Crocodile Gold Reports Revenue of $108 Million on the Sale of 68,601 Ounces Gold in the Year Ended December 31, 2011

TORONTO, ONTARIO -- (Marketwire) -- 03/19/12 -- Crocodile Gold Corp. (TSX: CRK) (OTCQX: CROCF) (FRANKFURT: XGC) ("Crocodile Gold" or the "Company") today announces its financial and operating results for the year ended December 31, 2011. All figures are in U.S. dollars, unless stated otherwise.

Crocodile Gold milled 510,268 tonnes and achieved an excellent gold recovery rate of 93.9% at the Union Reefs production facility in the three months ended December 31, 2011. Good progress was made with the development of the Cosmo underground mine with completion of the permanent ventilation raise, escape ladder ways and installation of the main ventilation fans in December 2011.

In the year ended December 31, 2011, the Company produced 68,020 ounces of gold and sold 68,601 ounces of gold at an average cash cost of $1,460 per ounce of gold sold (see non-GAAP Measures below).

In reporting these results, Chantal Lavoie, Chairman, President and Chief Executive Officer, commented: "Crocodile Gold faced considerable challenges throughout 2011, especially earlier in the year. As a result, the Company readjusted its short and medium term operational plans and we currently look back on 2011 as a transitional year. We have now reached an important turning point in the Company's growth with the initiation of the Cosmo ramp-up and the success of our exploration program at Union Reefs."


2011 Highlights

Over the course of 2011, the Company:

- Milled 1,885,484 tonnes of ore at an average head grade of 1.21 grams per tonne ("g/t") and a recovery rate of 92.9% to produce 68,020 ounces of gold.

- Recorded revenue of $108 million on the sale of 68,601 ounces of gold for an average realized price of $1,567 per ounce.

- Recorded a net loss of $33,568,803 or $0.12 per share, and used $3,202,025 cash in operations. The net loss included impairment charges of $19,116,232 primarily on Mt. Bundy / Tom's Gully, depletion and depreciation of $7,813,276 and share-based payments of $4,857,105.

- Maintained net working capital at December 31, 2011 of $35,860,561, including cash and cash equivalents of $32,918,809 or $0.11 per share.

- Completed 1,778 metres of development at the Cosmo underground mine where, by the end of January 2012, nine development headings were available.

- Mined the first development ore from Cosmo in September 2011 (838 tonnes), followed by 4889 tonnes in the three months ended December 31, 2011.

- Completed 38,918 metres of surface exploration drilling at Union Reefs, Cosmo, Maud Creek, Yam Creek, Rising Tide, Mt. Bonnie and Iron Blow, including 14,897 metres of reverse circulation (RC) and 24,021 metres of diamond drilling. Additionally, 550 metres of underground exploration drilling was conducted at Cosmo.


Financial Discussion

During the year ended December 31, 2011, Crocodile Gold recorded a net loss of $33,568,803, or $0.12 per share, compared to a net loss of $21,680,285, or $0.11 per share, in the year ended December 31, 2010.

During the fourth quarter of 2011, the Company recorded $19,116,232 in impairment charges primarily as a result of the Company entering into a non-binding agreement for the sale of its Tom's Gully and Mt. Bundy properties.

The mine operating loss in the year ended December 31, 2011 was $1,111,882. On a cash basis, mine operating earnings were $7,263,876, net of depletion and depreciation of $7,813,276 and share-based compensation of $562,482. The cash cost per ounce of gold sold in 2011 was $1,460 per ounce (refer to non-GAAP measures below). This cash cost was about $290 per ounce higher than projected as a result of the lower than expected average head grade from the open pits. Also, costs were affected by a strong Australian Dollar (an increase of $45 per ounce) and higher diesel prices (an increase of $28 per ounce).

The net loss includes exploration expenditures of $2,542,928 for the year ended December 31, 2011, in respect of properties where mineral resources have not yet been identified or the Company has not yet made a development decision. Care and maintenance expenses included were $586,997.

In 2011, Crocodile Gold earned interest income of $3,293,317 on the cash and cash equivalents and restricted cash on hand. Professional, consulting and management fees, and general corporate and administration expenses amounted to $6,103,341 and $1,723,754 respectively in 2011 and included the management and administration of the Company's activities in both Canada and Australia.


