High River Gold Mines Ltd.
TSX : HRG

High River Gold Mines Ltd.

May 15, 2008 21:15 ET

High River Gold Reports First Quarter 2008 Results

TORONTO, ONTARIO--(Marketwire - May 15, 2008) -

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

High River Gold Mines Ltd. ("High River" or the "Company") (TSX:HRG) today reported its financial results and operational highlights for the three month period ended March 31, 2008. 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 THE FIRST QUARTER OF 2008

Financial Results

- Gold revenue of $45.0 million, an increase of 47% from Q1 2007.

- Cashflow from operations, before working capital changes, of $10.8 million, an increase of 30%.

- Net loss of $2.3 million ($0.01 per share) compared to net income of $266,000 ($0.00 per share) in Q1 2007.

- Attributable gold production increased 37% to 40,248 ounces. Cash cost per ounce increased 43% to US $557 per ounce.

Operations (100%)

- Zun-Holba Gold Mine:

-- Gold production of 17,316 ounces at a cash cost of US $554 per ounce.

- Irokinda Gold Mine:

-- Gold production of 16,678 ounces at a cash cost of US $471 per ounce.

- Taparko-Bouroum Gold Mine:

-- Mill drive-train alignment problem addressed.

-- Gold production of 12,637 ounces at a cash cost of US $679 per ounce, versus a planned US $577 per ounce.

- Berezitovy Gold Mine Project:

-- Filter plant performance problems addressed.

-- Commercial production expected to be achieved in Q2 2008.

- Prognoz Silver Project:

-- Initial NI 43-101 resource estimate released:

--- Indicated: 71.5 million ounces grading 636 g/t

--- Inferred: 39.2 million ounces grading 551 g/t

-- Updated NI 43-101 resource estimate scheduled for Q2 2008.

-- Spin-out plans expected to be press released shortly.

- Bissa Gold Project:

-- Aggressive drill programme underway.

-- Decision made to proceed to preliminary feasibility study.

- Chaya Nickel Project:

-- Buryatzoloto was the successful bidder at auction for the nickel sulphide project near Irokinda.

-- Report being prepared on historical technical data.

Corporate

- Warrants exercised at $2.50 per warrant for $29.6 million.

Events Subsequent to the Quarter

- In April, High River announced that Daniel G. Vanin, the Company's Executive Vice President and Chief Operating Officer, tendered his resignation to accept the Geneva-based position of President and CEO of Iberian Minerals Corporation, effective June 2, 2008. High River is very pleased to report that Michael D. Kelly, most recently VP Operations at the Diavik Diamond Mine of Rio Tinto plc, will be joining the Company as Executive Vice President and Chief Operating Officer, effective June 2, 2008.

DISCUSSION OF FINANCIAL RESULTS



Selected Financial Results
(in thousands of Canadian dollars except per Three Months Ending
share amounts) March 31,
2008 2007
----------------------------------------------------------------------------
Gold revenue $ 45,009 $30,644
Gold ounces sold 49,991 40,189
Average gold price realized (US $/oz) $898 $651
Net income (loss) $(2,308) $266
Net income (loss) per share (basic) $(0.01) $0.00
Cash flow from operations (1) $10,750 $8,257
Weighted average number of shares
outstanding (basic) 307,787,242 250,038,083
----------------------------------------------------------------------------

(1) Cash flow from operations before changes in non-cash working capital.


Gold revenue for the quarter was up 47% to $45.0 million due to higher gold prices and ounces sold. The average gold price realized on sales was US $898 per ounce during Q1/08, up from US $651 per ounce last year. Ounces sold increased by 24%, to 49,991 ounces, due largely to ounces sold from production at the newly commissioned Taparko-Bouroum Mine.

A net loss of $2.3 million was recorded for the quarter. Higher revenues (plus $15 million) were offset largely by higher mining (plus $9 million), interest charges (plus $3 million), amortization (plus $2 million), and exploration (plus $2 million) costs. Mining costs increased due to wage and material inflation, and the strengthening Russian rouble. The increase in interest charges was, in part, related to the post commercial production expensing of interest charges for the Taparko-Bouroum project debt. Amortization rose due to an increase in the fixed asset base resulting from the Taparko-Bouroum Mine commencing commercial production, while exploration expense increased due a higher level of exploration activity at Buryatzoloto.

Attributable gold production was 40,248 ounces for the quarter at a cash operating cost of US $557 per ounce, compared to 29,272 ounces at a cash operating cost of US $389 per ounce a year ago.

