HOUSTON, Dec. 10, 2008 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE Alternext US: UWN) today announced financial results for the second quarter ended October 31, 2008.

For the second quarter of fiscal 2009, the Company's net loss was $1.6 million, which includes a $1.2 million write-off of an investment deposit, compared to net loss of $0.6 million in the second quarter of fiscal 2008. Excluding the write-off, net loss would have decreased by $0.2 million.

The Company recorded a net loss per diluted common share of $0.13, which includes a $0.09 net loss per diluted share related to the write-off of the investment deposit, compared to a net loss per diluted common share of $0.05 in the year ago period. Adjusted for the write-off and the sale of the Company's interest in Isle of Capri-Black Hawk LLC, the diluted loss per share would have been $0.03 in the second quarter of fiscal 2009 compared to a diluted loss per share of $0.20 in the second quarter last year. Net revenues decreased to $1.5 million compared to $1.9 million in the second quarter ended October 28, 2007. Loss before income tax benefit for the second quarter of fiscal 2009 was $2.4 million compared to loss before income tax expense of $0.6 million in the second quarter of fiscal 2008. The Company's cash position at the end of October 2008, including restricted cash, exceeded $18 million.

Robert Sturges, CEO of Nevada Gold & Casinos, Inc., commented, "We continue to substantially reposition the company and we now have a significant amount of financial liquidity to pursue growth opportunities or acquisitions. In addition, we are pleased with the progress of our recently launched Credit Consulting Services business which is a great service for boards, creditors and other casino owners that are looking for management experience to navigate these challenging times. In this regard, we recently signed a management agreement with Oceans Casino Cruises, Inc., d/b/a SunCruz Casinos, to operate four day-cruise casinos in Florida and South Carolina."

FINANCIAL RESULTS

For the second quarter of fiscal 2009, net revenues decreased to $1.5 million compared to $1.9 million in the second quarter of fiscal 2008. Operating expenses increased to $3.7 million from $3.6 million in the second quarter of 2008. Operating expenses included corporate expense of $0.8 million compared to $1.5 million in the second quarter of fiscal 2008.

The Company did not record equity in earnings from Isle of Capri-Black Hawk during the second quarter of fiscal 2009 compared to $2.0 million for the second quarter of fiscal 2008. The sale of Isle of Capri-Black Hawk was completed January 27, 2008.

Net loss for the second quarter of fiscal 2009 was $1.6 million compared to a net loss of $0.6 million in the second quarter of fiscal 2008. Net loss per diluted common share was $0.13, compared to net loss per diluted common share of $0.05 in the prior year period.

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

Recent Events

On November 11, 2008, the Company announced that it signed a management contract with Ocean Casino Cruises, Inc. the parent company of SunCruz Casinos. In return for its management services, the Company will receive a base fee of $1.0 million each year, plus incentive fees equal to 25% of operating results exceeding certain annual profitability thresholds. The management contract extends through December 31, 2010, subject to certain early termination provisions.

Earnings Conference Call and Webcast

The Company will discuss second quarter financial results via the earnings conference call to be held tomorrow at 9:00 a.m. ET at www.nevadagold.com, Investor Relations, Events or by dialing (800) 811-8845 or (913) 312-0966 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 3452343. In addition, the call will be archived on the Company's website through December 18, 2008.

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. (NYSE Alternext US: UWN) of Houston, Texas is a developer, owner and operator of gaming facilities and lodging entertainment facilities in Colorado and California. Colorado Grande Casino in Cripple Creek, Colorado is wholly owned and operated by Nevada Gold. The Company owns a 40% interest in Buena Vista Development, LLC, which is developing a casino project in Ione, CA for the Buena Vista Rancheria of Me-Wuk Indians. The Company also has a management contract with Oceans Casino Cruises, Inc., the parent company of SunCruz Casinos. For more information, visit www.nevadagold.com.

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

                      Nevada Gold & Casinos, Inc.
                      Consolidated Balance Sheets

                                       October 31,      April 27,
                                          2008            2008
                                      (unaudited)
                                      ------------    ------------

 ASSETS

 Current assets:
 Cash and cash equivalents            $  5,103,187    $  1,396,313
 Restricted cash                        13,000,000      13,014,000
 Accounts receivable                         5,891       2,313,593
 Accounts receivable - affiliates           46,044          57,359
 Prepaid expenses                          324,420         369,025
 Notes receivable, current portion       1,100,000       1,100,000
 Other current assets                    1,083,592          54,446
                                      ------------    ------------
   Total current assets                 20,663,134      18,304,736
                                      ------------    ------------
 Investments in unconsolidated
  affiliates                               147,105         154,969
 Investments in development
  projects                                 342,305       2,407,562
 Investments in development
  projects held for sale                 3,437,932       3,437,932
 Notes receivable, net of current
  portion                                       --       1,100,000
 Notes receivable - affiliates, net
  of current portion                            --       3,521,066
 Notes receivable - development
  projects, net of current portion
  and allowances                        16,510,200      16,510,200
 Goodwill                                5,462,918       5,462,918
 Property and equipment, net of
  accumulated depreciation of
  $2,149,034 and $1,808,883 at
  October 31, 2008 and April 27,
  2008, respectively                     1,139,930       1,327,275
 Deferred tax asset                      3,146,509       1,885,726
 Other assets                            6,084,682       6,780,317
                                      ------------    ------------
 Total assets                         $ 56,934,715    $ 60,892,701
                                      ============    ============

