Nevada Gold & Casinos announces strategic alternatives and South Dakota route operation sale

As part of the process, Nevada Gold & Casinos' Board will consider a full range of strategic, operational and financial alternatives, which may include a sale or other transaction. The Company has retained Rossoff & Company LLC as its financial advisor to assist with the strategic review process, and has retained Hughes Hubbard & Reed LLP as its legal counsel.

The Company cautions that there can be no assurance that the strategic review process will result in any transaction or strategic alternative, or any assurance as to its outcome or timing. The Company has not set a timetable for completion of the review process and does not intend to disclose developments related to the process unless and until the Board approves a transaction or specific action, or otherwise determines that further disclosure is appropriate or required.

The Company also announced today that it has entered into an agreement to sell its South Dakota Route operation to Michael J. Trucano for $400,000. The sale will include all fixtures, equipment, trade names, and operating agreements used in connection with such business, but will exclude all cash in excess of $400,000.

The transaction is expected to close on June 30, 2018, subject to the approval of the South Dakota Commission on Gaming.

This sale will free up approximately $250,000 in net cash used in the working capital of such business, which together with the purchase proceeds of $400,000, will be used to decrease outstanding debt of the Company by approximately $650,000.

The Company expects to record a net loss from discontinued operations of approximately $300,000.