MANAGEMENT AND BOARD OF DIRECTORS CHANGES

As High River reaches intermediate gold producer status, with the achievement of steady-state gold production from Taparko-Bouroum and Berezitovy, it is important for the Company to add the requisite expertise to the management team and the Board of Directors. To address this need, the Company is pleased to provide the technical background for two new, highly qualified members of the management team and two new, very experienced nominees for the Board.

Michael D. Kelly, P. Eng. - Executive Vice President and Chief Operating Officer (effective June 2, 2008)

Mr. Kelly has worked in the mining industry for 33 years and brings diverse operating experience in large and small mining projects including both open pit and underground operations. Most recently Mr. Kelly was Vice President of Operations at the Rio Tinto Diavik Diamond Mine since June 2006 where he was responsible for all mining, processing and support activities at the 10,000 tonnes per day operation, comprised of two open pits and an underground operation. He previously held senior operating management positions with Inco Ltd., and the Kinross Gold Corp.- High River "New Britannia Joint Venture."

Mr. Kelly graduated from Queen's University with a Master of Science in 1983 and a Bachelor of Science, Mining Engineering, in 1982.

High River management is very pleased to have Mike join our team and bring his operations expertise at this important juncture in the Company's evolution to a mid-tier gold mining company. Mike's personal operating philosophy is maximizing production, and minimizing cost while maintaining safety and sustainable development as core values (his operations have won seven regional and national safety awards over the past twelve years). Mike brings the skills required to take High River successfully to the next level.

Edward O. Villeneuve - Vice President Health, Safety and Environment (effective January 1, 2008)

Mr. Villeneuve has worked in the health, safety and environment area of the mining industry for more than 35 years. During this period he has provided leadership in the development and implementation of various new environment, health and safety programmes and activities with Noranda Inc., Falconbridge Ltd. and, most recently, as Manager of Health and Safety with Xstrata Copper Canada.

Ed strongly believes in the important role performed by operating sites and has spent most of his time in the operations involving and supporting them with the development and implementation of systems, programmes and activities in support of the Corporation's Health, Safety and Environment requirements.

He is a graduate of the University of Ottawa with a B.Sc. degree in Biology in 1972.

Throughout his career, he has served on many Technical Committees and Associations with mandates to establish auditing standards and ISO specification standards, including serving as President of the Quebec Industrial Hygiene Association and Chair of the American Industrial Hygiene Conference in Montreal. He has organized numerous conferences and delivered several papers on topics related to industrial hygiene, environmental management, environmental auditing and safety.

High River is very pleased to have Ed as part of the management team. Ed brings valuable skills to High River at a time when environmental management and sustainable development have become essential components for success in the mining industry.

John W. Crow - Nominee for the Board of Directors

Prior to graduating from Oxford University with a degree in Philosophy, Politics and Economics, Mr. Crow spent two years in the Royal Air Force, qualifying as a Russian language interpreter. Upon graduation, he joined the International Monetary Fund ("IMF") in Washington, DC, and in 1970 was appointed Chief of the North American Division.

Mr. Crow joined the Research Department of the Bank of Canada in 1973 and, in 1987, was appointed to the position of Governor of the Bank of Canada for a term of seven years. In 1993, he was elected Chair of the Central Bank Governors of the Group of ten countries until his term as Governor ended.

He was formerly a member of the board of directors of Placer Dome Inc. and Barrick Gold Corporation and is currently a director or advisor to a number of companies.

Among his other activities, he is a Senior Fellow of the C. D. Howe Institute, a public member of the Public Accountants Council of Ontario, and in 2003, he chaired an international task force commissioned by the International Federation of Accountants to examine the loss of credibility in financial reporting and how to restore it.

Mr. Crow is the author (2002) of "Making Money: An Insider's Perspective on Finance, Politics, and Canada's Central Bank".

Graham Farquharson - Nominee for the Board of Directors

Mr. Farquharson is President of Strathcona Mineral Services Limited, a company that he founded in 1974, which provides consulting and project management services to the mining industry. High River has, on occasion, requested Strathcona to provide consulting services.

Prior to 1974, Mr. Farquharson worked in mining operations in Canada and Africa and in consulting. He had been a director of several other mining companies, including gold producers Cambior Inc. and Placer Dome Inc. He is currently a director of Franco-Nevada Corporation and is also Chairman of the Canadian Mineral Industry Education Foundation, which provides scholarships to students entering the mining industry.

