TORONTO, ONTARIO--(Marketwired - July 31, 2014) - Crocodile Gold Corp. (TSX:CRK)(TSX:CRK.DB)(TSX:CRK.WT)(OTCQX:CROCF)(FRANKFURT:XGC) ("Crocodile Gold" or the "Company") is announcing its financial results for the three and six months ended June 30, 2014. All figures are in U.S. dollars, unless stated otherwise. Full Financial Statements and Management Discussion & Analysis documents can be found at www.sedar.com and the Company's website, www.crocgold.com.

Q2 2014 Financial Highlights (All figures in USD unless otherwise noted)

• Crocodile Gold yielded $69.2 million in revenue from the sale of 53,612 ounces of gold and generated net income of $3.93 million or $0.01/share for the quarter.
• Crocodile Gold generated cash flow of $18.2 million or $0.04/share from its three operating mines, an increase over Q2 2013, despite lower average realized gold prices.
• Crocodile Gold ended the quarter with a cash balance of $34.2 million and working capital of $21.4 million.
• Average operating cash costs per ounce* were $965 and all-in sustaining cash costs per ounce* were $1,316 per ounce, both down significantly from the previous year as the Company continues to focus on cost reduction and productivity initiatives.
• Gold production of 54,024 ounces was a 12% improvement over Q2 2013. The Company has produced 107,607 ounces of gold in the first six months of 2014, well on track to meet the upper end of its annual guidance of 200,000 - 210,000 ounces.

* Refer to non-IFRS measures below

Commenting on the financial results, Rod Lamond, President and CEO, said: "Crocodile Gold is continuing to demonstrate that it can be a profitable company in light of the challenging market conditions. Our average operational cash costs have decreased 12% to $965 per ounce compared to $1,102 per ounce in the same period last year. This decrease can be attributed to the efforts at the Cosmo Gold Mine, which continues to perform at consistent production levels while successfully introducing a new mining contractor in the first quarter. As well, cost containment and cash flow monitoring efforts continue at all of our mine sites which have contributed to the positive financial results in the second quarter of 2014." Mr. Lamond continued; "As we finish the first half of 2014, it is encouraging to see that the Company continues to have positive operational cash flow while achieving its production targets, and is well on track to meet the upper end of 2014 gold production guidance. Crocodile Gold will continue to focus on its philosophy of implementing value-driven investments for the remainder of the year with our primary focus on supporting the Big Hill Enhanced Development Project at Stawell."

Second Quarter Financial Discussion

In Q2 2014, Crocodile Gold generated revenue of $69.2 million, up from Q2 2013 as a result of a 12% increase in gold production. Higher revenue from increased production was offset by the decrease in the gold price, as the average realized gold price sold dropped to $1,291 in Q2 2014 compared to $1,401 in the corresponding period of 2013.

The costs of operations for Q2 2014 of $61.1 million were down significantly from Q2 2013 largely due to decreased depletion and depreciation expense due to the impact of the impairment charge from 2013 on book values. Cash operating costs for Q2 2014 are consistent with Q2 2013 in absolute terms, the result of a focus on productivity and cost reductions as the volume of tonnes mined and milled have increased significantly from the previous year. The Company has decreased operating cash costs per ounce by over 12% to $965 as a result of sustainable production and cost savings at Cosmo, productivity gains at Fosterville and better defined remnant mining at Stawell. As a result of higher revenues, decreased depletion and depreciation and reduced operating cash costs per ounce, mine operating income for Q2 2014 was $8.1 million, up significantly from Q2 2013.

As a result of these improvements, compared to Q2 2013, the Company posted net income of $3.93 million in the second quarter of 2014 or $0.01 per share compared to a net loss of $90.4 million or $0.22 per share in the prior year. Net income in Q2 2013 was impacted by a significant impairment charge of $151.6 million due to the drop in the gold price which was partially offset by the gain on the close-out of the gold swap agreements. Net income for the six months ended June 30, 2014 was $0.6 million or $0.00 per share, which included a loss of $4.6 million on the revaluation of the contingent payments liability as a result of the change in the expected timing cash flows resulting from the dispute resolution process with AuRico Gold Inc. ("AuRico") which ended in Q1 2014. It also included higher care and maintenance costs associated with the reclamation and processing of a low-grade stockpile in the Northern Territory.

