Nevada Gold & Casinos (UWN) 8-K Nevada Gold Announces Second Quarter Results

NEVADA GOLD ANNOUNCES SECOND QUARTER RESULTS

Continues To Grow Operating Assets

Houston, TX - November 30, 2005 - Nevada Gold & Casinos, Inc. (AMEX: UWN) today announced financial results for the second quarter ended October 23, 2005.

For the second quarter of fiscal 2006, net revenues increased to $3.3 million compared to $1.1 million in the second quarter ended September 30, 2004. The net revenue increase was primarily due to $1.4 million in casino revenues and $478,000 in food and beverage revenues recorded during the second quarter from the Colorado Grande Casino-Cripple Creek, which the Company acquired during April 2005. In addition, revenues increased as a result of a $670,000 or 63% increase in credit enhancement fees from the River Rock project.

Operating expenses increased to $3.3 million from $1.2 million primarily as a result of the inclusion of the casino operations, food and beverage, marketing and administrative, and facility expenses from the Colorado Grande Casino-Cripple Creek and higher corporate expenses. The Company experienced higher corporate expenses due to its pursuit of additional gaming opportunities as well as its internal efforts to develop a more substantial casino operations team.

The Company’s equity in earnings from Isle of Capri-Black Hawk (IC-BH), the Company’s joint venture with Isle of Capri Casinos, Inc. was $1.9 million for the second quarter ended October 23, 2005, compared to $1.7 million for the second quarter of fiscal 2004. IC-BH’s second quarter adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”), was $12.6 million in the second quarter of fiscal 2006 compared to $9.3 million in the second quarter of fiscal 2005. A reconciliation of adjusted EBITDA to net income is provided in the attached financial statements.

Net income for the second quarter of fiscal 2006 was $1.0 million compared to $1.1 million in the second quarter of fiscal 2005. Net income per diluted common share was $0.08, compared to $0.08 in the prior year period. Diluted weighted average common shares outstanding in the second quarter were 13.6 million compared to 14.7 million in the prior year period. During the second quarter of fiscal 2006, the Company repurchased 109,000 shares of the Company’s common stock in the open market.

H. Thomas Winn, Chairman and CEO commented, “During the second quarter we made significant progress in our transition to an operating company. We made several important additions to our team including Jon Arnesen as President and COO, we formed American Racing and Entertainment, L.L.C. to develop and operate racetracks and video lottery terminal operations in New York, and we are continuing to enhance our operational infrastructure to best position the Company for growth. The next two years will be the busiest in our history as we plan on bringing on several projects including Tioga Downs, the Muscogee (Creek) Nation Casino, the LaJolla Band of Luiseño Indians casino and Vernon Downs, if it is acquired by American Racing.”

Financial Presentation

In presenting these results, the Company noted that on June 6, 2005, it changed its fiscal year end to the last Sunday in April rather than March 31. The Company did not submit financial information for the three months period ended October 24, 2004 in its Form 10-Q because the information was not practical or cost beneficial to prepare. References in this press release to the second quarter of fiscal year 2006 represents the three months ending October 23, 2005, and references to the second quarter of fiscal year 2005 represents the three months ending September 30, 2004. Management believes that the three months ended September 30, 2004 provides a meaningful comparison to the second quarter of fiscal year 2006.

Earnings Conference Call and Webcast

The Company will discuss second quarter financial results via the earnings conference call to be held at 3:30 p.m. CST today via the internet at www.nevadagold.com, Investor Relations, Events. If you are unable to participate during the live webcast, the conference call replay will be available by dialing 1-888-203-1112 or 1-719-457-0820 for international callers. Replay Pin Number 4629979. In addition, the call will be archived on the Company’s website, http://www.nevadagold.com, through December 7, 2005.

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.

About Nevada Gold & Casinos

Nevada Gold & Casinos, Inc. (AMEX:UWN) of Houston, Texas is a developer, owner and operator of gaming facilities and lodging and entertainment facilities in Colorado, California, Oklahoma, New York and New Mexico. The Company owns a 43% interest in the Isle of Capri-Black Hawk, L.L.C., which owns Isle of Capri-Black Hawk and Colorado Central Station, both of which are in Black Hawk, Colorado. Colorado Grande Casino in Cripple Creek, Colorado is wholly owned and operated by Nevada Gold. The Company owns a 50% interest in the Tioga Downs Racetrack in New York and has a management contract for the facility. The Company also works with Native American tribes in a variety of capacities from the right to lease gaming equipment to development and management of their gaming properties. Native American projects consist of River Rock Casino in Sonoma County, California, Route 66 Casino west of Albuquerque, New Mexico, a casino to be built in Tulsa, Oklahoma for the Muscogee (Creek) Nation, a casino to be built in Pauma Valley, California for the La Jolla Band of Luiseño Indians and a casino to be developed by Buena Vista Development Company, L.L.C. in the city of Ione, California for Buena Vista Rancheria of Me-Wuk Indians. For more information, visit http://www.nevadagold.com.

