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Nevada Gold & Casinos Announces Third Quarter Results

HOUSTON, March 7, 2008 -- Nevada Gold & Casinos, Inc. (AMEX:UWN) today announced financial results for the third quarter ended January 27, 2008.

For the third quarter of fiscal 2008 the Company recorded a net income of $27.0 million compared to a net loss of $1.5 million in the third quarter of fiscal 2007. The Company recorded net income per diluted common share of $2.08, compared to a net loss per diluted common share of $0.12 in the prior year period. Net revenues decreased to $1.4 million compared to $3.8 million in the third quarter ended January 28, 2007. Net income before income tax expense for the third quarter of fiscal 2008 was $35.2 million compared to a loss before income tax benefit of $2.3 million in the third quarter of fiscal 2007.

Year-over-year comparisons of third quarter results were impacted by the following significant items:

 * A gain of $39.2 million due to the sale of unconsolidated affiliates
   including the Company's 43% membership interest in Isle of
   Capri-Black Hawk LLC;
 * No credit enhancement fees in the third quarter of fiscal 2008 due
   to the River Rock Entertainment Authority ("RREA") buy-out
   transaction which closed during January 2007, compared to
   $2.3 million in the third quarter of fiscal 2007;
 * Equity in earnings pertaining to the Isle of Capri-Black Hawk, LLC
   was $0.9 million compared to $0.5 million in the third quarter of
   fiscal 2007;
 * No equity in losses from American Racing in the third quarter of
   fiscal 2008 due to its sale in June 2007, compared to a
   $2.1 million equity in loss a year ago;
 * A $2.4 million impairment of notes receivable and accrued interest
   in the third quarter of fiscal 2008 related to a development
   project;
 * Income tax expense of $8.2 million during the third quarter of
   fiscal 2008 compared to a tax benefit of $0.8 million recorded
   during the third quarter of fiscal 2007; and
 * $536,000 lower corporate, legal and depreciation expenses.

The adjusted pre tax loss for the third quarter of fiscal 2008, which excludes significant and non-recurring items as well as credit enhancement fees and the loss from America Racing, was $1.5 million compared to a loss of $2.3 million in the third quarter of fiscal 2007.

                                              Q3 FY08        Q3 FY07
                                            -----------    -----------
 Pre-tax net income as reported             $35,156,887    $(2,334,736)

 Impairment of notes and interest
  receivable                                  2,361,702
 Gain on sale of unconsolidated affiliate   (39,208,732)
 Write-off of deferred loan issuance fees       165,000
 Loss on sale of assets                          15,207
 Write-off of project development cost                          15,000
 Gain on sale of marketable securities                         (11,849)
 Gain on settlement of development project                    (249,894)
                                            --------------------------
                                            $(1,509,936)   $(2,581,479)
                                            ==========================

 Credit enhancement fees, net                        --     (1,844,704)
 American Racing loss                                --      2,076,991
                                            --------------------------
 Adjusted pre-tax loss                      $(1,509,936)   $(2,349,192)
                                            ==========================

Robert Sturges, Chief Executive Officer of Nevada Gold & Casinos, Inc., commented, "The Company's third quarter results reflect the significant progress we have made implementing our operating initiatives. We were very pleased to complete the sale of our interest in Isle of Capri-Black Hawk during the quarter, and look forward to moving ahead focused on compelling projects like our recently announced pending acquisition of the Horizon Casino Hotel that are well matched to our future growth strategies. We remain enthusiastic about the improvement in our balance sheet, which includes a significant reduction of our debt, an extension of the maturity date of our Revolving Credit Facility to June 2010, and the establishment of a $15 million project fund, of which we have used $2 million for deposit on the acquisition of the Horizon Casino Hotel, which will enable us to pursue similarly attractive acquisitions going forward."

Financial Results

For the third quarter of fiscal 2008, net revenues decreased to $1.4 million compared to $3.8 million in the third quarter of fiscal 2007. The revenue decrease is attributable to the elimination of $2.3 million of credit enhancement fees during January 2007 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 increased to $5.4 million from $3.5 million. The increase is primarily the result of a $2.4 million impairment of notes receivable and accrued interest related to a development project.

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 $918,000 for the third quarter ended January 27, 2008, compared to $561,000 for the same period a year ago. The Company did not record equity in earnings from American Racing during the third quarter of fiscal 2008 compared to a loss of $2.1 million for the same period a year ago. The sale of American Racing was completed during June 2007.

