FOUNTAIN HEAD/TALLY HO

Crocodile Gold Corp. has ceased mining operations at the Fountain Head Deposit, with production of 1,090,399t waste, 470,127t ore @ 1.68g/t Au for 25,453oz Au in August 2008.

Announced an upgraded resource estimate relating to the Tally Ho lode system of the Fountain Head open pit mine. New resource estimate for the Tally Ho lodes within the Fountain Head open pit deposit comprising indicated resources of 814,000 tonnes at 2.3 g/t for 61,000 ounces of contained gold, and inferred resources of 260,000 tonnes at 2.9g/t for 24,300 ounces of contained gold.

Reported new drilling results from the Union Reefs operations centre. Results from Fountain Head open pit include 7 m of 8.1 g/t gold from 9 m and 16 m of 4.0 g/t Au from 4 m from Chinese South extension. Open pit mining operations have commenced at Fountain Head and are planned to commence at Chinese South Extension in early 2008. During the months of August and September, discrete single-source batch milling programs were completed in order to provide information regarding ore grades and grade control practices within the open pit mines. These programs have successfully confirmed the open pit ore grades and resource models, and have led to improved in-pit grade control and mining practices. In 2006, GBS Gold undertook resource definition drilling activities at Fountain Head focusing on the pit design and modeling for the commencement of production. The drilling program was comprised of eight diamond core and 61 RC drillholes and confirmed the geological models for the initial open pit deposit and resulting in an increase to the resource estimate. Total drill results at Fountain Head involve a combination of diamond, RAB and RC drilling resulting in 585 holes for a total of 42,000 m. Following the resource definition drilling, GBS Gold commenced a program of one diamond core and 24 RC drillholes to test for adjacent southerly lode repeats. This program successfully intersected a new zone of continuous mineralization defining a strike length of at least 250 m with three significant lode zones, all of which are open along strike to the east. As a result, the resource estimate was updated to incorporate the original Fountain Head anticlinal lodes and the adjacent zone of veining identified in the recent drilling. This resulted in an increase of approximately 120% from the previous indicated resource estimate and 60% from the previous inferred resource estimate. Results from a second program of 7 diamond core and 36 RC drillholes within the southern Fountain Head area are also very encouraging as they indicate that the Fountain Head area has the potential to be a much larger mineralized system than originally anticipated. The best result was 15 metres at 60.0 g/t gold from approximately 130 metres below surface. These results are now being incorporated into an updated resource model. Updated mine design optimizations of the Fountain Head deposit are now being completed. In addition to the southern area drilling, two holes were drilled on the opposite side and to the northwest of the Fountain Head anticlinal zone testing for lode repeats. Drillhole FHNW002 returned an intersection of 6.0 metres at 4.4 g/t gold from 67 metres downhole. This result will be followed up in the next round of drilling. Further drilling is planned at Fountain Head to test the down-plunge extents of the deposit, and new drilling has been undertaken to test similar stratigraphic units and structural targets elsewhere in the local area.