Nevada Gold & Casinos Announces Profit for First Quarter 2008


HOUSTON, Sept. 5, 2007 (PRIME NEWSWIRE) -- Nevada Gold & Casinos, Inc. (AMEX:UWN) today announced financial results for the first quarter ended July 29, 2007.

For the first quarter of fiscal 2008 net income was $0.5 million compared to a net loss of $1.8 million in the first quarter of fiscal 2007. The Company recorded earnings per diluted common share of $0.04, compared to net loss per diluted common share of $0.14 in the prior year period. Net revenues decreased to $2.0 million compared to $3.5 million in the first quarter ended July 30, 2006. Income before income tax expense for the first quarter of fiscal 2008 was $0.6 million compared to a loss before income tax expense of $2.8 million in the first quarter of fiscal 2007.

First quarter of fiscal 2008 financial results included the following significant items:



 * A $1.3 million gain related to the sale of American Racing;
 * Losses from American Racing totaling $0.8 million compared to a
   $1.9 million loss a year ago;
 * No credit enhancement fees due to the River Rock Entertainment
   Authority ("RREA") buy-out transaction compared to $1.9 million in
   the first quarter of fiscal 2007; and
 * $38,000 of alternative minimum tax expense in the first quarter of
   fiscal 2008, compared to a $1.0 million tax benefit a year ago;

Excluding the impact of non-recurring items, the Company would have recorded income before income tax expense of $41,000 compared to a loss of $2.8 million in the first quarter of last year.

Robert Sturges, CEO of Nevada Gold & Casinos, Inc., commented, "We are very pleased with our first quarter results, which reflect not only our progress with our operating initiatives, but also our ongoing financial discipline. Our success in decreasing corporate expenses and improving the performance of our existing projects exemplifies our commitment to building a sustainable business platform that will allow us to pursue growth opportunities. During the quarter we continued to redeploy our resources to the most compelling projects in our portfolio and we remain committed to divesting non-core assets. To that end we were pleased to complete the sale of American Racing in June 2007. We are continuing to evaluate acquisition opportunities, and believe that success on these fronts will enable us to further improve our results and build value for our shareholders."

Financial Results

For the first quarter of fiscal 2008, net revenues decreased to $2.0 million compared to $3.5 million in the first quarter of fiscal 2007. The revenue decrease is attributable to the elimination of credit enhancement fees in the first quarter as the result of the RREA buyout of future credit enhancement fees from the Dry Creek Casino, LLC of which the Company was a 69% owner.

Operating expenses decreased to $3.15 million from $4.3 million. Operating expenses included corporate expense of $1.25 million, a decrease of 29.6% compared to $1.78 million in the first quarter of fiscal 2007. Legal fees decreased to $0.1 million in the first quarter of fiscal 2008 from $0.8 in the same period last year. The Company's equity in earnings from Isle of Capri-Black Hawk (IC-BH), the Company's joint venture with Isle of Capri Casinos, was $1.9 million for the first quarter ended July 29, 2007, compared to $1.1 million a year ago. The Company's equity in earnings from American Racing was a loss of $0.8 million during the first quarter of fiscal 2008 compared to a loss of $1.9 million a year ago. The sale of American Racing was completed on June 14, 2007.

Net income for the first quarter of fiscal 2008 was $0.5 million compared to a net loss of $1.8 million in the first quarter of fiscal 2007. Net earnings per diluted common share were $0.04, compared to a net loss per diluted common share of $0.14 in the prior year period.

Diluted weighted average common shares outstanding in the first quarter were 12.9 million compared to 12.9 million in the prior year period.

Earnings Conference Call and Webcast

The Company will discuss first quarter financial results via the earnings conference call to be held today at 5:00 p.m. ET at www.nevadagold.com, Investor Relations, Events or by dialing (888) 202-2422 or (913) 981-5592 for international callers. If you are unable to participate, the conference call replay will be available by dialing (888) 203-1112 or 719-457-0820 for international callers. The replay access code is 7236408. In addition, the call will be archived on the Company's website through September 12, 2007.

Forward-Looking Statements

This release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We use words such as "anticipate," "believe," "expect," "future," "intend," "plan," and similar expressions to identify forward-looking statements. Forward-looking statements include, without limitation, our ability to increase income streams, to grow revenue and earnings, and to obtain additional Indian gaming and other projects. These statements are only predictions and are subject to certain risks, uncertainties and assumptions, which are identified and described in the Company's public filings with the Securities and Exchange Commission.

About Nevada Gold & Casinos

Nevada Gold & Casinos, Inc. (AMEX:UWN) of Houston, Texas is a developer, owner and operator of gaming facilities and lodging entertainment facilities in Colorado and California. The Company owns a 43% interest in the Isle of Capri-Black Hawk LLC, which owns Isle of Capri-Black Hawk and Colorado Central Station, both of which are in Black Hawk, Colorado. Colorado Grande Casino in Cripple Creek, Colorado is wholly owned and operated by Nevada Gold. The Company also works with Native American tribes in a variety of capacities. Native American projects consist of a casino to be built in Pauma Valley, California for the La Jolla Band of Luiseno Indians and a casino to be developed by Buena Vista Development Company, LLC in the city of Ione, California for the Buena Vista Rancheria of Me-Wuk Indians. For more information, visit www.nevadagold.com.

