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MGM Energy Corp. Announces 2013 Financial Results and Provides Update on Independent Committee

CALGARY, ALBERTA -- (Marketwired) -- 03/12/14 -- MGM Energy Corp. ("MGM Energy" or the "Company") (TSX: MGX) announced today its financial results for the year ended December 31, 2013.

The Company reported a net loss for the year ended December 31, 2013 of $8.3 million ($0.02 per share) as compared to a net loss of $8.1 million ($0.03 per share) for the year ended December 31, 2012. 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).

Further to its March 11, 2014 press release, MGM Energy also announced that a special committee of the independent members of the board of directors of the Company (the "Committee") has been established to consider the proposal (the "Proposal") received from Paramount Resources Ltd. ("Paramount"), as described in that press release. The Committee is comprised of all four independent members of the board of directors. The Committee has retained independent legal counsel to advise the Committee and is pursuing an engagement with an independent advisor to prepare an independent valuation in accordance with MI 61-101. It is anticipated that the work of the Committee will take place over the ensuing weeks. The Committee has requested that management update the data room that was available during its search for a partner in the Canol shale oil play, and to make that data room available to any party interested in pursuing an alternative transaction.

Given the consideration of the Proposal, the Company has decided to postpone its annual meeting currently scheduled for April 23, 2014 to a date to be determined.

Shareholders will be advised if and at such time that a binding arrangement agreement is reached between MGM Energy and Paramount. There can be no assurance that any binding agreement will be reached or that a transaction will be pursued or recommended by the board of directors of the Company.

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".

This document contains "forward-looking statements" regarding Paramount's Proposal and the establishment of the Committee including statements regarding the Proposal and terms and conditions thereof. Readers are cautioned not to place undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the risk that the parties will not proceed with the transaction, that the terms of the transaction will vary materially from those proposed, and that the conditions precedent to proceeding with the transaction may not be met on a timely basis or at all, including negotiation and execution of definitive documentation. The forward-looking statements contained herein are made at the date of this document and the Company does not undertake any obligation to update publicly or revise any of the forward-looking statements contained in this document, whether as a result of new information, future event or otherwise, except as required by applicable securities laws.


MGM Energy Corp.
Balance Sheets
($000s)


As at December 31                                         2013         2012
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ASSETS
Current assets
  Cash and cash equivalents                        $     9,783  $    19,896
  Accounts receivable and other current assets           1,484          552
----------------------------------------------------------------------------
                                                        11,267       20,421
Non-current assets
  Exploration and evaluation assets                     65,059       63,971
  Property and equipment, net                                -          136
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                                                        65,059       64,107

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Total Assets                                       $    76,326  $    84,528
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LIABILITIES
Current liabilities
  Accounts payable and accrued liabilities         $     2,479  $     5,352
  Due to related parties                                    41           93
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                                                         2,520        5,445

Non-current liabilities
  Asset retirement obligations                           5,147        4,018
  Environmental restoration liability                      833            -
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                                                         5,980        4,018

----------------------------------------------------------------------------
Total Liabilities                                        8,500        9,463
----------------------------------------------------------------------------

SHAREHOLDERS' EQUITY
  Share capital                                        466,159      466,132
  Contributed surplus                                   10,281        9,201
  Deficit                                             (408,614)    (400,268)
----------------------------------------------------------------------------
Total Shareholders' Equity                              67,826       75,065
----------------------------------------------------------------------------
Total Liabilities and Shareholders' Equity         $    76,326  $    84,528
----------------------------------------------------------------------------

MGM Energy Corp.
Statements of Loss and Comprehensive Loss
($000s, except as noted)


Years Ended December 31                                   2013         2012
----------------------------------------------------------------------------

Rental income                                      $       531  $         -
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                                                           531            -
Expenses
  General and administrative                             3,405        3,393
  Share-based compensation                               1,061          548
  Exploration and evaluation                             4,050        3,405
  Accretion of asset retirement obligation                  44           41
  Depreciation                                              15           93
----------------------------------------------------------------------------
                                                         8,575        7,480
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Loss before net finance expense                         (8,044)      (7,480)
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  Finance income                                          (119)         (78)
  Finance expense                                          421          672
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Net finance expense                                        302          594
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Net loss and comprehensive loss                    $    (8,346) $    (8,074)
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Net loss per common share ($/share)
  Basic                                            $     (0.02) $     (0.03)
  Diluted                                          $     (0.02) $     (0.03)

MGM Energy Corp.
Statements of Cash Flows
($000s)
Years Ended December 31                                   2013         2012
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Operating activities
Net loss                                           $    (8,346) $    (8,074)
Adjustments to add (deduct) non-cash items
  Stock-based compensation                               1,061          548
  Non-cash general and administrative expense              (11)          61
  Accretion of asset retirement obligations                 44           41
  Depreciation                                              15           93
Change in non-current environmental restoration
 provision                                                 833            -
Change in non-cash working capital                         105          (68)
----------------------------------------------------------------------------
Cash flows used in operating activities                 (6,299)      (7,399)
----------------------------------------------------------------------------

Financing activities
Cash payment for options exercised                         (20)           -
Common shares issued, net of issuance costs                 27       11,667
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Cash flows from (used in) financing activities               7       11,667
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Investing activities
Capital expenditures                                       168         (109)
Change in non-cash working capital                      (3,962)       3,646
----------------------------------------------------------------------------
Cash flows from investing activities                    (3,794)       3,537
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Increase (decrease) in cash and cash equivalents       (10,086)       7,805
Cash and cash equivalents, beginning of year            19,869       12,064
----------------------------------------------------------------------------
Cash and cash equivalents, end of year             $     9,783  $    19,869
----------------------------------------------------------------------------
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Contacts:
MGM Energy Corp.
H.W. (Henry) Sykes
President
(403) 781-7800
(403) 781-7801 (FAX)

MGM Energy Corp.
R. N. (Rick) Miller
Chief Financial Officer
(403) 781-7800
(403) 781-7801 (FAX)

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