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Nevada Gold & Casinos Enters New Indian Gaming Venture

Route 66 Casinos, LLC is owned 51% by Nevada Gold & Casinos and 49% by The Gillmann Group. The joint venture will assume the gaming equipment contracts between The Gillmann Group and Laguna Development Corporation (LDC), a federally chartered corporation wholly owned by the Pueblo of Laguna. The Pueblo of Laguna is the second largest pueblo in New Mexico, and currently operates the Dancing Eagle Casino located 44 miles from Albuquerque, and a temporary casino that they intend to replace with the new Route 66 Casino.

Nevada Gold & Casinos, Inc. President and CEO, H. Thomas Winn said, "This is an exciting project for our company and we value the opportunity to work with our partner, The Gillmann Group, an experienced developer of Native American gaming projects. We look forward to the Route 66 Casino providing a uniquely nostalgic entertainment complex that captures the adventurous spirit and history of Route 66."

The gaming equipment agreements include a five-year contract for 1,250 gaming devices to be placed in the Route 66 Casino, a one-year contract for 100 gaming devices in the existing temporary casino, and a contract that runs through February 2004 for 45 gaming devices in the existing Dancing Eagle Casino. The 100 gaming devices will be moved to the Route 66 Casino upon completion and are included in the 1,250 gaming device contract. Route 66 Casino, LLC expects to receive, on average, approximately 16% of gross revenue from the gaming contracts, based on current projections.

The joint venture will provide project financing assistance for the construction of the Route 66 Casino, currently budgeted at approximately $60 million. Scheduled to open in 2003, the facility will be approximately 165,000 square feet. Pueblo of Laguna's land is adjacent to I-40, the original Route 66-once termed "The Main Street of America" and made famous by the TV series Route 66. In addition to the 1,250 slot machines, the casino will include 20 table games, a bingo hall with 750 seats, a 2,800-seat theatre/ entertainment/ special events venue, a cabaret lounge, multiple food, beverage, and retail outlets, plus ample paved parking for trucks and automobiles.

Nevada Gold & Casinos, Inc. of Houston, Texas is a developer of gaming properties, and has real estate interests in Colorado, California, Nevada, and New York. UWN owns a 43% interest in The Isle of Capri-Black Hawk, a 237-room hotel/casino about 35 miles west of Denver, through a joint venture with Isle of Capri Casinos, Inc. (Nasdaq: ISLE).

Also, UWN has 51% ownership of Dry Creek Casino LLC, which is assisting the Dry Creek Band of Pomo Indians in developing the River Rock Casino, Alexander Valley-planned for opening in 2002 in Sonoma County (about 70 miles north of San Francisco in the California wine country).

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