High River Gold Mines Ltd.
TSX : HRG

High River Gold Mines Ltd.

August 14, 2008 19:56 ET

High River Gold Reports Second Quarter 2008 Results

TORONTO, ONTARIO--(Marketwire - Aug. 14, 2008) -

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

High River Gold Mines Ltd. (TSX:HRG) ("High River" or the "Company") today reported its financial results and operational highlights for the three month period ended June 30, 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 SECOND QUARTER OF 2008

Financial Results

- Gold Revenue of $43.4 million, an increase of 57% from Q2 2007.

- Funds flow from operations before working capital changes of $1.2 million.

- Net loss of $4.7 million ($ 0.01 per share) compared to net income of $896,000 ($0.00 per share) in Q2 2007.

- Attributable gold production increased 61% to 51,537 ounces. Cash cost per ounce increased 67% to US $616 per ounce (excluding cash costs from Berezitovy which is not yet commissioned).

Operations

- Zun-Holba and Irokinda Gold Mines

-- Gold production of 36,811 ounces (100%) at a cash operating cost of US$532 per ounce.

- Taparko-Bouroum Gold Mine

-- Gold production of 10,330 ounces (100%) at a cash operating cost of US$916 per oz., as ongoing mechanical problems with the ball mill drive-train resulted in significant down-time during the quarter.

- Berezitovy Gold Mine

-- Approached commercial production in the latter part of the quarter, with June showing an average plant capacity utilization rate of 63%. Gold production during the quarter totalled 11,099 ounces (100%).

- Bissa Gold Exploration Project

-- Continuation of an infill drilling programme, designed to expand and upgrade existing National Instrument ("NI") 43-101 compliant resources as part of a preliminary feasibility study.

- Prognoz Silver Project

-- Resources nearly doubled with the release of an Updated NI 43-101 compliant silver resource estimate:

Indicated - 4.49 million tonnes grading 704 g/t silver for 102 million ounces

Inferred - 4.87 million tonnes grading 659 g/t silver for 103 million ounces

Resources are based on drilling up to December 31, 2007, and only on two of the more than 30 veins on the property.

Corporate

- Mike Kelly, P. Eng. , previously Vice-President of Operations at Rio Tinto's Diavik Mine, joined the Company as Executive Vice-President and Chief Operating Officer.

- John Crow, former Governor of the Bank of Canada, joined the Company's board of directors.

- Graham Farquharson, President of Strathcona Mineral Services, joined the Company's board of directors.

- Vladimir Polevanov, a director since 2003, did not stand for re-election.

- High River decided not to proceed with the planned spin-out of the Prognoz Silver Project after careful consideration of the views expressed by certain shareholders.

Events Subsequent to the Quarter

- On July 31, 2008 High River announced that it had entered into an agreement to acquire the remaining 50% interest in the Prognoz Silver Project not already owned by the Company for 34.1 million common shares of High River.

- On August 1, 2008 High River announced a strategic investment transaction with a wholly-owned subsidiary of the Alfa Group Consortium, one of Russia's largest privately owned financial/industrial organizations, whereby High River will issue up to 160,000,000 shares at $1.79 per share through a non-brokered private placement for proceeds of up to $286.4 million, subject to regulatory and shareholder approval (as described on page 6). Upon conclusion of the transaction, Alfa would own approximately 32% of High River.



REVISED 2008 GOLD PRODUCTION GUIDANCE

-----------------------------------------------------------
Mine 2008 (100%) 2008 (Attributable)
(000's of ozs) (000's of ozs)
-----------------------------------------------------------
Irokinda 72 61
-----------------------------------------------------------
Zun-Holba 73 62
-----------------------------------------------------------
Taparko-Bouroum 41 37
-----------------------------------------------------------
Berezitovy 41 40
-----------------------------------------------------------
Total 227 200
-----------------------------------------------------------



