Asia Entertainment & Resources Ltd. Announces Fourth Quarter and Full Year 2012 Financial Results

  Asia Entertainment & Resources Ltd. Announces Fourth Quarter and Full Year
  2012 Financial Results

Business Wire

HONG KONG -- March 27, 2013

Asia Entertainment & Resources Ltd. (“AERL” or the “Company”) (NASDAQ: AERL),
which operates through its subsidiaries and related promoter companies that
act as VIP room gaming promoters, today announced unaudited financial results
for the three months and year ended December 31, 2012. All currency amounts
are stated in United States dollars. Please refer to the Annual Report on Form
20-F that will be filed with the Securities and Exchange Commission on or
about March 28, 2013 for the full audited financial statements and related
disclosures for the year ended December 31, 2012.

Fourth Quarter 2012 Highlights

  *Rolling Chip Turnover (a metric used by casinos to measure the aggregate
    amount of players’ bets and overall volume of VIP gaming room business
    transacted, which is further defined below) for the three months ended
    December 31, 2012 was $4.1 billion, a decrease of 27% compared to $5.6
    billion for the three months ended December 31, 2011
  *Net income, including the change in fair value of contingent consideration
    of $0.1 million related to the King's Gaming and Bao Li Gaming
    acquisitions, decreased 38% to $10.1 million or $0.24 per share (fully
    diluted) in the fourth quarter of 2012 from $16.3 million or $0.38 per
    share (fully diluted) in the same period of 2011.
  *Non-GAAP income before amortization of intangible assets and the change in
    fair value of contingent consideration related to the acquisitions of
    King's Gaming and Bao Li Gaming was $12.6 million or $0.30 (fully diluted)
    for the three months ended December 31, 2012 as compared to income of
    $19.8 million or $0.46 (fully diluted) for the three months ended December
    31, 2011. The decrease in Non-GAAP income was approximately 36%.
  *In the fourth quarter 2012, the Company repurchased and retired 1,011,600
    shares at an average price of $3.15 per share. The Company purchased the
    maximum number of shares pursuant to its then-existing share repurchase
    program in the first quarter of 2013 and announced a new share repurchase
    program to purchase up to an additional four million of its ordinary
    shares on the open market at prices to be determined by the Company’s
    management. The program commences on the second business day after today’s
    release of the Company's financial results for the year ended December 31,
    2012 and expires on December 31, 2013.

Full Year 2012 Highlights

  *Rolling Chip Turnover for the year ended December 31, 2012 in the
    Company’s VIP gaming rooms was $18.1 billion, a decrease of 9% compared to
    $19.9 billion for the year ended December 31, 2011.
  *Net income, including the change in fair value of contingent consideration
    of $15.2 million related to the King's Gaming and Bao Li Gaming
    acquisitions, decreased 9% to $70.1 million or $1.66 per share (fully
    diluted) in the year ended December 31, 2012 from $77.3 million or $2.00
    per share (fully diluted) for the year ended December 31, 2011.
  *Non-GAAP income before amortization of intangible assets and the change in
    fair value of contingent consideration related to the acquisitions of
    King's Gaming and Bao Li Gaming was $61.6 million or $1.46 per share
    (fully diluted) for the year ended December 31, 2012, as compared to
    income of $76.1 million or $1.97 per share (fully diluted) for the year
    ended December 31, 2011. The decrease in Non-GAAP income was approximately
    19%.

The decrease in net income and Non-GAAP income for the three months ended
December 31, 2012 was due primarily to decreased Rolling Chip Turnover and a
lower-than-average win rate for November and December of 2012. Revenue was
previously generated by a fixed commission of 1.25% of Rolling Chip Turnover;
however, beginning in September 2012, revenue began to be generated through
sharing in wins and losses with the Casino Operators, which increases the
volatility in the Company’s revenues.

The decrease in net income and Non-GAAP income for the year ended December 31,
2012 was due primarily to lower revenue generated from decreased Rolling Chip
Turnover as a result of the economic slowdown in parts of Mainland China. In
order to control credit exposure, the amounts of markers made available to
junket agents were reduced, negatively impacting the growth in Rolling Chip
Turnover. Rolling Chip Turnover generally is correlated with the availability
of cage capital that can be made available for credit to junket agents.

