Nevada Gold & Casinos Announces Second Quarter Results

HOUSTON, Nov. 9 /PRNewswire-FirstCall/ --

Nevada Gold & Casinos, Inc.

(AMEX:UWN) today announced financial results for the second quarter of fiscal

2005 ended September 30, 2004.

For the second quarter of fiscal 2005, revenues decreased to $1.5 million

compared to $2.7 million in the second quarter of fiscal 2004. The revenue

decrease was primarily due to a $785,000 decrease in interest income related to

a lower balance in outstanding notes receivable from the River Rock project, as

well as a $343,000 decrease in credit enhancement fee income from River Rock,

most of which was due to a one-time audit adjustment to River Rock's financial

statements resulting in a decrease of $320,000 in Nevada Gold's credit

enhancement fee income.

The Company's equity in earnings from Isle of Capri-Black Hawk (IC-BH), the

company's joint venture with Isle of Capri Casinos, decreased to $1.7 million

from $2.7 million in the prior year period. IC-BH's second quarter earnings

before interest, taxes, depreciation and amortization ("EBITDA"), was $9.6

million compared to $13.3 million in the prior year period. A reconciliation

of EBITDA to operating income is provided in the attached financial statements.

The decrease in earnings and EBITDA is primarily attributable to the

construction disruption related to the expansion project at the joint venture's

two properties in Black Hawk.

Net income for the second quarter was $1.1 million compared to $1.8 in the

second quarter of fiscal 2003. Net income per diluted common share was $0.08,

compared to $0.15 in the prior year period. Diluted weighted average common

shares outstanding in the second quarter were 14.7 million compared to 15.6

million in the prior year period.

H. Thomas Winn, Chairman, President & CEO of Nevada Gold & Casinos, Inc.

commented, "While our second quarter was less than we had hoped for, we are

excited about the current status of the Company. With a number of new projects

in the pipeline, the expansion project at River Rock nearly completed and major

enhancements to the Black Hawk properties on their way, we are very

enthusiastic about the future."

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.

NEVADA GOLD & CASINOS, INC.

Consolidated Statements of Operations

(Unaudited)

Three Months Ended

September 30,

2004 2003

Revenues

Gaming asset participation income:

Dry Creek Casino, L.L.C. $1,065,868 $1,408,750

Other income:

Interest income 460,836 1,245,651

Royalty income 16,903 15,134

Miscellaneous income --- 19,330

Total Revenues 1,543,607 2,688,865

Expenses

General and administrative 231,617 211,621

Interest expense 378,471 1,044,487

Salaries 555,137 286,551

Legal and professional fees 375,052 528,291

Amortization of deferred loan issue cost 53,265 (149,663)

Write-off of project development costs --- 23,403

Other 71,710 46,678

Total Expenses 1,665,252 1,991,368

Equity in earnings of Isle of Capri-Black Hawk 1,650,838 2,657,101

Equity in earnings of Route 66 Casinos, L.L.C. 414,537 192,300

Minority interest - Dry Creek Casino, L.L.C. (158,881) (215,632)

Income before income tax provision 1,784,849 3,331,266

Federal income tax provision - deferred (678,242) (1,147,355)

Net Income $1,106,607 $2,183,911

Per Share Information

Net income per common share - basic $ 0.08 $ 0.19

Net income per common share - diluted $ 0.08 $ 0.15

Basic weighted average number of

common shares outstanding 13,038,239 11,251,185

Fully diluted weighted average number of

common shares outstanding 14,664,122 15,628,252

NEVADA GOLD & CASINOS, INC.

