NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR:  HIGH RIVER GOLD MINES LTD.

TSX SYMBOL:  HRG

AUGUST 24, 2004 - 16:10 ET

High River Gold Increases Equity Interest in
Buryatzoloto

TORONTO, ONTARIO--(CCNMatthews - Aug. 24, 2004) - (TSX:HRG) - 
High River Gold Mines Ltd. ("High River") today announced it has 
reached agreement with the European Bank for Reconstruction and 
Development ("EBRD") to acquire the EBRD's equity interest in the 
Russian company, OJSC Buryatzoloto, in exchange for shares in 
High River to be issued from treasury. The EBRD holds 800,000 
common shares of Buryatzoloto and preferred shares convertible 
into an additional 200,000 shares. High River will issue 
11,760,000 common shares to the EBRD in exchange for their 1.0 
million Buryatzoloto shares. 

At the annual meeting held on June 15, 2004, High River's 
shareholders authorized management to enter into private 
transactions to acquire additional Buryatzoloto shares on the 
basis of 11.76 common shares of High River for each Buryatzoloto 
share, subject to regulatory approval and compliance with 
securities laws, to a maximum issue of 30 million High River 
shares. If the Company were to enter into agreements for the 
maximum, High River's equity interest in Buryatzoloto would 
increase to approximately 84% on a fully diluted basis. Following 
closing of the transaction with the EBRD, High River's interest 
will be approximately 63.1% on a fully diluted basis 
(representing 66.8% of the issued shares). 

The exchange ratio was determined based on a net asset valuation 
approach and has been agreed to by the Boards of both companies. 
The commonality of many of the assets simplified the process. The 
current corporate structure between Buryatzoloto and High River 
is felt to be an inhibitor to the realization of full value for 
the shareholders of both companies. It has been suggested that a 
pooling of assets, to the largest extent possible, under the High 
River entity, would be the most effective way of unlocking this 
additional shareholder value. 

The share purchase exchange agreement is subject to satisfaction 
of all conditions to closing including receipt of all regulatory 
approvals in Russia and Canada. 

At the June meeting, shareholders also elected Mark Rachovides to 
High River's Board of Directors. Mr. Rachovides is a Principal 
Banker in the Natural Resources Team at the EBRD. He is currently 
working on a variety of oil and gas and mining projects in the 
Former Soviet Union and Eastern Europe. He has written a number 
of articles and conference presentations on Russian gold mining 
for the London Bullion Market Association, the World Gold 
Council, the Prospectors and Developers Association of Canada, 
the Russia-Canada mining group and other bodies. Mr. Rachovides 
has nineteen years experience in commercial banking, including 
eight years with the EBRD. Mr. Rachovides has a masters degree 
from Oxford University and is an Associate of the Chartered 
Institute of Bankers. 

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