DISCUSSION OF FINANCIAL RESULTS

Selected Financial Results
(in thousands of
Canadian dollars except Three Months Ended Six Months Ended
per share amounts) June 30, June 30,
2008 2007 2008 2007
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Gold revenue $ 43,427 $ 27,603 $ 88,436 $ 58,247
Net income (loss) (4,725) (896) (7,033) 1,162
Net income (loss) per
share (basic) (0.01) (0.00) (0.02) 0.00
Funds flow from
operations(1) 1,235 6,637 11,985 14,894
Weighted average number
of shares outstanding
(basic) 307,905,158 251,078,660 307,846,200 250,558,372
----------------------------------------------------------------------------
----------------------------------------------------------------------------

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


Gold revenue for the quarter was 57% higher than last year due to higher gold prices and ounces sold. The average gold price realized on sales was US $897 per ounce during Q2/08, up from US $661 per ounce last year. Ounces sold increased by 26%, to 47,905 ounces, due to ounces sold from production at the Taparko-Bouroum Gold Mine.

The Net Loss reflects higher revenues offset by higher inflation-related operating costs in Russia and higher than planned costs at Taparko-Bouroum due to below budget production levels.

Attributable gold production was 51,537 ounces for the quarter at a cash operating cost of US $616 per ounce (excluding cash costs Berezitovy, which is not yet commissioned), compared to 31,980 ounces at a cash operating cost of US $368 per ounce a year ago.

OVERVIEW OF OPERATIONS

Operating Mines

Zun Holba Mine (Russia)

Zun Holba produced 17,473 ounces of gold (100%) in the second quarter, down slightly from 17,859 ounces last year. Cash operating costs for the quarter increased to US $617 per ounce from US $401 per ounce last year due to wage and material cost inflation and lower grades mined.

Irokinda Mine (Russia)

Gold production at the Irokinda Mine totaled 19,011 ounces (100%) during the quarter, down slightly from 19,298 last year. Cash operating costs increased to US $468 per ounce compared to US $336 per ounce last year, for the same reasons cited for the Zun-Holba Mine.

Taparko-Bouroum Mine (Burkina Faso)

Excessive vibration in the Taparko mill drive line resulted in several mill shutdowns and an overall plant capacity utilization rate of 54% during the quarter. An extensive effort was made to identify and correct this issue. Specialized mill consultants conducted a detailed analysis of all major drive line components. Work is continuing on defining and resolving these problems. A requirement for replacement components will likely mean very limited production in the third quarter, and a further shutdown at a later date for revisions to the grinding mill installation to provide a permanent and satisfactory solution.

Ore grades and gold recovery during the quarter were near planned levels, indicating no significant problems with these major mine performance factors. A two-month stockpile of higher-grade ore (approximately 192,000 tonnes) is available to supply the process plant upon start-up. During the repair period, mining activity has continued in the 3/5 and GT pits. Recent focus has been on waste stripping resulting in a substantial increase of developed ore available for immediate production blasting.

Mines being Commissioned

Berezitovy Mine (Amur Oblast, Russia)

Although High River has not yet declared commercial production at Berezitovy, mill throughput has now exceeded the commercial production criteria, as evidenced by the 63% plant capacity utilization in June (4,485 ounces of gold produced) and in July (5,138 ounces of gold produced). Commercial production is defined as 30 consecutive days of production at 60% or more of design capacity. High River will defer the declaration of commercial production until satisfied that commercial levels of production can be achieved on a sustained basis. As with Taparko-Bouroum, grades and recoveries at Berezitovy are close to planned levels.

The previously disclosed filter plant problem caused unexpected mill down-time and resulted in a plant capacity utilization rate for the quarter of 44%. The problem was corrected in May with the installation of higher quality filter cloth and the construction of a temporary wet tailings storage facility. A permanent solution will include the installation of an additional high-capacity thickener ahead of the tailings filter plant to increase the percentage of solids in the tailings slurry. Operator error caused overloading of the ball mill resulting in minor damage to the ball mill bearings. The damage was corrected through on-site re-machining of the bearings. The mill is expected to operate at 80-90% of design capacity until the installation of replacement bearings planned for September 2008.

At the end of the quarter, 380,000 tonnes of ore have been stockpiled, which approximates 3.5 months of production.

