Visible Gold at Fosterville Gold Mine

TORONTO, ONTARIO--(Marketwired - Feb. 2, 2015) - Crocodile Gold Corp. (TSX:CRK)(OTCQX:CROCF)(FRANKFURT:XGC)("Crocodile Gold" or the "Company") today announced the results for 138 drill holes, totaling 31,550 metres ("m") completed during the course of a US$5.6 million exploration drill program at Fosterville Gold Mine ("Fosterville"). The drill program completed continued to focus on the Phoenix and Lower Phoenix targets. The results announced today include 14 holes reporting high-grade gold intercepts.

Key Highlights

• High-grade drill intercepts for newly identified East Dipping Faults and Kestrel Structures which respectively include 55.57(1)g/t Au over 8.5m (ETW 4.62m) and 12.06 g/t Au over 2.70m(ETW 2.06m). These structures occur below the Phoenix and Lower Phoenix Faults, and in the case of the East Dipping Faults, visible gold occurs in addition to the more common disseminated sulphide gold mineralization. The drilling program also confirmed continuous mineralization along the newly identified structures.
  
  
• High-grade Lower Phoenix Footwall Fault intercepts identify significant gold mineralization over an 80m vertical extent with the most northern intercept approximately 240m along-strike (down-plunge) from current mineral reserves.
  
  
• Lower Phoenix Footwall structure intercepts include 123.10(1)g/t Auover 9.45m (ETW 3.99m), 51.34(1)g/t Au over 6.80m (ETW 6.0m), and 294.23(1)g/t Au over 1.85m (ETW 1.26m). High-grade intercepts have strong potential to extend mineral resources and reserves southwards down-plunge.

1. Visible gold present in drill intercept
   ETW - Estimated true width

The new holes drilled establish the continuation of gold mineralization down-plunge and identified multiple mineralized faults below the Phoenix and Lower Phoenix Faults. Drill results for three mineralized faults, namely the Lower Phoenix Footwall, East Dipping Faults and Kestrel Structures, all demonstrate the potential to extend mineral resources down-plunge.

Rodney Lamond , President and Chief Executive Officer, Crocodile Gold, commented: "We are extremely pleased to report high-grade drill results at Fosterville which confirm the continuity of a strongly mineralized system down-plunge of current mineral reserves. We are encouraged by the presence of visible gold in 17 drill intercepts with some intercepts exhibiting significantly higher-gold grades than typical intercepts. Furthermore, the presence of visible gold, which appears to represent a second gold event occurring within sulphide-gold mineralized structures, could dramatically increase gold grades.

"The two new mineralized structures identified at Fosterville have similar trends and are close to the Phoenix and Lower Phoenix mineralized faults. Additionally, t he confirmation of continuous mineralization, along the newly discovered East Dipping Faults and Kestrel Structures, is extremely important as these results have the potential to provide multiple ore sources accessible from the already developed Phoenix decline. With the successful results from our 2014 drill program at Fosterville, we look forward to providing further updates to our mineral resources and reserves by the end of the first quarter of 2015."

Key Intercepts and Results Reported Include:

• New East Dipping Fault intercepts with 55.57 g/t Au over 8.5m (ETW 4.62m) in hole UDH1113(1), 42.09 g/t Au over 4.75m (ETW 2.49m) in hole UDH1029(1), 32.26 g/t Au over 3.10m (ETW 2.86m) in hole UDH0799(1) and 22.10 g/t Au over 2.0m (ETW 1.86m) in hole UDH1045. These drill intercepts are considered important because they confirm high-grade gold mineralization on east dipping structures.
  
  
• New Kestrel Structure intercepts with 12.06 g/t Au over 2.70m (ETW 2.06m) in hole UDH0841, 8.21 g/t Au over 4.50m (ETW 3.96m) in hole UDH0919A and 7.18 g/t Au over 3.95m (ETW 3.75m) in hole UDH0832, are considered important because they identify a high-grade mineralized region on the Kestrel Structure.
  
  
• Lower Phoenix Fault intercepts with 10.70 g/t Au over 16.05m (ETW 14.00m) in hole UDH0936(1) and 3.95 g/t Au over 10.40m (ETW 8.50m) in hole UDH0931, demonstrate significant mineralization down-plunge from mineral reserves. Importantly, intercept 9.67 g/t Au over 5.10m (ETW 3.43m) in hole UDH0820 confirms high-grade mineralization only 90m from current reserves that are already vertically accessed.
  
  
• Lower Phoenix Footwall Fault intercepts with 294.23 g/t Auover 1.85m (ETW 1.26m) in hole UDH1103(1), 123.10 g/t Auover 9.45m (ETW 3.99m) in hole UDH0928(1), 68.84 g/t Au over2.85m (ETW 0.7m) in hole UDH0933(1), 51.34 g/t Au over 6.80m (ETW 6.0m) in hole UDH0935(1).
  
  
• Visible gold occurs in quartz-stibnite veins in eight of the above-mentioned holes. This visible gold is in addition to the Fosterville-style disseminated sulphide hosted gold mineralization intersected in these holes. These intercepts and nine others containing visible gold are annotated in Table 1 and highlighted in Figures 4 and 5.
  
  

Phoenix and Lower Phoenix Drill Program

The Company has continued drilling for down-plunge extensions of the Phoenix Fault and both down and up-plunge extensions of the Lower Phoenix Fault to assess the growth potential for Measured and Indicated Mineral Resources (see Figures 1 and 2). Progressive geological modeling has also supported the extension of drill holes below the Lower Phoenix Fault to test other mineralized structures (Lower Phoenix Footwall Fault, East Dipping Fault and Kestrel Structures) (see Figure 3). In addition, drilling has focused on providing increased definition and confidence in the near term mine targets within and close to Indicated mineral resources.

