TORONTO, ONTARIO--(Marketwire - June 14, 2011) -

(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 month period ended March 31, 2011. 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 FIRST QUARTER 2011

Financial Results

• Net gold revenue of $ 122.4 million, a decrease of 0.8% from $123.4 million in Q4 2010, an increase of 25.3% from $ 97.7 million in Q1 2010.
• Net income of $ 37.3 million ($0.04 per share) compared to a net income of $22.3 million ($0.03 per share) in Q4 2010 and a net income of $30.4 million ($0.03 per share) in Q1 2010.
• Cash flow from operations of $53.5 million, up from $40.0 million in Q4 2010, and up from $31.5 million in Q1 2010.
• Cash and cash equivalents increased to $204.1 million from $154.0 million at the end of 2010, and up from $82.5 million at the end of Q1 2010.
• Working capital increased to $287.0 million from $205.2 million at the end of 2010, up from $117.9 million at the end of Q1 2010.
• Current and long term debt decreased to $ 23.5 million from $25.0 million at the end of 2010 and from $62.6million at the end of Q1 2010.
• In January 2011, Royal Gold, Inc. ("RGI") agreed that the Completion Test, as such term is defined in the Amended and Restated Funding Agreement dated February 22, 2006 between RGI and Somita S.A. ("Somita") (the "Taparko Funding Agreement") had been satisfied and agreed to release its security interests in certain collateral (including certain equity investments in public companies) that it held pursuant to the "Taparko Funding Agreement".

Operations

• Total gold production increased 18% to 91,756 (Q1 2010 – 77,762) ounces (100%). Total cash cost per ounce decreased 10% to US$ 560 (Q1 2010 – US$624 per ounce).
• The Zun-Holba and Irokinda Gold Mines (including placer operations) produced 31,855 ounces (Q1 2010 – 33,732) (100%) at a total cash cost of US$ 579 per ounce.
• The Taparko-Bouroum Gold Mine produced 36,456 ounces (Q1 2010 – 30,426) (100%) at a total cash cost of US$ 485 per ounce.
• Gold production at Berezitovy was 23,445 ounces (Q1 2010 – 13,604 ounces) (100%) at a total cash cost of US$ 649 per ounce.
• At the Bissa Gold Project, the tender procedures to engage EPCM (Engineering, Procurement, Construction Management) contractor were continued in Q1 2011 and the tenders to engage the suppliers of mining equipment were commenced.

Subsequent Events

• In June 2011, High River has agreed to settlement terms with its former contractor in respect of a previously disclosed action brought against Somita. As previously disclosed, a claim regarding services which were delivered to Somita was filed against Somita before the arbitrator in South Africa in 2009. The aggregate amount of the claim was US$ 3.7 million and High River filed a statement of defense and counterclaim for damages. The settlement agreement provides for full and final settlement of the contractor's claim against Somita for a settlement amount of US$1,350,000.

DISCUSSION OF FINANCIAL RESULTS

Selected Financial Results

The Company reported a net income of $ 37.3 million ($0.04 per share) in Q1 2011 compared to a net income of $ 30.4 million ($0.03 per share) during Q1 2010.

In thousands of Canadian dollars (except per share amounts)	2011		2010		2009
Three months ended on March 31
Gold revenue	$	122,363	$	97,656	$	88,779
Net income (loss)		37,299		30,421		931
Net income (loss) per share (basic)		0.04		0.03		0.00
Cash provided by (used in) operating activities		53,519		31,499		29,672
Total Assets		889,601		688,102		706,962
Loans and interest payable		23,528		62,626		84,031
Weighted average number of shares outstanding (basic)		840,218,962		799,327,755		590,193,673

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 2010 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 STATEMENTS OF FINANCIAL POSITION

As at March 31, 2011

(Unaudited, expressed in thousands of Canadian Dollars)

