Nevada Gold & Casinos Announces Fourth Quarter and Fiscal 2008 Results

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1 Nevada Gold & Casinos Announces Fourth Quarter and Fiscal 2008 Results Company Signs Non-Binding Letter of Intent to Sell Restaurant Connections International HOUSTON, July 24, Nevada Gold & Casinos, Inc. (AMEX:UWN) today announced financial results for the fourth quarter and fiscal year ended April 27, For the fourth quarter of fiscal 2008 the Company recorded a net loss of $2.2 million compared to a net loss of $1.9 million in the fourth quarter of fiscal 2007 despite a $2.0 million writeoff of a note receivable and accrued interest related to the La Jolla development project, $0.2 million of loss on extinguishment of debt and recording no earnings from unconsolidated affiliates. The Company recorded a net loss per diluted common share of $0.17 compared to a net loss per diluted common share of $0.14 in the prior year period. Net revenues decreased to $1.5 million compared to $1.7 million in the fourth quarter ended April 29, The net loss before income tax expense for the fourth quarter of fiscal 2008 was $3.4 million compared to income before income tax of $4.0 million in the fourth quarter of fiscal The Company also announced it has signed a non-binding Letter of Intent to sell Restaurant Connections International, Inc. ("RCI"), a company that owns 16 Pizza Huts in Sao Paulo, Brazil. Exact terms have not been disclosed, but the proceeds are expected to exceed the $4.7 million debt owed to Nevada Gold as part of a previously announced settlement agreement with RCI. The transaction is subject to customary closing conditions. Robert Sturges, Chief Executive Officer of Nevada Gold & Casinos, Inc., commented, "We are pleased with our accomplishments in the fourth quarter and throughout fiscal 2008, from both financial and operational perspectives. We have made significant progress disposing of non-core assets, and believe that with legacy issues largely behind us, we are well positioned to focus on a streamlined, growth-oriented portfolio of projects that will ultimately return value to our shareholders. We are excited to move forward with our pending acquisition of the Horizon Casino Hotel, and believe that the improvement in our balance sheet will serve us very well as we look to execute similarly compelling acquisitions in the future." Financial Results For the fourth quarter of fiscal 2008, net revenues decreased to $1.5 million compared to $1.7 million in the fourth quarter of fiscal The revenue decrease is attributable to the impact on our Colorado Grande Casino of the statewide smoking ban enacted in January Operating expenses increased to $4.8 million from $4.6 million despite the $2.0 million writeoff of notes receivable and related accrued interest and $0.2 million loss on extinguishment of debt noted above. The Company did not record equity in earnings from Isle of Capri-Black Hawk during the fourth quarter of fiscal 2008 compared to $1.4 million for the fourth quarter of fiscal The sale of Isle of Capri-Black Hawk was completed January 27, The Company also did not record equity in earnings from American Racing during the fourth quarter of fiscal 2008 compared to a loss of $1.0 million for the same period a year ago. The sale of American Racing was completed during June The net loss for the fourth quarter of fiscal 2008 was $2.2 million compared to a net loss of $1.9 million in the fourth quarter of fiscal The increase in net loss is primarily related to the $2.0 million writeoff offset by the recognition of no equity in earnings from the Isle of Capri-Blackhawk. The net loss per basic and diluted common share for the fourth quarter was $0.17, compared to a net loss per basic and diluted common share of $0.14 in the comparable prior year period. Basic and diluted weighted average common shares outstanding in the fourth quarters of each fiscal year was 12.9 million. Conference Call and Webcast The Company will discuss fourth quarter financial results via the conference call to be held today at 5:00 p.m. ET at Investor Relations, Events or by dialing (888) or (913) for international callers. If you are unable to participate, the conference call replay will be available by dialing (888) or (719) for

