Annual Group Report MLN's 281-284, 337-339, 369-373 MCN's 68-91, Mount Bundy Quest 29 Project 16 October 2011 to 15 October 2012

Abstract

The Mt Bundy Quest 29 tenement group (MCN's 68 -91, MLNs 281 -284, MLNs 337 - 339, MLNs 369 - 373) is located some 110 kilometers south-east of Darwin. These tenements were granted between 1973 and 1990. Crocodile Gold has managed these tenements since November 2009 when they were transferred to the company as part of the acquisition of the former GBS assets. Most of the tenements fall in an area covered by the Koolpin Formation and surrounded by Gerowie Tuff. The Mount Bundy Granite intrudes the rock formation towards north. The Quest 29 gold prospect is located within the tenement group. The deposit contains a significant auriferous quartz vein system. Exploration activities during the reporting period were limited however Crocodile Gold entered into a Sales Agreement with Primary Minerals for the Mt Bundy project. This process is still underway and is not due to be completed until Quarter 1, 2013. Once completed Primary will take over exploration and mining activities for the Mt Bundy tenements including the Quest 29 and Quest 30 projects. During the 2013 Crocodile Gold and Primary will continue to review and rank all Mt Bundy targets with the idea of identifying future ore sources from the project and deposit, this includes the potential resources at Quest 29.