HispanicBusiness

In reporting these results, Chantal Lavoie, Chairman, President and Chief Executive Officer, commented: "The 2012 year was a transformational year for Crocodile Gold with the addition of the Fosterville and Stawell Gold Mine and the continued development of the Cosmo Mine. The Company achieved its production guidance with 155,523 ounces of gold produced while also maintaining cash costs in line with the Company's forecasted figures. The Company now has a basis to grow its gold production profile and advance key projects."

2012 Financial Summary

The Company achieved its production guidance, contributing to 2012 total revenue of $255,930,383, an increase of 137% over the previous year (2011 Revenue: $108,130,753), resulting from the addition of the Fosterville and Stawell Gold Mines and the continued ramp-up of the Cosmo Mine. The Company also achieved its cash cost guidance for 2012, posting average annual cash costs of $1,166 per ounce sold, resulting in cash generated from operations in 2012 of $58,831,314 compared to cash used of $3,202,025 in 2011.

Mine operating earnings for the year ended December 31, 2011 was $19,617,789. On a cash basis, net of depletion and depreciation, mine operating earnings were $76,407,728, up from $6,701,394 in 2011.

Net loss for the year ended December 31, 2012 was $40,206,794 or $0.10 per share, compared to a net loss of $33,568,803 or $0.12 a share in 2011. The Company's net loss for 2012 was impacted by significant non-cash charges including: an impairment charge of $28,702,349 relating mainly to the second quarter write-off of open pit operations in the Howley and Mottrams areas; a charge of $23,062,127 for the cost of establishing the Credit Suisse credit facility and subsequent revaluation of the related derivative liabilities; and a gain of $31,617,172 relating to the purchase price allocation from the acquisition of the Fosterville and Stawell Gold Mines.

The net loss for 2012 also includes an expense of $8,667,000 relating to termination and retention payments from the change of control that occurred in February 2012, when Luxor Capital Group, LP ("Luxor") acquired approximately 70% of the outstanding common shares of the Company. It also includes interest of $2,550,224 on a bridge loan from Luxor used in the acquisition of Fosterville and Stawell.

As at December 31, 2012, the Company had a net working capital deficit of $14,490,087, which included cash and cash equivalents of $24,741,357. The deficiency is impacted by the valuation of the derivative liability of $8,591,342 which is driven by a continued strong forward price curve at December 31, 2012. The Company monitors the expected settlement of financial assets and liabilities on an ongoing basis.

Company Outlook

Crocodile Gold now has a stable base on which to grow its production profile in a profitable manner, and the Company is projecting production in 2013 of 170,000 - 180,000 ounces, a 10 - 15% increase over 2012. With the declaration of commercial production on March 1, 2013, the Cosmo Mine looks to build on its momentum to continue to ramp-up production and produce 65,000 to 70,000 ounces of gold in 2013. Fosterville is expected to produce 80,000 to 85,000 ounces from the Phoenix and Harrier ore bodies, and Stawell will contribute 25,000 ounces of gold as it transitions from underground mining and focuses on processing surface oxide stockpiles.

Crocodile Gold is also focused on production growth through the advancement of several key projects. The Company's main focus for 2013 is on the advancement of the Big Hill Project at the Stawell Gold Mine, which is supported by a Preliminary Economic Assessment (PEA) reported in accordance with National Instrument 43-101 ("NI 43-101") and filed February 4, 2013. The project has a net present value of A$40.0M using a gold price of A$1,400/ounces and a discount rate of 10%.