Exploration Projects

Bissa Project

An infill drilling programme, designed to expand and upgrade existing resources as part of a preliminary feasibility study, continued during the quarter. Three reverse circulation ("RC") drills and one diamond drill ("DD") were used for infill drilling along three kilometres immediately adjacent and along strike to the southwest of the Bissa Resource Area which hosts the current resource. As well, drilling commenced during the quarter for the purpose of obtaining samples for metallurgical analysis and process design.

Prognoz Project

Updated NI 43-101 Resource Estimate

In June 2008, High River announced the results of the Updated NI 43-101 resource estimate on the Prognoz Silver Project:



----------------------------------------------------
Indicated Resources
----------------------------------------------------
----------------------------------------------------
Tonnage (t) Silver grade (g/t) Contained Silver (oz)
----------------------------------------------------
4,490,000 704 102 million
----------------------------------------------------

----------------------------------------------------
Inferred Resources
----------------------------------------------------
Tonnage (t) Silver grade (g/t) Contained Silver (oz)
----------------------------------------------------
4,870,000 659 103 million
----------------------------------------------------


The Updated NI 43-101 mineral resource estimate almost doubles previous estimates of the resources at Prognoz. This resource estimate is based on drilling two veins (Glavnoye and Boloto) of over 30 identified so far on the property, and on drilling completed up to December 31, 2007. The qualified persons at MICON were William J. Lewis, B.Sc., P. Geo., a senior geologist with MICON based in Toronto, Canada, and Dibya Kanti Mukhopadhyay (MAusIMM), a senior mineral resource geologist with MICON based in Norwich, England.

The silver content at Prognoz is associated with low-grade lead-zinc mineralization. Initial metallurgical tests indicate that a bulk lead-zinc floatation concentrate will carry a very high silver grade.

Exploration

An exploration programme, budgeted at US$11 million for 2008 (30,000 metres of drilling and 5,000 metres of trenching), continued during the quarter. Excluding hydrogeological drilling, 66 holes totalling 7,391 metres were completed on Boloto and six other veins. The majority encountered mineralization, and assay results are pending. As well, 39 trenches were dug totalling 2,396 metres on the Glavnoye, Boloto, and four other veins.

Spin-out Terminated

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. On May 28, 2008, High River announced that it had entered into an agreement to spin out its 50% interest in Prognoz, together with the other 50% interest held by a private company, into a single purpose publicly traded corporate vehicle. On June 25, 2008, High River announced that it had decided not to proceed with the planned spin-out of the Prognoz Silver Project after careful consideration of the views expressed by certain shareholders.

Acquisition of the Remaining 50% of the Prognoz Silver Project

On July 31, 2008, High River announced that it had entered into an arm's-length agreement to acquire the remaining 50% interest in the Prognoz Silver Project not already owned by High River. Under the agreement, High River will issue 34.1 million common shares, representing 9.9% of the issued capital of the Company, and will assume debt obligations totalling approximately US $16 million related to past exploration expenditures on the Prognoz property. Approximately US $13.5 million of these debt obligations are owed to High River's 84.9% -owned subsidiary Buryatzoloto.

Strategic Investment Transaction with Alfa Group

On August 1, 2008 High River announced a strategic investment transaction with an indirect wholly-owned subsidiary of the Alfa Group Consortium, one of Russia's largest privately owned financial/industrial organizations. High River will issue up to 160 million common shares at $1.79 per share by means of a non-brokered private placement for proceeds of up to approximately $286.4 million. The private placement is subject to regulatory approval.

The financing will be made available in two tranches. Tranche 1 will consist of 75 million shares. Part A of Tranche 1 (16.7 million shares) will close not later than August 29, 2008 and Part B of Tranche 1 (58.3 million shares) is scheduled to close with Tranche 2 on or before December 15, 2008. The closing of Tranche 1 Part B can be subject to the closing of Tranche 2 or can be closed earlier at the discretion of the Alfa Group.

Tranche 2, which is subject to shareholder approval, consists of up to 85 million shares and is scheduled to close on or before December 15, 2008.

