TORONTO, ONTARIO--(Marketwired - May 11, 2015) - Crocodile Gold Corp. ("Crocodile Gold" or the "Company)(TSX:CRK)(TSX:CRK.DB)(TSX:CRK.WT)(OTCQX:CROCF)(FRANKFURT:XGC) today is announcing financial results for the three months ended March 31, 2015. Full Financial Statements and Management Discussion & Analysis documents can be found at www.sedar.com and the Company's website, www.crocgold.com.

(All figures are in United States ("U.S.") dollars, unless stated otherwise)

First Quarter Highlights ("Q1/15")

• Consolidated production of 59,676 ounces, up 11.4% compared to Q1/14, and seventh consecutive quarter of gold production above 53,000 ounces.
  
  
• Operating cash costs of $683 per ounce sold, a 29.7% decrease from $971 in Q1/14, below full-year 2015 guidance of $780-$860.
  
  
• All-in sustaining cash costs ("AISC") per ounce sold of $938, a 28.2% decrease from $1,307 in Q1/14, below full-year 2015 guidance of $1,020-$1,100, and with average realized gold price of $1,185 in Q1/15.
  
  
• Revenue of $72.9 million, up 3.6%, based on 61,294 ounces sold.
  
  
• Operating cash flow of $27.5 million, more than doubled from the level in Q1/14.
  
  
• Net income of $15.7 million, or $0.03 earnings per share, versus a net loss of $3.3 million, or $0.01 in Q1/14.
  
  
• Completed the termination of the net free cash flow sharing arrangement with AuRico Gold Inc. in January with a one-time payment of $16.7 million (C$20 million) in cash, without incurring debt, and the grant of a NSR royalty over the Fosterville and Stawell Gold Mines as previously disclosed.
  
  
• Cash balance of $27.8 million and working capital of $16.6 million.
  
  
• Reported a 3.9% increase in M&I Resources Fosterville Gold Mine and 7.8% increase in M&I Resources at Cosmo Gold Mine following positive 2014 exploration results.
  
  
• Stawell established an M&I Resource for the first time since 2012, reporting of 243,000 ounces, at an average grade of 1.81 g/t.
  
  
• Commenced $5.4 million growth exploration program for the advancement of several strategic near-term growth projects including a diamond drill program for $2.3 million across all sites and the initiation of a $3.1 million phased Feasibility Study on the Maud Creek Gold Deposit.
  
  
  

Management Commentary

Rodney Lamond, President and CEO, Crocodile Gold commented: "Our strong performance in the first quarter continued to demonstrate the positive impact of our focus on operational execution, cost reduction, and reserve and resource replacement. We delivered a seventh consecutive quarter of production above 53,000 ounces, and increased profitability, and positive free cash flow. These milestones were achieved in spite of a challenging gold price environment."

"We are extremely pleased with first quarter gold production of 59,676 ounces which positions us to meet the top end of our 2015 guidance range of 220,000 ounces. Revenue increased 3.6% to $72.9 million on the sale of 61,294 ounces of gold. Our ongoing emphasis on cost reduction and productivity initiatives contributed to a 29.7% decrease in operating cash costs per ounce sold year-over-year to a record low $683, also below full-year 2015 operating cash cost guidance of $780-$860 per ounce. Importantly, we achieved lower operating cash costs in the quarter, before the impact of foreign exchange. Based on these results, operating cash flow more than doubled to $27.5 million year-over-year and net income was $15.7 million, or $0.03 per share, compared to a net loss in the prior year. AISC decreased 28.2% to $938 per ounce sold, also below full-year guidance of $1,020-$1,100."

"With our strong start and a solid cash balance during the quarter, we are pleased to have commenced a significant exploration program for reserve and resource growth in 2015. We have initiated a $5.4 million exploration program, in addition to our sustaining capital budget of $9.4 million, for the advancement of several strategic near-term growth projects including a $2.3 million diamond drill program and the launch of a $3.1 million phased Feasibility Study on the Maud Creek Gold Deposit. Throughout 2015, we are focused on advancing additional growth projects opportunistically to ensure we continue to generate solid free cash flow."

Mr. Lamond concluded: "While it remains a challenging gold environment, we are well positioned to create shareholder value through achieving our 2015 full-year production and cost targets, and through continuing to grow our reserves and resources while generating free cash flow."

Q1 2015 Financial Results

Three months ended March 31, 2015

First quarter consolidated gold production of 59,676 ounces increased 11.4% compared to Q1 2014 and marked a seventh consecutive quarter of gold production above 53,000 ounces. Average consolidated mill grade of 3.58 g/t increased 22.6% compared to Q1 2014 and consolidated mill recovery improved to 86.4% on strong recoveries, which also contributed to a solid increase in year-over-year production results from Fosterville and Cosmo. Stawell continued to deliver value from its underground operations producing 9,929 ounces of gold in the first quarter, marking its seventh consecutive quarter of gold production above 9,500 ounces, a notable achievement for a mine that was previously expected to end operations in early 2013.

For the quarter ended March 31, 2015, consolidated revenues increased to $72.9 million compared to $70.4 million in the first quarter of 2014, as the impact of a significant increase in gold sold over the corresponding period in 2014 was largely offset by an 7.4% drop in the average realized gold price to $1,185 per ounce, down from $1,280. Gold sales of 61,294 ounces in Q1 2015 included the sale of 2,750 ounces which were held at year-end.

