PRELIMINARY ECONOMIC ASSESSMENT on the BIG HILL DEVELOPMENT PROJECT STAWELL GOLD MINE Victoria Australia For CROCODILE GOLD CORPORATION Job No. 1723_M Mining One Pty Ltd Doc No. 3438.doc Level 9, 50 Market Street Date: January 2013 Melbourne VIC 3000 Prepared by: Mark Van Leuven Ph: 03 9600 3588 Fax: 03 9600 3944 FINAL REPORT PRELIMINARY ECONOMIC ASSESSMENT STAWELL GOLD MINE TABLE OF CONTENTS 1 SUMMARY ......................................................................................................................................... 2 1.1 Introduction and Terms of Reference ..................................................................................... 2 1.2 Property Description and Ownership ...................................................................................... 2 1.3 Geology and Mineralisation .................................................................................................... 3 1.4 Status of Exploration, Development and Operations ............................................................. 4 1.5 Processing .............................................................................................................................. 4 1.6 Mineral Resource and Mineral Reserve Estimates ................................................................ 5 1.7 Conclusions and Recommendations ...................................................................................... 7 2 INTRODUCTION ................................................................................................................................ 8 2.1 Certificate of Qualified Persons (Ni43-101) ............................................................................ 9 3 RELIANCE ON OTHER EXPERTS ................................................................................................. 11 3.1 External Consultant Reports and Reviews ........................................................................... 12 4 PROPERTY DESCRIPTION AND LOCATION ............................................................................... 13 4.1 Property Description ............................................................................................................. 14 4.2 Legislation and Permits ........................................................................................................ 15 4.3 SGM Local Survey Grid Reference ...................................................................................... 17 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE & PHYSIOGRAPHY 19 6 HISTORY ......................................................................................................................................... 20 6.1 Historical and Modern Production ........................................................................................ 21 7 GEOLOGICAL SETTING AND MINERALISATION ....................................................................... 22 7.1 Regional Geology ................................................................................................................. 22 7.2 Local Geology ....................................................................................................................... 23 7.2.1 Stratigraphy at Stawell ......................................................................................................... 23 7.2.2 Magdala Basalt..................................................................................................................... 23 7.2.3 Leviathan and Albion Formations......................................................................................... 23 7.2.4 Magdala Facies .................................................................................................................... 25 7.2.5 Felsic Intrusions ................................................................................................................... 25 7.2.6 Stawell Granite ..................................................................................................................... 25 7.2.7 Lamprophyric Intrusions ....................................................................................................... 25 7.2.8 Structural History at Stawell ................................................................................................. 25 7.2.9 Early, Ductile Deformation ................................................................................................... 26 7.2.10 Late, Brittle Deformation .................................................................................................... 26 7.2.11 Stawell Mine Geological Architecture ................................................................................ 28 7.3 Mineralisation ........................................................................................................................ 32 8 DEPOSIT TYPES ............................................................................................................................. 34 8.1 General Deposit Types and Mineralisation ........................................................................... 34 8.2 Big Hill Deposit Types ........................................................................................................... 35 8.2.1 Mariner’s ............................................................................................................................... 37 8.2.2 Allen’s Zone .......................................................................................................................... 38 8.2.3 Iron Duke Zone ..................................................................................................................... 39 8.2.4 Magdala Flanks .................................................................................................................... 39 8.2.5 Scotchman’s Fault: ............................................................................................................... 39 8.2.6 Cross Course Fault: ............................................................................................................. 40 8.2.7 Lower Cross Course Fault: .................................................................................................. 40 8.2.8 Basalts: ................................................................................................................................. 40 P:\1723_M\.3438_Final_w_signatures_Rev6.docx i PRELIMINARY ECONOMIC ASSESSMENT STAWELL GOLD MINE 8.2.9 Foliation and shearing .......................................................................................................... 40 9 EXPLORATION ............................................................................................................................... 42 9.1 Current Exploration ............................................................................................................... 42 9.2 Expenditure ........................................................................................................................... 42 9.3 Exploration and Mineral Tenure............................................................................................ 43 9.4 Kiska Metals Corporation Joint Venture ............................................................................... 45 9.5 Interest in Navarre Minerals .................................................................................................. 46 10 DRILLING ........................................................................................................................................ 47 10.1 Stawell Gold Mines Mineral Resource Definition Process ................................................... 47 10.2 Drilling Process ..................................................................................................................... 50 10.2.1 Big Hill Drilling .................................................................................................................... 52 10.2.2 Reverse Circulation Drilling ................................................................................................ 55 10.2.3 Diamond Drilling ................................................................................................................. 55 10.2.4 Drill hole Orientation ........................................................................................................... 56 10.2.5 Collar Survey Control ......................................................................................................... 58 10.2.6 Down hole Survey Control ................................................................................................. 59 10.2.7 Down hole Survey Quality Control ..................................................................................... 62 10.2.8 Diamond Drill Core Processing .......................................................................................... 64 10.2.9 Logging ............................................................................................................................... 66 10.2.10 Core Recovery ................................................................................................................. 66 10.2.11 Diamond Drill Core Sampling ........................................................................................... 67 10.2.12 Big Hill Diamond Drill Core Sample Intervals ................................................................... 67 10.2.13 Big Hill RC Sampling .......................................................................................................