TORONTO, ONTARIO--(Marketwire - Nov. 15, 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 September 30, 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 THIRD QUARTER 2011

Financial Results

• Net gold revenue of $111.5 million, a decrease of 18% from $136.2 million in Q2 2011, an increase of 11% from $100.8 million in Q3 2010.
• Net income of $41.3 million ($0.05 per share) compared to a net income of $41.4 million ($0.05 per share) in Q2 2011 and a net income of $24.0 million ($0.03 per share) in Q3 2010.
• Cash flow from operations of $23.1 million, down from $42.9 million in Q2 2011, and from $26.3 million in Q3 2010.
• Cash and cash equivalents decreased to $150.0 million from $207.3 million at the end of Q2 2011, and increased from $125.6 million at the end of Q3 2010.
• Working capital decreased to $296.0 million from $307.2 million at the end of Q2 2011 and increased from $205.3 million at the end of Q3 2010.
• Current and long term debt decreased to $22.7 million from $24.0 million at the end of Q2 2011 and increased from $22.1 million at the end of Q3 2010.

Operations

• Total gold production decreased 5.0% to 91,057 (Q2 2011 – 96,093) ounces (100%). Total cash cost per ounce increased 2% to US$ 720 (Q2 2011 – US$704 per ounce).
• The Zun-Holba and Irokinda Gold Mines produced 34,100 ounces (Q2 2011 – 33,594) (100%) at a total cash cost of US$ 705 per ounce.
• The Taparko-Bouroum Gold Mine produced 31,391 ounces (Q2 2011 – 33,753) (100%) at a total cash cost of US$ 681 per ounce.
• Gold production at Berezitovy was 25,565 ounces (Q2 2011 – 28,746 ounces) (100%) at a total cash cost of US$ 787 per ounce.

Corporate

• The Arbitration Court of the City of Moscow terminated the official bankruptcy proceedings for Prognoz Silver LLC ("Prognoz Silver") in connection with the application of Prognoz Silver claiming that the criteria of bankruptcy are no longer in place.

Subsequent Events

• In October 2011, the share capital of Berezitovy was increased which resulted in the increase of the Group's interest in Berezitovy up to 99.91%.

DISCUSSION OF FINANCIAL RESULTS

Selected Financial Results

The Company reported a net income of $41.3 million ($0.05 per share) in Q3 2011 compared to a net income of $41.4 million ($0.05 per share) during Q2 2011 and net income of $24.0 million ($0.03 per share) in Q3 2010.

In thousands of Canadian dollars	Three months ended					Nine months ended
(except per share amounts)	September 30, 2011	June 30, 2011		September 30, 2010		September 30, 2011	September 30, 2010
Gold revenue	111,544	$	136,204	$	100,767	370,112	$	312,231
Net income (loss)	41,318		41,375		24,046	119,993		91,923
Net income (loss) per share (basic)	0.05		0.05		0.03	0.14		0.11
Cash provided by (used in) operating activities	23,131		42,893		26,296	119,542		106,595
Weighted average number of shares outstanding (basic)	840,218,962		840,218,962		826,660,782	840,218,962		808,510,986

About High River

High River is an unhedged gold company with interests in producing mines, development 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 a 90% interest in a development project, the Bissa gold project in Burkina Faso, and a 50% interest in an advanced exploration project with NI 43-101 compliant resource estimates, 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 September 30, 2011

(Unaudited, expressed in thousands of Canadian Dollars)

		Notes		September 30, 2011		December 31, 2010
ASSETS
Current Assets
	Cash & cash equivalents			150,029		153,964
	Restricted cash			2,108		1,285
	Inventories			150,146		97,663
	Trade and other receivables			28,388		13,639
	Other assets			32,291		15,589
				362,962		282,140
Non-Current Assets
	Exploration and evaluation assets			129,987		119,847
	Mine properties			47,113		67,436
	Property, plant & equipment			221,511		190,256
	Available for sale financial assets			93,890		109,633
	Other assets			66,681		7,986
	Deferred tax asset			21,061		1,596
				580,243		496,753
TOTAL ASSETS				943,205		778,893
LIABILITIES
Current Liabilities
	Accounts payable and accrued liabilities	4		39,512		33,905
	Loans and other borrowings	5		13,054		22,686
	Finance Leases	5		66		607
	Income tax payable			14,284		19,787
				66,915		76,985
Non-Current Liabilities
	Other liabilities			820		696
	Derivative financial liabilities					-
	Loans and other borrowings	5		9,631		1,732
	Provisions	6		21,179		19,067
	Deferred tax liabilities			55,127		23,595
				86,757		45,090
TOTAL LIABILITIES				153,672		122,075
EQUITY
	Share Capital	9		640,157		640,157
	Warrants	9		-		-
	Contributed surplus			24,538		24,538
	Debenture conversion option			538		538
	Other comprehensive income			(1,205	)	3,023
	Retained Earnings/Deficit			74,224		(45,768	)
	Equity attributable to equity holders of the Company			738,253		622,488
	Non-controlling interest	9		51,280		34,330
TOTAL EQUITY				789,533		656,818
TOTAL LIABILITIES AND EQUITY				943,205		778,893

