Crocodile Gold (CRK.TSX) reached an agreement with Armant, LLC – an affiliate of investment funds managed by Luxor Capital Group, LP– to amend its previously announced offer to acquire up to 215,386,435 common shares of CRK.TSX by raising the purchase price to C$0.62 from C$0.56 per share.

Crocodile Gold also announced full-year 2011 gold production of 68,019 ounces, within the Company’s guidance of 66,000-69,000.  In the fourth quarter of last year, Crocodile Gold produced 15,649 ounces and generated revenue of $27 million at an average gold price of $1,657 per ounce.

Highlights:

* The revised price represents a premium of $0.28, or approximately 82%, to the closing price of CRK.TSX on December 13, 2011, the last trading day prior to the announcement of the initial offer

* The expiry time of the revised offer has been extended to February 7, 2012 at 5pm ET

* Crocodile reported that underground development and ore production at its flagship asset – the Cosmo Underground Mine in Australia – has ramped up with the ability to use additional underground equipment

Stan Bharti, Executive Chairman of Crocodile Gold:

“After careful consideration and evaluation, Crocodile Gold’s board of directors believes the improved Luxor offer is in the best interests of the company and fair to shareholders.  The Board of Directors is pleased to have the Luxor Group as a cornerstone shareholder, with a vested interest in the future success of Crocodile Gold.”

Chantal Lavoie, Crocodile Gold CEO:

“We are very pleased with the progress at Cosmo. Cosmo has now reached the threshold of sustainable development ore production. The site operational team is clearly focused on ramping up production over the next six months to achieve targeted production levels.”