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Tioga Downs Gets Loan

HOUSTON, Texas – (PRESS RELEASE) -- Nevada Gold & Casinos, Inc. (AMEX:UWN), today announced that Tioga Downs Racetrack has obtained a bridge loan from RCG Longview II, L.P. in the principal amount of $20,000,000. The Loan is secured by Tioga Downs Racetrack LLC's interest in the Tioga Downs Racetrack, as well as an assignment of income and revenue from the Tioga Downs Racetrack.

Nevada Gold & Casinos, Inc., through its subsidiary Nevada Gold NY, Inc., owns a 40% membership interest in American Racing and Entertainment, LLC, which owns the Tioga Downs Racetrack located in Nichols, New York.

The Loan requires monthly payments of interest only and matures April 1, 2007 when all principal and interest becomes due and payable in full. Tioga Downs Racetrack, LLC, paid a 2% commitment fee for the Loan and is required to pay an exit fee of 1% of the principal amount when paid.

A principal owner of Southern Tier Acquisitions II, LLC, a member of American Racing, has guaranteed the principal, interest and other expenses payable under the Loan documents. The Amended and Restated Operating Agreement of American Racing provides that each member of American Racing, including Nevada Gold NY, Inc., shall reimburse the Guarantor for any payments it is required to make under the Guaranty, limited to their respective percentage interest.

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