Crocodile Gold generated cash flows from operations in Q2 2014 of $18.2 million compared to $11.0 million in the prior year due to a 15% increase in ounces sold and working capital adjustments relating to a decrease in accounts payables and accruals at June 30, 2013. The Company invested $13.6 million into sustainable mine development and resource definition at Fosterville and Cosmo, which specifically included key investments at Fosterville in ventilation and the tailings facility which will support mine production into the future. The Company also invested $1.12 million to progress the permitting of the Big Hill Project, a key growth project in 2014. A further $2.2 million was spent on property, plant and equipment, with each site continuing to optimize its current equipment fleet and fixed assets. The Company also made a payment of $2.5 million (C$2.69 million) during the quarter to AuRico under the net free cash flow sharing arrangement between the two parties as part of the Company's acquisition of Fosterville and Stawell.

All-in sustaining cash costs were $1,316/oz in Q2 2014, down significantly from $1,603/oz in Q2 2013 and up slightly from the first quarter of 2014. All-in sustaining costs in the first half of 2014 include significant investments for ventilation and tailings facility upgrades at Fosterville, which will sustain the operation into future years, while the Q2 2013 costs reflect the then continuing ramp-up at Cosmo and the impact of the transition at Stawell to smaller scale underground mining. Cosmo in particular demonstrated a significant decrease in all-in sustaining cash costs per ounce, however this is expected to increase slightly in the second half of 2014 as the Company invests in ventilation upgrades and increased exploration drilling to maintain sustainability into the future. The Company continues to be focused on cost reduction initiatives across all its operations and departments.

Financial Position

Crocodile Gold continues to be in a strong position to react to the changing gold price environment through consistent production and value-driven investments. The Company ended the period with a cash balance of $34.2 million and working capital of $21.4 million with a reduced debt profile as a full settlement of the credit facility was completed in Q1 2014. Crocodile Gold made its first payment to AuRico Gold, however, based on current gold price and operating plans, no further payments are expected for the remainder of this year.

Operational Discussion

Crocodile Gold produced 54,024 ounces of gold from its three operating mines in Q2 2014, a 12% increase over the corresponding period of 2013. The year over year increase reflects consistent production from the Fosterville Gold Mine and increased sustainable production from the Cosmo Gold Mine compared to 2013, when commercial production had only been declared on March 1. Cosmo's production has more than offset reduced ounces from the Stawell Gold Mine which had begun to wind down its underground operations in the first quarter of 2013.

Cosmo Gold Mine

Following from the successful transition to a new mining contractor at the end of the first quarter of 2014, the Cosmo Gold Mine posted strong physical results in the second quarter resulting in gold production of 21,845 ounces. Recovery rates at the mill have continued to improve over the course of Q2 with June's recoveries exceeding 92%. Mill grade increased in Q2 as the processing of lower grade oxide stockpiles for reclamation purposes was completed in Q1. As a result of sustainable production levels and cost savings achieved through new contracts for mining and diamond drilling, Cosmo has seen its all-in sustaining cash costs per ounce decrease by 30% since 2013 and over 20% from Q1 2014. Q3 2014 costs are expected to increase slightly from the Q2 2014 costs as the Company invests in ventilation upgrades and exploration drilling and resource definition, which will support mine production into the future.

Fosterville Gold Mine

The Fosterville Gold Mine continues to achieve consistent ore production, mining 201,459 tonnes at an average grade of 4.09 g/t Au in Q2 2014. Grade is down 9% compared to Q2 2013 as a result of dilution challenges and model variations. Grade is expected to improve as mining fronts move into the higher grade Lower Phoenix area and mine design changes reduce dilution. Mine development continued at an average advance rate of 630 metres per month, particularly focused on advancing the Phoenix Decline to access more productive, higher-grade levels of the Lower Phoenix lens.

