TORONTO, ONTARIO--(Marketwire - Nov. 15, 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 nine month periods ended September 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 THIRD QUARTER 2010

Financial Results

• Net gold revenue of $100.8 million, a decrease of 11% from $113.8 million in Q2 2010, an increase of 13% from $89.6 million in Q3 2009.
• Net income of $ 25.8 million ($ 0.03 per share) compared to a net income of $39.3 million ($0.05 per share) in Q2 2010 and a net loss of $4.6 million (-$0.01 per share) in Q3 2009.
• Cash flow from operations of $26.3 million, compared to $48.8 million in Q2 2010, and $33.00 million in Q3 2009.
• Cash and cash equivalents increased to $125.6 million from $92.7 million at the end of Q2 2010, and up from $38.7 million at the end of Q3 2009.
• Working capital increased to $205.3 million from $150.9 million at the end of Q2 2010, up from $18.5 million at the end of Q3 2009.
• Current and long term debt decreased to $22.1 million from $31.5 million at the end of Q2 2010 and from $121.1 million at the end of Q3 2009.

Operations

• Total gold production (doré) decreased 10% to 77,427 ounces (Q2 2010 – 86,803 ounces (100%) and 84,990 ounces in Q3 2009). Total cash cost per ounce increased 9% to US$603 (Q2 2010 – US$554 per ounce and US$518 per ounce in Q3 2009) (see the Non-GAAP Financial Measures table).
• The Zun-Holba and Irokinda Gold Mines produced 30,186 ounces (Q3 2009 – 37,430) (100%) at a total cash cost of US$583 per ounce.
• The Taparko-Bouroum Gold Mine produced 29,582 ounces (Q3 2009 – 25,073) (100%) at a total cash cost of US$421 per ounce. 
• Gold production at Berezitovy was 17,659 ounces (Q3 2009 – 22,487 ounces) (100%), at a total cash cost of US$939 per ounce.
• At the Bissa Gold Project, the technical report describing the results of the feasibility study was published in Q3 2010.

Subsequent Events

• Igor Klimanov resigned as Chief Executive Officer on October 4, 2010.
• A subsidiary of Severstal acquired 19,000,000 common shares of the Company in October 2010. Following the transaction, Severstal has beneficial ownership and control over 610,362,172 Common Shares, representing approximately 72.64% of the issued and outstanding Common Shares of the Company.
• Konstantin Sobolevskiy was appointed as Chief Executive Officer effective October 28, 2010.
• The Company paid off the principal amount of the Royal Gold loan. The Company has started to pay the tail royalty to Royal Gold, which amounts to 2% of the revenue generated by Somita.

DISCUSSION OF FINANCIAL RESULTS

Selected Financial Results

The Company reported a net income of $25.78 million ($0.03 per share) in Q3 2010 compared to net income of $39.3 million ($0.05 per share) in Q2 2010 and a net loss of $4.6 million (-$0.01 per share) in Q3 2009.

	Three months ended				Nine months ended
(except per share amounts)	September 30, 2010	June 30, 2010	September 30, 2009		September 30, 2010	September 30, 2009
Gold revenue	$100,767	$113,808	$89,557		$312,231	$262,917
Net income (loss)	25,775	39,267	(4,567	)	92,572	(41,413	)
Net income (loss) per share (basic)	0.03	0.05	(0.01	)	0.11	(0.07	)
Cash provided by (used in) operating activities	26,296	48,800	33,011		106,595	85,504
Weighted average number of shares outstanding (basic)	826,660,782	799,327,755	649,217,295		808,510,986	612,272,706

About High River

High River is an 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, events, 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 2009 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)
		September 30,			December 31,
(unaudited)		2010			2009
Assets
Current Assets
	Cash and cash equivalents	125,587		$	82,061
	Restricted cash	1,348			562
	Accounts receivable	16,332			18,115
	Inventory	99,097			81,090
	Other assets	17,384			12,382
		259,748			194,210
Investments		103,871			64,810
Property, plant and equipment		311,087			340,606
Exploration properties and deferred exploration		114,919			105,061
Other assets		759			697
Future income taxes		1,122			1,578
Total Assets		791,506		$	706,962
Liabilities
Current Liabilities
	Accounts payable	43,164		$	39,726
	Loans and interest payable	8,466			58,666
	Non-hedge derivatives	2,863			–
		54,493			98,392
Loans and interest payable		13,628			25,365
Reclamation and closure costs		17,755			14,208
Non-hedge derivatives		-			13,684
Future income taxes		33,884			20,567
		119,760			172,216
Non-controlling interest		31,408			21,922
Total Liabilities		151,168			194,138
Shareholders' Equity
Share capital		640,157			610,770
Warrants		10,126			13,265
Contributed surplus		16,002			15,907
Debenture conversion option		538			538
Deficit		(29,228	)		(121,801	)
Accumulated other comprehensive income		2,743			(5,855	)
Total Shareholders' Equity		640,338			512,824
Total Liabilities and Shareholders' Equity		791,506		$	706,962