Mine operating income increased 171% to $19.8 million in the first quarter of 2015, compared to $7.3 million in the corresponding quarter of 2014. Operating income increased as a result of higher consolidated revenue, despite a lower average realized gold price during the quarter, and a significant decrease in operating cash costs.

Despite higher ounces sold in the first quarter, compared to Q1 2014, operating expenses, including royalties, decreased 15.8%, equating to operating cash costs of $683 per ounce sold compared to $971 in the prior year. The decrease in operating expenses is the result of lower costs at Cosmo from the new mining contract which was transitioned in late Q1 2014, greater productivity at Fosterville, lower fuel costs, general cost reduction initiatives including hiring freezes and supply tender processes, and a weaker Australian dollar.

First quarter 2015 net income was $15.7 million, or $0.03 per share, compared to a net loss in the corresponding quarter of $3.3 million or $0.01 per share.

First quarter 2015 operating cash flow was $27.5 million, a 121% improvement compared to the Q1 2014 period despite a lower gold price environment, due to robust gold sales which were complemented by a significant reduction in operating costs.

Mine development in the first quarter of 2015 was $11.1 million. Development was largely at Fosterville and Cosmo, with an additional $2.3 million invested into plant and equipment. Capital expenditures are lower compared to the corresponding quarter of 2014, partly due to timing of certain projects and capital development, reduced spend at Stawell for the Big Hill project, and the weaker Australian dollar. However, due to a significant decrease in operating cash costs and robust gold production, AISC improved to $938 per ounce sold from $1,307 in Q1 2014, a 28.2% decrease, reflecting the Company's focus on cost reduction initiatives and a weakening Australian dollar.

The significant improvement in AISC costs allowed the Company to generate strong free cash flow in the quarter to fund the one-time payment for the termination of the net free cash flow agreement with AuRico (see below). The Company also made further strategic partnership investments in the first quarter, including a $400,000 investment in the Silvertip Project in northern British Columbia, and a $157,000 investment in Navarre Minerals for a drill program aimed at uncovering a new gold system in proximity to Stawell.

Foreign Exchange

The Company benefited from a significant drop in the Australian dollar exchange rate which has markedly increased the gold price in Australian dollar terms (the functional currency of its operations) while having the effect of lowering cash costs in US dollar terms. The Australian dollar closed at $0.7634 on March 31, 2015, down 6.6% from 2014 year-end. Consequently, Australian dollar denominated gold has traded above A$1,500 per ounce consistently since mid-January, trading above A$1,600 for a period of time. The average quarterly exchange rate in Q1 2015 dropped 12.4% compared to Q1 2014, and 8.1% compared to the Q4 2014, which accounted for a portion of the decrease of operating and AISC costs per ounce sold, complementing the reduction in local currency costs achieved through cost reduction and productivity initiatives.

Financial Position

Crocodile Gold followed up on its successful end to the 2014 year with another strong quarter both operationally and financially, which resulted in a cash balance at March 31, 2015 of $27.8 million, and working capital of $16.6 million. In addition, on March 6, 2015, the Company received notice of its successful appeal with respect to stamp duty assessed in 2009, which resulted in the recovery of A$3,080,000 that was received on May 7, 2015. The Company is also in the process of recovering a portion of its costs incurred as part of the appeal process.

In early January 2015, the Company completed the transformational agreement that terminated the net free cash flow sharing agreement with AuRico for a one-time payment of C$20 million and the grant of a 2% net smelter royalty on the Fosterville Gold Mine, effective as of January 14, 2015, and a 1% net smelter royalty over Stawell Gold Mines commencing January 1, 2016. The Company's solid financial position at the end of 2014 combined with the Company's confidence in its ability to deliver strong operational and financial performance in first quarter enabled Crocodile Gold to fund the one-time payment without the addition of debt. The Company will now fully benefit and retain 100% of the strong free cash flows it expects to generate from its Fosterville and Stawell Gold Mines going forward.

2015 First Quarter Operational Results

Exploration

At Fosterville, the 2014 exploration results established the continuation of gold mineralization down-plunge and mineralized faults below the Phoenix and Lower Phoenix Faults demonstrate the potential to extend Mineral Resources.

At Cosmo, cross-cutting faults have been identified at the southern and northern edges of the main eastern lode sequence. These faults have been shown to offset the main lodes and in some cases create repetition of the mineralization. Extensional drilling will continue to test these areas during 2015.

Mining at Stawell has transitioned from deep in the mine to the upper levels of the mine where the extraction of remnant and other ore materials continues. As a result, the a new 2014 M&I Resource of 243,000 ounces, with an average grade of 1.81 g/t, reflects this transition since and is the first M&I Resource reported since 2012.

2015 Production and Cash Cost Guidance

As previously announced in Crocodile Gold's press release dated January 12, 2015, the Company's production and cash cost guidance for fiscal 2015 is as follows:

About Crocodile Gold

Crocodile Gold is a Canadian-listed 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 Five-Year Strategy of Crocodile Gold.

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

Qualified Person

Mark Edwards, MAusIMM (CP), MAIG, General Manager Exploration and Business Development for 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 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 condensed interim consolidated statement of operations 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.

Laura Lepore
Director, Investor Relations
Crocodile Gold Corp.
416-847-1847
info@crocgold.com