Calgary, Alberta

July 25, 2013

NEWS RELEASE:MGM ENERGY CORP.

Financial Results for the Three and Six Months Ended June 30, 2013

CALGARY, ALBERTA - MGM Energy Corp. ("MGM Energy" or the "Company") announced today its financial results for the three month and six month periods ended June 30, 2013.
The Company reported a net loss for the three month period ended June 30, 2013 of $1.8 million ($0.00 per share) as compared to a net loss of $2.1 million ($0.01 per share) for the three month period ended June 30, 2012. MGM Energy had working capital of $13.1 million as at June 30, 2013, which is expected to be sufficient to fund operations based on current level of expenditures until mid-2015. As previously announced, MGM Energy surrendered to the Crown five exploration licences in the Mackenzie Delta, which resulted in MGM Energy being relieved of its obligation to fulfill its commitments relating to these exploration licences totaling $7.7 million, of which $6.3 million was to have been paid in June 2013. None of the exploration licences surrendered were in the Central Mackenzie Valley Canol shale oil play. 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 continues to analyze the results of the East Mackay I-78 well drilled in the Canol shale oil play in the winter of 2012/13. The results of the well are expected to be fully assessed by the fall of 2013, after which the Company intends to begin a formal search for a partner on its Canol shale oil play lands.
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:
MGM Energy Corp.
H.W. (Henry) Sykes, President
Phone: (403) 781-7800
Fax: (403) 781-7801 or
R. N. (Rick) Miller, Chief Financial Officer
Phone: (403) 781-7800
Fax: (403) 781-7801
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. Forward-looking information in this news release includes, but is not limited to, MGM Energy's expectations regarding sufficiency of working capital to fund future costs to mid-2015 and the Company's intention to begin a formal search for a partner on its Canol shale oil lands. 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 (Unaudited) ($000s) As at June 30

As at

December 31

2013 2012

ASSETS Current assets Non-current assets

Exploration and evaluation assets 64,525 63,971

Property and equipment, net - 136

64,525 64,107


Total Assets $ 80,146 $ 84,528 LIABILITIES Current liabilities

Accounts payable and accrued liabilities $ 2,396 $ 5,352

Due to related parties 84 93

2,480 5,445 Non-current liabilities

Asset retirement obligation 4,558 4,018

4,558 4,018


Total Liabilities 7,038 9,463 SHAREHOLDERS' EQUITY

Share capital 466,132 466,132

Contributed surplus 9,716 9,201

Deficit (402,740) (400,268)

Total Shareholders' Equity 73,108 75,065

Total Liabilities and Shareholders' Equity $ 80,146 $ 84,528 MGM Energy Corp. Statements of Loss and Comprehensive Loss (Unaudited)

($000s)

Three Months Ended June 30 Six Months Ended June 30 2013 2012 2013 2012 Oil and natural gas revenue $ - $ - $ - $ - Rental income - - 531 - - - 531 - Expenses

General and administrative 899 880 1,428 1,576

Share-based compensation 285 134 496 287

Exploration and evaluation 560 930 830 1,550

Accretion of asset retirement obligation 11 10 21 20

Depreciation - 37 15 43

1,755 1,991 2,790 3,476

Loss before net finance expenses (1,755) (1,991) (2,259) (3,476)

Finance income (32) (20) (69) (47)

Finance expenses 119 174 282 352

Net finance expenses 87 154 213 305


Net loss and comprehensive loss $ (1,842) $ (2,145) $ (2,472) $ (3,781) Net loss per Common Share ($/share)

Basic $ (0.00) $ (0.01) $ (0.01) $ (0.01) Diluted $ (0.00) $ (0.01) $ (0.01) $ (0.01)

MGM Energy Corp. Statements of Cash Flows (Unaudited)

($000s)

Six Months Ended June 30 2013 2012

Change in non-cash working capital (409) (877)

Cash flows used in operating activities (2,360) (4,276)

Financing activities

Cash payment for options exercised (20) -

Cash flows used in financing activities (20) -

Investing activities

Capital expenditures 136 (586)

Change in non-cash working capital (8,303) 85

Cash flows used in investing activities (8,167) (501)

Decrease in cash and cash equivalents (10,547) (4,777) Cash and cash equivalents, beginning of period 19,869 12,064

Cash and cash equivalents, end of period $ 9,322 $ 7,287
distributed by