Black Gaming has announced that it entered into a lockup
agreement this week with the holders of approximately 70% of the Company’s $125,000,000 Senior Secured Notes to restructure Black Gaming’s indebtedness that provides for an investment of new capital to the Company. The agreement will enhance Black Gaming’s executive management team to continue all operations on a “business as usual” basis during a planned Chapter 11 Bankruptcy restructuring including payments to vendors under normal trade terms without interruption.

Black Gaming’s majority owner Randy Black, Sr., said, “Our Company is generating positive EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) despite the challenging economy. Our problem is one of leverage; we have more debt than our operations can support. Our agreement with our lenders is designed to resolve this by restructuring the debt to a level our operations can sustain and to provide additional capital.

“Given the size and complexity of the Company and its debt structure, Black Gaming and its financial advisors have determined that the most
effective means to implement the plan will be through a pre-negotiated
Chapter 11 filing by the Company and its subsidiaries, which are
expected to take place shortly. The Company expects that the Chapter
11 petition will move through the bankruptcy court system expeditiously.

“To ensure that all of our operations continue to operate normally
throughout this process," Black said "the proposed restructuring provides that all vendors would be paid on the same current terms they presently are being paid for all goods and services including goods and services provided immediately prior to the proposed Chapter 11 filing” he said.

Under the Plan when and if consummated:

The Company’s Senior Credit Facility with Wells Fargo Foothill, Inc.
will be paid in full.

The Company’s Senior Secured Note holders will exchange their notes and claims there under for a new credit facility of $62,500,000 either in a cash payment or an equity interest at their option not to exceed 6% in "Reorganized Black Gaming". The Company’s Senior Subordinated Note holders will receive warrants to purchase equity interests in Reorganized Black Gaming in exchange for their notes and claims.

To the extent permitted under the Bankruptcy Code, General Unsecured
Claims, including vendors, will be paid in cash.

Anthony Toti, Newport Global Advisors or one of its affiliates, Randy
Black, Sr. and one or more parties to be designated by Michael Gaughan
will contribute cash in excess of $17,000,000 in exchange for a
minimum of 94% of the new equity interests in Reorganized Black
Gaming.

Randy Black, Sr. will remain Chief Executive Officer; Anthony Toti
will remain Chief Operating Officer; and Sean McKay will remain Chief
Financial Officer.

Black continued: “We are extremely pleased that we could come to an
agreement with our lenders. In this difficult economy, gaming has been
hit hard, and our Company is no exception. We are one of the few
gaming companies that has been able to reach a mutual compromise with our lenders, and it is my belief that we reached this agreement due to the strength and positioning of our properties and the experience of our management team and its employees.

Approval of the Plan and all principal steps related thereto, will be
subject to numerous preconditions, including, but not limited to,
preparation of definitive documentation, the commencement of a
voluntary filing with the United States Bankruptcy Court for the
District of Nevada, the approval of a plan of reorganization by
creditors and the Bankruptcy Court, and certain approvals, granting of
licenses and findings of suitability by the Nevada Gaming Commission
and the City of Mesquite of Reorganized Black Gaming.