Mr. Rodney Lamond reports

CROCODILE GOLD ANNOUNCES STRONG START TO 2015 PRODUCING 59,676 OUNCES OF GOLD IN Q1; ON TRACK TO ACHIEVE TOP END OF 2015 PRODUCTION GUIDANCE

Crocodile Gold Corp. has released production results for the three months ended March 31, 2015. Full financial results for the three months ended March 31, 2015, will be released Monday, May 11, 2015. All dollar amounts are in United States dollars unless otherwise noted.

First quarter 2015 highlights

• Consolidated gold production of 59,676 ounces increased 11.4 per cent compared with first quarter 2014 and represented the seventh consecutive quarter of gold production above 53,000 ounces.
• Average consolidated mill grade was 3.58 grams per tonne (g/t) increased 22.6 per cent compared with first quarter 2014.
• Consolidated mill recovery improved 86.4 per cent on strong recoveries at the Fosterville and Cosmo gold mines.
• The company is on track to achieve the top end of 2015 production guidance of 220,000 ounces of gold and lower end of 2015 all-in sustaining cash costs (AISC) guidance of $1,020 per ounce.
• The company 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 ($20-million (Canadian)) in cash, without incurring debt, and the grant of an NSR (net smelter return) royalty over Fosterville and Stawell gold mines as previously disclosed.
• Preliminary first quarter 2015 ending cash balance was $27.7-million and working capital was approximately $16.5-million at March 31, 2015.

Rodney Lamond, president and chief executive officer, commented: "We are very pleased with the strong operating results accomplished during the first quarter of 2015. We continued to build on the momentum we experienced throughout 2014 and successfully increased first quarter 2015 consolidated production by 11.4 per cent to 59,676 ounces of gold compared with the prior year. The quarter also marked a seventh consecutive quarter of gold production above 53,000 ounces as we executed on our strategy for sustainable production and clearly demonstrated our ability to deliver consistent physical performance. Our strategy for sustainable production, which starts with a fundamental understanding of our geological models, aims to extend the reserve mine life at all of our operations by replacing depleted mineral resources in a timely manner through the execution of targeted exploration programs. As a result of our strong start to 2015, the company is on track to meet the top end of our full-year 2015 production guidance of 220,000 ounces and the lower end of our AISC cost guidance of $1,020 per ounce."

Mr. Lamond continued: "Our first quarter performance was highlighted by a significant improvement in consolidated average grade to 3.58 g/t, a 22.6-per-cent increase year over year, which also contributed to a solid increase in year-over-year production results from Fosterville and Cosmo. Stawell continued to deliver value by maintaining consistent production levels from its underground operations and successfully produced 9,929 ounces of gold in the first quarter of 2015. The first quarter also marked Stawell's seventh consecutive quarter of gold production above 9,500 ounces and is a notable achievement for a mine that was previously expected to end operations in early 2013."

Mr. Lamond concluded: "In early January, the company closed on a transformational agreement that terminated the net free cash flow sharing arrangement with AuRico Gold. Our solid cash balance at the end of 2014, combined with the confidence in our ability to deliver strong physical and financial results for first quarter 2015, enabled us to fund the related one-time payment of $16.7-million ($20-million (Canadian)), without incurring debt. As a result of our first quarter performance, we are extremely pleased to end the first quarter of 2015 with a preliminary cash balance of $27.7-million."

                    FIRST QUARTER CONSOLIDATED RESULTS

                                       Q1 2015        Q1 2014        Q4 2014

Ore milled (tonnes)                    585,720        678,821        648,580
Grade (g/t Au)                            3.58           2.92           3.21
Recovery (%)                              86.4           83.2           85.4
Total production (oz)                   59,676         53,583         58,796

First quarter 2015 operational summary

• Fosterville gold mine produced 29,135 ounces of gold, a 13-per-cent increase compared with first quarter 2014, and achieved its third consecutive quarter of mill feed grade improvement to 5.75 g/t resulting in record quarterly mill recovery of 89.2 per cent.
• Cosmo gold mine produced 20,612 ounces, up 15.5 per cent, compared with first quarter 2014, with higher milled feed grade of 3.7 g/t resulting in mill recovery of 91 per cent.
• Stawell gold mines produced 9,929 ounces and achieved its seventh consecutive quarter of gold production above 9,500 ounces.

                                GOLD PRODUCTION

                                        Q1 2015        Q1 2014        Q4 2014
Fosterville gold mine
Ore milled (tonnes)                     175,327        220,379        190,823
Grade (g/t Au)                             5.75           4.32           5.26
Recovery (%)                               89.2           84.3           88.5
Gold production (oz)                     29,135         25,786         29,045
Cosmo gold mine
Ore milled (tonnes)                     190,306        230,815        225,601
Grade (g/t Au)                             3.70           2.79           3.05
Recovery (%)                               91.0           85.9           90.9
Gold production (oz)                     20,612         17,841         20,112
Stawell gold mines
Ore milled (tonnes)                     220,087        227,627        232,157
Grade (g/t Au)                             1.75           1.71           1.67
Recovery (%)                               80.2           79.4           77.6
Gold production (oz)                      9,929          9,956          9,639
Total production (oz)                    59,676         53,583         58,796

First quarter 2015 production highlights

Fosterville gold mine

Fosterville had a successful start to the year with mine production focused exclusively on underground ore sources during 2015. In first quarter 2015, the mine produced 178,676 tonnes at an average grade of 5.85 g/t compared with 185,750 tonnes at 5.27 g/t in fourth quarter 2014 and 206,540 tonnes at 3.76 g/t in first quarter 2014. The decrease in tonnage was driven by the transition of the operation to receive a lower contribution from the Harrier zone and a proportionately larger contribution from Central and Phoenix lodes, including the higher-grade Lower Phoenix area. Grade performance helped to offset lower mine production and has continued to strengthen. Grade increased 11 per cent from fourth quarter 2014 and 56 per cent from first quarter 2014 when the mine experienced lower grades due to dilution challenges and model variations in higher transitional levels. Mine development advanced at an average rate of 634 metres for a total of 1,903 metres. This result is essentially in line with the previous quarter and 2.6 per cent ahead of first quarter 2014.