“Despite the lower year-over-year results we believe we managed our business
appropriately to reduce exposure to undue risk that can impair longer-term
growth,” said Mr. Man Pou Lam (Mr. Lam), Chairman of AERL. “The tightening of
credit to junket agents had a near-term impact on our overall performance that
we expect will reverse as a result of improvement in the Chinese economy. To
that end, as of September 2012, we shifted our remuneration model away from a
fixed commission model to a revenue sharing model, which should allow us to
improve our competitiveness in the market and hopefully increase our net
income and Non-GAAP income. We remain committed to growing our business
presence in the Macau VIP gaming market and continuing to create value for our
shareholders.”

Outlook for 2013

For the first two months of 2013, AERL’s Rolling Chip Turnover was US$2.55
billion (an average of $1.28 billion per month), down 29% year-over-year,
compared to US$3.62 billion (an average of $1.81 billion per month) for the
first two months of 2012. Win rate for the first two months of 2013 was 3.89%.

In view of the tightening of credit to junket agents, the Company is providing
Rolling Chip Turnover guidance for its four existing VIP rooms in Macau of
$1.5 billion per month in the aggregate (subject to monthly fluctuations),
which equates to a total of $18 billion in the aggregate for full year 2013,
which is comparable with 2012 results.

The Company believes that for the remainder of 2013, all of its business will
remain on a revenue sharing basis. The Company is also providing Non-GAAP
income guidance for the year ended December 31, 2013 of $60 million to $75
million based on the current and expected performance of its existing four VIP
gaming rooms in Macau, and does not take into consideration any possible
future expansion or additional VIP gaming rooms.

Conference Call and Replay Information

AERL will conduct a conference call to discuss the financial results today at
10:00AM EDT/10:00PM Macau. To participate, please dial one of the following
numbers at least 10 minutes prior to the scheduled start of the call:

1-888-329-8893 (United States/Canada)
10-800-714-0940 (North China)
10-800-140-0915 (South China)
800-968-149 (Hong Kong)
800-101-1739 (Singapore)
0800-404-7655 (United Kingdom)
1-719-325-2491 (Other International)

Interested parties may also access the live call on the Internet at
www.aerlf.com (select Events and Presentations). Following its completion, a
replay of the call can be accessed on the Internet at the above link or for
one week by calling either 1-877-870-5176 (U.S. callers) or 1-858-384-5517
(International callers) and providing conference ID 5824580.

Definition of Rolling Chip Turnover

Rolling Chip Turnover is used by casinos to measure the volume of VIP business
transacted and represents the aggregate amount of bets players make. Bets are
wagered with “non-negotiable chips” and winning bets are paid out by casinos
in so-called “cash” chips. “Non-negotiable chips” are specifically designed
for VIP players to allow casinos to calculate the commission payable to VIP
room gaming promoters. Commissions are paid based on the total amount of
“non-negotiable chips” purchased by each player. VIP room gaming promoters
therefore require the players to “roll,” from time to time, their “cash chips”
into “non-negotiable” chips for further betting so that they may receive their
commissions (hence the term “Rolling Chip Turnover”). Through the promoters,
“non-negotiable chips” can be converted back into cash at any time. Betting
using rolling chips, as opposed to using cash chips, is also used by the DICJ
(Macau Gaming Control Board) to distinguish between VIP table revenue and mass
market table revenue.

About Asia Entertainment & Resources Ltd.

AERL is a holding company which operates through its subsidiaries and related
promoter companies as a VIP room gaming promoter, and is entitled to receive
all of the profits of the VIP gaming promoters from VIP gaming rooms. AERL's
VIP room gaming promoters currently participate in the promotion of four major
luxury VIP gaming facilities in Macau, China, the largest gaming market in the
world. One VIP gaming room is located at the top-tier 5-star hotel, the Star
World Hotel & Casino in downtown Macau, and another is located in the luxury
5-star hotel, the Galaxy Macau™ Resort in Cotai, each of which is operated by
Galaxy Casino, S.A. Additional VIP gaming rooms are located at the Sands Cotai
Central and City of Dreams Macau, both in Cotai.

