Crocodile Gold Successfully Negotiates Termination of Free Cash Flow Sharing Arrangement With Aurico Gold

TORONTO, ONTARIO--(Marketwired - Dec. 22, 2014) - Crocodile Gold Corp. ("Crocodile Gold" or the "Company") (TSX:CRK)(TSX:CRK.DB)(TSX:CRK.WT)(OTCQX:CROCF)(FRANKFURT:XGC) today announced that it has reached a mutually beneficial agreement with AuRico Gold Inc. ("AuRico") that terminates their net free cash flow sharing arrangement in exchange for a one-time lump sum payment and royalties on the Fosterville and Stawell Gold Mines. The termination of the arrangement is subject to final approval from the Foreign Investment Review Board of Australia ("FIRB").

Under the terms of the 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.

Under the revised agreement, which will be effective upon final approval from FIRB, Crocodile Gold will pay AuRico C$20 million in cash on the effective date and will grant AuRico a net smelter return royalty of 2% from the Fosterville Gold Mine, also commencing the effective date, and a 1% royalty from the Stawell Gold Mine commencing January 1, 2016.

"We are extremely pleased to have reached a mutually beneficial agreement that releases Crocodile Gold from its obligation to share the net free cash flow generated from our Fosterville and Stawell Gold Mines," said Rodney Lamond, President and Chief Executive Officer of Crocodile Gold. "Fosterville in particular, is an exciting growth asset for the Company. Terminating the net free cash flow arrangement provides the Company the full economic benefit of developing Fosterville. This is a critical step in supporting the future growth and 5 Year Strategy of Crocodile Gold."

About Crocodile Gold

Crocodile Gold is a Canadian gold mining and exploration company with three operating mines in Australia, in the State of Victoria and the Northern Territory. The objective of Crocodile Gold is to continue production from its three operating mines, Cosmo, Stawell and Fosterville, while also exploring and developing the Company's resources to ensure sustainable production in the future. For additional information, please visit our website www.crocgold.com.