Luxor Capital and Crocodile Gold Mail Materials to Shareholders

NEW YORK, NEW YORK and TORONTO, ONTARIO -- (Marketwire) -- 01/26/12 -- Luxor Capital Group, LP ('Luxor') and Crocodile Gold Corp. ('Crocodile Gold') (TSX: CRK)(OTCQX: CROCF)(FRANKFURT: XGC) announced today that Armant, LLC (the 'Offeror') has formally amended its previously announced offer (the 'Offer') to acquire up to 215,386,435 common shares ('Common Shares') of Crocodile Gold to, among other things, increase the purchase price to $0.62 per Common Share and to extend the expiry time of the Offer to 5:00 p.m., Toronto time, on February 7, 2012. The Offeror has mailed to Crocodile Gold's shareholders a notice of variation to its Offer and take-over bid circular dated December 23, 2011, which contains, among other things, the amendments to the Offer as well as additional disclosure related to the Offer. Crocodile Gold has mailed to its shareholders a notice of change to its directors' circular dated January 9, 2012, which contains, among other things, the unanimous recommendation of Crocodile Gold's board of directors that shareholders tender their Common Shares to the Offer, as well as the reasons for its recommendation.

Completion of the Offer remains subject to certain conditions, including, among others, a sufficient number of Common Shares being tendered to the Offer such that the Offeror and its affiliates would own at least 50% of the issued and outstanding Common Shares. The Offer is also subject to other customary conditions, including the absence of a material adverse change with respect to Crocodile Gold and receipt of all required regulatory approvals. There can be no assurance that the conditions of the Offer will be satisfied or waived prior to the expiry time of the Offer, or that the Offer will be completed as proposed or at all.

For assistance in tendering Common Shares to the Offer, Crocodile Gold shareholders are encouraged to contact the Laurel Hill Advisory Group Company, the depositary for the Offer, at 1-877-452-7184 toll free in North America or at 1-416-304-021 outside of North America (collect calls accepted) or by e-mail at assistance@laurelhill.com. Instructions for tendering Common Shares are also included in the Offer and take-over bid circular and the related letter of transmittal and the notice of guaranteed delivery which were previously mailed to shareholders. Additional copies of these documents may be obtained without charge on request from the Laurel Hill Advisory Group Company and are accessible at www.sedar.com.

About Crocodile Gold

Crocodile Gold is a Canadian company with operating gold mines in the Northern Territory of Australia with a land package of over 3,300 km2. Crocodile Gold is currently mining a number of open pits in the Howley Corridor. The Company is also developing the Cosmo underground mine. Ore is processed at the Union Reefs Mill with a capacity of 2.4 million tonne per year. Crocodile Gold has 3.175 million ounces of NI 43-101 compliant Measured and Indicated mineral resources and 2.14 million ounces of Inferred mineral resources (see the NI 43-101 compliant technical report entitled 'Report on the Mineral Resources and Mineral Reserves of the northern Territory Gold and Base Metals Properties for Crocodile Gold Corp.' by Fleur Muller, Mark Edwards and Heath Gerritsen dated April 4, 2011, filed under the Company's profile on SEDAR for the details regarding these mineral resource estimates). The Company has an extensive 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 Mine, the Union Reefs and Maud Creek project areas.

For additional information, please visit our website www.crocgold.com. Follow us on Twitter (@crocgold_crk) or Facebook (www.facebook.com/CrocodileGoldCorp).

Qualified Person

F. W. Nielsen PGeo, V.P. Exploration of Crocodile Gold Australia Operations 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 Note

Certain statements in this news release constitute forward-looking information within the meaning of applicable Canadian securities laws and are prospective in nature. Forward-looking information is not based on historical facts, but rather on current expectations and projections about future events, and is therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking information. Forward-looking information generally can be identified by the use of forward-looking words such as 'may', 'should', 'will', 'could', 'intend', 'estimate', 'plan', 'anticipate', 'expect' or 'believe', or grammatical variations thereof. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Important factors that could cause actual results to differ materially from the expectations of the Offeror and its affiliates include, among other things, the failure to meet certain conditions of the Offer, the failure of the Common Shares to meet the TSX listing requirements following completion of the Offer, general business and economic conditions globally or in particular geographic regions in which Crocodile Gold and its subsidiaries conduct business, the inability to attract and retain qualified employees, competition, regionally and internationally, changes in law, disruptions in business operations due to reorganization activities, and interest rate and foreign currency fluctuations. Such forward-looking information should therefore be construed in light of such factors, and the Offeror and its affiliates is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

This press release does not constitute an offer to buy any securities or a solicitation of any vote or approval or a solicitation of an offer to sell any securities.

The Offer is being made for the securities of a Canadian issuer and the Offer is subject to Canadian disclosure requirements. Shareholders should be aware that such disclosure requirements are different from those of the United States.

Contacts:

Luxor Capital Group, LP

1114 Avenue of the Americas

29th Floor

New York, New York 10036


Laurel Hill Advisory Group

Information Agent

366 Bay Street, Suite 200

Toronto, Ontario

M5H 4B2

Canada


Laurel Hill Advisory Group

North American Toll Free: 1-877-452-7184

Banks and Brokers and collect calls outside North America:

(416) 304-0211
assistance@laurelhill.com


Crocodile Gold

Rob Hopkins

Manager, Investor Relations

416-861-5899
info@crocgold.com
www.crocgold.com