Forward-Looking Statements

This press release includes forward-looking statements made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995
that involve risks and uncertainties. Forward-looking statements are
statements that are not historical facts. Such forward-looking statements,
based upon the current beliefs and expectations of AERL's management, are
subject to risks and uncertainties, which could cause actual results to differ
from the forward-looking statements. The gaming industry is characterized by
an element of chance. Theoretical win rates for AERL's VIP room gaming
promoters' VIP gaming room operations depend on a variety of factors,some
beyond their control. In addition to the element of chance, theoretical win
rates are also affected by other factors, including gaming patrons' skill and
experience, the mix of games played, the financial resources of gaming
patrons, the spread of table limits, the volume of bets placed by AERL's VIP
room gaming promoters' gaming patrons and the amount of time gaming patrons
spend on gambling — thus VIP gaming rooms' actual win rates may differ greatly
over short time periods, such as from quarter to quarter, and could cause
their quarterly results to be volatile. These factors, alone or in
combination, have the potential to negatively impact the VIP gaming rooms' win
rates. Investors and potential investors should consult all of the information
set forth herein and should also refer to the risk factors set forth in AERL's
Annual Report on Form 20-F to be filed on or about March 28, 2013, and other
reports filed or to be filed from time-to-time with the Securities and
Exchange Commission.

ASIA ENTERTAINMENT & RESOURCES LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME
                                                             
                    For the Three   For the        For the Year   For the Year
                    Months Ended    Three Months   Ended          Ended
                    December 31,    Ended          December 31,   December 31,
                    2012            December 31,   2012           2011
                                    2011
                    (Unaudited)     (Unaudited)    (Unaudited)    *
                                                                  
Revenue from VIP    $ 56,423,329    $ 69,705,359   $              $
Gaming Operations                                  236,300,623    250,575,452
                                                                  
Expenses
- Commission to     38,410,863      44,487,138     154,569,837    155,968,504
Agents
- Selling,
General and         4,987,288       4,910,184      18,340,972     16,550,387
Administrative
Expenses
- Special Rolling   405,262         557,441        1,815,034      1,993,208
Tax
- Amortization of   2,429,703       1,265,409      6,622,238      5,058,204
Intangible Assets
Total Expenses      46,233,116      51,220,172     181,348,081    179,570,303
                                                                  
Operating income
before change in
fair value of       10,190,213      18,485,187     54,952,542     71,005,149
contingent
consideration
Change in Fair
Value of
Contingent
Consideration for   (79,883)        (2,128,679)    15,166,700     6,248,361
the Acquisition
of King's Gaming
and Bao Li
Net Income          10,110,330      16,356,508     70,119,242     77,253,510
                                                                  
Other
Comprehensive
Income
Foreign Currency
- Translation       94,923          191,861        669,109        (64,634)
Adjustment
Total
Comprehensive       $ 10,205,253    $ 16,548,369   $ 70,788,351   $ 77,188,876
Income
                                                                  
Net Income Per
Share
Basic               $ 0.24          $ 0.42         $ 1.66         $ 2.07
Diluted             $ 0.24          $ 0.38         $ 1.66         $ 2.00
Weighted Average
Shares
Outstanding
Basic               41,975,321      38,824,741     42,324,462     37,371,426
Diluted             41,975,980      42,619,352     42,324,628     38,691,186

* Derived from the audited financial statements for the year ended December
31, 2011.

ASIA ENTERTAINMENT & RESOURCES LTD.

CONSOLIDATED BALANCE SHEETS
                                                           
                                         December 31, 2012   December 31, 2011
                                         (Unaudited)         *
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents                $ 20,644,296        $ 16,718,565
Accounts Receivable, Net                 2,480,961           1,240,142
Markers Receivable                       241,706,663         240,131,089
Prepaid Expenses and Other Assets        303,570             292,559
Total Current Assets                     265,135,490         258,382,355
                                                             
Intangible Assets (net of accumulated
amortization of $12,553,037 and          94,451,063          54,983,937
$5,902,419 at December 31, 2012 and
2011, respectively)
Goodwill                                 17,037,761          14,992,009
Property and Equipment (net of
accumulated depreciation of $14,366 and  13,698              26,855
$1,101 at December 31, 2012 and 2011,
respectively)
Deferred Offering Costs                  807,401             -
Other Assets                             21,592              22,158
TOTAL ASSETS                             $ 377,467,005       $ 328,407,314
                                                             