Mr. Farquharson has a B.Sc. in Mining Engineering from the University of Alberta and an MBA from Queen's University.

Resignations

As previously stated, Daniel G. Vanin, the Company's Executive Vice President and Chief Operating Officer, tendered his resignation to assume the President and CEO position with a base metals mining company. Daniel will be based in Europe. Daniel has been a key and integral part of the High River senior management team and was instrumental in the design, construction and start-up phases of the new Taparko-Bouroum and Berezitovy Gold Mines.

The Board of Directors and management thank Daniel for his personal dedication and valuable contribution to the Company's success. We all wish Daniel and his family every success in the future.

Mr. Vladimir Polevanov, who has been a member of the Board of Directors since 2003, will not be standing for re-election as a director. On behalf of the shareholders, the Board thanks Mr. Polevanov for his efforts and contributions and wishes him well in his future endeavours.

OVERVIEW OF OPERATIONS

Operating Mines

Zun Holba Mine (Russia)

Zun Holba's first quarter production of 17,316 ounces remained virtually unchanged from last year. Cash operating costs for the quarter increased to US $554 per ounce from US $412 last year due to wage and material cost inflation and lower grades mined.

Irokinda Mine (Russia)

Production at the Irokinda Mine totaled 16,678 ounces during the quarter, down slightly from 17,255 last year. Cash operating costs increased to US $471 per ounce compared to US $381 per ounce last year, for the same reasons cited for the Zun-Holba mine.

Taparko-Bouroum Mine (Burkina Faso)

Processing

Mis-alignment of the mill drive-train, which caused several mill shutdowns during the quarter, was addressed in February and the mill has been fully operational since February 29th. During the first quarter, a total of 12,637 ounces of gold were poured at a cash cost of US $679 per ounce, versus a planned US $577 per ounce. The higher cash cost was the result of fixed costs spread over fewer ounces than planned. Gold sold amounted to 14,300 ounces at an average price of US $896 per ounce, for revenue of US $12.8 million. Dore gold inventory decreased from 4,314 ounces at December 31, 2007 to 2,726 ounces at the end of March, and refined gold inventory decreased from 145 ounces to 70 ounces over the same period.

2008 Production Outlook

In 2008, the Taparko-Bouroum Gold Mine plans to produce 91,000 ounces of gold, on a 100% basis, at a cash cost of US $416 per ounce on a go-forward basis.

Mining

Total ore mined for the quarter was 127,658 tonnes. Mining has recently begun in the Bissinga pit at Bouroum, where the average grade is 6.89 g/t. The Bouroum deposits in total have an average grade of 4.15 g/t and host approximately 106,000 ounces.

As at the end of March 2008, the run-of-mine stockpile near the process plant totaled 188,050 tonnes of ore grading 2.94 g/t, representing just over two months of production. Additionally, the mined ore stockpile at the Bissinga pit at Bouroum, which will be trucked 49 kilometres to the Taparko processing plant, contained 14,672 tonnes of ore grading 6.51 g/t.

Exploration

A systematic drill programme testing the potential at depth beneath the Taparko 3/5 pit, as well as the potential for satellite deposits within and outside the Taparko mining concession, will commence during 2008 with the objective of defining additional gold resources.

Mine being Commissioned

Berezitovy Gold Mine (Amur Oblast, Russia)

Processing Plant Commissioning

Mine and mill construction was essentially completed by the end of 2007 and gold was being produced from the carbon-in-pulp leach circuit in mid-December. However, during production ramp-up early in 2008, problems were encountered in the tailings filter plant. This resulted in a plant capacity utilization rate of only 29% during the first quarter of 2008. The problem has been addressed with the installation of new, specially modified, filter cloth manufactured in Canada.

The filter plant became operational on April 6th and has been running at 80% or higher capacity since that time. As a result, the process plant is currently processing approximately 3,700 tonnes per day (approximately 85% of design capacity of 4,300 tonnes per day). Experts in filtration have been on-site and have made recommendations, including the installation of additional equipment, that once implemented should improve the efficiency and productivity of the filter plant. Meanwhile, the tailings storage area is being expanded with the new section capable of storing wet tailings. The ability to store dry tailings from the filter plant combined with the ability to store wet tailings bypassing the filter plant should enable the process plant to reach 100% of design capacity before the end of May.