2 international callers. The replay access code is The replay will be available until July 31, 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 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. Colorado Grande Casino in Cripple Creek, Colorado is wholly owned and operated by Nevada Gold. The Company recently reached an agreement to acquire the Horizon Casino Hotel in Vicksburg, Mississippi. The Company also works with Native American tribes in a variety of capacities. Native American projects consist of 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 The Nevada Gold & Casinos, Inc. logo is available at Nevada Gold & Casinos, Inc. Consolidated Statements of Operations April 27, April 29, April 30, Revenues: Casino $ 6,636,652 $ 6,253,491 $ 5,653,340 Food and beverage 1,414,423 1,295,157 1,471,816 Other 101, , ,078 Credit enhancement and management fees 40,174 6,651,304 7,348,651 Gross revenues 8,192,452 14,353,257 14,599,885 Less promotional allowances (1,459,539) (1,294,458) (1,450,664) Net revenues 6,732,913 13,058,799 13,149,221 Operating expenses: Casino 1,935,791 1,655,837 2,566,306 Food and beverage 674, , ,703 Marketing and administrative 2,900,887 3,094,554 1,935,257 Facility 377, , ,304 Corporate expense 5,001,190 7,203,198 5,778,507 Legal expenses 871,428 1,489,967 1,668,311 Depreciation and amortization 743,783 1,112,718 1,018,699 Write-off of notes receivable related to gaming projects 4,335,243 3,235,297 1,574,452 Impairment of equity investment , Write-off of project development cost , ,653 Other 67,439 85, ,266 Total operating expenses 16,908,330 19,543,115 16,094,458 Operating loss (10,175,417) (6,484,316) (2,945,237) Non-operating income

3 (expenses): Earnings (loss) from unconsolidated affiliates 4,055,446 (3,405,539) 6,917,818 Gain on sale of equity in investments, marketable securities and assets, net 40,715,552 42, ,948 Gain on termination of development contract , Gain on termination of development and loan agreement -- 10,264, Interest expense, net (2,620,983) (3,553,052) (2,248,550) Loss on extinguishment of debt (203,160) Minority interest -- (4,301,050) (1,308,867) Income (loss) before income tax expense 31,771,438 (7,192,226) 583,112 Income tax expense Current 9,949, , Deferred and change in valuation allowance (1,885,726) 1,592, ,251 Total income tax expense 8,063,636 1,763, ,251 Net income (loss) $23,707,802 $(8,955,400) $ 371,861 Per share information: Net income (loss) per common share - basic $ 1.83 $ (0.69) $ 0.03 Net income (loss) per common share - diluted $ 1.83 $ (0.69) $ 0.03 Basic weighted average number of shares outstanding 12,939,130 12,937,222 12,975,697 Diluted weighted average number of shares outstanding 12,945,151 12,937,222 13,243,750 Nevada Gold & Casinos, Inc. Consolidated Balance Sheets April 27, April 29, ASSETS Current assets: Cash and cash equivalents $ 1,396,313 $ 2,803,560 Restricted cash 13,014,000 1,050,000 Accounts receivable 2,313, ,145 Accounts receivable - affilates 57, ,685 Prepaid expenses 369, ,933 Notes receivable, current portion 1,100, Notes receivable - development projects, current portion -- 1,357,904 Other current assets 54,446 55,055 Total current assets 18,304,736 6,263,282

4 Investments in unconsolidated affiliates 154,969 35,201,419 Investments in unconsolidated affiliates held for sale ,489 Investments in development projects 2,407, ,202 Investments in development projects held for sale 3,437,932 3,914,765 Notes receivable 1,100, Notes receivable - affiliates 3,521,066 3,521,066 Notes receivable - development projects, net of current portion 16,510,200 18,012,737 Goodwill 5,462,918 5,462,918 Property and equipment, net of accumulated depreciation of $1,808,883 and $1,281,191 at April 27, 2008 and April 29, 2007, respectively 1,327,275 2,063,026 Deferred tax asset 1,885, Other assets 6,780,317 4,868,442 Total assets $ 60,892,701 $ 80,031,346 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $ 1,097,277 $ 1,540,781 Accrued interest payable 115,027 21,211 Other accrued liabilities 203, ,937 Guaranty liabilities -- 4,610,000 Taxes payable 3,911, Long-term debt, current portion -- 2,066,518 Total current liabilities 5,326,850 8,617,447 Long-term debt, net of current portion and discount 15,550,000 55,021,031 Deferred income -- 8,591 Other liabilities 56, ,991 Total liabilities 20,933,355 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 shares outstanding at April 27, 2008 and April 29, 2007, respectively 1,672,240 1,672,240 Additional paid-in capital 19,092,706 18,484,448 Retained earnings 29,401,890 5,694,088 Treasury stock, 996,200 shares at April 27, 2008 and April 29, 2007, (10,216,950) (10,216,950) Accumulated other comprehensive income 9,460 7,460 Total stockholders' equity 39,959,347 15,641,286 Total liabilities and stockholders' equity $ 60,892,701 $ 80,031,346 CONTACT: Nevada Gold & Casinos, Inc. Robert B. Sturges (713)

5 ICR, Inc. Don Duffy (203)