Crocodile Gold Reports Revenue of $30 Million on the Sale of 20,200 Ounces Gold in the Second Quarter of 2011 Maintains Strong Growth in Production, Exploration and Retains Excellent Financial Position With Working Capital of $77 Million

TORONTO, ONTARIO -- (Marketwire) -- 08/15/11 -- Crocodile Gold Corp. (TSX: CRK)(OTCQX: CROCF)(FRANKFURT: XGC) ('Crocodile Gold' or the 'Company') today announces its financial and operating results for the three and six months ended June 30, 2011. All figures are in U.S. dollars, unless otherwise stated.

Production from Crocodile Gold's Northern Territory operations saw improved tonnages from the open pit mines and excellent recoveries from the processing plant, achieving both positive mine operating earnings and a net profit in the three months ended June 30, 2011.

In releasing this information, Chantal Lavoie, President and Chief Executive Officer of Crocodile Gold commented: 'The second quarter has shown a marked improvement over the first quarter with production up 33%, however, upon further review of year-to-date operating results and planned production, management now expects total 2011 gold production to be between 77,500 and 82,500 ounces. To date, good progress has been made at Cosmo with the dewatering of the pit and the development of the surface and underground infrastructure. Surface mining activities returned to normal levels and are expected to peak in the second half of the year as we mine higher grade ore and stockpile ore in preparation for the wet season. On the exploration front, drilling activities at Cosmo and Union Reefs were initiated and are expected to reach full deployment during the 3rd quarter of the year where we will be increasing the number of drill rigs from 6 to 10 and will be completing the geophysical VTEM program with the aim of identifying new targets. We are starting the 3rd quarter in a strong financial position with $77 million in working capital. Plus, we have identified a number of strategic opportunities to maximize the value of our assets.'

In the three months ending June 30, 2011, the Company:

--  Recorded a net profit of $1,200,539 and provided cash from operations of
    $3,440,533.

--  Maintained net working capital of $77,473,864 (March 31: $90,010,613),
    including cash and cash equivalents of $76,819,172 or $0.25 per share
    (March 31: $88,191,145).

--  Milled a total of 500,759 tonnes of ore at an average grade of 1.32 g/t
    and a recovery rate of 91.8% to produce 19,502 ounces of gold,
    representing a 33% increase in ounces produced. Compared to 315,010
    tonnes of ore milled in the previous quarter at an average grade of 1.55
    g/t and a recovery rate of 93.2% producing 14,683 ounces of gold.

--  Increased gold sale revenue from $19,858,346 to $30,206,274, an increase
    of 52%, on the sale of 20,200 ounces of gold, for an average realized
    price of $1,495 per ounce. Compared to the prior quarter, 14,300 ounces
    was sold for an average realized price of $1,389 per ounce.

--  Completed 455 metres of development at the Cosmo underground mine and
    currently 2 mining levels have been accessed. The priorities for the 3rd
    quarter will be to drive the ramp to lower levels and establish the
    permanent ventilation system, with ore development expected to commence
    later in the quarter. Approximately 50% of the open pit has been
    dewatered with expected completion late in the 3rd quarter of 2011.

--  Completed 6,842 metres of surface drilling at Union Reefs and Cosmo,
    compared to 582 metres of exploration drilling at Union Reefs in the
    first quarter of 2011. This includes 2,031 metres of reverse circulation
    (RC) and 4,811 metres of diamond drilling. A further 550 metres of
    underground diamond drilling was also completed at Cosmo.

Financial Discussion

During the three and six months ended June 30, 2011, Crocodile Gold recorded net income of $1,200,539 and a net loss of $5,808,910, or $0.00 and $0.02 per share, respectively.

In the three months ended June 30, 2011, the Company has recorded gold sale revenue of $30,206,274 on the sale of 20,200 ounces of gold, for an average realized price of $1,495 per ounce, compared with gold sale revenue of $19,858,346 in the three months ended March 31, 2011 on the sale of 14,300 ounces, for an average realized price of $1,389 per ounce.

Mine operating earnings in the three months ended June 30, 2011 were $3,500,351, or $5,396,584 on a cash basis net of depletion and depreciation of $1,896,233. Cash costs per ounce of gold sold in the three months ended June 30, 2011 were $1,220 per ounce (refer to non-GAAP measures below), which was approximately $70 higher than projected as a result of the strong Australian dollar and approximately $26 higher than projected as a result of the increase in diesel prices. Operating costs were negatively affected by a strong Australian dollar (the average exchange rate for the three months ended June 30, 2011 was 1.06, compared to 1.00 budgeted) and a higher diesel price (which ranged from A$0.93 to A$0.99 per litre, net of rebate, compared to A$0.80 per litre budgeted).

The net income (loss) included exploration expenditures of $324,135 and $355,709 in the three months ended June 30 and March 31, 2011 respectively. Exploration expenditures are expensed in respect of properties where mineral resources have not yet been identified and the Company has not yet made a development decision.

