High River Gold Mines Ltd.

High River Gold Mines Ltd.

July 11, 2007 08:00 ET

High River Gold Arranges US $15 Million Revolving Credit Facility

TORONTO, ONTARIO--(Marketwire - July 11, 2007) - High River Gold Mines Ltd. ("High River or "the Company")(TSX:HRG) is pleased to announce that it has completed a US $15 million revolving credit facility (the "Facility") with Standard Bank Plc ("Standard Bank"). The Facility matures on July 5, 2008, and is extendable for two additional one-year periods. Interest is payable at Libor plus a margin of 3.5%. High River will utilize the Facility for operating working capital requirements at the Berezitovy gold development project, which is scheduled to begin production in August, and for general corporate purposes. The Facility does not require any gold hedging.

About High River

High River is currently constructing two open-pit gold mines which are scheduled to commence production this year, the Taparko-Bouroum Project in Burkina Faso (July) and the Berezitovy Project in Russia (August). Annual gold production from Taparko-Bouroum is planned at 100,000 ounces for the first 12 months increasing to over 140,000 ounces in the third year of operation, and annual production from Berezitovy is expected to exceed 100,000 ounces. Combined with gold production from High River's 85%-owned Russian subsidiary, OJSC Buryatzoloto, High River's attributable unhedged gold production is expected to exceed 200,000 ounces in 2007, and 300,000 ounces in 2008. In addition, the Company has two advanced exploration projects, the Bissa Gold Project in Burkina Faso and the world-class Prognoz Silver Project in Russia. These projects are expected to significantly add to the Company's production profile in the future.

About Standard Bank

The Standard Bank Group Limited is Africa's leading banking and financial services group, with assets of approximately US$139 billion and over 42,000 employees in 39 countries across the globe. It leverages its pioneering heritage and experience of resource banking and emerging markets in Africa to offer banking and financial services in developing economies throughout the world, and is committed to making a real difference wherever it operates.

Standard Bank is authorized and regulated by the Financial Services Authority. It is a member of the London Stock Exchange, the London Bullion Market Association, the London Metal Exchange, the London Platinum and Palladium Market and the New York Mercantile Exchange (COMEX Division).

Forward Looking Statements - This press release contains forward-looking statements based on current expectations. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected. Risk and uncertainties about the Company's business are more fully discussed in the Management's Discussion and Analysis published in the Company's Annual Report and in the Annual Information Form.

Contact Information

  • High River Gold Mines Ltd.
    Dan Hrushewsky
    Vice President Investor Relations
    (416) 947-1440
    (416) 360-0010 (FAX)
    Email: info@hrg.ca
    Website: www.hrg.ca