The closing of both Tranches 1 and 2 would result in Alfa Group owning an approximate 32% equity interest in High River (assuming 34.1 million shares are issued for the acquisition of the remaining 50% interest in Prognoz). Alfa Group will be entitled to nominate two persons to the board of High River on the closing of Tranche 1B. Proceeds of the financing will be used for development of the Prognoz Silver Project, to acquire and consolidate advanced projects in Russia and Africa, and to reduce debt.

About High River

High River is an unhedged gold company with producing mines, mines under development, and advanced exploration projects in Russia and Burkina Faso. 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 shortly. At full production, annual gold production is planned at 100,000 ounces at Taparko-Bouroum and is expected to exceed 100,000 ounces at Berezitovy. Combined with gold production from two underground mines in Russia, Zun-Holba and Irokinda, High River's attributable unhedged annual gold production is expected to exceed 300,000 ounces. In addition, the Company has three advanced exploration projects, the Bissa Gold Project in Burkina Faso, the 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 INFORMATION

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information concerning High River's exploration programme and planned gold production as well as High River's strategies and future prospects. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Assumptions upon which such forward-looking information is based include, without limitation, availability of skilled labour, equipment, materials (including replacement parts for processing machinery), and capital required to remedy existing mechanical problems and to maintain High River's mines in good working order.

Many of these assumptions are based on factors and events that are not within the control of High River and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking information include changes in market conditions, variations in ore reserves, resources, grade or recovery rates, risks relating to international operations (including legislative, political, social, or economic developments in the jurisdictions in which High River operates), economic factors, government regulation and approvals, environmental and reclamation risks, actual results of exploration activities, fluctuating metal prices and currency exchange rates, costs, timing and amount of future production, changes in project parameters, conclusions of economic evaluations, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and the availability of skilled labour, failure of plant, equipment or processes to operate as anticipated, capital expenditures and requirements for additional capital, risks associated with internal control over financial reporting, and other risks of the mining industry as well as those risk factors discussed in the Annual Information Form for the year ended December 31, 2007 of High River available at www.sedar.com. Although High River has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. High River undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.



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

June 30, December 31,
(unaudited) 2008 2007
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Assets
Current Assets
Cash and cash equivalents $ 17,189 $ 51,491
Restricted cash - 69
Accounts receivable 31,189 25,339
Inventory 55,644 48,777
Other assets 17,939 4,318
----------------------------------------------------------------------------
121,961 129,994
Available-for-sale securities 79,530 38,131
Property, plant and equipment 214,174 202,780
Exploration properties and deferred exploration 140,782 115,643
Development properties 200,426 177,417
Other assets 2,321 2,090
----------------------------------------------------------------------------
Total Assets $ 759,194 $ 666,055
----------------------------------------------------------------------------

Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable $ 28,960 $ 24,186
Loans and interest payable 104,074 67,793
----------------------------------------------------------------------------
133,034 91,979
Loans and interest payable 83,543 107,470
Reclamation 8,421 7,866
Non-hedge derivatives 13,661 9,867
Future income taxes 13,323 13,062
----------------------------------------------------------------------------
251,982 230,244
Non-controlling interest 20,434 17,830
----------------------------------------------------------------------------
Total Liabilities 272,416 248,074
----------------------------------------------------------------------------

Shareholders' Equity
Share capital 490,162 453,225
Warrants 13,680 19,951
Contributed surplus 11,841 11,192
Debenture conversion option 538 538
Deficit (62,603) (57,494)
Accumulated other comprehensive income (loss) 33,160 (9,431)
----------------------------------------------------------------------------
Total Shareholders' Equity 486,778 417,981
----------------------------------------------------------------------------
Total Liabilities and Shareholders' Equity $ 759,194 $ 666,055
----------------------------------------------------------------------------
----------------------------------------------------------------------------



