NEVSTAR REPORTS POSITIVE FIRST YEAR GROWTH AT MESQUITE STAR HOTEL CASINO

Press Release: NevStar Gaming & Entertainment

August 27, 1999
LAS VEGAS, NV -- NevStar Gaming & Entertainment (NASDAQ: NVST), owner of Mesquite Star Hotel Casino, reported that the first 12 months of operations at their initial hotel casino reflects a positive growth trend.

Vice President and Mesquite Star General Manager, Tim Barnett, said, "Hotel occupancy increased from the mid-fifty percent monthly average in the summer of 1998 to over 96% in June and July of 1999. Our average number of meals served in the restaurants doubled from the summer of 1998 to June and July of 1999. Also, the daily gaming win in the casino went up about 35% from summer of 1998 compared to July of 1999. We are pleased that our plans for steady growth seem to be on the right track.''

NevStar Chairman & CEO, Dr. Michael Signorelli, said, "Mesquite Star has accomplished its near-term objectives in a relatively short period of time. Its growth performance to date indicates that Mesquite Star is keeping pace with the NevStar business plan. While we are pleased with Mesquite Star's phase one growth, we still have about 15 acres available to complete our Mesquite master plan that includes up to 800 rooms, plus expanded gaming, retail space and public areas. Our plans also call for a shopping mall contiguous to the hotel casino. NevStar is focused on expanding the company and enhancing shareholder value.''

The Mesquite Star Hotel Casino is located on the Nevada/Arizona borders just 11 miles from Utah near the North Rim of the Grand Canyon, Lake Mead, Cedar Breaks National Park, Zion National Monument and Bryce Canyon. The old-western theme hotel casino opened July 1, 1998 and offers 210 rooms and suites plus a heated pool and sixteen championship horseshoe lanes. The casino, with over 400 machines, 10 table games and Keno, is located in a 35,000 square foot public area which also includes a coffee shop, a specialty fish and steakhouse restaurant, daily live entertainment, bar, offices, gift shop and hotel front desk.

NevStar Gaming & Entertainment Corporation is a company formed for the purpose of acquiring, developing, constructing, owning and managing hotel/casino projects. Its initial hotel/casino, the Mesquite Star Hotel Casino in Mesquite, Nevada, has been operating since July 1, 1998.

Certain statements contained in this release are forward looking. Although NevStar Gaming & Entertainment Corporation believes that its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results will not differ materially from its expectations. For important factors that may cause actual results to differ materially from expectations and underlying assumptions, see Company's Prospectus dated September 18, 1997, and its last filed Forms 10-KSB and 10-QSB

Contact:

NevStar Gaming & Entertainment
Lamar Owens, 702/269-1325