High River Gold Mines Ltd.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the three months ended September 30, 2011

(Expressed in thousands of Canadian Dollars)

	Three months ended				Nine months ended
	September 30, 2011		September 30, 2010		September 30, 2011		September 30, 2010
Revenue
Gold	111,544		100,767		370,112		312,231
Silver	2,292		1,068		7,194		3,279
	113,836		101,835		377,305		315,510
Cost of sales	(52,621	)	(62,007	)	(189,103	)	(183,163	)
Gross Profit	61,215		39,828		188,202		132,347
Exploration expenses	-		(6,765	)	-		(9,916	)
General and administrative expenses	(294	)	(1,476	)	(2,310	)	(2,815	)
Other expenses	(8,833	)	(389	)	(17,877	)	(4,393	)
Interest income	4,112		554		7,134		1,447
Finance costs	(2,675	)	(1,062	)	(5,166	)	(8,117	)
Change in fair value of derivative	-		3,822		-		10,821
Profit before income taxes	53,526		34,512		169,984		119,374
Income tax expense	(6,512	)	(6,029	)	(33,040	)	(17,965	)
Profit for the period	47,014		28,483		136,944		101,409
Attributable to:
Non-controlling interest	5,695		4,436		16,951		9,486
Equity shareholders of the Company	41,318		24,046		119,993		91,923
Profit for the period	47,014		28,483		136,944		101,409
Other Comprehensive Income (loss)
Net gains on available for sale financial assets	(11,592	)	18,820		(13,515	)	28,026
Exchange differences on translation of foreign operations	(2,597	)	403		9,287		(23,849	)
Other comprehensive income, net of tax	(14,189	)	19,223		(4,228	)	4,177
Attributable to:
Non-controlling interest	5,695		4,436		16,951		9,486
Equity shareholders of the Company	27,129		43,269		115,764		96,100
Comprehensive Income, net of tax	32,824		47,705		132,715		105,586

High River Gold Mines Ltd.

CONSOLIDATED STATEMENT OF CASH FLOWS

(Expressed in thousands of Canadian Dollars)

(Unaudited)			Nine months ended
OPERATING ACTIVITIES			September 30 2011		September 30 2010
	Profit after income taxes		136,944		101,409
	Adjustments to profit for non-cash items
		Depreciation of property, plant and equipment	42,293		46,381
		Accretion expense	1,087		866
		Write-down of exploration	2,122		450
		Loss/(gain) on disposal of investments	(463	)	(10	)
		Non-cash mining costs	2,415		(17,976	)
		Fair value adjustment to financial instruments	-		(10,821	)
		Share based payment expense	-		95
		Interest on capital lease	-		22
		Gain/loss on disposal of property, plant and equipment	(258	)	(122	)
		Deferred tax expense	13,286		3,072
		Other non-cash items	5,881		1,733
	Working Capital Adjustments
		Change in trade receivable and other assets	(12,075	)	1,452
		Change in inventories	(52,483	)	(18,979	)
		Change in other assets	(17,874	)	(4,727	)
		Change in accounts payable and accrued liabilities	5,173		13,463
	Income Tax Paid		(6,504	)	(9,710	)
NET OPERATING CASH FLOWS			119,542		106,595
INVESTING ACTIVITIES
	Investment in exploration and evaluation assets		(32,354	)	(11,773	)
	Expenditure on property, plant and equipment		(49,607	)	(23,386	)
	Allocation of restricted cash
	Proceeds on sale of property, plant and equipment		1,325		1,634
	Other investing activities		(455	)	(811	)
NET INVESTING CASH FLOWS			(81,091	)	(34,336	)
FINANCING ACIVITIES
	Payments of loans and borrowings		(72,120	)	(57,453	)
	Joint venture repayment of Prognoz contribution
	Other Financing activities		(41,810	)	7,414
	Proceeds from exercise of share options		67,336		26,248
NET FINANCING CASH FLOWS			(46,594	)	(23,791	)
Increase (decrease) in cash and cash equivalents			(8,143	)	48,469
Net foreign exchange difference			4,208		(4,943	)
Cash and cash equivalents, beginning of the period			153,964		82,061
Cash and cash equivalents, end of the period			150,029		125,587