Annual exploration report Caroline group year ending 4 November 2010 MLN 51 - MLN 57 inclusive

Abstract

The Caroline Group of tenements is a strategic landholding (MLNs 51-57) which is located about 170km SE of Darwin, Northern Territory, and 8km north of Pine Creek. This group is only 4km south of the Union Reefs mill and due to its close proximity, is considered important in Crocodile Gold Australia's port folio. The Caroline tenements were initially the subject of a base metals search in the late 1960s. Subsequent soil and costeaning work by Aztec Resources showed gold and arsenic anomalism occurred adjacent to a zone of historic shallow base metal workings. Acacia Resources Limited explored the area in the 1990s. Exploratory RC drilling located narrow but significant gold intercepts towards the southern end of the group, adjacent to a regionally significant but barren dolerite dyke. In the year under review, Crocodile Gold Australia took over the control of Caroline Group of tenements after purchasing assets held by GBS Gold Australia (liquidated) in the Northern Territory. This group is located in a close proximity to the Union Reefs mill and could provide feed stock in the near future. The main activity was a technical review, tenement ranking and reconnaissance visits. Crocodile Gold Australia intends to explore the project area aggressively and after a review of the project, a campaign of in-fill soil sampling will be carried out. If new targets are identified then it will lead to RC drilling.