CALGARY, ALBERTA--(Marketwire - July 26, 2012) -

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO ANY UNITED STATES NEWSWIRE SERVICES OR OTHERWISE FOR DISTRIBUTION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW

MGM Energy Corp. ("MGM Energy" or the "Company") (TSX:MGX) announced today its financial results for the three and six months ended June 30, 2012.

The Company reported a net loss for the three months ended June 30, 2012 of $2.1 million ($3.8 million for the six months ended June 30, 2012). 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 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. 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 (Unaudited)

($000s)

		As at June 30			As at December 31
		2012			2011
ASSETS
Current assets
	Cash and cash equivalents	$	7,287		$	12,064
	Accounts receivable and other current assets		460			552
			7,747			12,616
Non-current assets
	Exploration and evaluation assets		64,448			63,929
	Property and equipment, net		187			163
			64,635			64,092
Total Assets		$	72,382		$	76,708
LIABILITIES
Current liabilities
	Accounts payable and accrued liabilities	$	889		$	1,782
	Due to related parties		95			86
			984			1,868
Non-current liabilities
	Asset retirement obligation		3,997			3,977
			3,997			3,977
Total Liabilities			4,981			5,845
SHAREHOLDERS' EQUITY
	Share capital		454,465			454,465
	Contributed surplus		8,911			8,592
	Deficit		(395,975	)		(392,194	)
Total Shareholders' Equity			67,401			70,863
Total Liabilities and Shareholders' Equity		$	72,382		$	76,708

MGM Energy Corp.

Statements of Loss and Comprehensive Loss (Unaudited)

($000s)

		Three Months Ended June 30						Six Months Ended June 30
		2012			2011			2012			2011
Oil and natural gas revenue		$	-		$	-		$	-		$	-
Expenses
	General and administrative		880			617			1,576			1,525
	Share-based compensation		134			232			287			321
	Exploration and evaluation		930			275			1,550			551
	Dry hole		-			-			-			2,804
	Accretion of asset retirement obligation		10			13			20			29
	Depreciation		37			29			43			59
			1,991			1,166			3,476			5,289
Loss before net finance expenses			(1,991	)		(1,166	)		(3,476	)		(5,289	)
	Finance income		(20	)		(39	)		(47	)		(50	)
	Finance expenses		174			170			352			373
Net finance expenses			154			131			305			323
Net loss and comprehensive loss		$	(2,145	)	$	(1,297	)	$	(3,781	)	$	(5,612	)
Net loss per Common Share ($/share)
	Basic	$	(0.01	)	$	(0.00	)	$	(0.01	)	$	(0.02	)
	Diluted	$	(0.01	)	$	(0.00	)	$	(0.01	)	$	(0.02	)

MGM Energy Corp.

Statements of Cash Flows (Unaudited)

($000s)

		Six Months Ended June 30
		2012			2011
Operating activities
Net loss for the period		$	(3,781	)	$	(5,612	)
Adjustments to add non-cash items
	Share-based compensation		287			321
	Non-cash general and administrative expenses		32			-
	Accretion of asset retirement obligation		20			29
	Depreciation		43			59
Change in non-cash working capital			(877	)		(796	)
Cash flows used in operating activities			(4,276	)		(5,999	)
Financing activities
			-			-
Investing activities
Capital expenditures			(586	)		(27	)
Proceeds from divestitures			-			20,000
Change in non-cash working capital			85			50
Cash flows provided by (used in) investing activities			(501	)		20,023
Increase (decrease) in cash and cash equivalents			(4,777	)		14,024
Cash and cash equivalents, beginning of period			12,064			1,174
Cash and cash equivalents, end of period		$	7,287		$	15,198