Ms. Chantal Lavoie reports

CROCODILE GOLD INTERSECTS EXTENSION TO HIGH GRADE MINERALIZED STRUCTURE 650 M SOUTH OF THE EXISTING RESOURCE ON THE WEST LODE OF COSMO WITH FIRST HOLE INTERSECTING 8.6 METERS OF 5.14 G/T AU

Crocodile Gold Corp. has drilled a continued high-grade intersection from the underground exploration drilling program currently under way at the Cosmo Deeps project.

Highlight of this drill result from DDH PHP1 includes:

• 5.14 grams per tonne (g/t) Au over 8.6 metres including 16.4 g/t Au over two metres and 4.7 g/t Au over 1.6 metres in hole PHP1 (see table).

The drill result from PHP 1 extends the Cosmo West Lode mineralization over 650 metres south of the current NI 43-101 mineral resource and approximately 300 metres farther south of the last hole containing mineralization CP009W1. In addition, the mineralization was intersected 250 metres below surface.

Chantal Lavoie, the incoming president and chief executive officer of Crocodile Gold, commented: "The development of the Cosmo underground mine is currently Crocodile Gold's highest priority with production steadily increasing through the last half of 2011 as production rates reach full capacity in the first half of 2012 which will increase overall production rates and dramatically decrease cash costs from current levels. We believe there is still significant exploration potential remaining at Cosmo; especially at the West Lodes. A major focus of the current Cosmo optimization study is to incorporate future production rate growth into the infrastructure being put in place underground so that any potential increases to the mineral resource and reserve can be exploited."

Bill Nielsen, vice-president of exploration of Crocodile Gold, commented: "The results of this initial drilling are very encouraging as they have intersected mineralization in an area with no previous drilling. More work is required to understand this expanded mineralization envelope, as it is now on the footwall side of the dolerite unit. Additional underground drilling is currently being planned. Meanwhile, the surface diamond rig is testing the Western Lodes closer to the known mineral resource in an effort to significantly expand resources in this area. If successful in increasing the resources at the Western Lodes, the company believes it can increase the number of ounces per vertical metre and with this there is a distinct possibility of increasing the production rate from the Cosmo mine over the intermediate term from the existing planned infrastructure."

Drilling at the Cosmo Deeps project has recommenced with both surface and underground diamond rigs operational. The first underground hole drilled was collared within the dolerite unit and projected toward the Western Lodes. This hole has intersected mineralization at a depth in excess of 250 metres vertical, approximately 650 metres south of the current resource and 300 metres south of the last known Western Lode intersection in hole CP009W1 (see press release dated Sept. 28, 2010).

The existing Cosmo Western Lode National Instrument 43-101 resource is currently interpreted to be approximately 350 metres in strike length and around 250 metres in depth. With the encouraging drill results from CP009W1 and PHP 1, management believes that the mineralization strike length of the Western Lodes could potentially be up to 750 metres in strike length, or more than double the current resource. This interpretation is very preliminary and significantly more drilling is required to both definitively establish the continuity of mineralization and establish an NI 43-101 resource.

 DRILL RESULT SUMMARY FOR PHP 1 AND CP009W1

                     Interval
Hole ID                          True  Grade
            From    To Interval width   (g/t
             (m)   (m)      (m)   (m)    Au)

PHP1       449.4 458.0      8.6   7.7   5.14
including  449.4 451.0      1.6   1.5    4.7
and        456.0 458.0      2.0   1.8   16.4

  PREVIOUSLY RELEASED RESULTS FOR DRILL HOLE 
                   CP009W1

                     Interval
Hole ID                          True    Grade
            From    To Interval width     (g/t
             (m)   (m)      (m)   (m)      Au)

CP009W1    207.2 224.9     17.7  12.2  6.85(i)
and        228.0 230.9      2.9   2.1     2.95
and        359.9 367.4      7.5   5.6     1.99
and        371.9 379.4      7.5   5.8     2.02
and        416.4 418.9      2.5   1.8     2.12
and        522.4 531.9      9.5   7.4     2.00
and        617.7 623.0      5.3   3.0     3.64
and        697.8 701.7      3.9   1.6     3.43
and        716.8 719.8      3.0   1.0     4.17
and        722.1 724.2      2.1   0.8     8.38

The intersection is interpreted to be a southern projection of the Western Lodes. However, management believes the fact that it is in the footwall of the dolerite sill as opposed to the hangingwall, as seen farther to the north and as in the Eastern Lodes, indicates that alternative interpretations are possible. Conceivably, the Western Lodes mineralization has crosscut the dolerite unit. Further drilling and interpretive work will be required to resolve this issue.

Qualified person

Mark Edwards, geology manager of Crocodile Gold Australia operations, is a qualified person as such term is defined in National Instrument 43-101 and has reviewed and confirmed the technical information and data included in this press release.

Notes:

1. Drill samples were assayed at Northern Australian Laboratories (NAL).
2. Assay results are based on 50-gram fire assays.
3. All intersections from diamond samples are half-core either NQ or HQ.
4. Diamond sample intervals are determined using lithological controls or 1.0 m whichever is larger
5. Mean grades have been calculated on a minimum of 1.5 m interval, 0.5 g/t lower cut-off and maximum three m internal dilution.
6. All intersections are down-hole intervals.
7. All deviations have been verified by downhold camera.
8. Quality assurance/quality control (QA/QC) for these holes has been checked and verified through blind standards, field duplicates, lab repeats and barren flushes. QA/QC results are within expected limits.

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