Mexco Energy (MXC) 8-K Mexco Energy Corporation Reports Record Quarterly Earnings and Profitable Fiscal 2008

EXHIBIT 99.1

June 24, 2008

FOR IMMEDIATE RELEASE

MEXCO ENERGY CORPORATION REPORTS RECORD QUARTERLY EARNINGS AND PROFITABLE FISCAL 2008

MIDLAND, TX - 06/24/08 - Mexco Energy Corporation (AMEX: MXC) reported results on its Annual Report on Form 10-K to the Securities and Exchange Commission for the fiscal year ended March 31, 2008.

The Company reported net income of $466,480, or $.27 per diluted share, for the quarter ending March 31, 2008, the Company’s fourth quarter of fiscal 2008. This resulted in net income of $713,644, or $.40 per diluted share, for fiscal year 2008, a 17% increase over fiscal 2007.

Operating revenues in the fourth quarter were a record high of $1,245,653, resulting in the Company ending fiscal 2008 with operating revenues of $3,899,408, compared to $2,971,717 in fiscal 2007, an increase of 31%. This is partially the result of revenue generated from the $1,850,000 royalty interest acquisition in the Barnett Shale gas field on December 31, 2007, the largest acquisition of a property in the Company’s history. Revenues from oil and gas royalty interests, including this acquisition, accounted for approximately 29% of the Company’s revenues for fiscal 2008. On June 6, 2008, Mexco purchased additional Barnett Shale royalties for $429,000.

The Company’s total estimated proved reserves at March 31, 2008 were 7.857 Bcf of natural gas and 217,000 barrels of oil and natural gas liquids, and its estimated present value of proved reserves was approximately $41 million based on estimated future net revenues discounted at 10% per annum, pricing and other assumptions set forth in “Item 2 - Properties” of the Company’s Form 10-K. During fiscal 2008, the Company added proved reserves of 794,000 Mcfe through extensions and discoveries, added 584,000 Mcfe through acquisitions and had upward revisions of previous estimates of 43,000 Mcfe.

For fiscal 2008, gas reserves constituted approximately 86% of the Company’s total proved reserves and approximately 65% of the Company’s revenues.

Nicholas C. Taylor, President and Chief Executive Officer of Mexco Energy Corporation, said, “These fiscal year end results do not reflect any income from Mexco’s Steelhead #1 well in Loving County which is expected to be connected to a gas pipeline and commence regular sales in the second quarter of Mexco’s fiscal 2009.”

During the year ended March 31, 2008, the Company participated with working interests in 28 gross (.48 net) development wells and 5 gross (.65 net) exploratory wells.

The average sales price received of $8.03 per Mcfe increased 19% from the $6.75 per Mcfe received in fiscal 2007. Oil and gas production volumes increased 5% and 12%, respectively, during fiscal 2008.

The Company owns oil and gas properties in ten states, with the majority of its activity centered in West Texas. The Company continues to focus its efforts to increase oil and natural gas reserves, through exploration and development as well as acquisitions.

In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, Mexco Energy Corporation cautions that statements in this press release which are forward-looking and which provide other than historical information involve risks and uncertainties that may impact the Company's actual results of operations. These risks include, but are not limited to, production variance from expectations, volatility of oil and gas prices, the need to develop and replace reserves, exploration risks, uncertainties about estimates of reserves, competition, government regulation, and mechanical and other inherit risks associated with oil and gas production. A discussion of these and other factors, including risks and uncertainties, is set forth in the Company’s Form 10-K for the fiscal year ended March 31, 2008. Mexco Energy Corporation disclaims any intention or obligation to revise any forward-looking statements

For additional information, please contact:

Tammy L. McComic, Vice President and Chief Financial Officer

mexco@sbcglobal.net, 432-682-1119

Mexco Energy Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS

Year ended March 31,

	2008			2007			2006
Operating revenues:
Oil and gas	$	3,887,955		$	2,969,325		$	3,716,564
Other		11,453			2,392			3,079
Total operating revenues		3,899,408			2,971,717			3,719,643
Operating expenses:
Production		1,240,305			870,778			843,927
Accretion of asset retirement obligation		26,262			24,057			23,436
Depreciation, depletion, and amortization		779,618			652,826			658,365
General and administrative		821,786			829,180			817,332
Impairment of long-term asset		-			-			261,617
Total operating expenses		2,867,971			2,376,841			2,604,677
Operating profit		1,031,437			594,876			1,114,966
Other income (expense):
Interest income		5,113			4,670			2,837
Interest expense		(105,312	)		(24,046	)		(98,657	)
Net other expense		(100,199	)		(19,376	)		(95,820	)
Earnings before income taxes and
minority interest		931,238			575,500			1,019,146
Income tax expense (benefit):
Current		-			-			(19,312	)
Deferred		217,594			(28,050	)		291,452
		217,594			(28,050	)		272,140
Earnings before minority interest		713,644			603,550			747,006
Minority interest in loss of subsidiary		-			4,835			41,799
Net income	$	713,644		$	608,385		$	788,805
Net income per common share:
Basic:	$	0.40		$	0.35		$	0.45
Diluted:	$	0.40		$	0.33		$	0.43

Mexco Energy Corporation and Subsidiaries

CONSOLIDATED BALANCE SHEETS

As of March 31,

	2008			2007
ASSETS
Current assets
Cash and cash equivalents	$	303,617		$	72,537
Accounts receivable:
Oil and gas sales		758,459			399,659
Trade		102,403			2,987
Related parties		12,659			-
Income tax receivable		-			59,736
Prepaid costs and expenses		22,062			65,986
Total current assets		1,199,200			600,905
Investment in GazTex, LLC		20,509			20,509
Property and equipment, at cost
Oil and gas properties, using the full cost method		23,941,483			20,526,431
Other		61,362			51,412
		24,002,845			20,577,843
Less accumulated depreciation, depletion, and amortization		12,019,895			11,240,277
Property and equipment, net		11,982,950			9,337,566
	$	13,202,659		$	9,958,980
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued expenses	$	571,526		$	154,074
Long-term debt		2,600,000			700,000
Asset retirement obligation		374,789			350,584
Deferred income tax liabilities		1,196,280			978,686
Stockholders’ equity
Preferred stock - $1.00 par value;
10,000,000 shares authorized; none outstanding		-			-
Common stock - $0.50 par value;
40,000,000 shares authorized;
1,841,366 and 1,840,366 shares issued;
1,757,366 and 1,780,841 shares outstanding as of
March 31, 2008 and 2007, respectively		920,683			920,183
Additional paid-in capital		4,381,269			4,291,892
Retained earnings		3,584,729			2,871,085
Treasury stock, at cost (84,000 and 59,525 shares, respectively)		(426,617	)		(307,524	)
Total stockholders’ equity		8,460,064			7,775,636
	$	13,202,659		$	9,958,980