Consolidated Statements of Operations

(Unaudited)

Six Months Ended

September 30,

2004 2003

Revenues

Gaming asset participation income:

Dry Creek Casino, L.L.C. $2,417,135 $1,709,208

Other income:

Interest income 926,401 2,553,300

Royalty income 33,805 28,634

Miscellaneous income --- 34,975

Total Revenues 3,377,341 4,326,117

Expenses

General and administrative 491,361 371,426

Interest expense 818,399 2,061,906

Salaries 956,457 560,155

Legal and professional fees 681,047 842,317

Amortization of deferred loan issue cost 228,989 (7,040)

Write-off of project development costs 180,850 23,403

Other 98,846 68,886

Total Expenses 3,455,949 3,921,053

Equity in earnings of Isle of Capri-Black Hawk 4,039,218 5,490,448

Equity in earnings of Route 66 Casinos, L.L.C. 846,142 218,274

Minority interest - Dry Creek Casino, L.L.C. (361,825) (268,924)

Income before income tax provision 4,444,927 5,844,862

Federal income tax provision - deferred (1,614,326) (1,987,078)

Net Income $2,830,601 $3,857,784

Per Share Information

Net income per common share - basic $ 0.22 $ 0.34

Net income per common share - diluted $ 0.20 $ 0.26

Basic weighted average number of

common shares outstanding 12,780,421 11,211,676

Fully diluted weighted average number of

common shares outstanding 14,930,353 15,465,796

Isle of Capri Black Hawk L.L.C.

Comparative Financial Highlights by Casino Property

(In thousands)

Three Months Ended

October 24, 2004 October 26, 2003

Adjusted Adjusted

Net Adjusted EBITDA Net Adjusted EBITDA

Revenues EBITDA Margin Revenues EBITDA Margin %

(A) (B) % (B) (C) (B) % (B)

Isle-Black Hawk (C) 25,548 8,852 34.6% 27,473 9,900 6.0%

Colorado Central

Station (C) (D) 8,073 409 5.1% 11,641 2,684 23.1%

Colorado Grande

Colorado Total 35,572 9,626 27.1% 41,395 13,271 32.1%

Six Months Ended

October 24, 2004 October 26, 2003

Adjusted Adjusted

Net Adjusted EBITDA Net Adjusted EBITDA

Revenues EBITDA Margin Revenues EBITDA Margin %

(A) (B) % (B) (A) (B) (B)

Isle-Black Hawk (C) 51,845 19,038 36.7% 55,553 20,549 37.0%

Colorado Central

Station (C) (D) 16,416 930 5.7% 23,660 5,244 22.2%

Colorado Grande

Colorado Total 72,364 20,846 28.8% 83,531 26,994 32.3%

Isle of Capri Black Hawk L.L.C.

Reconciliation of Operating Income (Loss) to Adjusted EBITDA by Casino

Property

(In thousands)

Three Months Ended October 24, 2004

Depreciation Operating

Adjusted & Operating Income (Loss)

EBITDA (B) Amortization Income Margin % (E)

Isle-Black Hawk (C) 8,852 1,758 7,094 27.8%

Colorado Central

Station (C) (D) 409 661 (252) -3.1%

Colorado Grande (C) (D) 365 109 256 13.1%

Colorado Total 9,626 2,528 7,098 20.0%

Three Months Ended October 26, 2003

Depreciation Operating

Adjusted & Operating Income (Loss)

EBITDA (B) Amortization Income Margin % (E)

Isle-Black Hawk (C) 9,900 1,709 8,191 29.8%

Colorado Central

Station (C) (D) 2,684 332 2,352 20.2%

Colorado Grande (C) (D) 687 71 616 27.0%

Colorado Total 13,271 2,112 11,159 27.0%

Isle of Capri Black Hawk L.L.C.

Reconciliation of Operating Income (Loss) to Adjusted EBITDA by Casino

Property

(In thousands)

Six Months Ended October 24, 2004

Depreciation Operating

Adjusted & Operating Income (Loss)

EBITDA (B) Amortization Income Margin % (E)

Isle-Black Hawk (C) 19,038 3,474 15,564 30.0%

Colorado Central

Station (C) (D) 930 1,228 (298) -1.8%

Colorado Grande (C) (D) 878 210 668 16.3%

Colorado Total 20,846 4,912 15,934 22.0%

Six Months Ended October 26, 2003

Depreciation Operating

Adjusted & Operating Income (Loss)

EBITDA (B) Amortization Income Margin % (E)

Isle-Black Hawk (C) 20,549 3,443 17,106 30.8%

Colorado Central

Station (C) (D) 5,244 701 4,543 19.2%

Colorado Grande (C) (D) 1,201 141 1,060 24.5%

Colorado Total 26,994 4,285 22,709 27.2%

(A) Net revenues are presented net of complimentaries, slot points

expense and cash coupon redemptions.