Cash Flow

Cash used in operating activities in the year ended December 31, 2011, of $3,202,025, included cash generated by mine operations of $7,263,876, less general and administrative type costs (net of interest income) of $4,211,375, exploration and care and maintenance costs of $3,129,925, and a net decrease in working capital of $3,124,601.

Investing activities used $72,325,759 in the year ended December 31, 2011. This was principally directed to the development of the Cosmo underground mine (approximately $39 million), including the dewatering of the Cosmo pit and establishment of a permanent water treatment facility, an aggressive exploration program (approximately $15 million), and upgrades at the Union Reefs mill (approximately $5 million).

The significant financing activities in 2011 were the prospectus offering that the Company closed in March 2011 that raised (net) $82,187,013 and the financing of two mine vehicles ($3,097,899).


Financial Position

As at December 31, 2011, the Company had net working capital of $35,860,561, which included cash and cash equivalents of $32,918,809.


Outlook

Operations

Production ore at the Company's flagship underground mine, Cosmo, is expected in the first quarter of 2012 with longitudinal mining starting in the upper section of the mine. Management expects Cosmo to reach commercial production in the second half of 2012.

Key capital infrastructure work to be completed in 2012 includes:

- the extension of the main ventilation system on the western part of the Cosmo ore body;

- the extension of the main decline down to the 785 metre level;

- the establishment of seven new levels and sublevels;

- surface workshops; and

- additional ventilation capacity, with the drilling of two ventilation shafts to the surface and the installation of two large capacity ventilation fans.

Surface mining activities will include the extraction of ore in the western extension of the Howley pit (West Howley), mining of the Rising Tide ore body located close to the previously mined Brocks Creek mine and mining of the North Point open pit located close to the Princess Louise open pit. Ore from the open pits will form the majority of the mill feed for the Union Reefs mill in the first half of the year. As production from the Cosmo underground mine ramps up this will become the majority of the mill feed in the latter half of the year.

The Company continues to work with the various government agencies and local community leaders to finalize permits for the mining of the International open pit, which is located adjacent to the town of Pine Creek.


Exploration

The Union Reefs project area has been prioritized to define additional sources of high-grade mill feed that can be mined from underground, with the near term priorities being the Prospect and Crosscourse deposits. A 10,000 metre drill program on the Prospect and Crosscourse deposits is due for completion in March 2012. Revised resource statements will be calculated and a scoping study defining the economic viability of the Prospect deposit will be completed in April 2012. If this provides positive economic indications then an exploration ramp would be established with the objective of obtaining a bulk sample and defining the optimal mining method. Permits to establish the ramp have been applied for. The start of ramp development can occur in the fourth quarter of 2012.

Further details regarding the Company's operations are available on the Company's website at www.crocgold.com and also www.sedar.com where Crocodile Gold's Annual Information Form, audited annual financial statements and managements' discussion and analysis (MD&A) are posted.


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 and Bill Nielsen, P. Geo of Crocodile Gold, each a "qualified person" as such term is defined in National Instrument 43-101, have reviewed and approved the technical information and data included in this press release.


Cautionary Notes

Non-GAAP Measures

Crocodile Gold believes that investors use certain indicators to assess gold mining companies. The indicators are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with International Financial Reporting Standards.

"Cash cost per ounce" is a non-GAAP performance measure which could provide an indication of the mining and processing efficiency and effectiveness at the operations. It is determined by dividing the operating expenses, excluding stock-based compensation allocated to operating expense and net of silver revenue, by the number of ounces of gold sold. There are variations in the method of computation of "cash cost per ounce" as determined by the Company compared with other mining companies. The following is a reconciliation of the cash cost per ounce of gold sold, to the reported operating expenses for the year ended December 31, 2011:

Operating expenses per consolidated statement of operations
 and comprehensive income (loss)                                 101,321,793
By-product silver sales credit                                     (606,582)
Non-cash stock option expense charged to operating expenses        (562,482)
                                                             ---------------
Operating cash costs                                             100,152,729
                                                             ---------------
                                                             ---------------

Divided by ounces of gold sold                                        68,601
Cash cost per ounce ($ per ounce)                                      1,460

Forward-Looking Information

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 financial results, 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, 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.



Contacts:

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