NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR:  HIGH RIVER GOLD MINES LTD.

TSX SYMBOL:  HRG

AUGUST 26, 2003 - 08:55 ET

High River Gold Announces Second Quarter Results

TORONTO, ONTARIO--(TSX:HRG) - High River Gold Mines Ltd. today 
reported production and consolidated financial results for the 
period ending June 30, 2003. All figures are in Canadian dollars 
unless otherwise stated. 


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                      CORPORATE HIGHLIGHTS                       

- Attributable gold production for the quarter was 28,986 ounces 
(59,978 ounces, ytd) at a total cash cost of US $231 per ounce 
(US $222 per ounce, ytd)

- Consolidated operating cash flow for the quarter was $5.0 million
($10.0 million, ytd)

- Feasibility studies were initiated during the quarter for the 
Berezitovoye Gold Project in Russia and the Taparko Gold Project 
in West Africa

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High River's consolidated financial and production results for 
2003 continue to benefit from the excellent operating performance 
of the Russian company, OJSC Buryatzoloto ("Buryatzoloto"), in 
which the Company held a 54.1% equity interest on June 30, 2003. 
Unfortunately, operating difficulties at the New Britannia Mine 
(New Britannia), combined with a higher Canadian dollar, resulted 
in an overall reporting loss for the quarter. 

In support of the Company's aggressive strategic plan to grow its 
gold production and gold reserve base, High River commenced 
feasibility studies at its Berezitovoye Gold Project 
("Berezitovoye") in Russia and its Taparko Gold Project 
("Taparko") in West Africa during the period. The successful 
development of these projects could add significantly to High 
River's production profile. 

High River is well funded with approximately $30 million in its 
treasury and continues to pursue new, advanced projects and 
growth opportunities in both Russia and West Africa. 

PRODUCTION RESULTS 

As at June 30, 2003, the Company's gold production interests 
consisted of the 54.1% equity interest in Buryatzoloto and a 50% 
joint venture interest in the New Britannia Mine. High River's 
attributable gold production for the first six months of 2003 was 
59,978 ounces at a total cash cost of US $222 per ounce, almost 
equivalent to the 60,482 ounces for the same period in 2002. The 
prior year results reflect a 26.5% interest in Buryatzoloto for 
the first quarter and a 55.9% interest for the second quarter. 


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For the six months ended     Buryatzoloto Mines   New Britannia Mine
June 30, 2003
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                             2003          2002      2003       2002
--------------------------------------------------------------------
Gold Production (oz, 100%)  73,529       76,036    40,398     57,847
High River Share (oz)       39,779       31,559    20,199     28,923
Total Cash Cost (US $/oz)      182          172       301        196
Tonnes Milled              242,305      232,121   336,044    378,452
Head Grade (Au g/t)          10.01        10.81      3.95       5.06
Recovery (%)                  93.8         93.8      94.7       93.9
Realized Gold Price (US $/oz)  347          302       338        308
--------------------------------------------------------------------

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Buryatzoloto Operating Results 

Buryatzoloto owns and operates two producing gold mines in 
southern Siberia and is one of Russia's leading gold producers. 
For the first six months of 2003, Buryatzoloto produced 73,529 
ounces of gold (100%) at a total cash cost of US $182 per ounce 
and remains on plan to achieve its full year programme objective 
to exceed 150,000 ounces. The increased total cash cost reflects 
the impact of the transition to shaft mining using cut and fill 
at the Zun-Holba operation combined with a strengthening rouble. 
Buryatzoloto is essentially unhedged and realized an average 
price of US $347 per ounce for gold sales during the period. 

New Britannia Operating Results 

At the Company's 50%-owned New Britannia Mine, located in Snow 
Lake, Manitoba, gold production for the six month period was 
40,398 ounces (100%) at a total cash cost of US $301 per ounce. 
Lower than planned mill throughput and lower realized head grades 
resulted in a 14% shortfall from planned production which, 
combined with the stronger Canadian dollar, resulted in a higher 
than budgeted total cash cost. As previously reported, production 
at New Britannia is being negatively impacted by a thinning and 
flattening of the orebody in the current area of mining 
contributing to fewer tonnes and a diluted grade. The full year 
plan has been revised to 85,000 ounces from 92,000 ounces. New 
Britannia realized an average price of US $338 per ounce for gold 
sales during the period. 

FINANCIAL RESULTS 

The Company increased its equity interest in Buryatzoloto to 
greater than 50%, effective April 1, 2002, and initiated 
consolidation of Buryatzoloto's operating performance at that 
time. Prior to that date, the Company accounted for its 26.5% 
interest in Buryatzoloto as an investment using the equity 
method. 


