-interpretation of mineralized domains above the 4800mRL and the inclusion of exploration drilling results at the southern extent of known mineralization on the 4850mN section.

The Proven and Probable Mineral Reserve estimate for Harrier stands at 42,000 ounces of gold. This represents a 27% ounce reduction when compared to the December 2012 Mineral Reserve position for the same area, inclusive of mine depletion of 54,000 ounces over 2013. The Proven and Probable Mineral Reserve reductions in the Harrier Area were offset by gains in the Central Area, resulting in an overall Mineral Reserve growth of 12% for a total of 231,000 contained ounces.

The Harrier mineralized system remains open down plunge and is to be considered in future drill planning, however, in the Company's view, the Central Area currently provides the highest potential for near term Mineral Reserve and Resource growth opportunity and is the primary focus of Fosterville's 2014 exploration and resource definition programs.

Drilling was not undertaken in the Southern and Robbin's Hill Areas during 2013 and the Mineral Resource inventory in these areas remain unchanged, however, it is the Company's view that these areas still hold high potential for future mineral resource growth.

The CIL Tailings Proven Mineral Reserve experienced a 13% increase in contained gold ounces during 2013 to a total of 111,000 ounces. Expected gold recovery from this Mineral Reserve is 25%, based on laboratory test work and operating performances.

Table 1: Estimated Mineral Resources for Fosterville Mine

Table 2: Mineral Reserve Estimate for Fosterville Gold Mine

Table 3: CIL Tailings Mineral Reserve Estimate for Fosterville Gold Mine

Reserve and Resource Update from the Cosmo Gold Mine

At the Cosmo Gold Mine, the total Mineral Resources reported are contained within the one Mineral Resource model, which encompasses both the Eastern and Western Lodes of the deposit. Drilling in 2013 was concentrated on near term targets and was successful in increasing the Mineral Resources to 0.5 million ounces of gold in the Measured and Indicated categories, providing increased resource confidence for mine planning.

A total of 142 Resource Definition and Exploration diamond drill-holes (for 22,693 metres) were drilled into the Cosmo Deposit during 2013, mostly in the footwall zone of the regional F1 Fault on the Eastern Lode. This drilling was prioritized in order to add confidence in the near term targets for the operation and returned a significant increase of 69% in the amount of Measured Mineral Resources and a total 4% increase in total Measured and Indicated Resources (Figure 3). This is after the mining depletion of 86,500 ounces during 2013.

Changes in the Mineral Reserves Estimate for the Cosmo Deposit have shown a slight reduction, which is mainly related to the mining depletion since the last report was effective on June 1, 2013. Other factors that have affected the Mineral Reserves have been due to changes in the mining recovery and dilution assumptions to align with current understanding and practices. When mining depletion of Mineral Reserves is factored into the changes there is an overall reduction of around 10% in gold ounces since the last report was filed in 2013.

When considering the total reconciled Mineral Resources mined from the Cosmo Gold Mine, a total of 57,500 ounces of gold have been mined since June 1, 2013. This suggests a total of 27,000 ounces of Non-Mineral Reserve material (or 47% of mined ounces of gold) were opportunistically mined based on new drilling results in the area above the F1 Fault.

The Cosmo Deposit remains open at depth down plunge and in the Company's view holds significant potential for further Mineral Resource growth to support future Mineral Reserve studies. In early 2014, approval was granted for a resource definition program to develop the down plunge extension of the Cosmo Deposit. This drilling has commenced and is expected to be completed in the first quarter of 2015.

Table 4: Estimated Mineral Resources for the Cosmo Gold Mine

Table 5: Mineral Reserve Estimate for the Cosmo Gold Mine

Notes/Technical Disclosure/Disclaimers

Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Environmental, permitting, legal, title, taxation, socio political, marketing, or other relevant issues may materially affect the estimates of Mineral Resources.

The quantity and grade of reported Inferred Mineral Resources in the above estimations are uncertain in nature and there has been insufficient exploration to define these Inferred Resources as an Indicated or Measured Mineral Resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral Resource category.

Technical reports prepared in accordance with NI 43-101 supporting the updated Mineral Resource and Mineral Reserve estimates will be available under the Company's profile on SEDAR (www.sedar.com) within 45 days of this news release.

Qualified Person

F. W. Nielsen, P.Geo, Technical Consultant to Crocodile Gold, is a "qualified person" as such term is defined in National Instrument 43-101 and has reviewed and approved the technical information and data included in this press release.

About Crocodile Gold

Crocodile Gold is a Canadian gold mining and exploration company with three operating mines in the Northern Territory and the State of Victoria, Australia. The Company has a combined land package in excess of 4,000 sq. km. The objective of Crocodile Gold is to continue production from its three operating mines, Cosmo, Stawell and Fosterville, while also advancing development programs to further organic growth. For additional information, please visit our website www.crocgold.com.

Follow us on Twitter @crocgold_crk or Facebook facebook.com/CrocodileGoldCorp.

Cautionary Note

Certain information set forth in this press release contains "forward-looking statements", and "forward-looking information under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements, which include the Company's expectations for future performance based on current drill results and past production, expected gold prices, and mineral resource and mineral reserve estimates, and are based on Crocodile Gold's current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as "expects" "anticipates", "believes", "projects", "plans", and similar expressions. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Crocodile Gold's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: liabilities inherent in mine development and production; geological, mining and processing technical problems; Crocodile Gold's inability to obtain required mine licences, mine permits and regulatory approvals required in connection with mining and mineral processing operations; competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions; changes in commodity prices and exchange rates; currency and interest rate fluctuations; various events that could disrupt operations and/or the transportation of mineral products, including labour stoppages and severe weather conditions; the demand for and availability of rail, port and other transportation services; the ability to secure adequate financing and management's ability to anticipate and manage the foregoing factors and risks. There can be no assurance that forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Crocodile Gold undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

To view Figure 1 accompanying this press release, please visit the following link: http://media3.marketwire.com/docs/947096_1.pdf

To view Figure 2 accompanying this press release, please visit the following link: http://media3.marketwire.com/docs/947096_2.pdf

To view Figure 3 accompanying this press release, please visit the following link: http://media3.marketwire.com/docs/947096_3.pdf