TORONTO, ONTARIO--(Marketwired - May 15, 2013) -  Crocodile Gold Corp. (News - Market indicators)(TSX:CRK.DB)(OTCQX:CROCF)(FRANKFURT:XGC) ("Crocodile Gold" or the "Company") is releasing its financial and operating results for the three months ended March 31, 2013. All figures are in U.S. dollars, unless stated otherwise.

First Quarter 2013 Financial Highlights

Financial Discussion

In the first quarter of 2013, the Company produced 48,953 ounces of gold, a significant increase over the first quarter of 2012 production of 10,932 ounces of gold which was a result of the addition of the Fosterville and Stawell Gold Mines and the ramp-up of the Cosmo Mine. The Company sold gold at an average realized price of $1,664/oz for gold revenues of $82,718,203 compared to gold revenues of $18,577,177 in the first quarter of 2012. The average cash cost was $1,150 per ounce compared to an average cash cost of $2,028 per ounce in the first quarter of 2012.

The Company generated cash flow from operations of $17,559,642 during the first quarter of 2013. Cash of $17,857,245 was used in underground development and resource definition at Cosmo and Fosterville and a further $1,327,308 was used for property, plant and equipment across all sites. Other cash expenditures during the first quarter included $4,063,392 of credit facility principal payments, $3,024,620 in equipment and other loan repayments, and $551,887 to settle gold swap transactions entered into in conjunction with the Company's credit facility with Credit Suisse.

Commenting on these results Chantal Lavoie, President and CEO of the Company, said: "During the first quarter of 2013, Crocodile Gold declared commercial production at the Cosmo mine and we saw all operations on plan which has generated positive cash flow for the company of over $17 million. Subsequent to the first quarter, Crocodile Gold also successfully unwound its gold swap agreements with Credit Suisse and issued C$34.5 million in unsecured debentures, adding strength to our balance sheet. This will allow us to react to changing market conditions as we continue to closely monitor the gold price and adjust production plans accordingly. At this time, Crocodile Gold still maintains its production guidance for 2013 of 170,000 to 180,000 ounces of gold."

First Quarter 2013 Operational Highlights

Operational Discussion

The Cosmo Mine continues to ramp-up its production after declaring commercial production on March 1, 2013 producing 150,955 tonnes of ore during the quarter at an average grade of 3.32 g/t Au out of which approximately 9,000 tonnes was left to be processed at the end of the quarter. The mine also achieved an average development rate of 520 meters over the three month period - in line with operational requirements to reach the mine's full production rate.

The Union Reefs mill processed 152,128 tonnes during the quarter at an average grade of 3.12 g/t Au, with throughput mainly from Cosmo underground production and supplemented with lower grade surface oxide stockpile material. The mill had a recovery rate of 86.4% for the quarter resulting in gold production of 13,169 ounces (updated from 12,775 ounces previously reported due to grade adjustment). The cause of lower recoveries was determined to be insufficient residence time in the leaching section and appropriate adjustments have been made to the processing circuit and recoveries have since returned to levels exceeding 90%.

The Fosterville Gold Mine produced 201,009 tonnes from the Harrier and Phoenix zones during the first quarter at an average grade of 4.58 g/t Au. The operation processed 190,026 tonnes of ore at a grade of 4.74 g/t Au with a recovery rate of 81.4%, resulting in gold production of 23,556 ounces for the quarter. Mine development continued at an average advance rate of 595 metres per month during the quarter.

The Stawell Gold Mine (SGM) continues to transition from its underground mining activities to processing of surface stockpiles, completing stoping in the lower areas of the mine and retreating back up the mine to access remnant ounces. During the quarter it mined 154,087 tonnes of underground ore at an average grade of 2.72 g/t Au which it supplemented with surface oxide material for a total of 213,132 tonnes processed at an average grade of 2.06 g/t Au. SGM achieved a recovery rate of 85.6%, which resulted in gold production of 12,228 ounces. SGM expects to complete underground mining in the third quarter or 2013 at which point it will focus on processing surface oxide stockpiles as the Company advances the Big Hill Project which is an open pit operation.

In the first quarter of 2013, Crocodile Gold took the first steps in the permitting process for the Big Hill Project with the submission of an Environmental Effect Statement (EES) referral document to the State of Victoria, Australia. The Company and the Stawell Gold Mine have also commenced community initiatives to engage stakeholders in the permitting process. Geotechnical drilling has commenced and technical consultants are being engaged as the Company works towards a feasibility study for the project which it expects to complete in the first quarter of 2014. 

Financial Position

At the end of the first quarter, the Company held cash and cash equivalents of $18,122,567 and had a working capital shortfall of just over $8 million. Since this period, the balance sheet of the Company has been strengthened through the unwinding of the derivative gold swap liabilities and the issuance of C$34,500,000 of convertible unsecured debentures. The proceeds from the unwinding of the derivative liabilities were applied against the outstanding credit facility which reduced the principal amount from A$69,230,768 to A$11,366,030.

Management Update

The company is pleased to announce that effective May 10, 2013, Mr. Robert Dufour has been appointed to the role of Chief Financial Officer. Mr. Dufour joined the Company in July 2012 as Director, Finance and has held the position of Interim Chief Financial Officer since October 1, 2012. 

About Crocodile Gold

Crocodile Gold is a Canadian gold mining and exploration company with three operating mines in the Northern Territory and the State of Victoria, Australia. The Company has a combined land package in excess of 4,000 sq. km. The objective of Crocodile Gold is to continue production from its three operating mines, Cosmo, Stawell and Fosterville, while also advancing development programs to further organic growth. For additional information, please visit our website www.crocgold.com.

Follow us on Twitter @crocgold_crk or Facebook facebook.com/CrocodileGoldCorp. 

Qualified Person

F. W. Nielsen P.Geo, V.P. Exploration of Crocodile Gold Corp. is a "qualified person" as such term is defined in National Instrument 43-101 and has reviewed and approved the technical information and data included in this press release.

Cautionary Notes

Non-IFRS Measures

Crocodile Gold believes that investors use certain indicators to assess gold mining companies. The indicators are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with International Financial Reporting Standards.

"Cash cost per ounce" is a non-IFRS performance measure that could provide an indication of the mining and processing efficiency and effectiveness at the operations. It is determined by dividing the operating expenses, excluding stock-based compensation allocated to operating expenses and net of silver revenue, by the number of ounces of gold sold. There are variations in the method of computation of "cash cost per ounce" as determined by the Company compared with other mining companies. The following is a reconciliation of the cash cost per ounce of gold sold, to the reported operating expenses for the three months ended:

Forward-Looking Information

Certain information set forth in this press release contains "forward-looking statements", and "forward-looking information" under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements, which include the Company's 2013 production estimates, expectations for future performance based on current drill results and past production, expected gold prices, 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 forward-looking 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 licences, 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 commodity prices and exchange rates; currency and interest rate fluctuations; various events that 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, and 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.