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Press release from Marketwire

MGM Energy Corp.: Financial Results for the Three Months Ended March 31, 2012

Wednesday, May 02, 2012

MGM Energy Corp.: Financial Results for the Three Months Ended March 31, 201216:24 EDT Wednesday, May 02, 2012CALGARY, ALBERTA--(Marketwire - May 2, 2012) -THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO ANY UNITED STATES NEWSWIRE SERVICES OR OTHERWISE FOR DISTRIBUTION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAWS.MGM Energy Corp. ("MGM Energy" or the "Company") (TSX:MGX) announced today its financial results for the three months ended March 31, 2012.The Company reported a net loss for the three months ended March 31, 2012 of $1.6 million ($0.01 per share) as compared to a net loss of $4.3 million ($0.01 per share) for the three months ended March 31, 2011. MGM Energy's full unaudited financial statements and accompanying Management's Discussion and Analysis will be filed shortly on the SEDAR website (www.sedar.com).MGM Energy is a Canadian oil and natural gas exploration and development company active in Northern Canada. MGM Energy's common shares are listed on the Toronto Stock Exchange under the symbol "MGX". For further information, please contact:Certain statements or information included in this press release constitute forward-looking statements under applicable securities legislation. Such forward-looking statements or information are based on a number of assumptions which may prove to be incorrect. Although MGM Energy believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because MGM Energy can give no assurance that such expectations will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by MGM Energy and described in the forward-looking statements or information. The forward-looking statements or information contained in this document are made as of the date hereof and MGM Energy undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.MGM Energy Corp.Condensed Interim Balance Sheets (Unaudited)($000s)As at March 31As at December 3120122011ASSETSCurrent assetsCash and cash equivalents$ 9,137$ 12,064Accounts receivable and other current assets3075529,44412,616Non-current assetsExploration and evaluation assets64,20763,929Property and equipment, net15716364,36464,092Total Assets$ 73,808$ 76,708LIABILITIESCurrent liabilitiesAccounts payable and accrued liabilities$ 352$ 1,782Due to related parties89864411,868Non-current liabilitiesAsset retirement obligation3,9873,9773,9873,977Total Liabilities4,4285,845SHAREHOLDERS' EQUITYShare capital454,465454,465Contributed surplus8,7458,592Deficit(393,830)(392,194)Total Shareholders' Equity69,38070,863Total Liabilities and Shareholders' Equity$ 73,808$ 76,708MGM Energy Corp.Condensed Interim Statements of Loss and Comprehensive Loss (Unaudited)($000s)Three Months Ended March 3120122011Oil and natural gas revenue$ -$ -ExpensesGeneral and administrative696908Share-based compensation15389Exploration and evaluation620276Dry hole-2,804Accretion of asset retirement obligation1016Depreciation6301,4854,123Loss before net finance expenses(1,485)(4,123)Finance income(27)(11)Finance expenses178203Net finance expenses151192Net loss and comprehensive loss$ (1,636)$ (4,315)Net loss per Common Share ($/share)Basic$ (0.01)$ (0.01)Diluted$ (0.01)$ (0.01)MGM Energy Corp.Condensed Interim Statements of Cash Flows (Unaudited)($000s)Three Months Ended March 3120122011Operating activitiesNet loss for the period$ (1,636)$ (4,315)Adjustments to add non-cash itemsShare-based compensation15389Accretion of asset retirement obligation1016Depreciation630Change in non-cash working capital(1,181)(847)Cash flows used in operating activities(2,648)(5,027)Financing activities--Investing activitiesCapital expenditures(278)(26)Proceeds from divestitures-20,000Change in non-cash working capital(1)1,359Cash flows provided by (used in) investing activities(279)21,333Increase (decrease) in cash and cash equivalents(2,927)16,306Cash and cash equivalents, beginning of period12,0641,174Cash and cash equivalents, end of period$ 9,137$ 17,480FOR FURTHER INFORMATION PLEASE CONTACT: H.W. (Henry) SykesMGM Energy Corp.President(403) 781-7800(403) 781-7801 (FAX)ORR. N. (Rick) MillerMGM Energy Corp.Chief Financial Officer(403) 781-7800(403) 781-7801 (FAX)