EXHIBIT 99.1

July 1, 2010

FOR IMMEDIATE RELEASE

MEXCO ENERGY CORPORATION REPORTS PROFITABLE FISCAL 2010

MIDLAND, TX – 07/01/10 – Mexco Energy Corporation (AMEX: MXC) reported results on its Annual Report on Form 10-K to the Securities and Exchange Commission for the fiscal year ended March 31, 2010.

The Company reported net income of $400,839, or $.21 per diluted share, for fiscal year 2010 as compared to $1,170,570, or $.61 per diluted share, for fiscal 2009, a decrease of 66%.

Operating revenues in fiscal 2010 were $3,245,756, a decrease of 34% over 2009 operating revenues of $4,925,993.  This is the result of a 35% decrease in combined price of natural gas and oil.  The average sales price received was $4.92 per Mcfe compared to $7.57 per Mcfe received in fiscal 2009.  Production volumes of natural gas and oil increased 1% and 6%, respectively, during fiscal 2010.  Revenues from oil and gas royalty interests accounted for approximately 39% of the Company’s revenues for fiscal 2010.

The Company’s estimated present value of proved reserves at March 31, 2010 was approximately $18.1 million based on estimated future net revenues discounted at 10% per annum, pricing and other assumptions set forth in “Item 2 – Properties” of the Company’s Form 10-K, an increase of 27% as compared to the same at March 31, 2009.  The Company’s total estimated proved reserves at March 31, 2010 were 8.406 billion cubic feet of natural gas, a decrease of 11% over the prior fiscal year, and 240,000 barrels of oil and natural gas liquids, an increase of 16% over the prior fiscal year.  For fiscal 2010, natural gas constituted approximately 85% of the Company’s total proved reserves and approximately 63% of the Company’s revenues.

Nicholas C. Taylor, President and Chief Executive Officer, stated, “Decreased pricing resulted in a difficult year; however, we were able to significantly reduce our debt from $1.4 million to $700,000 during the year ended March 31, 2010, and on July 1, 2010 to $300,000.”  Also, during the year ended March 31, 2010, the Company participated with working interests in 23 gross wells (.26 net wells) compared to 14 gross wells (.83 net wells) for the previous year.  All but two of such wells were commercially productive.

The Company owns oil and gas properties in ten states, with the majority of its activity centered in West Texas.  The Company continues to focus its efforts to increase oil and natural gas reserves, through acquisitions, exploration and development.

In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, Mexco Energy Corporation cautions that statements in this press release which are forward-looking and which provide other than historical information involve risks and uncertainties that may impact the Company's actual results of operations.  These risks include, but are not limited to, production variance from expectations, volatility of oil and gas prices, the need to develop and replace reserves, exploration risks, uncertainties about estimates of reserves, competition, government regulation, and mechanical and other inherit risks associated with oil and gas production.  A discussion of these and other factors, including risks and uncertainties, is set forth in the Company’s Form 10-K for the fiscal year ended March 31, 2010.  Mexco Energy Corporation disclaims any intention or obligation to revise any forward-looking statements

For additional information, please contact:

Tammy L. McComic, Executive Vice President and Chief Financial Officer

mexco@sbcglobal.net, 432-682-1119

Mexco Energy Corporation and Subsidiary
CONSOLIDATED STATEMENTS OF OPERATIONS
Year ended March 31,
	2010			2009			2008
Operating revenues:
Oil and gas	$	3,220,763		$	4,876,627		$	3,887,955
Other		24,993			49,366			11,453
Total operating revenues		3,245,756			4,925,993			3,899,408
Operating expenses:
Production		1,054,224			1,195,584			1,240,305
Accretion of asset retirement obligation		31,625			28,578			26,262
Depreciation, depletion and amortization		1,113,141			1,046,120			779,618
General and administrative		870,558			876,756			821,786
Total operating expenses		3,069,548			3,147,038			2,867,971
Operating profit		176,208			1,778,955			1,031,437
Other income (expenses):
Interest income		478			1,838			5,113
Interest expense		(33,082	)		(81,961	)		(105,312	)
Net other expense		(32,604	)		(80,123	)		(100,199	)
Earnings before provision for income taxes		143,604			1,698,832			931,238
Income tax expense (benefit):
Current		25,502			539,048			-
Deferred		(282,737	)		(10,786	)		217,594
		(257,235	)		528,262			217,594
Net income	$	400,839		$	1,170,570		$	713,644
Earnings per common share:
Basic:	$	0.21		$	0.63		$	0.40
Diluted:	$	0.21		$	0.61		$	0.40
Weighted average common shares outstanding:
Basic:		1,888,070			1,846,394			1,767,777
Diluted:		1,929,588			1,934,235			1,773,049

Mexco Energy Corporation and Subsidiary
CONSOLIDATED BALANCE SHEETS
	March 31,			March 31,
	2010			2009
ASSETS
Current assets
Cash and cash equivalents	$	160,439		$	223,583
Accounts receivable:
Oil and gas sales		538,444			351,040
Trade		63,455			164,834
Related parties		55			1,687
Prepaid costs and expenses		17,161			36,610
Total current assets		779,554			777,754
Property and equipment, at cost
Oil and gas properties, using the full cost method		27,353,016			26,735,778
Other		76,161			61,362
		27,429,177			26,797,140
Less accumulated depreciation, depletion and amortization		14,179,156			13,066,014
Property and equipment, net		13,250,021			13,731,126
	$	14,029,575		$	14,508,880
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses	$	301,160		$	555,765
Long-term debt		700,000			1,400,000
Asset retirement obligations		486,305			440,011
Deferred income tax liabilities		902,757			1,185,494
Commitments and contingencies
Stockholders' equity
Preferred stock - $1.00 par value;
10,000,000 shares authorized; none outstanding		-			-
Common stock - $0.50 par value; 40,000,000 shares authorized;
2,003,866 and 1,962,616 shares issued; 1,919,866 and 1,878,616 shares outstanding as of
March 31, 2010 and 2009, respectively		1,001,933			981,308
Additional paid-in capital		5,907,899			5,617,620
Retained earnings		5,156,138			4,755,299
Treasury stock, at cost (84,000 shares)		(426,617	)		(426,617	)
Total stockholders' equity		11,639,353			10,927,610
	$	14,029,575		$	14,508,880