TORONTO, ONTARIO--(Marketwire - Aug. 13, 2010) -

(All currency figures are in Canadian dollars unless otherwise noted)

High River Gold Mines Ltd. ("High River" or the "Company") (TSX:HRG) today reported its financial results and operational highlights for the three and six month periods ended June 30, 2010. The Unaudited Interim Consolidated Financial Statements and related Notes along with the Management's Discussion and Analysis have been filed with SEDAR (www.sedar.com) and can be viewed on the Company's website at www.hrg.ca. 

HIGHLIGHTS FOR THE SECOND QUARTER 2010

Financial Results

• Net gold revenue of $113.8 million, an increase of 16% from $97.7 million in Q1 2010, an increase of 34% from $84.6 million in Q2 2009.
• Net income of $39.3 million ($0.05 per share) compared to a net income of $27.5 million ($0.03 per share) in Q1 2010 and a net loss of $37.8 million (-$0.06 per share) in Q2 2009.
• Cash flow from operations of $48.8 million, compared to $31.5 million in Q1 2010, and $22.8 million in Q2 2009.
• Cash and cash equivalents increased to $92.7 million from $82.5 million at the end of Q1 2010, and up from $23.1 million at the end of Q2 2009.
• Current and long term debt decreased to $31.5 million from $62.6 million at the end of Q1 2010 and from $135.6 million at the end of Q2 2009.

Operations

	Production (100%) Oz	Cash Operating Costs US$/Oz	Total Cash Costs US$/Oz
Buryatzoloto	36,467	520	592
Berezitovy	20,332	684	756
Somita	30,004	325	370
Total	86,803	491	554

Q2 2010 total operating and non-operating cash costs reached US $585 per ounce. Non-operating cash costs per ounce mainly represent corporate administration, exploration, and other expenses such as realized foreign exchange losses.

• Zun-Holba and Irokinda Underground Gold Mines:
  • Stable production with no material shortcomings.
  • Lower grades processed resulted in higher production cash costs

• Berezitovy Open-pit Gold Mine:
  • The crusher and mill availability significantly increased compared to the previous quarter, but remained below planned level.
  • Lower production during the quarter resulted in higher production cash costs

• Taparko-Bouroum Open-pit Gold Mine:
  • Production in line with the plan resulted in low production cash costs

DISCUSSION OF FINANCIAL RESULTS

Selected Financial Results

The Company reported a net income of $39.3 million ($0.05 per share) in Q2 2010 compared to a net income of $27.5 million ($0.03 per share) in Q1 2010 and a net loss of $37.8 million (-$0.06 per share) in Q2 2009.

	Three months ended				Six months ended
(except per share amounts)	June 30, 2010	March 31, 2010	June 30, 2009		June 30, 2010	June 30, 2009
Gold revenue	$ 113,808	$ 97,656	$ 84,561		$ 211,464	$ 173,340
Net income (loss)	39,267	27,530	(37,777	)	66,797	(10,219	)
Net income (loss) per share (basic)	0.05	0.03	(0.06	)	0.08	(0.02	)
Cash provided by (used in) operating activities	48,800	31,499	22,821		80,299	52,493
Weighted average number of shares outstanding (basic)	799,327,755	799,327,755	597,407,151		799,327,755	593,800,412

OVERVIEW OF OPERATIONS

Underground Mines

The Company's attributable gold production from Buryatzoloto was 30,974 ounces compared to 28,652 ounces in Q1 2010 and 30,439 ounces in Q2 2009. Buryatzoloto continues to be profitable and achieved its production objectives for Q2 2010 with 36,466 ounces (100%) of gold produced at an estimated total cash cost of US$592 per ounce as compared to 35,835 ounces of gold produced at a total cash cost of US$459 per ounce in Q2 2009.

Open Pit Mines

Berezitovy Mine (Russia)

The main crusher and mill availability significantly increased in Q2 2010 compared to the previous quarter. As a result, production increased by 49% while cash operating costs decreased by 28%. The Company's attributable gold production from Berezitovy was 20,129 ounces compared to 13,468 ounces in Q1 2010 and 23,783 ounces in Q2 2009.

Taparko-Bouroum Mine (Burkina Faso)

The mine ran well and met management's expectations. The Company's attributable gold production from Taparko-Bouroum mine was 27,003 ounces in Q2 2010 compared to 27,384 ounces in Q1 2010 and 18,125 ounces in Q2 2009. The total cash costs in Q2 2010 amounted to US$370 per ounce.

Exploration Projects

Burkina Faso

In Q2 2010 the Company continued the Feasibility Study of the Bissa project, which is expected to be completed in 2010. At the same time the company continues exploration at the Bissa group permits and other properties in Burkina Faso. 8,500 meters of RC drilling, 9,300 meters of RAB drilling and 390 meters of Diamond drilling were completed in Q2 2010.

About High River

High River is unhedged gold company with interests in producing mines and advanced exploration projects in Russia and Burkina Faso. Two underground mines, Zun-Holba and Irokinda, are situated in the Lake Baikal region of Russia. Two open pit gold mines, Berezitovy in Russia and Taparko-Bouroum in Burkina Faso, are also in production. Finally, High River has two advanced exploration projects with NI 43-101 compliant resource estimates, the Bissa gold project in Burkina Faso and 50% interest in the Prognoz silver project in Russia.