Stawell Gold Mine

Stawell continues to invest limited exploration expenditures in order to maintain the viability of the operations while also looking for additional zones of mineralization in the upper levels of the mine to sustain underground operations into future quarters. In Q2 2014, Stawell contributed 9,981 ounces of gold production, a strong increase over Q3 2013 as remnant mining activities are now much better defined than was the case on completion of the main production fronts at depth at Q1 2013.

Crocodile Gold continues to progress the Big Hill Project at Stawell as a key growth project for 2014. On June 6, 2014, the Company released a positive Feasibility Study prepared in accordance with NI 43-101 which defined a reserve for the project and robust project economics. The Feasibility Study followed the release of the Environmental Effects Statement (EES) for the Big Hill Project in March, which will form the basis for the Ministerial assessment of the Project expected later in 2014. The EES was made available for public review and comment, covering such areas as air quality, noise monitoring, surface and groundwater assessments, flora and fauna studies, and environmental rehabilitation. In July 2014, the Project entered into formal Panel Hearings with government department representatives; with the hearings having now been completed, the Panel will report its recommendations to the Minister sometime late Q3 or early Q4, 2014.

About Crocodile Gold

Crocodile Gold is a Canadian gold mining and exploration company with three operating mines in Australia, in the State of Victoria and the Northern Territory. 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, Fosterville, and Stawell, while also exploring and developing the Company's resources to ensure sustainable production in the future.

For additional information, please visit our website www.crocgold.com or follow us on Twitter @crocgold_crk or on Facebook at CrocodileGoldCorp.

Qualified Person

F. W. Nielsen, P.Geo, Technical Consultant to Crocodile Gold 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-IFRS Measures

The Company believes that, in addition to conventional measures prepared in accordance with International Financial Reporting Standards ("IFRS"), certain investors use non-IFRS information to evaluate the Company's performance and ability to generate cash flow. Accordingly, the following measurements 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 IFRS.

Operating Cash Costs per ounce of Gold - The Company calculates operating cash costs per ounce by deducting silver sales revenue as a by-product from operating expenses per the consolidated statement of operations, then dividing by the gold ounces sold during the applicable period. Operating expenses include mine site operating costs such as mining, processing and administration as well as royalties, however excludes depletion and depreciation, share-based payments and rehabilitation costs.

All-In Sustaining Costs per Ounce of Gold - Effective December 31, 2013, the Company has adopted an all-in sustaining cost ("AISC") performance measure that reflects all of the expenditures that are required to produce an ounce of gold from current operations. While there is no standardized meaning of the measure across the industry, the Company's definition conforms to the AISC definition as set out by the World Gold Council in its guidance dated June 27, 2013. The World Gold Council is a non-regulatory, non-profit organization established in 1987 whose members include global senior mining companies. The Company believes that this measure will be useful to external users in assessing operating performance and the ability to generate free cash flow from current operations.

The Company defines AISC as the sum of operating cash costs (per above), sustaining capital (capital required to maintain current operations at existing levels), capital lease repayments, corporate general and administrative expenses, in-mine exploration expenses and rehabilitation accretion and amortization related to current operations. AISC excludes capital expenditure related to projects to mine expansion, exploration and evaluation related to growth projects, rehabilitation accretion and amortization not related to current operations, financing costs, debt repayments, share-based compensation not related to operations, and taxes.

The operating cash costs per ounce and all-in sustaining costs per ounce are reconciled to the consolidated statement of operations as follows:

(1) Sustaining mine development are defined as those expenditures which do not increase annual gold production at a mine operation and exclude expenditures for growth projects and mine development to commercial production. Total sustaining capital for the three and six months ending June 30, 2014 and 2013 is calculated as follows:

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 licences, 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 that 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.

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