Forbes & Manhattan Inc.

Forbes & Manhattan Inc.
Crocodile Gold Inc.

Crocodile Gold Inc.

June 23, 2009 10:00 ET

Crocodile Gold Announces Closing of Acquisition of Australian Gold Assets

TORONTO, ONTARIO--(Marketwire - June 23, 2009) - Crocodile Gold Inc., a newly incorporated private Canadian company ("Crocodile Gold," or "the Company"), is pleased to announce it has closed the acquisition of a number of past producing gold assets in Australia, specifically in the Northern Territory and Western Australia. These assets will be held through its 100% owned subsidiary Crocodile Gold Australia Pty Ltd. ("CGA")

The assets comprise the Burnside and Tom's Gully Projects in the Northern Territory, and the Nicolson's Project in Western Australia. The former two projects include mines which were producing as recently as September 2008 at an annualized production rate of approximately 140,000 ounces of gold at a cash cost (at current exchange rates) of approximately US$600 per ounce. Total JORC compliant resources have most recently been stated as 4.5 million ounces (in publicly available independent technical reports as filed by the previous operator). The assets were purchased out of administration through a tender process directed by Ferrier Hodgson of Perth, Australia.

The total purchase price will be AUS$51 million (approximately US$40 million), payable in instalments over a 12 month period. Prior to closing a deposit of AUS$5 million had been paid, with an additional AUS$15 million paid on closing. These amounts will be held in escrow until the transfer of tenement title to CGA has been completed. The transaction has received Foreign Investment Review Board approval in Australia.

The Burnside and Tom's Gully Projects are located 90 - 285 kilometres south of Darwin and were most recently owned and operated by GBS Gold International Inc. (previously a public company listed on the Toronto Stock Exchange ("TSX")).

In making this announcement, President and CEO, Chris Bradbrook, stated, "We are very happy to have closed this transaction and look forward to placing these assets back into production as soon as possible. Work can commence once title to the tenements has been transferred to CGA. We plan to commence an aggressive drill programme as soon as possible in order to upgrade the confidence in the reserves and resources, to ensure that a methodical, logical and sustainable long term operating plan can be put into place. The projects have the potential to make a meaningful contribution to the economy of the Northern Territory and we look forward to developing a positive relationship with the people of the region and their governmental representatives."

The assets were acquired through a competitive tender process by Forbes & Manhattan, a private Canadian merchant bank. Forbes & Manhattan Chairman and CEO, Stan Bharti, stated, "We are very pleased to have closed this transaction, and believe we are putting a first class operating team in place at Crocodile Gold to ensure these assets are developed in a professional manner for the long term."

Crocodile Gold intends to become a publicly listed company on the TSX as soon as possible.


Mr. Alf Gillman, a Fellow of the Australian Institute of Mining and Metallurgy (CP Geol), is the "Qualified Person" as defined under National Instrument 43-101 and is responsible for the technical disclosure in this news release.


Certain statements contained in this news release may contain forward-looking information within the meaning of Canadian securities laws. Such forward-looking information is identified by words such as "estimates", "intends", "expects", "believes", "may", "will" and includes, without limitation, statements regarding the Company's plan of business operations, production levels and costs, potential contractual arrangements and the delivery of equipment, receipt of working capital, anticipated revenues, mineral reserve and mineral resource estimates, and projected expenditures. These statements are based on management's current expectations and beliefs and there can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, foreign exchange rates, risks inherent in the mining industry, financing risks, labour risks, uncertainty of mineral reserve and resource estimates, equipment and supply risks, regulatory risks and environmental concerns. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update public forward-looking information, whether as a result of new information, future events or otherwise.

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