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TORONTO, ONTARIO--(Marketwire - Oct. 16, 2009) - Crocodile Gold Inc. today announces that it has secured the option to draw upon a US$25 million senior secured credit facility from Marret Asset Management Inc. ("Marret") of Toronto, Ontario.

Crocodile Gold has the option to draw on the credit facility, in full, at any time on or prior to June 30, 2010. If drawn, the credit facility will be used to finance the development of Crocodile Gold's assets in the Northern Territory of Australia.

At the time of the draw down under the credit facility, Crocodile Gold would be entitled to elect the applicable interest rate of either (i) 12.5% per annum; or (ii) 10% per annum with the issuance of share purchase warrants having a present value that would create a yield to maturity of 12.5% per annum, with interest payable quarterly and the credit facility would mature in three years following draw down.

Mike Hoffman, Crocodile Gold's President and CEO commented, "Now that we have completed the CDN$35 million equity financing, this credit facility provides Crocodile Gold with further financial flexibility while advancing our assets. We are well capitalized and on track to begin production late this year."

The commitment fee consists of four million common share purchase warrants ("Warrant"). Each Warrant is exercisable into one common share of the Company at a price of $1.50 for a period of three years following receipt of the Warrants by Marret. The issuance of the Warrants is subject to regulatory approval.

About Crocodile Gold

Crocodile Gold is a Canadian company that recently completed the acquisition of a number of past producing gold assets in the Northern Territory of Australia from GBS Gold. These assets are held through its 100% owned subsidiary Crocodile Gold Australia Pty Ltd. The assets comprise the Burnside Project, Tom's Gully Project and Maud Creek Project, in addition to others, covering an area of greater than 3,500 square kilometres and located approximately 90 to 285 kilometres south of the capital city, Darwin. The Burnside Project includes the Brocks Creek underground mine, the Chinese open pit mine and several additional deposits along the Cosmo/Chinese corridor, including the undeveloped Cosmo underground deposit. The Tom's Gully Project includes the Tom's Gully underground mine. Crocodile Gold also operates the 8,000 tpd Union Reefs mill and the 800 tpd Tom's Gully mill.

Proposed Reverse Take-over Transaction with Franc-Or Resources

Crocodile Gold and Franc-Or Resources ("Franc-Or"), a TSX-listed company (TSX:FOR), entered into a binding letter of intent on August 6, 2009 and signed a definitive business combination agreement on September 21, 2009 pursuant to which Franc-Or will acquire all of the issued and outstanding shares of Crocodile Gold through a proposed reverse take-over transaction. Prior to the completion of the transaction, Franc-Or will complete a consolidation of its issued and outstanding common shares on the basis of one new Franc-Or common share for each 6.3 existing Franc-Or common shares. The transaction is expected to be completed in early November 2009. The name of the new company will be changed to Crocodile Gold Corp.

Cautionary Note

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 management's assessment of Crocodile Gold's future plans and operations 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 licenses, 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 which 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; 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, as 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.