Mining

Mining is currently proceeding at design capacity of 27,000 tonnes per day of material moved (waste and ore). As at the end of the first quarter, approximately 500,000 tonnes of ore have been stockpiled, which equates to four months of production.

2008 Production Outlook

The Berezitovy process plant is expected to achieve commercial production during Q2 2008, commercial production being defined as 30 consecutive days of production at 60% or more of design capacity. The Berezitovy Gold Mine plans to produce approximately 76,000 ounces of gold in 2008 attributable to High River at a cash cost of US $351 per ounce. Gold production in the first quarter totaled 3,680 ounces.

Advanced Exploration Projects

Bissa Project

High River is continuing its aggressive exploration activity in Burkina Faso in 2008. The goals of this exploration programme are to expand the current Bissa resource to the multi-million ounce level, to establish a reserve for a feasibility study at Bissa, and to delineate new gold deposits on High River's other exploration permits in Burkina Faso.

The Bissa permit area is the primary exploration focus with a total of US $10 million budgeted for exploration work. During 2008, High River plans to complete a feasibility study on constructing a mine and processing facility at Bissa. The exploration programme will include in-fill drilling along a three kilometre strike immediately adjacent and along strike to the southwest of the Bissa Resource Area which hosts the current resource. During the first quarter, the in-fill drill programme was finalized, and drilling will commence shortly. As well, a combination of rotary air blast ("RAB"), reverse circulation ("RC"), and diamond drilling ("DD") was used to advance drill targets such as Guibare, Wemstenga, and Lessa.

The Company is also doing work on other exploration concessions in Burkina Faso to advance targets and to identify new targets through reconnaissance level work. During the quarter, RAB and air core drilling started on Sakou, 20 kilometres northwest of Bissa, and diamond drilling started at Labola, 425 kilometres southwest of Bissa, while rock sampling at Zibtenga and Tyegana, both approximately 75 kilometres southeast of Bissa, identified new drill targets.

Prognoz Project

NI 43-101 Resource Estimate

In early January 2008, High River announced the results of the "Initial" NI 43-101 resource estimate on the Prognoz Silver Project:



------------------------------------------------------------------------
Indicated Resources
------------------------------------------------------------------------
Tonnage Silver grade Contained Silver
(t) (g/t) (oz)
------------------------------------------------------------------------
3,500,000 636 71,500,000
------------------------------------------------------------------------

------------------------------------------------------------------------
Inferred Resources
------------------------------------------------------------------------
Tonnage Silver grade Contained Silver
(t) (g/t) (oz)
------------------------------------------------------------------------
2,210,000 551 39,200,000
------------------------------------------------------------------------


The "Initial" 43-101 resource estimate was only based on drilling up to May 31, 2007 (198 holes) and on drilling conducted only on the Glavnoye and Boloto veins, two of over 30 known veins on the Prognoz property, some of which may prove to be just as extensive as Glavnoye and Boloto. High River and independent engineering consultant, Micon International Limited ("Micon"), the author of the NI 43-101 resource estimate, believe that the potential to increase resources at Prognoz is substantial. An "updated" NI 43-101 resource estimate is planned for completion in Q2 2008, and will reflect results from drilling conducted during the second half of 2007 and early 2008.

Exploration

An exploration programme, budgeted at US $11 million, is planned for 2008. The programme, consisting of 30,000 metres of drilling and 5,000 metres of trenching, will continue exploring the entire four kilometre strike length of the Glavnoye vein, the Boloto vein and other vein targets on the Prognoz property.

During the quarter, exploration drilling focused on stepping-out east of known mineralization of the Boloto vein, where seven core holes were drilled. Significant widths of altered rock were intersected, and samples sent for assaying. As well, pre-development engineering boreholes were completed to test for suitable aggregate deposits on the property for future construction requirements.

Spin-out

In October 2007, High River reported on the results of a Strategic Review, undertaken by the Company's board of directors. Cormark Securities Inc., engaged by the board of directors to assist in the review, recommended that the Company consider spinning out the Prognoz Silver Project to fully realize the value of the project for High River shareholders. A spin-out of the Prognoz Silver Project is expected to be announced before the end of Q2 2008.