		March 31, 2011		December 31, 2010		January 1, 2010
ASSETS
Current Assets
	Cash & cash equivalents	204,084		153,964		82,061
	Restricted cash	2,177		1,285		562
	Inventories	121,735		97,663		81,090
	Trade and other receivables	17,279		13,639		18,115
	Other assets	15,417		15,589		12,382
		360,692		282,140		194,210
Non-Current Assets
	Exploration and evaluation assets	112,753		119,847		105,061
	Mine properties	28,147		67,436		72,241
	Property, plant & equipment	238,121		190,256		224,331
	Available for sale financial assets	111,940		109,633		64,810
	Other assets	8,251		7,986		697
	Deferred tax asset	7,369		1,596		1,578
		506,581		496,753		468,718
TOTAL ASSETS		867,273		778,893		662,928
LIABILITIES
Current Liabilities
	Accounts payable and accrued liabilities	60,210		53,692		39,726
	Loans and other borrowings	13,438		23,293		58,666
	Income tax payable	-		-		-
	Provisions	-		-		-
		73,648		76,985		98,392
Non-Current Liabilities
	Other liabilities	-		-		-
	Derivative financial liabilities	-		-		13,684
	Loans and other borrowings	10,090		1,732		25,365
	Provisions	19,683		19,067		15,385
	Deferred tax liabilities	37,008		24,291		20,567
		66,781		45,090		75,001
TOTAL LIABILITIES		140,429		122,075		173,393
EQUITY
	Share Capital	640,157		640,157		610,770
	Warrants	-		-		13,265
	Contributed surplus	24,538		24,538		15,991
	Debenture conversion option	538		538		538
	Accumulated other comprehensive income	28,148		3,023		(4,034	)
	Deficit	(8,468	)	(45,768	)	(168,917	)
	Equity attributable to equity holders of the Company	684,913		622,488		467,612
	Non-controlling interest	41,932		34,330		21,922
TOTAL EQUITY		726,845		656,818		489,534
TOTAL LIABILITIES AND EQUITY		867,273		778,893		662,928

High River Gold Mines Ltd.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the three months ended March 31, 2011

(Expressed in thousands of Canadian Dollars)

	Three months ended
	March 31, 2011		March 31, 2010
Revenue
Gold	122,363		97,656
Silver	2,000		823
	124,363		98,479
Cost of sales	(54,505	)	(55,022	)
Gross Profit	69,858		43,457
Exploration expenses	(4,036	)	(1,260	)
General and administrative expenses	(4,456	)	(3320	)
Other expenses	(3,808	)	235
Interest income	1,771		230
Finance costs	(2,006	)	(4,086	)
Change in fair value of derivative	-		3,829
Profit before income taxes	57,324		39,085
Income tax expense	(12,423	)	(6,037	)
Profit for the period	44,901		33,048
	-
Attributable to:	-
Non-controlling interest	7,602		2,627
Equity shareholders of the Company	37,299		30,421
Profit for the period	44,901		33,048
Other Comprehensive Income (loss)
Net gains on available for sale financial assets	7,923		(147	)
Exchange differences on translation of foreign
operations	17,202		(12,862	)
Other comprehensive income, net of tax	25,125		(13,009	)
Attributable to:
Non-controlling interest	7,602		2,627
Equity shareholders of the Company	62,425		17,412
Comprehensive Income, net of tax	70,026		20,039

High River Gold Mines Ltd.

CONSOLIDATED STATEMENT OF CASH FLOWS

(Expressed in thousands of Canadian Dollars)

(Unaudited)

			For the three months ended
OPERATING ACTIVITIES			31 March 2011		31 March 2010
	Profit before income taxes		57,324		39,085
	Adjustments to profit for non-cash items
		Depreciation of property, plant and equipment	6,750		13,587
		Accretion expense	534		328
		Write-down of exploration	18,551		-
		Loss/(gain) on disposal of investments	(16,614	)	-
		Non-cash mining costs	(1,676	)	(7,545	)
		Fair value adjustment to financial instruments	-		(3,829	)
		Share based payment expense	-		68
		Interest on capital lease	-		16
		Gain/loss on disposal of property, plant and equipment	(404	)	31
		Deferred tax expense	4,694		1,661
		Other non-cash items	(1,599	)	(4,548	)
	Working Capital Adjustments
		Change in trade receivable and other assets	(5,483	)	2,909
		Change in inventories	(26,825	)	1,450
		Change in other assets	622		(3,488	)
		Change in accounts payable and accrued liabilities	20,545		(3,853	)
	Income Tax Paid		(2,901	)	(4,375	)
NET OPERATING CASH FLOWS			53,518		31,497
INVESTING ACTIVITIES
	Investment in exploration and evaluation assets		(5,577	)	(2,224	)
	Expenditure on property, plant and equipment		(9,845	)	(4,119	)
	Allocation of restricted cash		(1,539	)
	Proceeds on sale of property, plant and equipment		583		4
NET INVESTING CASH FLOWS			(16,378	)	(6,339	)
FINANCING ACIVITIES
	Payments of loans and borrowings		(10,283	)	(22,324	)
	Joint venture repayment of Prognoz contribution		16,609		-
	Other Financing activities		209		160
	Proceeds from exercise of share options		-		217
NET FINANCING CASH FLOWS			6,535		(21,947	)
Increase (decrease) in cash and cash equivalents			43,675		3,211
Net foreign exchange difference			6,444		(2,735	)
Cash and cash equivalents, beginning of the period			153,964		82,061
Cash and cash equivalents, end of the period			204,083		82,537