FORWARD LOOKING INFORMATION

This release and subsequent oral statements made by and on behalf of the Company may contain forward-looking statements. Wherever possible, words such as "intends", "expects", "scheduled", "estimates", "anticipates", "believes", and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, have been used to identify these forward-looking statements. Although the forward-looking statements contained in this release reflect management's current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, High River cannot be certain that actual results will be consistent with these forward-looking statements. A number of factors could cause events and achievements to differ materially from the results expressed or implied in the forward-looking statements. These factors should be considered carefully and prospective investors should not place undue reliance on the forward-looking statements. Forward-looking statements necessarily involve significant known and unknown risks, assumptions and uncertainties that may cause High River's actual results, event, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Although High River has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not to be anticipated, estimated or intended, including those risk factors discussed in the Company's 2008 Annual Information Form. There can be no assurance that the forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, prospective investors should not place undue reliance on forward-looking statements. Any forward-looking statements are made as of the date of this release, and High River assumes no obligation to update or revise them to reflect new events or circumstances, unless otherwise required by law.

High River Gold Mines Ltd.

Consolidated Balance Sheets

(Expressed in thousands of Canadian dollars)

		June 30,			December 31,
(unaudited)		2010			2009
Assets
Current Assets
	Cash and cash equivalents	$	92,730		$	82,061
	Restricted cash		477			562
	Accounts receivable		13,479			18,115
	Inventory		91,085			81,090
	Other assets		16,359			12,382
			214,130			194,210
Investments			78,040			64,810
Property, plant and equipment			306,041			340,606
Exploration properties and deferred exploration			108,062			105,061
Other assets			765			697
Future income taxes			6,624			1,578
Total Assets		$	713,662		$	706,962
Liabilities
Current Liabilities
Accounts payable		$	39,063		$	39,726
Loans and interest payable			17,793			58,666
Non-hedge derivatives			6,373			–
			63,229			98,392
Loans and interest payable			13,738			25,365
Reclamation and closure costs			14,942			14,208
Non-hedge derivatives			–			13,684
Future income taxes			30,312			20,567
			122,221			172,216
Non-controlling interest			26,972			21,922
Total Liabilities			149,193			194,138
Shareholders' Equity
Share capital			610,987			610,770
Warrants			13,265			13,265
Contributed surplus			15,996			15,907
Debenture conversion option			538			538
Deficit			(55,004	)		(121,801	)
Accumulated other comprehensive income			(21,313	)		(5,855	)
Total Shareholders' Equity			564,469			512,824
Total Liabilities and Shareholders' Equity		$	713,662		$	706,962

High River Gold Mines Ltd.

Consolidated Statements of Operations

(Expressed in thousands of Canadian dollars except per share figures)

		Three months ended June 30,
(unaudited)		2010			2009
Revenue
Gold		$	113,808		$	84,561
Silver			1,388			3,622
			115,196			88,183
Expenses
Mining costs			42,909			43,332
Mine administrative costs			3,679			3,032
Mine amortization and depletion			15,425			14,782
Asset retirement obligation accretion			333			223
			62,346			61,369
Income before the undernoted			52,850			26,814
Administrative costs			(552	)		(2,135	)
Amortization			(107	)		(11	)
Exploration expense			(1,892	)		(1,195	)
	Financing costs and investment income, net		504			(3,469	)
Other income/ expenses			(3,215	)		(48,105	)
Income before tax and non-controlling interest			47,588			(28,101	)
Income tax expense			(5,899	)		(5,366	)
Income before non-controlling interest			41,689			(33,467	)
Non-controlling interest in earnings of subsidiary			(2,422	)		(4,310	)
Net income for the period		$	39,267		$	(37,777	)
Net income per share – basic and diluted		$	0.05		$	(0.06	)

High River Gold Mines Ltd.

Consolidated Statements of Cash Flows

(Expressed in thousands of Canadian dollars)

		Three months ended June 30,
(unaudited)		2010			2009
Operating Activities
Net income/loss for the period		$	39,267		$	(37,777	)
Non-cash items:
	Non-controlling interest in earnings of subsidiary		2,422			4,310
	Mining costs		(4,231	)		(976	)
	Amortization and depletion		15,532			14,792
	Asset retirement obligation accretion		333			223
	Financial instrument accretion		270			661
	Fair value adjustments to financial instruments		(3,482	)		(1,229	)
	Stock based compensation		21			130
	Loss on disposal of assets		628			58,784
	Future income taxes		122			434
	Interest on capital lease		(650	)		1,164
	Unrealized foreign exchange loss		3,842			(8,453	)
	Other		980			46
Subtotal			55,054			32,109
Change in non-cash working capital			(6,254	)		(9,288	)
Net cash provided by operating activities			48,800			22,821
Investing Activities
	Property, plant and equipment		(9,176	)		(5,164	)
	Proceeds on disposal		538			–
	Exploration properties and deferred exploration		(2,411	)		(604	)
	(Increase)decrease in other assets		(165	)		3,320
Net cash used by investing activities			(11,214	)		(2,448	)
Financing Activities
	Loans received		–			5,947
	Loans repaid		(30,511	)		(37,812	)
	Common shares issued		–			10,623
Net cash used by financing activities			(30,511	)		(21,242	)
Effect of exchange rate changes on cash held in foreign currencies			3,115			(1,021	)
Increase in cash and cash equivalents during the period			10,190			(1,890	)
Cash and cash equivalents - Beginning of period			82,540			25,020
Cash and cash equivalents - End of period		$	92,730		$	23,130