TORONTO, ONTARIO--(Marketwire - June 14, 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 three month period ended March 31, 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 FIRST QUARTER 2011

Financial Results

• Net gold revenue of $ 122.4 million, a decrease of 0.8% from $123.4 million in Q4 2010, an increase of 25.3% from $ 97.7 million in Q1 2010.
• Net income of $ 37.3 million ($0.04 per share) compared to a net income of $22.3 million ($0.03 per share) in Q4 2010 and a net income of $30.4 million ($0.03 per share) in Q1 2010.
• Cash flow from operations of $53.5 million, up from $40.0 million in Q4 2010, and up from $31.5 million in Q1 2010.
• Cash and cash equivalents increased to $204.1 million from $154.0 million at the end of 2010, and up from $82.5 million at the end of Q1 2010.
• Working capital increased to $287.0 million from $205.2 million at the end of 2010, up from $117.9 million at the end of Q1 2010.
• Current and long term debt decreased to $ 23.5 million from $25.0 million at the end of 2010 and from $62.6million at the end of Q1 2010.
• In January 2011, Royal Gold, Inc. ("RGI") agreed that the Completion Test, as such term is defined in the Amended and Restated Funding Agreement dated February 22, 2006 between RGI and Somita S.A. ("Somita") (the "Taparko Funding Agreement") 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".

Operations

• Total gold production increased 18% to 91,756 (Q1 2010 – 77,762) ounces (100%). Total cash cost per ounce decreased 10% to US$ 560 (Q1 2010 – US$624 per ounce).
• The Zun-Holba and Irokinda Gold Mines (including placer operations) produced 31,855 ounces (Q1 2010 – 33,732) (100%) at a total cash cost of US$ 579 per ounce.
• The Taparko-Bouroum Gold Mine produced 36,456 ounces (Q1 2010 – 30,426) (100%) at a total cash cost of US$ 485 per ounce.
• Gold production at Berezitovy was 23,445 ounces (Q1 2010 – 13,604 ounces) (100%) at a total cash cost of US$ 649 per ounce.
• At the Bissa Gold Project, the tender procedures to engage EPCM (Engineering, Procurement, Construction Management) contractor were continued in Q1 2011 and the tenders to engage the suppliers of mining equipment were commenced.

Subsequent Events

• In June 2011, High River has agreed to settlement terms with its former contractor in respect of a previously disclosed action brought against Somita. As previously disclosed, a claim regarding services which were delivered to Somita was filed against Somita before the arbitrator in South Africa in 2009. The aggregate amount of the claim was US$ 3.7 million and High River filed a statement of defense and counterclaim for damages. The settlement agreement provides for full and final settlement of the contractor's claim against Somita for a settlement amount of US$1,350,000.

DISCUSSION OF FINANCIAL RESULTS

Selected Financial Results

The Company reported a net income of $ 37.3 million ($0.04 per share) in Q1 2011 compared to a net income of $ 30.4 million ($0.03 per share) during Q1 2010.

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, 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.