The drill results reported in Table 1 are those outside of current Measured and Indicated Mineral Resources and will be included Fosterville's end of 2014 resource model update. See Table 2 for a list of drill collars.

Moving forward, ongoing operations of three underground diamond drill rigs at Fosterville Gold Mine continue to focus drilling the Phoenix, Lower Phoenix and Lower Phoenix Footwall, East Dipping and Kestrel targets.

Lower Phoenix and Lower Phoenix Footwall Targets

Testing for extensions to the Lower Phoenix resources continues with drilling between Mine Grid northings 6400mN and 7700mN covering a total strike length of 1,300m. Drill results provide evidence that significant gold mineralization is continuous over this range. Present drill coverage is approximately 490m south down-plunge and 100m north up-plunge from the existing Lower Phoenix mineral reserves ( See Figures 2 and 4).

It is anticipated that the strong drill results returned from Lower Phoenix and Lower Phoenix Footwall structures, including high-grade intercepts for ten holes; UDH0872, UDH0928, UDH0931, UDH0933, UDH0935 to UDH0937, UDH1009, UDH1110 and UDH1103 will continue to underpin Indicated mineral resource growth below 4,300mRL for mineral reserve evaluation.

East Dipping Faults and Kestrel Footwall Targets

The drill program also confirmed continuous mineralization along the newly identified East Dipping Faults and Kestrel Structure for which drill intercepts are shown in Figure 5. Progressive drilling of these structures will be undertaken in 2015 to better understand their extents, geometries and metallurgical characteristics. The drilling is planned to occur in conjunction with the Phoenix and Lower Phoenix Footwall exploration programs.

A schematic geological cross section (Figure 3) illustrates the structural positions of the East Dipping and Kestrel target areas with respect to the Phoenix, Lower Phoenix and Lower Phoenix Footwall Faults and associated gold mineralization.

Phoenix Target

The drilling completed to test for down-plunge extensions of the Phoenix Fault included two drill holes on section 6400mN approximately 60m beyond the southern extent of known mineral resources and 425m south of the Central mineral reserves. These drill results confirmed the continuation of mineralization for this structure with drill intercepts 3.19 g/t Au over 3.05m (ETW 3.05m) in hole UDE111 and 4.7g/t Au over 1.2m (ETW 1.2m) in hole UDE112. These intercepts will be included into the end 2014 mineral resource updates (See figure 3).

For additional information please refer to Fosterville's Mineral Resources and Mineral Reserves under the technical report NI 43-101 filed May 27, 2014 on SEDAR.

About Fosterville Gold Mine

Fosterville Gold Mine commenced commercial production of gold from sulphide ore in April 2005. As of December 31, 2014 Fosterville has produced 877,586 ounces of gold. The ore is largely refractory and gold is recovered through a state-of-the-art BIOX® processing plant that produces approximately 100,000 to 105,000 ounces annually. The mill is capable of processing approximately 830,000 tonnes of ore annually.

Qualified Persons

M. Edwards, MAusIMM(CP), General Manager Exploration and Business Development of Crocodile Gold, Troy Fuller , MAIG, Geology Manager of Fosterville Gold Mine and Simon Hitchman , FAusIMM, Exploration Manager Crocodile Gold Corp. are "qualified persons" as such term is defined in National Instrument 43-101 and have reviewed and approved the technical information and data included in this press release.

QAQC

Crocodile Gold has in place quality-control systems to ensure best practice in drilling, sampling and analysis of drill core. All diamond drill hole collars (Table 2) are accurately surveyed using a Leica Total Stations instrument and down hole deviations are measured by electronic multi-shot cameras.

All reported drill intercepts are from NQ2 sized diamond drill core that was cut longitudinally in half with a diamond saw. One-half of the drill core was sent for assay and the other half retained for reference. Drill core sample intervals, determined using logged sulphide controls, vary between 0.3 and 1.2m in length.

Assay results are based on 25-gram charge fire assays. Mean grades are calculated using a variable lower grade cut-off (generally 2 g/t Au) and maximum 2 metre internal dilution. No upper gold grade cut has been applied to the data. However, during future resource work the requirement for assay top cutting will be assessed. Drill intercepts containing visible gold are annotated in Table 1.

Drill samples were assayed at On Site Laboratories, an independent laboratory in Bendigo, Victoria. The facility is registered ISO9001:2008 (CERT-C33510).

About Crocodile Gold

Crocodile Gold is a Canadian gold mining and exploration company with three operating mines in Australia. The objective of Crocodile Gold is to continue to focus on the safe and profitable operating performance from its three operating mines, Fosterville and Stawell Gold Mines in the state of Victoria and Cosmo Gold Mine in the Northern Territory. Our primary goal of sustainable operating performance is achieved through building confidence in our mine plans, continuing with prudent cost management controls and targeted exploration and resource development. Sustainable operating performance from our current assets is a critical step in supporting the future growth toward the 5 year Strategy of Crocodile Gold.

For additional information, please visit our website www.crocgold.com.

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

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 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.

To view Figures 1, 2, 3, 4 and 5 please click on the following link: http://media3.marketwire.com/docs/989772%20Figures%201-5%20Final.pdf

To view Tables 1 and 2 please click on the following link: http://media3.marketwire.com/docs/989772%20Tables%201%20and%202%20Rich.pdf