About High River

High River is an unhedged gold company with producing mines, mines under development, and advanced exploration projects in Burkina Faso and Russia. High River is bringing two new open-pit gold mines into production. The Taparko-Bouroum Gold Mine in Burkina Faso achieved commercial production in October 2007, and the Berezitovy Gold Mine in Russia is expected to achieve commercial production in Q2 2008. Annual gold production is planned at 100,000 ounces at Taparko-Bouroum, increasing to a rate of approximately 140,000 ounces during 2009, and is expected to exceed 100,000 ounces at Berezitovy. Attributable 2008 gold production is planned to be approximately 80,000 ounces at Taparko-Bouroum and approximately 75,000 ounces at Berezitovy. Combined with gold production from two underground mines in Russia, Zun-Holba and Irokinda, High River's attributable unhedged gold production is expected to total approximately 280,000 ounces in 2008. In addition, the Company has three advanced exploration projects, the Bissa Gold Project in Burkina Faso, the world-class Prognoz Silver Project and the Chaya Nickel Project in Russia. These projects are expected to significantly add to the Company's shareholder value in the future.

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.



HIGH RIVER GOLD MINES LTD.
CONSOLIDATED BALANCE SHEETS
(Thousands of Canadian dollars)

March 31, December 31,
(unaudited) 2008 2007
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Assets
Current Assets
Cash and cash equivalents $ 40,390 $ 51,491
Restricted cash - 69
Accounts receivable 27,769 25,339
Inventory 50,770 48,777
Other assets 11,065 4,318
----------------------------------------------------------------------------
129,994 129,994
Available-for-sale securities 62,741 38,131
Property, plant and equipment 217,239 202,780
Exploration properties and deferred exploration 133,314 115,643
Development properties 206,132 177,417
Other assets 2,038 2,090
----------------------------------------------------------------------------
Total Assets $ 751,458 $ 666,055
----------------------------------------------------------------------------

Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable $ 33,927 $ 24,186
Loans and interest payable 78,628 67,793
----------------------------------------------------------------------------
112,555 91,979
Loans and interest payable 104,020 107,470
Reclamation 8,563 7,866
Non-hedge derivatives 14,079 9,867
Future income taxes 13,352 13,062
----------------------------------------------------------------------------
252,569 230,244
Non-controlling interest 20,013 17,830
----------------------------------------------------------------------------
Total Liabilities 272,582 248,074
----------------------------------------------------------------------------
Shareholders' Equity
Share capital 490,162 453,225
Warrants 13,680 19,951
Contributed surplus 12,059 11,192
Debenture conversion option 538 538
Deficit (58,211) (57,494)
Accumulated other comprehensive income (loss) 20,648 (9,431)
----------------------------------------------------------------------------
Total Shareholders' Equity 478,876 417,981
----------------------------------------------------------------------------
Total Liabilities and Shareholders' Equity $ 751,458 $ 666,055
----------------------------------------------------------------------------
----------------------------------------------------------------------------



HIGH RIVER GOLD MINES LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands of Canadian dollars except per share figures)

Three Three
Months Months
Ended Ended
March 31, March 31,
(unaudited) 2008 2007
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Revenue
Gold $ 45,009 $ 30,644
Silver 40 -
----------------------------------------------------------------------------
45,049 30,644
----------------------------------------------------------------------------

Expenses
Mining costs 25,463 16,449
Mine administrative costs 2,304 1,873
Mine amortization and depletion 5,861 3,791
Asset retirement obligation accretion 135 35
----------------------------------------------------------------------------
33,763 22,148
----------------------------------------------------------------------------
Income before the undernoted 11,286 8,496
Administrative costs (2,991) (2,656)
Amortization and depletion (176) (33)
Exploration expense (2,120) (118)
Financing costs (6,722) (3,449)
Other income 2,830 910
----------------------------------------------------------------------------
Income before tax and non-controlling interest 2,107 3,150
Income tax expense (2,514) (1,912)
----------------------------------------------------------------------------
Income (loss) before non-controlling interest (407) 1,238
Non-controlling interest in earnings of subsidiary (1,901) (972)
----------------------------------------------------------------------------
Net income (loss) for the period $ (2,308) $ 266
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net income (loss) per share
- basic $ (0.01) $ 0.00
- diluted $ (0.01) $ 0.00
----------------------------------------------------------------------------
----------------------------------------------------------------------------



HIGH RIVER GOLD MINES LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Thousands of Canadian dollars)