In first quarter 2015, Fosterville processed 175,327 tonnes through the mill at an average grade of 5.75 g/t compared with 190,823 tonnes at 5.26 g/t in fourth quarter 2014 and 220,379 tonnes at 4.32 g/t in first quarter 2014. Mill throughput was driven by availability of mine tonnes plus a small increase in stockpile for the quarter of (plus 3,000 tonnes) compared with a drawdown last quarter of (minus 5,000 tonnes). Fosterville achieved a new quarterly record recovery of 89.2 per cent, eclipsing the previous record recovery rate of 88.5 per cent achieved in fourth quarter 2014. This performance continued to be driven by focus on improved blending practices and optimization of the leaching circuit.

As a result, Fosterville achieved gold production of 29,135 ounces in first quarter 2015 which represents the highest quarterly total since third quarter 2011 and the third highest ever.

During the quarter, Fosterville reported 2014 exploration results which established the continuation of gold mineralization down plunge and mineralized faults below the Phoenix and Lower Phoenix faults that demonstrate the potential to extend mineral resources. Following these positive exploration results, Fosterville increased measured and indicated (M&I) mineral resources by 3.9 per cent year over year to over 2.1 million ounces as discussed in the press release dated March 31, 2015.

Cosmo gold mine

In first quarter 2015, Cosmo achieved its second-highest production quarter, producing 20,612 ounces of gold up 15.5 per cent compared with the first quarter of 2014. First quarter 2015 underground mine production was 190,306 tonnes of ore at an average grade of 3.66 g/t compared with 180,046 tonnes mined at an average grade of 3.36 g/t in first quarter 2014. This represents a 9.7-per-cent improvement from first quarter 2014. During the quarter, the mine encountered a slight change in ground condition, in a portion of the new mining block, which the technical team is taking action to ensure stope performance is maintained at expected rates. Mine development advanced 1,047 metres in first quarter compared with 1,196 metres in first quarter 2014. Looking ahead to the second quarter, development is expected to ramp up to establish drill locations in order to maintain current diamond drilling rates, from the current three rigs in use, and drill priority targets established for this year.

First quarter 2015 mill production was 190,306 tonnes at an average grade of 3.70 g/t compared with 230,815 tonnes at an average grade of 2.79 g/t in first quarter 2014. The year-over-year decrease in milled tonnes was attributable to higher milled tonnes processed in first quarter 2014 which included 56,549 tonnes of low-grade stockpiles from an exploration property for reclamation purposes. The stockpile was fully processed in first quarter 2014 which also impacted recoveries during the same quarter. Lower mill production in first quarter 2015 was offset by better than expected mill feed grade resulting in solid recovery of 91 per cent compared with 86 per cent in first quarter 2014. As a result, mill recovery achieved a marked improvement year over year and was in line with performance at the end of 2014.

Also during the quarter, Cosmo announced its M&I mineral resources increased 7.8 per cent year over year to 539,000 ounces of gold following successful exploration results in 2014 as discussed in the press release dated March 31, 2015.

Stawell gold mines

Stawell produced 9,929 ounces of gold in first quarter 2015 and delivered a sixth consecutive quarter of production above 9,500 ounces. During the quarter, Stawell continued to build on the success experienced throughout 2014 with mine production focused on its program of combining underground ore and surface oxide for mill feed. In first quarter 2015, Stawell produced a combined throughput of 220,087 tonnes (123,584 tonnes underground ore, 96,503 tonnes oxide) at 1.75 g/t with a recovery of 80.2 per cent, compared with 232,157 tonnes at 1.67 g/t and 77.6-per-cent recovery during fourth quarter 2014, and 227,627 tonnes at 1.71 g/t and recovery of 79.5 per cent during first quarter 2014.

In 2013, when resource and reserves were depleted at depth, Stawell commenced its transition from the deep levels of the mine to the upper levels of the mine where the extraction of remnant and other ore materials is currently in progress. During 2014, Stawell implemented a targeted drill program to focus on the middle to upper portion of the strongly mineralized Magdala system. Drill results identified areas for potential resource growth and provided upside for potential extension of the life of Stawell's underground operations. Current and extensive historical mining of the upper levels in the mine will allow target areas to be readily accessed in the future.

As a result, during the quarter, Stawell reported its first mineral reserve and resource update, since 2012, which included M&I resources of 243,000 ounces, with an average grade of 1.81 g/t, as discussed in the press release dated March 31, 2015. Moving forward in 2015, work will continue in the upper levels of the mine with continuing drilling programs. Mine production is presently being realized from U1 and upper level Magdala ore sources with mine development now accessing Federal Albion South.

2015 production and cash cost guidance

As previously announced in Crocodile Gold's press release dated Jan. 12, 2015, the company's production and cash cost guidance for fiscal 2015 is as shown in the associated table.

                                                  GUIDANCE
                                                                                             Consolidated
                                      Fosterville              Cosmo          Stawell                2015

Gold production (oz)           100,000 -- 105,000   75,000 -- 85,000   approx. 30,000  205,000 -- 220,000
Operational cash costs per oz        $670 -- $750       $850 -- $930   $945 -- $1,025        $780 -- $860
AISC per ounce                                                                           $1,020 -- $1,100
                                                                      

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