Crocodile Gold on Track to Meet Production Targets and Produces 8,700 Ounces of Gold in June

TORONTO, ONTARIO -- (Marketwire) -- 07/06/10 -- Crocodile Gold Corp. (TSX: CRK)(OTCQX: CROCF)(FRANKFURT: XGC) ('Crocodile Gold' or the 'Company') announces today it remains on track to produce 100,000 ounces of gold in 2010 (see Crocodile Gold press release dated May 17, 2010). For the month of June, the first month of commercial production, Crocodile Gold milled 174,000 tonnes of ore at an average grade of 1.57 g/t Au. Gold poured in June totalled 8,700 ounces. Year-to-date gold sales totalled 32,200 ounces. The Company expects to produce over 30,000 ounces of gold in the third quarter and close to 40,000 ounces of gold in the fourth quarter as production begins from the Tom's Gully underground mine.

In releasing this information, Chief Operating Officer, David Keough, commented, 'We have seen a steady month by month improvement in mill availability, recovery and ounces produced. We are finding that improved grade control and mine planning processes as well as preventative planned maintenance practices are allowing us to more accurately predict production but also to achieve our targets. In the coming months we expect to see continued improvement in overall production as we expand production to 200,000 ounces in 2011.'

In May, the Company started the construction and development of the Cosmo underground mine ahead of schedule and by the end of June the surface installations and portal had been completed and the decline had advanced over 60 meters from the portal.

Crocodile Gold remains on track and expects to produce 100,000 ounces of gold this year at a cash cost during commercial production of less than US$700/oz. Crocodile Gold expects the production to come from the North Point, Howley, Brocks Creek and Tom's Gully mines. During the third quarter, Crocodile Gold plans to accelerate waste stripping to access higher grade open pit ore and also to free up sufficient ore so that a stockpile of ore will be available at the Union Reefs mill before the upcoming wet season.

Update on Australian Proposed Super Resource Tax

In addition, Crocodile Gold is encouraged by the Australian government's announcement that following a consultation process with the mining industry, a compromise has been proposed, pursuant to which the proposed Resource Super Profits Tax would be replaced with a Mineral Resource Rent Tax which will only apply to coal and iron ore. Pursuant to the proposal, all other mining companies, including gold, copper, nickel and other base metals, would not be subject to the tax. The new proposed tax has yet to be passed into law.

The Company believes that the government's proposed compromise once again makes Australia a very competitive tax regime for mining investments, particularly gold.

About Crocodile Gold

Crocodile Gold is a Canadian company with the Howley and North Point open pit mines and the Brocks Creek underground mine in the Northern Territory of Australia. Crocodile Gold announced its first gold pour in December 2009 at its Union Reefs mill, started development work at the Tom's Gully underground mine for expected production in late Q3 2010 and has commenced underground development at Cosmo with full production expected by mid-2011. Crocodile Gold has two mills, including the 2.4 mtpy Union Reefs mill and the 240,000 tpy Tom's Gully mill. Crocodile Gold has 3.09 million ounces of NI 43-101 compliant measured and indicated resources (42.9 million tonnes at an average grade of 2.3 g/t gold) and 1.94 million ounces of inferred resources (26.7 million tonnes at an average grade of 2.3 g/t gold) (see Annual Information Form dated March 31, 2010 and Crocodile Gold press releases dated September 8, 2009 and January 25, 2010). The Company has an aggressive exploration program in place and is drilling on several key properties on its land package of over 2,500km2.

Qualified Person

Mark Edwards, Geology Manager of Crocodile Gold Australia Operations, and Heath Gerritsen, Mining Manager of Crocodile Gold Australia Operations, are each a 'qualified person' as such term is defined in National Instrument 43-101 and have reviewed and confirmed the technical information and data included in this press release.

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 management's assessment of Crocodile Gold's future plans, operations and mineral resource 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 licenses, 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 which 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, as 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: Crocodile Gold Northern Territory Location Map', please visit the following link:

http://media3.marketwire.com/docs/crk-map-706.pdf

Contacts:

Crocodile Gold Corp.

Michael Hoffman

President and CEO

416-861-2964


Crocodile Gold Corp.

Ashleigh Clelland

Manager, Investor Relations

416-861-5899
info@crocgold.com