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TORONTO, ONTARIO--(Marketwire - March 7, 2013) - 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, 2012. All figures are in U.S. dollars, unless stated otherwise.

2012 Highlights

• In May 2012, the Company acquired the Fosterville and Stawell Gold Mines, contributing to the production profile in 2012 and going forward.
  
  
• Cosmo Mine achieved an average development rate of 575 metres per month with particularly strong production in the latter half of 2012, allowing the Company to declare commercial production on March 1, 2013.
  
  
• An increase in gold produced of 129% from 2011 to 155,523 ounces, in line with Company guidance, resulting in total revenues of $255,930,383.
  
  
• The Company posted mine operating earnings of $19,617,789 as a result of strong gold production and diligent cost management. Cash costs for the fourth quarter were $998 per ounce sold and annual cash costs were $1,166 per ounce sold, consistent with 2012 guidance.

2012 Financial Results

In reporting these results, Chantal Lavoie, Chairman, President and Chief Executive Officer, commented: "The 2012 year was a transformational year for Crocodile Gold with the addition of the Fosterville and Stawell Gold Mine and the continued development of the Cosmo Mine. The Company achieved its production guidance with 155,523 ounces of gold produced while also maintaining cash costs in line with the Company's forecasted figures. The Company now has a basis to grow its gold production profile and advance key projects."

2012 Financial Summary

The Company achieved its production guidance, contributing to 2012 total revenue of $255,930,383, an increase of 137% over the previous year (2011 Revenue: $108,130,753), resulting from the addition of the Fosterville and Stawell Gold Mines and the continued ramp-up of the Cosmo Mine. The Company also achieved its cash cost guidance for 2012, posting average annual cash costs of $1,166 per ounce sold, resulting in cash generated from operations in 2012 of $58,831,314 compared to cash used of $3,202,025 in 2011.

Mine operating earnings for the year ended December 31, 2011 was $19,617,789. On a cash basis, net of depletion and depreciation, mine operating earnings were $76,407,728, up from $6,701,394 in 2011.

Net loss for the year ended December 31, 2012 was $40,206,794 or $0.10 per share, compared to a net loss of $33,568,803 or $0.12 a share in 2011. The Company's net loss for 2012 was impacted by significant non-cash charges including: an impairment charge of $28,702,349 relating mainly to the second quarter write-off of open pit operations in the Howley and Mottrams areas; a charge of $23,062,127 for the cost of establishing the Credit Suisse credit facility and subsequent revaluation of the related derivative liabilities; and a gain of $31,617,172 relating to the purchase price allocation from the acquisition of the Fosterville and Stawell Gold Mines.

The net loss for 2012 also includes an expense of $8,667,000 relating to termination and retention payments from the change of control that occurred in February 2012, when Luxor Capital Group, LP ("Luxor") acquired approximately 70% of the outstanding common shares of the Company. It also includes interest of $2,550,224 on a bridge loan from Luxor used in the acquisition of Fosterville and Stawell.

As at December 31, 2012, the Company had a net working capital deficit of $14,490,087, which included cash and cash equivalents of $24,741,357. The deficiency is impacted by the valuation of the derivative liability of $8,591,342 which is driven by a continued strong forward price curve at December 31, 2012. The Company monitors the expected settlement of financial assets and liabilities on an ongoing basis.

Company Outlook

Crocodile Gold now has a stable base on which to grow its production profile in a profitable manner, and the Company is projecting production in 2013 of 170,000 - 180,000 ounces, a 10 - 15% increase over 2012. With the declaration of commercial production on March 1, 2013, the Cosmo Mine looks to build on its momentum to continue to ramp-up production and produce 65,000 to 70,000 ounces of gold in 2013. Fosterville is expected to produce 80,000 to 85,000 ounces from the Phoenix and Harrier ore bodies, and Stawell will contribute 25,000 ounces of gold as it transitions from underground mining and focuses on processing surface oxide stockpiles.

Crocodile Gold is also focused on production growth through the advancement of several key projects. The Company's main focus for 2013 is on the advancement of the Big Hill Project at the Stawell Gold Mine, which is supported by a Preliminary Economic Assessment (PEA) reported in accordance with National Instrument 43-101 ("NI 43-101") and filed February 4, 2013. The project has a net present value of A$40.0M using a gold price of A$1,400/ounces and a discount rate of 10%.

Additionally, the Company will concentrate on the development of the Maud Creek, Union Reefs and Pine Creek project areas. In both the Northern Territory and the State of Victoria, drill programs are in place that are designed to expand the resource base of each mine property.

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 gold mining and exploration company with three operating mines in both the Northern Territory and the State of Victoria in Australia. The Company has a combined land package in excess of 4,000 sq. km. The objective of Crocodile Gold is to continue production from its three operating mines, Cosmo, Stawell and Fosterville, while also advancing exploration programs to further organic growth. For additional information, please visit our website www.crocgold.com.

Follow us on Twitter @crocgold_crk or Facebook facebook.com/CrocodileGoldCorp.

Qualified Person

F. W. Nielsen P.Geo, V.P. Exploration of Crocodile Gold Corp 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 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 that 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 expenses 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 three months ended December 31, September 30, June 30 and March 31, 2012:

PEA

The PEA is preliminary in nature and is based on a number of assumptions that may be changed in the future as additional information becomes available. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The PEA includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized.

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 the Company's expectations for future performance based on current drill results and past production, expected gold prices, 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.