The net income for the third quarter of fiscal 2008 was $27.0 million compared to a net loss of $1.5 million in the third quarter of fiscal 2007. The improvement is primarily related to the $39.3 million gain on the sale of unconsolidated affiliates including the Company's interest in Isle of Capri-Black Hawk, offset by a $9.0 million increase in income tax expense and the elimination of $2.3 million of credit enhancement fees. The effective tax rate of 23.3% is due to reestablishing $4.5 million of a deferred tax assets which were fully reserved at April 29, 2007. The net income per diluted common share was $2.08, compared to a net loss per diluted common share of $0.12 in the comparable prior year period.

Diluted weighted average common shares outstanding in the third quarter were 13.0 million compared to 12.9 million in the prior year period.

James Kohn, Chief Financial Officer of Nevada Gold & Casinos, Inc. commented, "We are happy to report that as a result of the various transactions that occurred during this third quarter, our stockholders' equity per share book value has risen from $1.21 at our fiscal year end of April 29, 2007 to $3.33 at January 27, 2008. While the quarter had a number of significant items, it is important to note that on an adjusted pre-tax basis we recorded a loss of $1.5 million, an improvement of more than $800,000 compared to a year ago and we repaid over $39 million of debt."

Earnings Conference Call and Webcast

The Company will discuss third quarter financial results via the earnings conference call to be held today at 8:30 a.m. ET at www.nevadagold.com, Investor Relations, Events or by dialing (888) 820-9421 or (913) 312-1230 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 4055140. In addition, the call will be archived on the Company's website through March 14, 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 gaming 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 recently reached an agreement to acquire the Horizon Casino Hotel in Vicksburg, Mississippi pending licensing and other matters. 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         Nine Months Ended
                    ------------------------  ------------------------
                    January 27,  January 28,  January 27,  January 28,
                       2008         2007         2008         2007
                    -----------  -----------  -----------  -----------
 Revenues:
   Casino           $ 1,446,103  $ 1,417,141  $ 5,141,177  $ 4,608,249
   Food and
    beverage            271,979      246,647    1,100,990    1,000,966
   Other                 18,258       32,111       87,564      102,510
   Management fee            --       27,056       40,174      124,200
   Credit
    enhancement fee          --    2,304,796           --    6,458,342
                    -----------  -----------  -----------  -----------
     Gross revenues   1,736,340    4,027,751    6,369,905   12,294,267
     Less
      promotional
      allowances       (324,061)    (263,949)  (1,113,602)    (944,491)
                    -----------  -----------  -----------  -----------
       Net revenues   1,412,279    3,763,802    5,256,303   11,349,776

 Expenses:
   Casino               492,417      428,364    1,452,603    1,238,340
   Food and
    beverage            124,636      118,335      529,999      599,306
   Marketing and
    administrative      708,357      753,523    2,208,425    2,348,391
   Facility              92,671       74,740      276,292      246,251
   Corporate
    expense           1,259,687    1,581,033    4,009,416    4,868,959
   Legal expense        156,814      270,388      595,875    1,223,604
   Depreciation and
    amortization        175,059      276,183      579,439      812,685
   Impairment of
    unconsolidated
    affiliate                --           --      100,000           --
   Impairment of
    note receivable
    and related
    interest          2,361,702           --    2,361,702           --
   Write-off of
    notes receivable
    related to
    Native American
    gaming projects          --           --           --    3,171,958
   Write-off of
    project
    development
    cost                     --       15,000           --      388,100
   Other                 15,574       22,301       39,897       74,710
                    -----------  -----------  -----------  -----------
     Total
      operating
      expenses        5,386,917    3,539,867   12,153,648   14,972,304
                    -----------  -----------  -----------  -----------
 Operating income
  (loss)             (3,974,638)     223,935   (6,897,345)  (3,622,528)
 Non-operating
  income (expenses):
   Earnings (loss)
    from
    unconsolidated
    affiliates          917,947   (1,411,615)   4,061,415   (3,812,476)
   Gain on sale of
    unconsolidated
    affiliate        39,208,732           --   40,505,155           --
   Gain on sale of
    marketable
    securities               --       11,849           --       48,646
   Gain (loss) on
    sale of assets      (15,207)          --        3,779           --
   Gain on
    settlement of
    development
    project                  --      249,894       14,500      249,894
   Interest
    expense, net       (979,947)    (948,707)  (2,554,356)  (2,720,960)
   Minority
    interest                 --     (460,092)          --   (1,286,831)
                    -----------  -----------  -----------  -----------
 Income (loss)
  before income
  tax (expense)
  benefit            35,156,887   (2,334,736)  35,133,148  (11,144,255)
 Income tax
  (expense)
  benefit
   Current           (8,219,205)          --   (8,257,121)          --
   Deferred              16,957      845,320       16,957    4,045,646
                    -----------  -----------  -----------  -----------
     Total income
      tax expense    (8,202,248)     845,320   (8,240,164)   4,045,646
                    -----------  -----------  -----------  -----------

