TORONTO, ONTARIO--(Marketwired - Jan 14, 2015) - A correction from source is being issued for the Crocodile Gold Corp. press release that was disseminated today at 6:30 am EST. In the second paragraph, the date "January 14, 2014" should have read "January 14, 2015". The corrected release follows.

Crocodile Gold Corp. ("Crocodile Gold" or the "Company") (CRK.TO)(TSX:CRK.DB)(TSX:CRK.WT)(CROCF)(XGC.F) is pleased to announce that it has closed its previously announced Agreement with AuRico Gold Inc. ("AuRico") to terminate the existing net free cash flow sharing arrangement between the two companies in exchange for a one-time payment and a grant of a royalty on the Fosterville and Stawell Gold Mines. The Agreement received approval from the Foreign Investment Review Board of Australia, which was the final condition of closing the Agreement.

Per the terms announced in Crocodile Gold's December 22, 2014 press release, Crocodile Gold has paid AuRico C$20.0 million (US$16.7 million) in cash and has granted AuRico a net smelter return royalty of 2% from the Fosterville Gold Mine, effective as of January 14, 2015, and a 1% royalty from the Stawell Gold Mines commencing January 1, 2016. Strong 2014 fourth quarter performance resulted in a solid cash balance at year-end that enabled Crocodile Gold to fund the one-time payment without the addition of debt.

Rodney Lamond, President and Chief Executive Officer, commented: "We are extremely pleased to have closed on the Agreement that terminates the net free cash flow sharing arrangement. Crocodile Gold will now fully benefit and retain 100% of the strong free cash flows we expect to generate from our Fosterville and Stawell Gold Mines going forward. This Agreement was a critical step in supporting the future growth toward the 5 Year Strategy of Crocodile Gold."

Under the terms of the prior net free cash flow sharing arrangement, which was established when Crocodile Gold acquired the Fosterville and Stawell Gold Mines from AuRico in 2012, Crocodile Gold was entitled to cumulative net free cash flow from those mines of up to C$60 million. AuRico would then be entitled to 100% of the next C$30 million in net free cash flow, after which Crocodile Gold and AuRico would share the next C$30 million of net free cash flow on a 50/50 basis until C$120 million of cumulative net free cash flow was achieved, following which AuRico would then be entitled to 20% on an ongoing basis.

As a result of closing the Agreement, Crocodile Gold is released from its obligation to pay AuRico any further net free cash flow generated from its Fosterville and Stawell gold mines.