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Nevada Gold & Casinos Results Down

HOUSTON, Texas – (PRESS RELEASE) -- 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."

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