During the three months ended June 30, 2011, the Company earned interest income of $1,234,804 (three months ended March 31, 2011: $354,657) on the cash and cash equivalents and restricted cash on hand during the period.

Cash Flow

During the three months ended June 30, 2011, cash provided by operating activities was $3,440,533, compared with $4,764,962 used in operations in the three months ended March 31, 2011. Cash provided by operating activities in the second quarter of 2011 was primarily the result of cash generated by mine operations, less general and administrative costs (net of interest income) of $519,847, less cash applied to decreases accounts payable of $2,498,310.

Investing activities used $17,021,671 in the three months ended June 30, 2011, compared to $13,333,372 in the three months ended March 31, 2011, principally incurred on development of the Cosmo underground mine, including the dewatering of the Cosmo pit, and at the Union Reefs mill.

Restricted cash increased by $700,652 in the three months ended June 30, 2011.

Financing activities in the three months ended June 30, 2011 provided cash of $396,236, compared with $81,856,814 during the three months ended March 31, 2011. On April 15, 2011, the underwriters exercised an over-allotment option and 6,075,000 common share purchase warrants were issued at a price of C$0.12 ($0.13) per warrant for gross proceeds of C$729,000 ($759,326).

Financial Position

As at June 30, 2011, the Company had net working capital of $77,473,864 (March 31: $90,010,613), which included cash and cash equivalents of $76,819,172 (March 31: $88,191,145), restricted cash of $1,253,474 (March 31: $1,214,192), amounts receivable of $2,743,403 (March 31: $2,981,072), prepaid expenses of $445,257 (March 31: $1,272,240) and inventories of $11,642,702 (March 31: $11,378,978), partially offset by current liabilities of $15,430,144 (March 31: $15,027,014).

Outlook

Operations

Most of the ore tonnes mined in 2011 will be open pit ore, sourced from the Howley open pits throughout the year and from the North Point and Princess Louise open pit mines while the pits are accessible through the dry season. The Company plans to maximize the amount of open pit material above a 1 g/t cut-off grade to maximize the amount of higher grade material sent to the mill. The average grade expected from the open pits during 2011 is 1.20 g/t. In preparation for the wet season that will begin in the fourth quarter of 2011, the Company expects to stockpile over 400,000 ore tonnes during the first eleven months of 2011. This will help the Company maintain production during the wet season at the end of 2011 and into the first quarter of 2012.

After a review of the effects of the wet season, higher exchange rates, higher oil prices, year to date operating results and planned production to the end of the year, Crocodile Gold now expects to mine 77,500 ounces to 82,500 ounces of gold at a cash cost of 1,150 per ounce to 1,250 per ounce.

Exploration

In 2011, detailed definition drilling will be conducted at Cosmo to further upgrade mineral resources and mineral reserves. Exploration drilling will be conducted on the Western and Eastern Lodes in order to add further mineral resources and potentially, mineral reserves.

The Union Reefs Project area has also been prioritized to find an additional sources of high grade mill feed, with the near term priorities being the Prospect, Lady Alice and Crosscourse deposits.

Drilling will be supplemented with an airborne geophysical survey over selected areas in order to fully understand the underlying geology and define base and precious metal targets of significance.

Board of Directors Addition

Crocodile Gold is pleased to announce that Mr. Chantal Lavoie has joined its board of directors. Mr. Lavoie has been President and CEO of Crocodile Gold since June 17, 2011 (See Crocodile Gold news release dated May 17, 2011).

Further details regarding the Company's operations are available on the Company's website at www.crocgold.com and also under the company's profile on SEDAR at www.sedar.com where the Crocodile Gold annual information form, annual financial statements and managements' discussion and analysis (MD&A) are posted.

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 2,700 square kilometres. Crocodile Gold is currently mining from the Howley, Mottrams, North Point 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 Reef's 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.

Qualified Person

David Keough, MAusIMM of Crocodile Gold Australia Operations 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 which 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 expense 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 June 30 and March 31, 2011:

                                      Three months ended  Three months ended
                                           June 30, 2011      March 31, 2011
Operating expenses per consolidated
 statement of operations and
 comprehensive income (loss)                  24,940,389          22,287,443
By-product silver sales credit                 (194,325)           (107,391)
Non-cash stock option expense
 charged to operating expenses                 (106,049)           (162,669)
                                    ----------------------------------------
Operating cash costs                          24,640,015          22,017,383
                                    ----------------------------------------
                                    ----------------------------------------

Divided by ounces of gold sold                    20,200              14,300
Cash cost per ounce ($ per ounce)                  1,220               1,540

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 management's assessment of Crocodile Gold's financial results, 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.

Contacts:

Crocodile Gold Corp.

Rob Hopkins

Manager, Investor Relations

416-861-5899
info@crocgold.com
www.crocgold.com