MGM Energy Corp. Announces 2012 Financial Results and Provides Operation Update

CALGARY, ALBERTA--(Marketwire - March 11, 2013) - MGM Energy Corp. (MGX.TO) ("MGM Energy" or the "Company") announced today its financial results for the year ended December 31, 2012.

The Company reported a net loss for the year ended December 31, 2012 of $8.1 million ($0.03 per share) as compared to a net loss of $160.9 million ($0.51 per share) for the year ended December 31, 2011. The loss for the year ended December 31, 2012 was reduced significantly from the loss in the prior year as there was a writedown in the book value of the Company's northern Canadian petroleum and natural gas properties of $150 million for the year ended December 31, 2011.

MGM Energy also announced that it had completed fraccing operations at the East MacKay I-78 well and that the testing phase of the well is continuing. An update will be provided following the completion of the testing phase, which is expected before the end of March.

MGM Energy's full audited 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".

Certain statements or information included in this press release constitute forward-looking statements under applicable securities legislation. Forward-looking statements or information in this press release include but are not limited to business strategy and objectives, exploration and drilling plans and the timing thereof, as well as the anticipated timing for seeking regulatory approvals. 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.
Balance Sheets
($000s)
As at December 31		2012		2011
ASSETS
Current assets
	Cash and cash equivalents	$ 19,869		$ 12,064
	Accounts receivable and other current assets	552		552
		20,421		12,616
Non-current assets
	Exploration and evaluation assets	63,971		63,929
	Property and equipment, net	136		163
		64,107		64,092
		$ 84,528		$ 76,708
LIABILITIES
Current liabilities
	Accounts payable and accrued liabilities	$ 5,352		$ 1,782
	Due to related parties	93		86
		5,445		1,868
Non-current liabilities
	Asset retirement obligations	4,018		3,977
		4,018		3,977
Total Liabilities		9,463		5,845
SHAREHOLDERS' EQUITY
	Share capital	466,132		454,465
	Contributed surplus	9,201		8,592
	Deficit	(400,268	)	(392,194	)
Total Shareholders' Equity		75,065		70,863
Total Liabilities and Shareholders' Equity		$ 84,528		$ 76,708

MGM Energy Corp.
Statements of Loss and Comprehensive Loss
($000s, except as noted)
Years Ended December 31		2012		2011
Oil and natural gas revenue		$ -		$ -
Expenses
	General and administrative	3,393		3,526
	Share-based compensation	548		763
	Exploration and evaluation	3,405		2,530
	Dry hole	-		3,189
	Accretion of asset retirement obligation	41		57
	Impairment of petroleum and natural gas properties	-		150,000
	Depreciation	93		121
		7,480		160,186
Loss before net finance expense		(7,480	)	(160,186	)
	Finance income	(78	)	(120	)
	Finance expense	672		793
Net finance expense		594		673
Net loss and comprehensive loss		$ (8,074	)	$ (160,859	)
Net loss per common share ($/share)
	Basic	$ (0.03	)	$ (0.51	)
	Diluted	$ (0.03	)	$ (0.51	)

MGM Energy Corp.
Statements of Cash Flows
($000s)
Years Ended December 31		2012		2011
Operating activities
Net loss		$ (8,074	)	$ (160,859	)
Adjustments to add (deduct) non-cash items
	Stock-based compensation	548		763
	Non-cash general and administrative expense	61		34
	Increase in asset retirement obligation	-		385
	Accretion of asset retirement obligations	41		57
	Impairment of petroleum and natural gas properties	-		150,000
	Depreciation	93		121
Change in non-cash working capital		(68	)	669
Cash flows used in operating activities		(7,399	)	(8,830	)
Financing activities
Cash payment for options exercised		-		(25	)
Common shares issued, net of issuance costs		11,667		-
Cash flows from financing activities		11,667		(25	)
Investing activities
Capital expenditures		(109	)	(260	)
Proceeds from divestitures		-		20,000
Change in non-cash working capital		3,646		5
Cash flows from investing activities		3,537		17,945
Increase in cash and cash equivalents		7,805		10,890
Cash and cash equivalents, beginning of year		12,064		1,174
Cash and cash equivalents, end of year		$ 19,869		$ 12,064