 Net income (loss)  $26,954,639  $(1,489,416) $26,892,984  $(7,098,609)
                    ===========  ===========  ===========  ===========

 Per share
  information:
 Net income (loss)
  per common share
  - basic           $      2.08  $     (0.12) $      2.08  $     (0.55)
                    ===========  ===========  ===========  ===========
 Net income (loss)
  per common share
  - diluted         $      2.08  $     (0.12) $      2.08  $     (0.55)
                    ===========  ===========  ===========  ===========

 Basic weighted
  average number
  of common shares
  outstanding        12,939,130   12,937,427   12,939,130   12,937,004
                    ===========  ===========  ===========  ===========
 Diluted weighted
  average number
  of common shares
  outstanding        12,939,130   12,937,427   12,946,398   12,937,004
                    ===========  ===========  ===========  ===========


                     Nevada Gold & Casinos, Inc.
                     Consolidated Balance Sheets

                                            January 27,     April 29,
                                               2008           2007
                                            -----------    -----------
                                            (unaudited)

                       ASSETS
 Current assets:
 Cash and cash equivalents                  $ 9,324,075    $ 2,803,560
 Restricted cash                             13,014,000      1,050,000
 Accounts receivable                            379,220        397,145
 Accounts receivable - affiliates                60,006        124,685
 Prepaid expenses                               516,447        474,933
 Prepaid interest                                91,183             --
 Notes receivable, current portion            1,100,000             --
 Notes receivable - development projects,
  current portion                                    --      1,357,904
 Other current assets                            54,606         55,055
                                            -----------    -----------
   Total current assets                      24,539,537      6,263,282
                                            -----------    -----------
 Investments in unconsolidated affiliates     4,670,120     35,201,419
 Investments in unconsolidated affiliates
  held for sale                                      --        400,489
 Investments in development projects          2,508,625        323,202
 Investments in development projects
  held for sale                               3,437,932      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                     17,868,104     18,012,737
 Goodwill                                     5,462,918      5,462,918
 Property and equipment, net of
  accumulated depreciation of $1,741,354
  and $1,281,191 at January 27, 2008 and
  April 29, 2007, respectively                1,505,966      2,063,026
 Deferred tax asset                              16,957             --
 Other assets                                 5,075,855      4,868,442
                                            -----------    -----------
 Total assets                               $69,707,080    $80,031,346
                                            ===========    ===========

     LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
 Accounts payable and accrued liabilities   $ 1,822,868    $ 1,540,781
 Accrued interest payable                            --         21,211
 Other accrued liabilities                      289,641        378,937
 Guaranty liabilities                                --      4,610,000
 Taxes payable                                8,219,234             --
 Long-term debt, current maturities               7,802      2,066,518
                                            -----------    -----------
   Total current liabilities                 10,339,545      8,617,447
                                            -----------    -----------

 Long-term debt, net of current maturities   15,565,125     55,021,031
 Deferred income                                     --          8,591
 Other liabilities                              671,292        742,991
                                            -----------    -----------
   Total liabilities                         26,575,962     64,390,060
                                            -----------    -----------

 Commitments and contingencies                       --             --

 Stockholders' equity:
 Common stock, $0.12 par value per share;
  50,000,000 shares authorized;
  13,935,330 shares issued and 12,939,130
  outstanding at January 27, 2008 and
  April 29, 2007, respectively                1,672,240      1,672,240
 Additional paid-in capital                  19,079,296     18,484,448
 Retained earnings                           32,587,072      5,694,088
 Treasury stock, 996,200 shares at
  January 27, 2008 and April 29, 2007,
  at cost                                   (10,216,950)   (10,216,950)
 Accumulated other comprehensive income           9,460          7,460
                                            -----------    -----------
   Total stockholders' equity                43,131,118     15,641,286
                                            -----------    -----------
 Total liabilities and stockholders'
  equity                                    $69,707,080    $80,031,346
                                            ===========    ===========

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