CROCODILE GOLD CONTINUES POSITIVE EXPLORATION RESULTS INTERSECTS HIGH GRADE GOLD AT UNION REEFS PROJECT

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1 65 Queen Street West CROCODILE GOLD CONTINUES POSITIVE EXPLORATION RESULTS INTERSECTS HIGH GRADE GOLD AT UNION REEFS PROJECT July 6, 2011 Crocodile Gold Corp. (TSX:CRK) (OTCQX:CROCF) (Frankfurt:XGC) ( Crocodile Gold or the Company ) is pleased to announce continued high-grade intersections from the exploration drilling program currently underway at the Union Reefs Project with the diamond drill program currently being conducted below the historic Prospect pit. Highlights from the exploration drill results from the Union Reefs Project include: g/t Au over 4.92 metres including 24.4 g/t Au over 0.75 metres in hole URNDD21; g/t Au over 2.92 metres including 37.6 g/t Au over 0.30 metres and 3.60 g/t Au over 1.75 metres in hole URNDD23; g/t Au over 5.35 metres including 20.4 g/t Au over 0.42 metres and 52.5 g/t Au over 0.30 metres in hole URNDD24. Drilling continues at the Union Reefs Project, with one diamond and one RC rig working on the property for the past month. Results from the first three Prospect Deposit diamond drill holes (URNDD21, URNDD23 and URNDD24 in Table 1) have been encouraging with mineralization shown to continue down below the current historic mineral resource. Further step out drilling is planned to test this mineralized structure at depth and along strike. An historic resource calculation for the mineralization under the Prospect pit indicated 144,000 tonnes grading 11.7 g/t Au* to a depth of approximately 30 metres below the pit bottom. Initial interpretations would indicate that there are a series of plunging high-grade mineralized zones beneath the Prospect and Crosscourse pits. The Company is starting to gain a better understanding of this style of mineralization and its overall structural configuration. Past production from the Prospect pit amounted to 400,146 tonnes averaging 1.65 g/t Au to produce over 21,000 ounces of gold. The Company s current thinking is to define high-grade resources in this area which can be mined from underground. The Union Reefs mill facility is located less than a kilometre away and management believes any future production from this area has the potential to be highly profitable. The current objective for this year is to complete sufficient drilling to enable the Company to make a decision on underground mining, thus improving Crocodile Gold s overall reserve grade. Drilling under the Crosscourse pit targeting the high grade mineralization identified as the E-Lens will commence when another rig becomes available. Drill intercepts from past operators on the E-lens below the pit bottom include, g/t Au, g/t Au and g/t Au. An historic resource for the Crosscourse E-Lens indicated 150,000 tonnes grading 4 g/t Au*. A second diamond rig has been contracted and is due in a few weeks to accelerate the drilling program for the Crosscourse and Prospect deposits. * Historical estimates derived from the internal report titled Mine Closure Report, Union Reefs Gold Mine (Pine Creek) prepared by Crosby, Q., Makar, B., Chen Chow, K., Sheehan, E., Davis, G., December 12, This report was not prepared in accordance with currently accepted guidelines for the preparation of Mineral Resources and Mineral Reserves, and does not comply with National Instrument ( NI ) and are not considered by Crocodile Gold, as current mineral resources or mineral reserves. These resource estimates may have also been depleted by past mining, and although possibly demonstrative of the potential grade of the deposits, the historical estimates of tonnage and grade are not considered indicative of the remnant potential resource. A qualified person, as such term is defined under NI , has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. Crocodile Gold is not treating the historical estimate as current mineral resources or mineral reserves and the historical estimate should not be relied upon. TSX:CRK OTCQX:CROCF FRANKFURT:XGC

2 Table 1: Past production from the Crosscourse pit amounted to 13,036,535 tonnes averaging 1.7 g/t Au producing over 700,000 ounces of gold. Approximately 83% of the gold from the Union Reefs open pits came from the Crosscourse pit. RC drilling at the Crosscourse, Alta and Millars deposits has confirmed the limits of resources stated for these mineralized bodies (See Table 2, 3). In releasing this information, Bill Nielsen, P. Geo., Vice President Exploration of Crocodile Gold commented, "It is extremely encouraging that at this early stage of our exploration program at Union Reefs, we are able to identify and expand the mineralized zones to depth. The Union Reefs area is seen by management as having high potential for adding both Mineral Resource and Mineral Reserve ounces to Crocodile Gold s future inventory. Hole ID Drill Type Deposit Grid Coordinates Survey Data Interval Grade Easting Northing Azimuth Dip From To Interval True Width URNDD21 Diamond Prospect (g/t Au) including URNDD23 Diamond Prospect and including URNDD24 Diamond Prospect including and URNRC36 RC Prospect 4,800 7, and and URNRC37 RC Prospect 4,823 7, and and URNRC38 RC Prospect 4,840 7, Table 2: Hole ID Drill Type Deposit Grid Coordinates Eastin g Northing Survey Data Interval Grade Azimuth Dip From To URNRC49 RC Crosscourse 5,010 7, no significant values URNRC50 RC Crosscourse 5,031 7, no significant values Interval True Width URNRC53 RC Crosscourse 5,065 6, and URSRC32 RC Crosscourse 4,901 5, and URSRC34 RC Crosscourse 4,873 5, and (g/t Au) and

