Ms. Chantal Lavoie reports

CROCODILE GOLD TRIPLES ITS GOLD PRODUCTION TO 36,117 OUNCES IN THE SECOND QUARTER OF 2012

Crocodile Gold Corp. produced 36,117 ounces of gold in the second quarter of 2012 and 46,876 ounces year to date in the period ending June 30, 2012.

                         First    Second                                    
                       quarter   quarter               YTD               YTD
                          2012      2012(1)     production(1)    performance(2)

Ore processed (t)      371,439   463,176           834,615         1,393,756
Average grade (g/t                                                          
Au)                       0.99      2.83              2.01              2.51
Mill recovery (%)        92.0%     87.4%             89.5%             86.6%
Gold ounces produced    10,759    36,117            46,876            94,770

(1) It includes production from Fosterville and Stawell post-May 4       
    acquisition.
(2) Shown as reference and including Fosterville and Stawell production 
    since Jan. 1, 2012. Year-to-date results are through June 30, 2012.                 

The table is compiled from unaudited production figures. Audited results can have slight variations and will be released as part of the company's quarterly reporting.

With the completion of the acquisition of the Fosterville (FGM) and Stawell (SGM) gold mines on May 4, the company significantly increased its gold production, more than tripling its production in the second quarter compared with the company's first quarter 2012 performance. For year-over-year comparison purposes, when the FGM and SGM mines are included as if they were owned by Crocodile on Jan. 1, 2012, the company's pro forma gold production performance year to date through June 30, 2012, was approximately 95,000 ounces.

Commenting on these results, Chantal Lavoie, president and chief executive officer of the company, said: "This year's second quarter has been transformational for our company with the acquisition of the Fosterville and Stawell mines, the completion of the $75-million debt facility with Credit Suisse AG, and the continued progress at our Cosmo project in the Northern Territory. At the operational level, best practices are already being shared and implemented, and we have seen positive results at all the sites."

Operational update

The company successfully completed the acquisition of the FGM and SGM gold mines acquisition on May 4. Associated with the acquisition, the company completed a $75-million debt facility with Credit Suisse AG.

The operating teams of FGM and SGM have been fully integrated into Crocodile Gold and after a transitional period in May, both mines produced more ounces of gold in June than in any other month in 2012.

The company completed operational reviews and made the decision to transition the operation of SGM, which will see underground mining activities being completed by the end of 2013. The decision to cease mining activities at SGM after 2013 will result in significantly reduced capital expenditures at SGM starting in the fourth quarter of 2012 and continuing throughout 2013. This should result in material free cash flow generation from SGM in this period during which gold is being produced, but no development capital is being spent.

Operational update -- Northern Territory

At Cosmo, underground drilling continued and results to date confirm the ore zones are wider than expected in several locations. The wider ore zones should allow for simpler mining techniques, lower dilution and ultimately lower cost production which are all positive, long-term developments for Crocodile Gold.

In the short term, the wider ore zones require adjustments to the mining method and sequence. In conjunction with this, development rates have been lower than expected. Remedial plans have been developed with the main contractor, Leighton, and development rates in June reached all-time highs despite continuing labour shortages in the region.

Trial mining in zone A has been successful with lower-than-expected dilution and grades, and metallurgical recoveries as per plan.

The company continued to progress on permitting the international open pit mine. This includes an amendment made to the project development sequence, in line with comments received from regulators. A production decision is still expected by the fourth quarter of 2012. The company has not included any production from the international property in its 2012 guidance.

The company has successfully renegotiated the ore haulage contract, which will see a significant reduction in associated costs over the next two years.

Surface mining activities at Rising Tide (phase 1) were completed and the decision was taken to not proceed with the next phase nor with the remaining mining of the Princess Louise and North Point deposits, given lower-than-expected grade results and price escalation by the surface mining contractor.

Exploration and advanced projects -- update

The company completed its Union Reefs drilling program with nearly 11,500 metres drilled. Results will be used to update the mineral resources and mineral reserves model in the third quarter. In June, permits required to initiate the excavation of an exploration decline were received. A decision regarding the next phase of the project will be taken later this year.

In June, a review was completed by an independent consultant confirming the applicability of Biox technology, which is currently being used at the Fosterville mine, to the Maud Creek deposit, therefore providing a technical and economical solution for gold recovery.

On May 16, 2012, the company signed a binding agreement with Primary Minerals NL of Perth, Australia, for the sale of the Mt. Bundy property in the Northern Territory. This agreement remains subject to various conditions subsequent that are expected to be satisfied by the end of 2012.

Additional details of the second quarter will be provided in the management discussion and analysis report, which will be released in conjunction with the company's financial statements in mid-August.

Qualified person

David Keough, FAusIMM, of Crocodile Gold, is a qualified person as such term is defined in National Instrument 43-101 and has reviewed and approved the scientific technical information and data included in this press release.

We seek Safe Harbor.