The Nevada Gold & Casinos, Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=1552



                      Nevada Gold & Casinos, Inc.
                 Consolidated Statements of Operations
                              (unaudited)

                                               Three Months Ended
                                          ---------------------------
                                             July 29,       July 30,
                                               2007           2006
                                          ------------   ------------
 Revenues:
   Casino                                 $  1,893,241   $  1,446,143
   Food and beverage                           412,195        375,733
   Credit enhancement and management fees       40,174      1,946,086
   Other                                        34,251         30,458
                                          ------------   ------------
     Gross revenues                          2,379,861      3,798,420
     Less promotional allowances              (399,484)      (306,761)
                                          ------------   ------------
       Net revenues                          1,980,377      3,491,659


   Casino                                      483,444        352,150
   Food and beverage                           194,883        232,593
   Marketing and administrative                701,170        732,401
   Facility                                     93,986         68,783
   Corporate expense                         1,250,304      1,775,638
   Legal expense                               121,257        805,870
   Depreciation and amortization               202,413        262,152
   Impairment of unconsolidated affiliate      100,000             --
   Other                                         6,016         22,597
                                          ------------   ------------
     Total operating expenses                3,153,473      4,252,184
                                          ------------   ------------
 Operating loss                             (1,173,096)      (760,525)
 Non-operating income (expenses):
   Earnings (loss) from unconsolidated
    affiliates                               1,189,889       (815,556)
   Gain on sale of unconsolidated
    affiliate                                1,296,423             --
   Gain on settlement of development
    project                                     14,500             --
   Interest expense, net                      (747,314)      (862,107)
   Minority interest                                --       (387,984)
                                          ------------   ------------
 Income (loss) before income
  tax (expense) benefit                        580,402     (2,826,172)
 Income tax (expense) benefit                  (37,916)       991,109
                                          ------------   ------------
 Net income (loss)                        $    542,486   $ (1,835,063)
                                          ============   ============

 Per share information:
 Net income (loss) per common share -
  basic                                   $       0.04   $     (0.14)
                                          ============   ============
 Net income (loss) per common share -
  diluted                                 $       0.04   $     (0.14)
                                          ============   ============
 Basic weighted average number of shares
  outstanding                               12,939,130     12,937,331
                                          ============   ============
 Diluted weighted average number of
  shares outstanding                        12,939,130     12,937,331
                                          ============   ============


                      Nevada Gold & Casinos, Inc.
                      Consolidated Balance Sheets

                                           July 29,        April 29,
                                            2007             2007
                                        -------------   -------------
                                         (unaudited)

                         ASSETS
 Current assets:
 Cash and cash equivalents              $     953,948   $   2,803,560
 Restricted Cash                                   --       1,050,000
 Accounts receivable                           92,108         397,145
 Accounts receivable - affiliates              60,006         124,685
 Prepaid expenses                             654,269         474,933
 Notes receivable, current portion          1,100,000              --
 Notes receivable - development
  projects, current portion                        --       1,357,904
 Other current assets                          50,243          55,055
                                        -------------   -------------
   Total current assets                     2,910,574       6,263,282
                                        -------------   -------------
 Investments in unconsolidated
  affiliates                               27,949,330      35,201,419
 Investments in unconsolidated
  affiliates held for sale                    407,793         400,489
 Investments in development projects          390,202         323,202
 Investments in development projects
  held for sale                             3,918,744       3,914,765
 Notes receivable                           1,100,000              --
 Notes receivable - affiliates              3,521,066       3,521,066

 Notes receivable - development
  projects, net of current portion         19,370,641      18,012,737
 Goodwill                                   5,462,918       5,462,918
 Property and equipment, net of
  accumulated depreciation of
  $1,483,150 and $1,281,191 at
  July 29, 2007 and April 29, 2007,
  respectively                              1,967,477       2,063,026
 Other assets                               5,492,300       4,868,442
                                        -------------   -------------
 Total assets                           $  72,491,045   $  80,031,346
                                        =============   =============

                      LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
 Accounts payable and accrued
  liabilities                           $   1,391,746   $   1,540,781
 Accrued interest payable                          --          21,211
 Other accrued liabilities                     83,093         378,937
 Guaranty liabilities                              --       4,610,000
 Long-term debt, current maturities           830,632       2,066,518
                                        -------------   -------------
   Total current liabilities                2,305,471       8,617,447
                                        -------------   -------------
 Long-term debt, net of current
  maturities                               52,869,073      55,021,031
 Deferred income                               82,167           8,591
 Other liabilities                            803,247         742,991
                                        -------------   -------------
   Total liabilities                       56,059,958      64,390,060
                                        -------------   -------------
 Commitments and contingencies                     --              --

 Stockholders' equity:
 Common stock, $0.12 par value per
  share; 25,000,000 shares authorized;
  13,935,330 shares issued and
  12,939,130 outstanding at
  July 29, 2007 and April 29, 2007,
  respectively                              1,672,240       1,672,240
 Additional paid-in capital                18,729,763      18,484,448
 Retained earnings                          6,236,574       5,694,088
 Treasury stock, 996,200 shares at
  July 29, 2007 and April 29, 2007,
  respectively, at cost                   (10,216,950)    (10,216,950)
 Accumulated other comprehensive income         9,460           7,460
                                        -------------   -------------
 Total stockholders' equity                16,431,087      15,641,286
                                        -------------   -------------
 Total liabilities and stockholders'
  equity                                $  72,491,045   $  80,031,346
                                        =============   =============


            

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