High River Gold Mines Ltd.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in thousands of Canadian dollars except per share figures)
		Three months ended September 30,						Nine months ended September 30,
(unaudited)		2010			2009			2010			2009
Revenue
Gold		100,767		$	89,577			312,231		$	262,917
Silver		1,068			950			3,279			4,914
		101,835			90,527			315,510			267,831
Expenses
Mining costs		42,134			47,736			127,030			134,315
Mine administrative costs		3,543			1,676			9,015			8,153
Mine amortization and depletion		13,868			13,145			45,116			41,913
Asset retirement obligation accretion		327			216			947			639
		59,872			62,773			182,108			185,020
Income before the undernoted		41,963			27,754			133,402			82,811
Administrative costs		(1,470	)		(5,205	)		(2,809	)		(11,525	)
Amortization		-			(15	)		(6	)		(46	)
Exploration expense		(6,764	)		(999	)		(9,916	)		(3,000	)
Financing costs and investment income, net		3,084			(8,490	)		3,922			(15,356	)
Other income/(expenses)		(572	)		(13,513	)		(4,570	)		(80,447	)
Income (loss) before tax and non-controlling interest		36,241			(468	)		120,023			(27,563	)
Income tax expense		(6,029	)		(4,085	)		(17,965	)		(9,438	)
Income (loss) before non-controlling interest		30,212			(4,553	)		102,058			(37,001	)
Non-controlling interest in earnings of subsidiary		(4,437	)		(14	)		(9,486	)		(4,412	)
Net income (loss) for the period	$	25,775		$	(4,567	)	$	92,572		$	(41,413	)
Net income (loss) per share – basic and diluted	$	0.03		$	(0.01	)	$	0.11		$	(0.07	)

High River Gold Mines Ltd.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of Canadian dollars)
			Three months ended September 30,						Nine months ended September 30,
(unaudited)			2010			2009			2010			2009
Operating Activities
Net income (loss) for the period		$	25,775		$	(4,567	)	$	92,572		$	(41,413	)
Non-cash items:
	Non-controlling interest in earnings of subsidiary		4,437			14			9,486			4,412
	Mining cost -change in inventory		(6,200	)		1,593			(17,976	)		470
	Amortization and depletion		13,868			13,161			45,122			41,959
	Asset retirement obligation accretion		327			216			947			639
	Financial instrument accretion		40			114			351			568
	Fair value adjustments to financial instruments		(3,510	)		4,007			(10,821	)		1,000
	Stock based compensation		6			70			95			250
	Write down of exploration		-			11,383			628			70,167
	Loss on disposal of assets		(286	)		6,429			(133	)		6,991
	Future income taxes		2,061			1,898			3,072			768
	Unrealized foreign exchange loss		(1,156	)		(6,204	)		2,067			(2,690	)
	Other		201			-			(313	)
Subtotal			35,563			28,114			125,097			83,121
Change in non-cash working capital			(9,267	)		4,897			(18,502	)		2,383
Net cash provided by operating activities			26,296			33,011			106,595			85,504
Investing Activities
	Property, plant and equipment		(10,165	)		(6,081	)		(23,387	)		(13,721	)
	Proceeds on disposal		1,092			1,636			1,634			1,636
	Exploration properties and deferred exploration		(7,137	)		(1,560	)		(11,772	)		(4,114	)
	(Increase) decrease in other assets		(573	)		(4,927	)		(811	)		(1,553	)
Net cash used by investing activities			(16,783	)		(10,932	)		(34,336	)		(17,752	)
Financing Activities
	Loans received		-			13			-			5,991
	Loans repaid		-			(5,722	)		(50,040	)		(63,290	)
	Common shares issued		26,032			-			26,249			10,623
	Net cash used by financing activities		26,032			(5,709	)		(23,791	)		(46,676	)
Effect of exchange rate changes on cash held in foreign currencies			(2,688	)		(837	)		(4,942	)		(1,536	)
Increase in cash and cash equivalents during the period			32,857			15,533			43,526			19,540
Cash and cash equivalents - Beginning of period			92,730			23,130			82,061			19,123
Cash and cash equivalents - End of period		$	125,587		$	38,663		$	125,587		$	38,663