 LIABILITIES AND STOCKHOLDERS' EQUITY

 Current liabilities:
 Accounts payable and accrued
  liabilities                         $    521,840    $  1,097,277
 Accrued interest payable                       --         115,027
 Other accrued liabilities                 195,814         203,071
 Taxes payable                           2,976,475       3,911,475
                                      ------------    ------------
   Total current liabilities             3,694,129       5,326,850
                                      ------------    ------------
 Long-term debt, net of current
  portion                               15,550,000      15,550,000
 Other liabilities                          50,675          56,505
                                      ------------    ------------
   Total liabilities                    19,294,804      20,933,355
                                      ------------    ------------
 Stockholders' equity:
 Common stock, $0.12 par value per
  share; 50,000,000 shares
  authorized; 13,935,330 shares
  issued and 12,939,130 shares
  outstanding at October 31, 2008
  and April 27, 2008, respectively       1,672,240       1,672,240
 Additional paid-in capital             19,230,133      19,092,706
 Retained earnings                      26,954,488      29,401,890
 Treasury stock, 996,200 shares at
  October 31, 2008 and April 27,
  2008, respectively, at cost          (10,216,950)    (10,216,950)

 Accumulated other comprehensive
  income                                        --           9,460
                                      ------------    ------------
   Total stockholders' equity           37,639,911      39,959,346
                                      ------------    ------------
 Total liabilities and
  stockholders' equity                $ 56,934,715    $ 60,892,701
                                      ============    ============

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

                      Three Months Ended          Six Months Ended
                   ------------------------  ------------------------
                   October 31,  October 28,  October 31,  October 28,
                      2008         2007         2008         2007
                   -----------  -----------  -----------  -----------
 Revenues:
   Casino          $ 1,437,662  $ 1,801,832  $ 2,994,615  $ 3,695,073
   Food and
    beverage           406,552      416,816      853,277      829,011
   Other                13,076       35,055       26,948       69,306
   Management fee           --           --           --       40,174
                   -----------  -----------  -----------  -----------
     Gross revenues  1,857,290    2,253,703    3,874,840    4,633,564
     Less
      promotional
      allowances      (359,037)    (390,057)    (756,831)    (789,540)
                   -----------  -----------  -----------  -----------
       Net revenues  1,498,253    1,863,646    3,118,009    3,844,024

 Expenses:
   Casino              468,456      476,641      986,510      960,185
   Food and beverage   197,068      210,642      407,209      405,363
   Marketing and
    administrative     690,339      798,898    1,359,157    1,500,068
   Facility             86,723       89,635      185,053      183,621
   Corporate expense   840,742    1,499,424    2,078,076    2,749,728
   Legal expense        47,405      317,804       99,129      439,061
   Depreciation and
    amortization       183,748      201,967      348,343      404,380
   Impairment of
    unconsolidated
    affiliate               --           --           --      100,000
   Write-off of
    project
    development
    cost             1,203,803           --    1,203,803           --
   Other                19,112       18,244       52,228       24,323
                   -----------  -----------  -----------  -----------
     Total
      operating
      expenses       3,737,396    3,613,255    6,719,508    6,766,729
                   -----------  -----------  -----------  -----------
 Operating loss     (2,239,143)  (1,749,609)  (3,601,499)  (2,922,705)
 Non-operating
  income (expenses):
   Earnings (loss)
    from
    unconsolidated
    affiliates          (4,291)   1,953,578       (7,863)   3,143,468
   Gain on sale of
    unconsolidated
    affiliate               --           --           --    1,296,423
   Gain (loss) on
    sale of assets     (21,083)      18,986      (27,123)      18,986
   Gain on settlement
    of development
    project                 --           --           --       14,500
   Interest income     312,859      504,362      792,065    1,031,361
   Interest expense   (393,525)  (1,156,587)    (799,917)  (2,263,530)
   Amortization of
    loan issue costs   (32,209)    (174,870)     (63,848)    (342,240)
                   -----------  -----------  -----------  -----------
 Loss before income
  tax (expense)
  benefit           (2,377,392)    (604,140)  (3,708,185)     (23,737)
 Income tax
  (expense) benefit    756,094           --    1,260,783      (37,916)
                   -----------  -----------  -----------  -----------
 Net loss          $(1,621,298) $  (604,140) $(2,447,402) $   (61,653)
                   ===========  ===========  ===========  ===========

 Per share
  information:
 Net loss per
  common share -
  basic            $     (0.13) $     (0.05) $     (0.19) $     (0.00)
                   ===========  ===========  ===========  ===========

 Net loss per
  common share -
  diluted          $     (0.13) $     (0.05) $     (0.19) $     (0.00)
                   ===========  ===========  ===========  ===========

 Basic weighted
  average number of
  common shares
  outstanding       12,939,130   12,939,130   12,939,130   12,939,130
                   ===========  ===========  ===========  ===========

 Diluted weighted
  average number of
  common shares
  outstanding       12,939,130   12,939,130   12,939,130   12,939,130
                   ===========  ===========  ===========  ===========

CONTACT:  Nevada Gold & Casinos, Inc.
          Robert B. Sturges
          (713) 621-2245
         
          Integrated Corporate Relations
          Don Duffy
          (203) 682-8200