Nevada Gold & Casinos, Inc.

Consolidated Balance Sheets

	October 23,			March 31,
	2005			2005
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	4,551,289		$	3,846,195
Accounts receivable		976,992			794,435
Notes receivable - affiliates, current portion		1,200,000			1,200,000
Income tax receivable		--			113,288
Other current assets		2,009,961			312,220
Total current assets		8,738,242			6,266,138
Investments in unconsolidated affiliates		26,792,794			21,647,329
Investments in development projects		7,065,564			6,801,637
Notes receivable - affiliates, net of current portion		2,566,412			2,777,136
Notes receivable - development projects		24,420,281			6,562,323
Goodwill		6,350,705			--
Property and equipment, net of accumulated depreciation
of $191,315 and $73,408 at October 23, 2005 and
March 31, 2005, respectively		2,575,907			110,549
Deferred tax asset		--			618,282
Other		1,294,674			547,120
Total assets	$	79,804,579		$	45,330,514
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	2,396,444		$	1,029,877
Accrued interest payable		256,063			20,453
Other accrued liabilities		596,702			--
Long-term debt, current portion		4,646,483			3,317,499
Deferred tax liability		1,012,620			--
Total current liabilities		8,908,312			4,367,829
Long-term debt, net of current portion and discount		40,812,247			9,632,773
Deferred income		568,757			178,835
Total liabilities		50,289,316			14,179,437
Commitments and contingencies		--			--
Minority interest		443,030			299,884
Stockholders' equity:
Common stock, $0.12 par value per share; 25,000,000
shares authorized; 13,417,703 and 12,755,203 shares
issued and outstanding at October 23, 2005 and
March 31, 2005, respectively		1,610,124			1,530,624
Additional paid-in capital		16,673,244			14,817,101
Retained earnings		17,093,202			14,419,719
Accumulated other comprehensive income		291,875			83,749
Treasury stock, 620,500 shares at cost		(6,596,212	)		--
Total stockholders' equity		29,072,233			30,851,193
Total liabilities and stockholders' equity	$	79,804,579		$	45,330,514

Nevada Gold & Casinos, Inc.

Consolidated Statements of Income

(unaudited)

	Three Months Ended						Six Months Ended						24 Days Ended
	October 23,			September 30,			October 23,			September 30,			April 24,
	2005			2004			2005			2004			2005
Revenues:
Casino	$	1,441,912		$	--		$	3,276,767		$	--		$	--
Food and beverage		478,321			--			979,211			--			--
Other		34,565			16,903			70,190			33,805			4,507
Credit enhancement fee		1,735,517			1,065,868			3,653,421			2,417,135			702,305
Gross revenues		3,690,315			1,082,771			7,979,589			2,450,940			706,812
Less promotional allowances		(389,043	)		--			(932,658	)		--			--
Net revenues		3,301,272			1,082,771			7,046,931			2,450,940			706,812
Operating expenses:
Casino		685,433			--			1,527,343			--			--
Food and beverage		248,946			--			473,721			--			--
Marketing and administrative		497,891			--			940,067			--			--
Facility		49,626			--			103,960			--			--
Corporate expense		1,648,628			1,149,054			3,085,954			2,321,529			408,982
Depreciation and amortization		126,732			65,106			215,827			73,869			18,509
Other		27,091			19,356			46,746			13,163			345
Total operating expenses		3,284,347			1,233,516			6,393,618			2,408,561			427,836
Operating income		16,925			(150,745	)		653,313			42,379			278,976
Non-operating income (expenses):
Earnings from unconsolidated affiliates		2,329,249			2,065,375			4,822,026			4,885,360			--
Interest income/(expense), net		(445,510	)		29,100			(787,654	)		(120,988	)		(38,733	)
Minority interest		(327,564	)		(158,881	)		(617,976	)		(361,824	)		(106,420	)
Income before income tax expense		1,573,100			1,784,849			4,069,709			4,444,927			133,823
Income tax expense		(569,692	)		(678,242	)		(1,478,235	)		(1,614,326	)		(51,814	)
Net income	$	1,003,408		$	1,106,607		$	2,591,474		$	2,830,601		$	82,009
Per share information:
Net income per common share - basic	$	0.08		$	0.08		$	0.20		$	0.22		$	0.01
Net income per common share - diluted	$	0.08		$	0.08		$	0.19		$	0.20		$	0.01
Basic weighted average number of shares outstanding		12,811,516			13,038,239			12,915,192			12,780,421			12,755,203
Diluted weighted average number of shares outstanding		13,580,681			14,662,363			13,785,696			14,930,353			14,247,762