(B) EBITDA is "earnings before interest, income taxes, depreciation and

amortization." Adjusted EBITDA for each property was calculated by

adding preopening expense, management fees and non-cash items to

EBITDA. Adjusted EBITDA is presented solely as a supplemental

disclosure because management believes that it is 1) a widely used

measure of operating performance in the gaming industry, and 2) a

principal basis for valuation of gaming companies. Management uses

property level Adjusted EBITDA (Adjusted EBITDA before corporate

expense) as the primary measure of the properties' performance.

Adjusted EBITDA should not be construed as an alternative to

operating income, as an indicator of the Company's operating

performance; or as an alternative to any other measure determined in

accordance with accounting principles generally accepted in the

United States. The properties have significant uses of cash flows,

including capital expenditures, interest payments, taxes and debt

principal repayment, which are not reflected in Adjusted EBITDA.

Also, other gaming companies that report Adjusted EBITDA information

may calculate Adjusted EBITDA in a different manner than the

Company. Adjusted EBITDA Margin is calculated by dividing Adjusted

EBITDA by net revenue. Reconciliations of operating income to

Adjusted EBITDA are included in the financial schedules accompanying

this release.

Station-Black Hawk and the Colorado Grande-Cripple Creek, does not

include management fees. The following table shows management fees

and Adjusted EBITDA inclusive of management fees for the three

months and six months ended October 24, 2004, and October 26, 2003:

Three Months Ended Six Months Ended

October 24, October 26, October 24, October 26,

2004 2003 2004 2003

(In thousands)

Management Fees

Isle - Black Hawk $ 1,204 $ 1,244 $ 2,472 $ 2,508

Colorado Central

Station 255 358 519 901

Colorado Grande 89 110 190 212

Adjusted EBITDA with

Management Fees

Isle - Black Hawk 7,648 8,656 16,566 18,041

Colorado Central

Station 154 2,326 411 4,343

Colorado Grande 276 577 688 989

(D) The Isle of Capri Black Hawk L.L.C. acquired these properties on

April 22, 2003.

(E) Operating income margin was calculated by dividing operating income

by net revenue.

NEVADA GOLD & CASINOS, INC.

Consolidated Balance Sheets

September 30, March 31,

2004 2004

Assets (Unaudited) (Audited)

Current Assets

Cash and cash equivalents $3,743,344 $3,528,631

Accounts receivable 461,858 216,322

Income tax receivable 2,522,000 2,522,000

Notes receivable from affiliates,

current portion 1,500,000 1,200,000

Other assets 326,497 79,272

Total Current Assets 8,553,699 7,546,225

Joint ventures in equity investees:

Isle of Capri Black Hawk, L.L.C. 17,666,772 15,708,324

Route 66 Casinos, L.L.C. 2,689,310 1,852,828

Sunrise Land and Mineral Corporation 371,750 371,750

Investments in development and

operating projects:

