Crocodile Gold Secures Prepaid Swap Facility

Crocodile Gold (CRK.TSX) announced that it has entered into a four-year prepaid swap facility through its Australian subsidiaries with Credit Suisse AG.  Under the terms of the agreement, Credit Suisse will advance Crocodile Gold A$75 million against the sale of future gold production.  The facility is repayable in 39 equal installments of A$1.9 million beginning in January 2013 and concluding March 2016.

The facility also provides for the subsidiaries entering into a gold swap agreement with Credit Suisse AG for 8,000 ounces of gold per month, starting in July 2012 and continuing until March 2016 at an effective swap price of approximately A$1,540 per ounce. The effective swap price includes all interest owed to Credit Suisse for the A$75 million facility.  In addition, the facility provides Crocodile Gold with a series of call options struck at A$2,100 an ounce for 4,000 ounces of gold per month over the same timeframe, which will allow the Company to participate on the upside of the gold price above A$2,100 for half of the ounces hedged.

Highlights:

* The facility is guaranteed by the Company and secured against the shares of the subsidiaries, which own the mining assets of Crocodile Gold located in Australia, and a security interest in all of the assets and properties of the subsidiaries

* Ounces associated with the gold swap agreement represent less than 40% of the forecasted production over this period, with the remaining 60% planned to be sold at prevailing spot prices

* Crocodile Gold believes this approach will de-risk its growth strategy while offering significant exposure to increasing gold prices.

*The Company plans to use the proceeds of the credit facility for capital expenditures and to repay a portion of the bridge loan facility provided by Luxor Capital Group in connection with the completion of the acquisition by Crocodile Gold of the Fosterville and Stawell mines in Victoria State, Australia

Chantal Lavoie, President, CEO and Chairman Of Crocodile Gold:

“The recently completed acquisition of the Fosterville and Stawell gold mines should also provide an opportunity to bring quality ounce production into our mine plan for the remainder of the year.”

Company Management:

“2012 promises to be a very exciting year for the Company on numerous fronts. Cosmo development is ramping up as planned, gold production for the first month of 2012 is in line with guidance for the year, our exploration activities in the Union Reefs area continue to show great promise and our strategic initiatives continue to progress very well.”