Computation of Earnings Per Share

The following is presented as a reconciliation of the numerators and denominators of basic and diluted earnings per share computations, in accordance with SFAS No. 128:

	Three Months Ended				Six Months Ended
	October 23,		September 30,		October 23,		September 30,
	2005		2004		2005		2005
Numerator:
Basic:
Net income available to common
stockholders	$	1,003,408	$	1,106,607	$	2,591,474	$	2,830,601
Diluted:
Net income available to common
stockholders	$	1,003,408	$	1,106,607	$	2,591,474	$	2,830,601
Add: interest on convertible debt		17,115		59,788		40,719		121,969
Net income available to common
stockholders	$	1,020,523	$	1,166,395	$	2,632,193	$	2,952,570
Denominator:
Basic weighted average number of
common shares outstanding		12,811,516		13,038,239		12,915,192		12,780,421
Dilutive effect of common stock options and warrants		292,453		518,291		303,407		985,910
Dilutive effect of convertible debt		476,712		1,105,833		567,097		1,164,022
Diluted weighted average number of
common shares outstanding		13,580,681		14,662,363		13,785,696		14,930,353
Earnings per share:
Net income per common share - basic	$	0.08	$	0.08	$	0.20	$	0.22
Net income per common share - diluted	$	0.08	$	0.08	$	0.19	$	0.20

Isle of Capri Black Hawk, L.L.C.

Comparative Financial Highlights on Continuing

Operations by Casino Property

(In thousands)

	Three Months Ended
	October 23, 2005							October 24, 2004
					Adjusted							Adjusted
					EBITDA							EBITDA
	Net		Adjusted		Margin %			Net		Adjusted		Margin %
	Revenues (1)		EBITDA (2)		(2)			Revenues (1)		EBITDA (2)		(2)
Isle-Black Hawk	$	29,522	$	9,896		33.5	%	$	25,548	$	8,852		34.6	%
Colorado Central
Station		10,110		2,718		26.9	%		8,073		409		5.1	%
Total	$	39,632	$	12,614		31.8	%	$	33,621	$	9,261		27.5	%

	Six Months Ended
	October 23, 2005							October 24, 2004
					Adjusted							Adjusted
					EBITDA							EBITDA
	Net		Adjusted		Margin %			Net		Adjusted		Margin %
	Revenues (1)		EBITDA (2)		(2)			Revenues (1)		EBITDA (2)		(2)
Isle-Black Hawk	$	58,467	$	19,720		33.7	%	$	51,845	$	19,038		36.7	%
Colorado Central
Station		20,522		5,245		25.6	%		16,416		930		5.7	%
Total	$	78,989	$	24,965		31.6	%	$	68,261	$	19,968		29.3	%

Isle of Capri Black Hawk, L.L.C.

Reconciliation of Adjusted EBITDA to Net Income (Loss) by Casino Property

(In thousands)

	Three Months Ended						Six Months Ended
	October 23,			October 24,			October 23,			October 24,
	2005			2004			2005			2004
Isle-Black Hawk:
Adjusted EBITDA	$	9,896		$	8,852		$	19,720		$	19,038
Depreciation and amortization		(2,231	)		(1,758	)		(4,293	)		(3,474	)
Interest expense, net		(1,840	)		(884	)		(3,216	)		(1,562	)
Management fee		(1,349	)		(1,204	)		(2,684	)		(2,472	)
Net income	$	4,476		$	5,006		$	9,527		$	11,530
Net income margin % (3)		15.2	%		19.6	%		16.3	%		22.2	%
Colorado Central Station:
Adjusted EBITDA	$	2,718		$	409		$	5,245		$	930
Depreciation and amortization		(1,031	)		(661	)		(2,026	)		(1,228	)
Interest expense, net		(1,344	)		(1,358	)		(2,707	)		(2,734	)
Management fee		(493	)		(255	)		(997	)		(519	)
Income tax benefit		73			710			197			1,350
Net loss	$	(77	)	$	(1,155	)	$	(288	)	$	(2,201	)
Net loss margin % (3)		-0.8	%		-14.3	%		-1.4	%		-13.4	%

(1) Net revenues are presented net of complimentaries, slot points expense and cash coupon redemptions.

(2) 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 as the primary measure of the properties’ performance. Adjusted EBITDA should not be construed as an alternative to net 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 net income (loss) to Adjusted EBITDA are included in the financial schedules accompanying this release.

(3) Net income (loss) margin was calculated by dividing net income (loss) by net revenue.

CONTACTS: Nevada Gold & Casinos, Inc., Houston

H. Thomas Winn, 713-621-2245

Integrated Corporate Relations

Don Duffy 203-682-8200