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(Thousands of $ Cdn except per  Three Months             Six Months
share amounts and # of shares)        Ending                 Ending
                         June 30,   June 30,    June 30,   June 30,
                             2003       2002        2003       2002
-------------------------------------------------------------------
Revenue                    24,816     25,096      50,007     33,264
Net Income (Loss)           (822)      2,037        (64)      1,400
Net Income (Loss) 
 per share                 (0.01)       0.03      (0.00)       0.03
Cash Flow from 
Operations(i)               4,973      5,312       9,979      6,710
Cash Flow per Share          0.05       0.07        0.10       0.12
Weighted Average 
 Shares Outstanding   105,580,866 75,488,558 101,428,062 55,528,957
-------------------------------------------------------------------
(i)Before change in non-cash working capital and convertible 
debentures

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For the quarter ended June 30, 2003, the Company incurred a 
consolidated net loss of $822,000, or $0.01 per share, on gross 
revenue of $24.8 million. This compares to consolidated net 
income of $2.0 million, or $0.03 per share, on gross revenue of 
$25.1 million for the same period in 2002. Cash flow from 
operating activities, before changes in non-cash working capital 
and convertible debentures, for the quarter decreased marginally 
to $5.0 million from $5.3 million for 2002. Although New 
Britannia encountered operating difficulties, the project 
remained cash flow positive. 

For the six month period ending June 30, 2003, High River had a 
consolidated net loss of $64,000, or $0.00 per share, on gross 
revenue of $50.0 million. This compares to consolidated net 
income of $1.4 million for the same period in 2002. Cash flow 
from operating activities for the period increased to $10.0 
million, from $6.7 million for 2002. 

High River's consolidated working capital position at June 30, 
2003 was $38.1 million compared to $12.6 million as at December 
31, 2002. The consolidated cash position at June 30, 2003 was 
$32.6 million, of which High River Canada's portion was $30.3 
million. 

High River's consolidated financial statements are available on 
SEDAR and on the Company's website at: www.hrg.ca 

PROJECT ACTIVITY 

Berezitovoye Gold Project 

During the quarter, High River and Buryatzoloto initiated a 
feasibility study on Berezitovoye, located in the Amur Region of 
southern Siberia, Russia. The study is using a combination of 
International and Russian engineering expertise to meet 
international standards as well as Russian regulatory and 
permitting requirements. Roscoe Postle Associates Inc., of 
Toronto, is currently finalizing a block model estimate of the 
gold resources, according to Canadian Institute of Mining, 
Metallurgy and Petroleum (CIM) Standards on Mineral Resources and 
Reserves, which will form the basis for the feasibility study. 
Data from the 25 hole core drilling programme, conducted earlier 
in the year, together with the extensive Russian database have 
been used to calculate the block model resource estimate. 

In addition to the feasibility study, an exploration drilling 
programme has recently been initiated to test a number of targets 
having geochemical and geophysical anomaly characteristics 
similar to the main deposit. 

Taparko Gold Project 

High River and AXMIN Inc. (AXMIN) have initiated a feasibility 
study for a mining operation combining High River's 80%-owned 
Taparko gold project in Burkina Faso, West Africa, with AXMIN's 
nearby Bouroum property. In May, High River engaged the services 
of Mr. Daniel Vanin as Project Manager for the combined 
feasibility study. Mr. Vanin is a highly regarded mining engineer 
with extensive experience in mine operations, mine development, 
project evaluation and project management. 

An extensive diamond drill programme, totalling approximately 
14,500 metres, is currently underway to provide additional 
information for reserve calculations and pit design as well as 
data for metallurgical and geotechnical purposes. Strathcona 
Mineral Services Limited of Toronto has on-going involvement in 
the study to ensure the feasibility report will meet all 
technical and future financing requirements. The feasibility 
study is scheduled for completion by the end of October. 

New Britannia Exploration Project 

High River, as exploration operator of the Joint Venture with 
Kinross Gold Corporation, is continuing an aggressive exploration 
programme in the Snow Lake region to define drilling targets in 
an area considered to be within trucking distance of the New 
Britannia mill and mine infrastructure. 

Preferred Status Exploration Companies 

High River conducts its own exploration in areas immediately 
accessible to its existing mining operations. However, to gain 
exposure to exploration in operating regions or countries of 
future interest, High River has developed preferred status 
relationships with two well managed and gold focussed exploration 
companies. 

Intrepid Minerals Corporation(TSXV:IAU), in which the Company has 
a 14.4% equity interest, has aggressive exploration programmes 
underway in Argentina and El Salvador. Intrepid recently 
fast-tracked their high grade, open-pit, gold-silver Casposo 
project in Argentina and plans to complete a scoping study in the 
first quarter of 2004. Intrepid recently completed a $2.6 million 
financing. 

Jilbey Gold Exploration Ltd.(TSXV:JLB), in which the Company 
holds a 9.9% equity interest, has reported significant gold 
assays from trenching, reconnaissance prospecting and geochemical 
surveys on its two permits adjacent to the Company's Taparko 
property in Burkina Faso. Jilbey has identified a number of 
quality targets and plans a drilling programme for the fourth 
quarter of 2003. Because these targets are within trucking 
distance of the proposed Taparko mill, a successful drill 
programme would have positive implications for the Taparko 
project. High River has a back-in right whereby the Company can 
acquire a 50% interest in these properties and be the operator 
during the development and production stage. 

FORWARD LOOKING STATEMENTS 

This quarterly report contains forward-looking statements based 
on current expectations. These forward-looking statements entail 
various risks and uncertainties that could cause actual results 
to differ materially from those reflected. Risk and uncertainties 
about the Company's business are more fully discussed in the 
Management Discussion and Analysis published in the Company's 
Annual Report and Annual Information Form. 

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