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Global Casinos Restructures Debt

BOULDER, Colorado -- (PRESS RELEASE) -- Global Casinos, Inc. (OTCBB: GBCS) announced that it completed a $500,000 private debt offering.

Proceeds from the debt were used by Casinos USA, a subsidiary of the Company, to retire a promissory note payable to Astraea Investment Management LP ("Astraea"). Furthermore, the Company redeemed an option held by Astraea to purchase 100% of the common stock of Casinos USA. The option gave Astraea the right to purchase the Company's only operating casino for $100.

The $500,000 private debt offering consists of a convertible debenture bearing interest at 12% and convertible into Global Casinos' common stock ($0.05 par value) at the rate of $0.50 per share. The offering includes warrants to purchase 500,000 shares of Global's common stock at an exercise price of $0.15 per share. The warrants are exercisable for a period of fifteen months.

Frank L Jennings, president, said: "These two transactions are an integral part of our financial restructuring program. Redemption of the option removes a significant risk factor for our Company. During 2005, we will continue our efforts to improve the balance sheet."

Global Casinos, Inc. is the parent company of Casinos USA, Inc. which owns and operates the Bull Durham Saloon and Casino located in the limited stakes gaming district of Black Hawk, Colorado.

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