High River Gold Mines Ltd.

High River Gold Mines Ltd.

December 02, 2009 15:37 ET

High River Gold Announces Closing of Private Placement

TORONTO, ONTARIO--(Marketwire - Dec. 2, 2009) – High River Gold Mines Ltd.  ("High River" or the "Company") (TSX:HRG) announced that it has closed its previously announced private placement (the "Private Placement") of 150,000,000 common shares (the "Shares") of the Company. Polenica Investments Limited ("Polenica"), an affiliate of Troika Dialog Group purchased the Shares for a price of CDN$0.38 per Share for total aggregate gross proceeds to High River of CDN$57 million. The Shares Polenica acquired pursuant to the Private Placement represent approximately 18.7% of the currently outstanding Shares.

Proceeds of the Private Placement will be used for repayment of the approximately US$27 million outstanding under the two credit agreements that were assigned by Standard Bank Plc to OAO Severstal as of April 20, 2009, with the balance being used to fund the exploration program at Buryatzoloto and for general corporate purposes.

About High River

High River is unhedged gold company with interests in producing mines and advanced exploration projects in Russia and Burkina Faso. Two producing mines, Zun-Holba and Irokinda, are situated in the Lake Baikal region of Russia. Two new 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.

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