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Lines of Credit Payable                  $ 34,799,982        $ 46,270,563
Accrued Expenses                         14,091,723          16,157,439
Payable-King's Gaming
Acquisition-Contingent Purchase Price    9,000,000           12,057,600
Obligation
Loan Payable, Shareholders, current      2,214,078           2,641,619
Total Current Liabilities                60,105,783          77,127,221
                                                             
Loan Payable, Shareholders               60,000,000          60,000,000
Bao Li Gaming Acquisition-Contingent     32,294,981          -
Purchase Price Obligation
King's Gaming Acquisition-Contingent
Purchase Price Obligation, net of        9,000,000           32,492,985
current portion
Total Liabilities                        161,400,764         169,620,206
                                                             
COMMITMENTS AND CONTINGENCIES
                                                             
SHAREHOLDERS' EQUITY
Preferred Shares, $0.0001 par value      -                   -
Authorized 1,150,000 shares; none issued
Ordinary Shares, $0.0001 par value
Authorized 200,000,000 shares; issued    4,118               3,881
41,177,217 at December 31, 2012 and
38,804,064 at December 31, 2011
Additional Paid-in Capital               69,670,922          52,581,098
Retained Earnings                        145,828,260         106,308,297
Accumulated Comprehensive Income (Loss)  562,941             (106,168)
Total Shareholders' Equity               216,066,241         158,787,108
TOTAL LIABILITIES AND SHAREHOLDERS'      $ 377,467,005       $ 328,407,314
EQUITY
                                                             
* Derived from the audited financial statements for the year ended December
31, 2011.

                           Cash Flow Information
                            For the Year Ended December 31,
                            2012                         2011*
                            (Unaudited)
Net cash provided
by operating               $    46,428,105               $    5,280,509
activities
Net cash used in            $    (15,146,032    )         $    (27,956       )
investing activities
Net cash used in            $    (27,390,634    )         $    (2,305,762    )
financing activities
Net increase in cash        $    3,891,439                $    2,946,791
and cash equivalents
                                                                             
*Condensed from the audited financial statements for the year ended December
31, 2011.

Non-GAAP Financial Measures

The Company’s calculation of Non-GAAP income (operating income before
amortization of intangible assets and change in fair value of contingent
consideration) and Non-GAAP EPS for the years ended December 31, 2012 and 2011
differs from net income and EPS based on net income because it does not
include amortization of intangible assets and change in fair value of
contingent consideration. The Company uses this information internally in
evaluating its operations and believes this information is important to
investors because it provides a complete picture of its operations for the
entire period and is more accurately comparable to the prior-year period.
Notwithstanding the foregoing, Non-GAAP income and EPS should not be
considered an alternative to, or more meaningful than, net income and EPS as
determined in accordance with GAAP. The following is a reconciliation of the
Company’s unaudited net income to Non-GAAP income and GAAP EPS to the
Company’s Non-GAAP EPS:

                              For the Year Ended    For the Year Ended
                               December 31, 2012      December 31, 2011
                                                                         
Net Income attributable
to ordinary                    $    70,119,242        $    77,253,510
shareholders
                                                                         
Amortization of                     6,622,238              5,058,204
intangible assets
                                                                         
Change in fair
value of contingent                (15,166,700   )       (6,248,361    )
consideration
                                                                         
Non-GAAP income
(before amortization of
intangible assets and          $    61,574,780        $    76,063,353
change in fair value
of contingent consideration)

                   For the Year Ended           For the Year Ended
                    December 31, 2012             December 31, 2011
                    Basic      Fully Diluted     Basic      Fully Diluted
                                                                            
Earnings per
share
attributable to     $ 1.66      $    1.66         $ 2.07      $    2.00
ordinary
shareholders
                                                                            
Amortization of       0.16           0.16           0.14           0.13
intangible assets
                                                                            
Change in fair
value of
contingent           (0.36 )       (0.36    )    (0.17 )       (0.16    )
consideration


                                                                            
Non-GAAP Earnings
per share (before
amortization of
intangible assets   $ 1.46      $    1.46         $ 2.04      $    1.97
and change in
fair value of
contingent
consideration)

Contact:

Asia Entertainment & Resources Ltd.
James Preissler, +1 646-450-8808
preissj@aerlf.com
or
ICR
William Schmitt, 203-682-8294
william.schmitt@icrinc.com