3 Table 3: and and and and Hole ID Drill Type Deposit Grid Coordinates Easting Northing Survey Data Interval Grade Azimuth Dip From To Interval True Width URNRC22 RC Alta 4,828 8, URNRC23 RC Alta 4,811 8, URNRC24 RC Alta 4,789 8, URNRC27 RC Alta 4,852 8, URNRC31 RC Alta 4,846 8, no significant values URNRC32 RC Alta 4,830 8, URNRC33 RC Alta 4,810 8, and URSRC1 RC Millars 5,021 5, and URSRC5 RC Millars 4,900 5, and URSRC6 RC Millars 4,901 5, URSRC7 RC Temple 4,860 5, URSRC10 RC Millars 5,037 5, no significant values URSRC13 RC Millars 5,020 5, URSRC13 A RC Millars 5,020 5, and (g/t Au) About Crocodile Gold Crocodile Gold is a Canadian company with operating gold mines in the Northern Territory of Australia and a land package of over 2,700 km 2. Crocodile Gold is currently mining from the Howley open pit mine. Crocodile Gold commenced mining in November 2009 and announced its first gold pour in December 2009 at its Union Reefs Mill. The Company is currently developing the Cosmo underground mine. Ore is currently processed at the 2.4 million tonne per year Union Reefs Mill. Crocodile Gold has million ounces of NI 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) (see Crocodile Gold press release April 26, 2011). The Company has an exploration program in place and is drilling on several key properties on its expansive land package. Crocodile Gold s main focus is on the Cosmo deposit, the Union Reefs project area and the Maud Creek deposit.

4 Qualified Person Mr. Bill Nielsen, P. Geo., Vice President, Exploration of the Company is a Qualified Person as defined by the National Instrument and has reviewed and verified the technical information in this news release. Notes: 1. Drill samples were assayed at Northern Australian Laboratories (NAL). 2. Assay results are based on 50 g fire assays. 3. All intersections from diamond samples are half-core either NQ or HQ. 4. All intersections from RC drilling are sampled with a cone splitter. 5. RC sample intervals are all 1.0 metre. 6. Mean RC grades have been calculated on a minimum of 2 metre interval, 0.4 g/t lower cut-off and maximum 2 metre internal dilution. 7. Diamond sample intervals are determined using lithological controls or 1.0 metre whichever is larger 8. Mean grades have been calculated on a minimum of 1.5 metre interval, 2.5 g/t lower cut-off and maximum 3 metre internal dilution. 9. All intersections are down-hole intervals. 10. All deviations in diamond drill holes have been verified by down hold camera. 11. Quality Assurance Quality Control ( QAQC ) for these holes has been checked and verified through blind standards, field duplicates, lab repeats and barren flushes. QAQC results are within expected limits. For further information, please contact: Chantal Lavoie Rob Hopkins President and CEO Manager, Investor Relations Crocodile Gold Corp. Crocodile Gold Corp Tel: Tel: Cautionary Note Certain information set forth in this press release contains forward-looking statements, and forwardlooking 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 future plans, 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 forwardlooking 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

5 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.

6 65 Queen Street West Figure 1: Crocodile Gold Northern Territory Location Map Figure 2: Longitudinal Section Prospect Deposit

7 65 Queen Street West Figure 3: Cross Section showing URNDD21 at Prospect Deposit, Union Reefs Figure 4: Cross Section showing URNDD23 at Prospect Deposit, Union Reefs

8 65 Queen Street West Figure 5: 3D Representation of the Crosscourse and Prospect Deposits Crosscourse Pit Prospect Pit Looking SW Crosscourse E-Lens Deposit Historic Resource*: 4.3/t Au Below pit bottom Prospect Deposit Historic Resource*: 11.7g/t Au Below pit bottom * Historical estimates derived from the internal report titled Mine Closure Report, Union Reefs Gold Mine (Pine Creek) prepared by Crosby, Q., Makar, B., Chen Chow, K., Sheehan, E., Davis, G., December 12, This report was not prepared in accordance with currently accepted guidelines for the preparation of Mineral Resources and Mineral Reserves, and does not comply with National Instrument ( NI ) and is not considered by Crocodile Gold as current mineral resources or mineral reserves. These resource estimates may have also been depleted by past mining, and although possibly demonstrative of the potential grade of the deposits, the historical estimates of tonnage and grade are not considered indicative of the remnant potential resource. A qualified person, as such term is defined under NI , has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. Crocodile Gold is not treating the historical estimate as current mineral resources or mineral reserves and the historical estimate should not be relied upon.

9 Figure 6: Collar Plan for Union Reefs North Drilling 65 Queen Street West

10 Figure 7: Collar Plan for Union Reefs South Drilling 65 Queen Street West

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