Crocodile Gold Corp.

Crocodile Gold Corp.

December 15, 2011 08:00 ET

Crocodile Gold Completes Main Ventilation Shaft for the Cosmo Underground Mine

Wider, Higher Grade Cosmo East Zone Should Improve Mine Economics

TORONTO, ONTARIO--(Marketwire - Dec. 15, 2011) - Crocodile Gold Corp. (TSX:CRK)(OTCQX:CROCF)(FRANKFURT:XGC) ("Crocodile Gold" or the "Company") announces two important milestones at its Cosmo Underground Mine ("Cosmo") in the Northern Territory of Australia. First, the excavation of the primary ventilation shaft has been completed. Second, a mine planning study on the wider, higher grade zone identified by recent delineation drilling (Press Release dated October 11, 2011) has been completed which will lead to a change in mining method.

The excavation of Cosmo's primary ventilation shaft (RB1) has been successfully completed and secondary ventilation fans have been installed in preparation of the commissioning of the primary ventilation network. The Company anticipates the full commissioning of the ventilation shaft in the third week of December 2011. Once complete, the Company can accelerate level development and move towards stope production.

As part of the Cosmo underground operation ramp up, and in preparation for ore stoping in the first quarter of 2012, two new 50 tonne capacity trucks have been delivered to site and are being commissioned. This brings the total mining fleet to operational levels in preparation for the start of mining and to allow scheduled development to double in the first half of 2012.

Crocodile Gold has also completed mine planning for the wider and higher grade Cosmo East Zone, as recently announced in the press release dated October 11, 2011. The updated mine plan will incorporate a transverse mining method in wider and higher grade areas due to increased thicknesses. The transverse mining method is more appropriate for this wider mineralized zone and will have the net effect of increasing the size of the production stopes from 2,800 to 8,500 tonnes. The Company anticipates that using the transverse mining method will positively impact the Company's gold output and production costs during the initial stages of the Cosmo ramp up. This change in mining method is also expected to improve the resource to reserve conversion by providing maximum extraction from this higher grade core. The extent of the wider mineralized zones will continue to be tested as part of the ongoing delineation drilling program.

About Crocodile Gold

Crocodile Gold is a Canadian company with operating gold mines in the Northern Territory of Australia and a land position of over 3,300 square kilometres. Crocodile Gold is currently mining from the Mottrams and Princess Louise open pit mines and is developing the Cosmo underground mine. Ore is processed at the 2.4 million tonne per year Union Reefs Mill. Crocodile Gold has 3.175 million ounces of National Instrument 43-101 compliant measured and indicated mineral resources (51.85 million tonnes at an average grade of 1.9 g/t gold) and 2.14 million ounces of inferred mineral resources (36.35 million tonnes at an average grade of 1.8 g/t gold). The Company has an exploration program in place with a main focus on the Union Reefs Project, the Cosmo Mine and the Maud Creek Deposit.

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Qualified Person

Bill Nielsen, P. Geo 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.

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