Three Three
Months Months
Ended Ended
March 31, March 31,
(unaudited) 2008 2007
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Operating Activities
Net income (loss) for the period $ (2,308) $ 266
Non-cash items:
Non-controlling interest in earnings of subsidiary 1,900 972
Amortization and depletion 6,362 3,815
Asset retirement obligation accretion 221 35
Debenture accretion 92 85
Financial instrument accretion expense 446 267
Fair value adjustments to derivatives 4,212 2,100
Loss on disposal of assets 81 11
Stock option benefit expense 1,199 731
Future income taxes 515 (30)
Unrealized foreign exchange loss (1,970) -
Writedown of carrying value and other - 5
----------------------------------------------------------------------------
Subtotal 10,750 8,257
Change in non-cash working capital (11,002) (8,666)
----------------------------------------------------------------------------
Net cash (used in) provided by
operating activities (252) (409)
----------------------------------------------------------------------------

Investing Activities
Property, plant and equipment (4,635) (4,202)
Proceeds on disposal - (5)
Exploration properties and deferred exploration (8,475) (4,971)
Development properties (16,047) (22,225)
Increase in investments (11,801) -
Allocation of restricted cash 69 -
Increase in other long-term assets 179 (542)
----------------------------------------------------------------------------
Net cash used by investing activities (40,710) (31,945)
----------------------------------------------------------------------------

Financing Activities
Loans received 13,507 10,580
Loans repaid (14,440) (6,872)
Common shares issued 30,334 683
----------------------------------------------------------------------------
Net cash provided by financing activities 29,401 4,391
----------------------------------------------------------------------------
Effect of exchange rate changes on cash held
in foreign currencies 460 (10)
----------------------------------------------------------------------------
(Decrease) in cash and cash equivalents
during the period (11,101) (27,973)
Cash and cash equivalents - Beginning of period 51,491 35,616
----------------------------------------------------------------------------
Cash and cash equivalents - End of period $ 40,390 $ 7,643
----------------------------------------------------------------------------
----------------------------------------------------------------------------



HIGH RIVER GOLD MINES LTD.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(Thousands of Canadian dollars)

Three Three
Months Months
Ended Ended
March 31, March 31,
(unaudited) 2008 2007
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Share capital
Balance at beginning of year $ 453,225 $ 338,371
Issue of common shares 36,937 1,145
----------------------------------------------------------------------------
Balance at end of period 490,162 339,516
----------------------------------------------------------------------------
Warrants
Balance at beginning of year 19,951 6,294
Issued - -
Exercised (6,269) -
Expired (2) (4)
----------------------------------------------------------------------------
Balance at end of period 13,680 6,290
----------------------------------------------------------------------------
Contributed surplus
Balance at beginning of year 11,192 11,363
Expired warrants 2 4
Stock-based compensation, net 1,199 731
Stock options exercised (334) (463)
----------------------------------------------------------------------------
Balance at end of period 12,059 11,635
----------------------------------------------------------------------------
Debenture conversion option 538 538
----------------------------------------------------------------------------
Deficit
Balance at beginning of year (57,494) (41,562)
Transitional adjustment on adoption
of new accounting policies 1,591 (3,941)
----------------------------------------------------------------------------
Balance at beginning of year as restated (55,903) (45,503)
Net income (loss) for the period (2,308) 266
----------------------------------------------------------------------------
Balance at end of period (58,211) (45,237)
----------------------------------------------------------------------------
Accumulated other comprehensive income (loss)
Balance at beginning of year (9,431) (22,693)
Transitional adjustment on adoption
of new accounting policies - 10,159
----------------------------------------------------------------------------
Balance at beginning of year as restated (9,431) (12,534)
Comprehensive income for the period 30,079 608
----------------------------------------------------------------------------
Balance at end of period 20,648 (11,926)
----------------------------------------------------------------------------
Shareholders' equity at end of period $ 478,876 $ 300,816
----------------------------------------------------------------------------
----------------------------------------------------------------------------



HIGH RIVER GOLD MINES LTD.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Thousands of Canadian dollars)

Three Three
Months Months
Ended Ended
March 31, March 31,
(unaudited) 2008 2007
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net income (loss) for the period $ (2,308) $ 266
----------------------------------------------------------------------------
Other comprehensive income (loss), net
of income taxes
Unrealized gain (loss) on translation of
net foreign operations 17,286 (891)
Net change in unrealized gains in
available-for-sale securities 12,793 1,499
----------------------------------------------------------------------------
Comprehensive income for the period 30,079 608
----------------------------------------------------------------------------
Net comprehensive income for the period $ 27,771 $ 874
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Contact Information

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