Thunderbird Resorts Inc.

Thunderbird Resorts Inc.

August 16, 2005 12:14 ET

Thunderbird Update

POWAY, CALIFORNIA--(CCNMatthews - Aug. 16, 2005) - International Thunderbird Gaming Corporation ("Thunderbird") (CNQ:ITGC.U)(FWB:OSJ) announces:

CHILE: The Company submitted 6 bid presentations in Chile during the week ending August 5, 2005. The total potential investment for the 6 bids is in excess of $200 million. The Company remains confident that it will be the successful bidder on 3 or more licenses from the following bids: Rancagua (investment of $80 million); Antafogasta ($48 million); Talca ($12 million); Concepcion ($36 million); Temuco ($18 million) and Algarrobo ($15 million).

Thunderbird Chile's projects will be associated with important brands. The "Thunderbird Hotel" division received the support from Embassy Suites and Doubletree which belong to the "Hilton Family" to develop and manage these hotels under a franchise license. With such support from both brands, we offered Doubletree brands in the Rancagua and Concepcion bid proposals, and offered the Embassy Suites brand for the Antofagasta bid proposal.

The Company is particularly well positioned in Rancagua which is 40 minutes from and will be the closest casino to Santiago, the largest market in Chile with a population of 5.5 million. The law disallows any casino in metro Santiago. In total, the Rancagua site is within a one hour drive of 7 million Chileans, considered the wealthiest population in Latin America in terms of per capita income. Thunderbird contracted a demand and conceptualization study with Innovation Group (, which determined that the Rancagua business (casino, hotel, convention center and other entertainment amenities) will produce approximately $60 million in revenue annually in the first couple of years of operations, of which 50% is projected to come from the casino business.

In total, including the Rancagua project, the Company believes it is well positioned to win between $70 million and $85 million of revenue within the Chile bid process.

All casinos in Chile will have exclusive territorial rights for 15 years within a 70 kilometer radius. There are 13 "regions" in Chile and the government has placed a cap of no more than 3 casinos per region.

VENEZUELA: In Venezuela, the Company completed the sale of its 32% equity interest in the Fiesta Casino operation located in Puerto Ordaz. The Company sold its interest for $2 million. The Company believes the sale is in its best interest, due to its minority ownership position in Venezuela and the political climate in Venezuela. The Company wishes the best for its Venezuelan partners.

PHILIPPINES: In the Philippines, the Fiesta Casino at the Eastbay Resorts (Manila) generated revenue of $417,000 during the month of July, which is a 45% improvement in performance over the previous month. The growth in revenue has been surprising, however, the Company is assessing a potential structural change in the agreement to become profitable.

The Company is pleased to announce that a second casino and resort hotel project is underway in the Philippines. "Fiesta Casino & Resort-Poro Point" has been granted conditional approval of a casino license by the Philippine Amusement Gaming Corporation ("PAGCOR"), the government's gaming authority. The contract provides a much more favorable tax rate with the government because of the project's location on a former military base, where there is a significant governmental effort to promote development. The proposed casino and resort is located in Poro Point, Philippines, which is a port city located in the northern part of the Philippines. Just as in the case of the "Fiesta Casino & Resort-Eastridge" near Manila, Thunderbird has partnered with local developers for this project. First phase funding for the project is approximately $3.8 million and will be provided by a group of "project level" lenders. The "Fiesta Casino & Resort-Poro Point" is based on a Lease Agreement that Thunderbird entered into with the Bases Conversion Development Authority ("BCDA") and the Poro Point Management Corporation ("PPMC"). The Lease Agreement covers 4.8 hectares of what were formerly the Voice of America ("VOA") site and 60.7 hectares site known as the "Tourism Complex".

PRIVATE PLACEMENT: The Company's Private Placement of up to 2 million shares of common stock at a purchase price of USD$.90 per share was terminated due to a legal interpretation issue of an outstanding warrant agreement that arose during the term of the solicitation period. The Company was prepared to accept subscriptions for the 2 million shares of common stock but decided to accept subscriptions for 500,000 shares. The reason for rejecting the subscriptions for 1,500,000 shares is based upon a newly discovered legal issue the Company had previously entered into in a series of warrant agreements in which 2,345,000 warrants were issued to a third party lender. The holder of 2,345,000 warrants received the warrants at a strike price of 10 cents per warrant stemming from an issuance back in 2001. This warrant holder claimed entitlement to 10% of the Private Placement at a strike price of 10 cents. Although the Company disagrees with this position, it felt that the prudent course of action would be to reject the subscriptions on this Private Placement in order to properly assess the situation. The 500,000 share subscribers assessed the risk and wished to continue with the transaction. In any event, the proceeds of the offering will be used to fund financing closing and other business development expenses for the Company's expansions in Chile, Guatemala, Costa Rica, and the Philippines.

International Thunderbird Gaming Corporation is an owner and manager of international gaming facilities. Additional information about the Company is available on its World Wide Web site at

On behalf of the Board of Directors,

Jack R. Mitchell, President and CEO

Cautionary Notice: This release contains certain forward-looking statements within the meaning of the securities laws and regulations of various international, federal, and state jurisdictions. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential revenue and future plans and objectives of the Company are forward-looking statements that involve risk and uncertainties. There can be no assurances that such statements will prove to be accurate and actual results could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's forward-looking statements include competitive pressures, unfavorable changes in regulatory structures, and general risks associated with business, all of which are disclosed under the heading "Risk Factors" and elsewhere in the Company's documents filed from time-to-time with the CNQ and other regulatory authorities.

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