Crocodile Gold Corp. Produces 68,019 Ounces of Gold in 2011 to Meet Production Guidance

Management Confirms Cosmo Underground Mine Ramp-Up is Underway

TORONTO, ONTARIO -- (Marketwire) -- 01/23/12 -- Crocodile Gold Corp. (TSX: CRK) (OTCQX: CROCF) (FRANKFURT: XGC) ('Crocodile Gold' or the 'Company') is pleased to announce that it has achieved the upper target of its 2011 production guidance of 66,000 to 69,000 ounces by producing 68,019 ounces in 2011.


Production highlights for the fourth quarter include:

- 510,268 tonnes at a grade of 1.01 g/t gold were milled for total of 15,649 ounces. Recovery of 93.9% was achieved despite Tropical Cyclone Grant passing through the Northern Territory in December.

- Sales revenue was US$27 million at an average gold price of US$1,657 per ounce.

- Production came from the Mottrams and Princess Louise pits with a minor contribution (5,700 tonnes) of lower grade development ore from the Cosmo Underground Mine.


Selected Highlights from 2011 include:

- A total of 1,885,484 tonnes at a grade of 1.21 grams/tonne gold were milled to produce 68,019 ounces (68,579 ounces poured) for an overall recovery of 92.9%.

- The average gold price for 2011 was US$1,567 (A$1,519) per ounce resulting in total revenue of US$108 million on the sale of 68,600 ounces of gold.

- Total silver sales for 2011 were 19,394 ounces at an average silver price of US$31 per ounce (total silver revenue of US$600,000).

Guidance and key objectives for 2012 production and exploration will be issued shortly under a separate press release.


Cosmo Underground Update

Progress continues at the Company's flagship asset, the Cosmo Underground Mine. The second leg of the primary ventilation system has been completed with the support of the 4m diameter shaft, installation of escape ladder ways and installation of the main ventilation fans. With this improvement in ventilation capacity, Cosmo underground development and ore production has ramped up with the ability to use additional underground equipment. Multiple level development has commenced with six active ore drives being excavated and production stoping activities planned to commence in February. 'We are pleased to report that in each of the headings being developed, the planned ore stoping widths are proving to be wider than initially identified by the surface exploration drilling' stated David Keough, Chief Operating Officer.

The first main level on 955 level below the crown pillar underneath the open pit is currently being developed and it is expected that a number of ore drives will soon begin being developed. Development towards the Western Lodes is underway on the 960 level. So far in January, a total of 6,000 tonnes @ 3.4 g/t Au of development ore has been mined. Since the changeover of the underground contractor to Leighton in early 2011, the Company has achieved an average of 37% increase in development rates per quarter sequentially (Figure 1) despite the difficulties associated with the delay in commissioning the ventilation system.

CEO Chantal Lavoie commented on the progress following a recent site visit: 'We are very pleased with the progress at Cosmo. Cosmo has now reached the threshold of sustainable development ore production. The site operational team is clearly focused on ramping up production over the next six months to achieve targeted production levels.'

To view 'Figure 1: Cosmo Underground Development Metres - Quarter on Quarter', please visit the following link: http://media3.marketwire.com/docs/crk0123.pdf.

The Company will be issuing its 2012 production and exploration objectives.


About Crocodile Gold

Crocodile Gold is a Canadian company with operating gold mines in the Northern Territory of Australia with a land package of over 3,300 km2. Crocodile Gold is currently mining a number of open pits in the Howley Corridor. The Company is also developing the Cosmo underground mine. Ore is processed at the Union Reefs Mill with a capacity of 2.4 million tonne per year. Crocodile Gold has 3.175 million ounces of NI 43-101 compliant Measured and Indicated mineral resources and 2.14 million ounces of Inferred mineral resources (see the NI 43-101 compliant technical report entitled 'Report on the Mineral Resources and Mineral Reserves of the northern Territory Gold and Base Metals Properties for Crocodile Gold Corp.' by Fleur Muller, Mark Edwards and Heath Gerritsen dated April 4, 2011, filed under the Company's profile on SEDAR for the details regarding these mineral resource estimates). The Company has an extensive exploration program in place and is drilling on several key properties on its expansive land package. Crocodile Gold's main focus is on the Cosmo Mine, the Union Reefs and Maud Creek project areas.

For additional information, please visit our website www.crocgold.com. Follow us on Twitter (@crocgold_crk) or Facebook (www.facebook.com/CrocodileGoldCorp).


Qualified Person

David Keough F.AusIMM of Crocodile Gold Inc 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.


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.



Contacts:

Crocodile Gold Corp.
Rob Hopkins
Manager, Investor Relations
416-861-5899
info@crocgold.com
www.crocgold.com