TORONTO, ONTARIO--(Marketwire - March 31, 2011) -

(All currency figures are in Canadian dollars unless otherwise noted)

High River Gold Mines Ltd. ("High River" or the "Company") (News - Market indicators) today reported its financial results and operational highlights for the year ended December 31, 2010. The 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 2010

• Net gold revenue of $435.6 million, an increase of 20% from 2009.
• Net income of $114.9 million ($0.14 per share) compared to a net loss of $9.8 million ($-0.02 per share) in 2009.
• Cash flow from operations of $155.9 million, up from $125.5 million in 2009.
• Cash and cash equivalents increased to $154.0 million from $82.1 million in 2009.
• Working capital increased to $205.2 million from $95.8 million in 2009.
• Current and long term debt decreased to $25.0 million from $84.0 million in 2009.
• Following discussions between High River and Royal Gold Inc. ("Royal Gold"), which commenced in 2010 and concerned the results of the Completion Test at the Taparko mine (as such term was defined in the Amended and Restated Funding Agreement dated February 22, 2006 between Royal Gold and Somita (the "Taparko Funding Agreement"), Royal Gold agreed in January 2011 that the Completion Test 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.

• Total gold production (doré) decreased 2% to 329,971 ounces (2009 – 336,366 ounces (100%). Total cash cost per ounce increased 29% to US$ 653 (2009 – US$505 per ounce) (see the Non-GAAP Financial Measures table).
• The Zun-Holba and Irokinda Gold Mines produced 135,636 ounces (2009 – 149,382) (100%) at a total cash cost of US$ 628 per ounce.
• The Taparko-Bouroum Gold Mine produced 127,684 ounces (2009 – 99,536) (100%) at a total cash cost of US$ 500 per ounce.
• Gold production at Berezitovy was 66,651ounces (2009 – 87,488 ounces) (100%), at a total cash cost of US$ 995 per ounce.
• At the Bissa Gold Project, the technical report describing the results of the feasibility study was published in Q3 2010.

2010 total operating and non-operating cash costs reached US $725 per ounce. Non-operating cash costs per ounce mainly represent corporate administration, exploration, and other expenses such as realized foreign exchange losses.

• Zun-Holba and Irokinda Underground Gold Mines:
  • Production close to full capacity with no material shortcomings

• Berezitovy Open-pit Gold Mine:
  • Production levels continue to be constrained by technical problems;
  • Successful installation of the second ball mill

• Taparko-Bouroum Open-pit Gold Mine:
  • Production increased compared to 2009 mainly because of increased throughput in the mill

• Igor Klimanov resigned as Chief Executive Officer on October 4, 2010.
• A subsidiary of Severstal acquired 19,000,000 common shares of the Company in October 2010. Following the transaction, Severstal has beneficial ownership and control over 610,362,172 Common Shares, representing approximately 72.64% of the issued and outstanding Common Shares of the Company.
• Konstantin Sobolevskiy was appointed as Chief Executive Officer effective October 28, 2010.
• The Company paid off the principal amount of the Royal Gold loan. The Company has started to pay the tail royalty to Royal Gold, which amounts to 2% of the revenue generated by Somita.
• Andrei Maslov resigned as a Director and Chief Financial Officer of the Company effective December 20, 2010. Yury Lopukhin was appointed as the new Chief Financial Officer and Director on January 19, 2011.
• On January 24, 2011, the Company's shareholders approved the change of the Company's governing jurisdiction from the Canadian federal jurisdiction under the Canada Business Corporations Act to the Yukon Territory under the Business Corporations Act (Yukon). The Company received its Letter of Satisfaction dated January 25, 2011. Industry Canada issued the Certificate of Discontinuance effective February 2, 2011. The effect of these filings was to transfer the governing jurisdiction of the Company from the Canadian federal jurisdiction to the Yukon Territory. In connection with the continuance, the shareholders also approved a new general by-law. The Articles of Continuance and the new by-law are available on SEDAR.

The Company's consolidated net gold revenues for 2010 increased to $435.6 million from $363.3 million in 2009. Higher production by Taparko increased the number of ounces sold. The average gold price realized on sales was US$1,238 per ounce during 2010, up from US$976 in 2009 and up from US$862 in 2008.

The Company had a net income of $114.9 million compared to a net loss of $9.8 million in 2009 and a net loss of $57.4 million in 2008.

Cash flow from operations of $155.9 million increased from $125.5 million in 2009. Cash flow from operations increased from last year largely due to the higher gold revenue as discussed above.

OVERVIEW OF OPERATIONS

Underground Mines

The Zun-Holba and Irokinda underground gold mines located in Russia and operated by Buryatzoloto reported no material changes or shortcomings in their operations during the year and continue to operate according to plan. Buryatzoloto continues to be profitable and achieved its production objectives for 2010 with 135,636 ounces (100%) of gold produced at an estimated total cash cost of US$628 per ounce as compared to 149,382 ounces at US$494 per ounce in 2009. The increase of cash costs is due mainly to the decrease in ore grade which leads to higher volumes of mining and processing necessary to get the same output and inflation processes.

Replacing reserves at these mines is a priority of local management. An approximately $17 million budget for mine-site exploration is proposed for 2011 to replace mined-out reserves and extend the mine life at Irokinda and Zun-Holba.

Open Pit Mines

Berezitovy Mine (Russia)

Berezitovy continued to underperform. Production (100%) at Berezitovy in 2010 was 66,651 ounces of gold, compared to 87,448 ounces produced in 2009. The second ball mill was successfully installed and the second crushing unit was ordered in 2010. However, due to mechanical problems, the plant availability remained below planned level in 2010.

Taparko-Bouroum Mine (Burkina Faso)

In 2010, gold poured at Taparko (100%) totaled 127,684 ounces, up from the 2009 level of 99,536 ounces. The production exceeded the planned level in 2010 mainly because of increased throughput in the mill.

Advanced Exploration Projects

Bissa Gold Project

In 2010 the Company finalized the work related to a feasibility study of the Bissa project and published technical report on the Feasibility Study. The Company applied for the mining license (which may be granted in 2011), and prepared for construction of the mine. In 2011, new reserve and resource estimates for Bissa project were released.

At the same time, High River continues exploration at Bissa. Approximately US$5 million is recommended for additional exploration at Bissa.

Other Exploration Properties

Exploration work continued on other areas within the Bissa Group Permits and on other exploration concessions in Burkina Faso. The first time resource estimates for some exploration properties in Burkina Faso (Yeou, Ankouma, Bouly, Gougre, Zinigma) were announced in 2011.

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, event, 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 2009 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.