High River Gold Mines Ltd.
TSX : HRG

High River Gold Mines Ltd.

November 29, 2006 16:59 ET

High River Gold Reports on Exercise of Warrants

TORONTO, ONTARIO--(CCNMatthews - Nov. 29, 2006) - High River Gold Mines Ltd. ("High River" or "the Company")(TSX:HRG) is pleased to report that 13,544,765 warrants were exercised at the revised price of $2.12 per warrant for proceeds of $28,714,901.80, representing 92.7% of the warrants available for exercise. The remaining warrants expired on November 27, 2006. The Company was assisted in the warrant exercise programme by Sprott Securities Inc.

In addition, prior to the repricing and expiry date extension (announced in a press release dated October 27, 2006), the Company received a further $3,509,490.00 from the exercise of 1,493,400 warrants at $2.35 per warrant.

The Company also reports that the non-brokered $12 million convertible debenture financing, announced in the November 6, 2006 press release, has closed.

About High River

High River is currently constructing two open-pit gold mines which are scheduled to commence production in the first half of 2007, the Taparko-Bouroum Project in Burkina Faso and the Berezitovy Project in Russia. Annual gold production from Taparko-Bouroum is planned at 100,000 ounces in year one increasing to over 140,000 ounces in the third year of operation, with annual production from Berezitovy averaging more than 100,000 ounces. Combined with gold production from High River's 85%-owned Russian subsidiary, OJSC Buryatzoloto, High River's attributable annualized gold production rate is expected to exceed 325,000 ounces by mid-2007, establishing the Company as a mid-tier gold producer.

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
    Web site: www.hrg.ca