NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR:  HIGH RIVER GOLD MINES LTD.

TSX SYMBOL:  HRG

OCTOBER 5, 2004 - 15:13 ET

High River Gold Announces $50 Million Bought Deal

TORONTO, ONTARIO--(CCNMatthews - Oct. 5, 2004) - High River Gold Mines 
Ltd. ("High River") is pleased to announce that it has entered into an 
agreement with a syndicate of underwriters co-led by Sprott Securities 
Inc. and Dundee Securities Corporation and including, CIBC World Markets 
Inc, Paradigm Capital Inc, and Orion Securities Inc., pursuant to which 
the underwriters have agreed to purchase 27,027,028 units (the "Units") 
on a bought deal basis, at a price of Cdn.$1.85 per Unit for gross 
proceeds to High River of Cdn.$50 million. Each Unit will consist of one 
common share and one-half of one common share purchase warrant. Each 
whole warrant will be exercisable at a price of Cdn.$2.35 for a period 
of two years from the closing date. The Underwriters will have the 
option to purchase up to an additional 5,405,405 Units at the Issue 
Price (the "Underwriters' Option") at any time prior to the Closing 
Date. The offering is scheduled to close on or about October 26, 2004 
and is subject to certain conditions including, but not limited to, the 
receipt of all necessary approvals including the approval of The Toronto 
Stock Exchange.

Proceeds of the offering will be used by the Company for general 
corporate purposes.

The securities offered have not been registered under the U.S. 
Securities Act of 1933, as amended, and may not be offered or sold in 
the United States absent registration or applicable exemption from the 
registration requirements. This press release shall not constitute an 
offer to sell or the solicitation of an offer to buy nor shall there be 
any sale of the securities in any State in which such offer, 
solicitation or sale would be unlawful.

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN 
THE U.S.

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