Public Record, The: Elsinore and bondholders extend NIGC approval date

Palm Springs--Elsinore Corporation (ASE/PSE:ELS) of Las Vegas announced today that the company has reached an agreement with its bondholders to extend the dates for National Indian Gaming Commission (NIGC) approval of management contracts and other Federal regulatory approvals for Native American gaming operations in California and Washington State. The NIGC is the federal agency regulating casino development and operations on Native American land. The agreement also extends the dates by which the company is required to complete construction of the Native American casinos.

Under this agreement, the NIGC approval dates for the Palm Springs and the Washington State operations have been extended to August 1, 1994 and September 30, 1994, respectively. In addition, the date for completion of construction of both operations has been extended to March 31, 1995. As part of the agreement, Elsinore will issue and distribute to its bondholders who consent, warrants to purchase 750,000 shares of common stock at an exercise price equal to the lower of $3.25 per share of the average closing price for the five trading days beginning April 20, 1994. The warrants expire on October 8, 1998, unless earlier redeemed.

"This agreement enables Elsinore to remain on track in developing our Palm Springs casino, which will set a new standard for Native American gaming in California. This casino will have a modern, circular design visible to passengers in neatly 10,000,000 cars that annually pass by the site. This high-visibility casino will be within 150 miles of approximately 20 million people, "said Thomas E Martin, president and chief operating officer of Elsinore.

"We are very excited by the Palm Springs casino and our project on the Olympic Peninsula in Washington State. The Olympic Peninsula is visited by about four million tourists annually, and approximately four million cars pass the site on Highway 101 each year," Martin added. "We anticipate opening both the Washington State and Palm Springs projects during the second half of 1994. The company is also evaluating and currently negotiating on projects on Native American lands as wells as other jurisdictions, Elsinore should have at least one additional casino under development this year," Martin concluded

Elsinore is currently developing a Class II casino facility on Tribal land of the Twenty-Nine Palms Band of Mission Indians at the intersection of Interstate 10 and Highway 86 east of Palm Springs, and a Las Vegas-style casino facility on the Jamestown S'Klallam Tribal land located on Highway US 101 approximately 70 miles northwest of Seattle. Both of these projects are funded through Elsinore's offering of $60 million in first mortgage notes issued in October 1993.

Elsinore Corporation owns and operates the Four Queens, a downtown Las Vegas Hotel and Casino offering 704 rooms. meeting facilities, three restaurants, 1050 slot machines, and numerous blackjack, craps and other table games. In addition to the two casinos Elsinore Plans to open on Native American lands in California and Washington State, the company is pursuing a number of Native American and other gaming development opportunities. Elsinore anticipates opening one or two new gaming ventures annually during the next five years.