Dry Creek Casino, L.L.C., gaming 1,218,115 1,264,164

Nevada Gold Tulsa, Inc., gaming 1,060,929 744,617

Gold River, L.L.C., gaming 315,748 19,770

Gold Mountain Development, L.L.C.,

real estate 3,355,600 3,342,207

Goldfield Resources, Inc., mining 480,812 480,812

Other assets - gaming 429,055 414,571

Notes receivable from Dry Creek Rancheria 10,000,000 10,000,000

Notes receivable from affiliates 3,351,459 3,839,586

Notes receivable - gaming projects 3,592,423 ---

Deferred loan issue cost, net 383,933 285,450

Deferred tax asset 1,407,340 ---

Furniture, fixtures and equipment, net

of accumulated depreciation

of $133,372 at September 30, 2004

and $124,609 at March 31, 2004 100,202 80,753

Total Assets $54,977,147 $45,951,057

Liabilities and Stockholders' Equity

Current Liabilities

Accounts payable and accrued liabilities $861,555 $1,205,241

Deferred tax liability --- 2,517,678

Current portion of long-term debt 3,272,500 ---

Total Current Liabilities 4,134,055 3,722,919

Long-Term Debt

Deferred income 71,111 145,833

Convertible Note, net of discount 3,225,169 11,029,266

Term Note payable, net of current portion 3,272,500 ---

Note payable on credit facility 10,915,671 ---

Total Long-Term Debt 17,484,451 11,175,099

Total Liabilities 21,618,506 14,898,018

Commitments and Contingencies --- ---

Minority interest - Dry Creek Casino, L.L.C. 284,619 253,719

Stockholders' Equity

Common stock, $0.12 par value,

20,000,000 shares authorized, 13,342,103

and 12,279,352 shares outstanding at

September 30, 2004, and March 31, 2004,

respectively 1,601,052 1,473,522

Additional paid in capital 20,788,588 19,256,200

Treasury Stock, 214,900 shares, at cost (2,366,449) ---

Retained earnings 13,092,056 10,261,455

Accumulated other comprehensive loss (41,225) (191,857)

Total Stockholders' Equity 33,074,022 30,799,320

Total Liabilities and

Stockholders' Equity $54,977,147 $45,951,057

About Nevada Gold & Casinos

Nevada Gold & Casinos, Inc. of Houston, is a developer of gaming properties,

and has real estate interests in Colorado, California, and Nevada. UWN owns a

43% interest in The Isle of Capri-Black Hawk LLC, which owns Isle of Capri

Casino, a 237-room hotel/casino and Colorado Central Station Casino (both

located in Black Hawk, Colorado, about 35 miles west of Denver) and Colorado

Grande Casino, located in Cripple Creek, Colorado. The LLC is a joint venture

with Isle of Capri Casinos, Inc. (NASDAQ:ISLE). UWN has 69% ownership of Dry

Creek Casino, LLC, which is assisting the Dry Creek Rancheria Band of Pomo

Indians with their River Rock Casino, Alexander Valley, Sonoma County,

California (about 75 miles north of San Francisco in the California wine

country). UWN has 51% ownership of Route 66 Casinos, LLC, which has the right

to lease gaming equipment to the Pueblo of Laguna in their Route 66 Casino 11

miles west of Albuquerque, N.M., which opened in September 2003. Nevada Gold

Tulsa, Inc., a wholly-owned subsidiary, has entered into a contract to develop

and manage a casino for the Muscogee (Creek) Nation in Tulsa, Oklahoma. Also,

Gold River, LLC, a wholly-owned subsidiary of UWN, has entered into a

development agreement for a gaming resort in Pauma Valley, California for the

La Jolla Band of Luiseno Indians. The management agreement for La Jolla is

currently being finalized and is expected to be completed in the near future.

Nevada Gold recently signed a Memorandum of Agreement with the Timbisha

Shoshone Tribe to manage a proposed casino in Hesperia, California. For more

information, visit http://www.nevadagold.com/ ./

CONTACT: Nevada Gold & Casinos, Inc., Houston

H. Thomas Winn or Christopher Domijan, 713-621-2245

Integrated Corporate Relations

Don Duffy 203-222-9013

DATASOURCE: Nevada Gold & Casinos, Inc.

CONTACT: H. Thomas Winn or Christopher Domijan, both of Nevada Gold &

Casinos, Inc., +1-713-621-2245; or Don Duffy of Integrated Corporate

Relations, +1-203-222-9013

Web site: http://www.nevadagold.com/