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

Three months ended June 30, Six months ended June 30,
(unaudited) 2008 2007 2008 2007
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Revenue
Gold $ 43,427 $ 27,603 $ 88,436 $ 58,247
Silver 29 248 69 248
----------------------------------------------------------------------------
43,456 27,851 88,505 58,495
----------------------------------------------------------------------------
Expenses
Mining costs 33,936 16,319 59,399 32,703
Mine administrative
costs 2,154 1,133 4,458 3,006
Mine amortization
and depletion 5,403 3,984 11,264 7,840
Asset retirement
obligation accretion 141 33 276 68
----------------------------------------------------------------------------
41,634 21,469 75,397 43,617
----------------------------------------------------------------------------
Income before the
undernoted 1,822 6,382 13,108 14,878
Administrative
costs (2,387) (1,762) (5,378) (4,418)
Amortization and
depletion (193) (75) (369) (108)
Exploration expense (2,563) (42) (4,683) (160)
Financing costs (1,845) (1,568) (8,567) (5,017)
Other income/
(expense) 2,869 (43) 5,699 867
----------------------------------------------------------------------------
Income before tax
and non controlling
interest (2,297) 2,892 (190) 6,042
Income tax expense (2,066) (1,379) (4,580) (3,291)
----------------------------------------------------------------------------
Income (loss) before
non-controlling
interest (4,363) 1,513 (4,770) 2,751
Non-controlling
interest in
earnings of
subsidiary (362) (617) (2,263) (1,589)
----------------------------------------------------------------------------
Net income (loss)
for the period $ (4,725) $ 896 $ (7,033) $ 1,162
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net income (loss)
per share
- basic $ (0.01) $ 0.00 $ (0.02) $ 0.00
- diluted $ (0.01) $ 0.00 $ (0.02) $ 0.00
----------------------------------------------------------------------------
----------------------------------------------------------------------------



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

Three Months Ended June 30, Six months ended June 30,
(unaudited) 2008 2007 2008 2007
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Operating Activities
Net income (loss)
for the period $ (4,725) $ 896 $ (7,033) $ 1,162
Non-cash items:
Non-controlling
interest in earnings
of subsidiary 363 617 2,263 1,589
Amortization and
depletion 5,922 4,068 12,284 7,883
Asset retirement
obligation accretion 227 33 448 68
Debenture accretion 51 85 143 170
Financial instrument
accretion 300 776 746 1,043
Fair value
adjustments to
derivatives (418) (645) 3,794 1,455
Stock option
benefit expense (218) 534 981 1,265
Loss on disposal of
assets 30 9 111 20
Future income taxes (145) 267 370 237
Unrealized foreign
exchange loss (1,104) (2) (3,074) (6)
Writedown of
carrying value
and other 952 (1) 952 8
----------------------------------------------------------------------------
Subtotal 1,235 6,637 11,985 14,894
Change in non-cash
working capital 1,436 (4,378) (9,566) (13,044)
----------------------------------------------------------------------------
Net cash provided by
operating activities 2,671 2,259 2,419 1,850
----------------------------------------------------------------------------

Investing Activities
Property, plant and
equipment (7,136) (3,437) (11,771) (7,639)
Proceeds on
disposal - 10 - 5
Exploration
properties and
deferred
exploration (10,026) (5,072) (18,501) (10,043)
Development
properties (13,337) (24,876) (29,384) (47,101)
Increase in
investments 1,000 - (10,801) -
Allocation of
restricted cash - (73) 69 (73)
(Increase) in other
long-term assets (1,029) 475 (850) (67)
----------------------------------------------------------------------------
Net cash used by
investing activities (30,528) (32,973) (71,238) (64,918)
----------------------------------------------------------------------------

Financing Activities
Loans received 16,634 25,232 30,141 35,812
Loans repaid (11,730) (3,250) (26,170) (10,122)
Common shares
issued - 3,745 30,334 4,428
----------------------------------------------------------------------------
Net cash provided by
financing activities 4,904 25,727 34,305 30,118
----------------------------------------------------------------------------

Effect of exchange
rate changes on cash
held in foreign
currencies (248) (310) 212 (320)
----------------------------------------------------------------------------

(Decrease) in cash
and cash equivalents
during the period (23,201) (5,297) (34,302) (33,270)
Cash and cash
equivalents -
Beginning of period 40,390 7,643 51,491 35,616
----------------------------------------------------------------------------
Cash and cash
equivalents -
End of period $ 17,189 $ 2,346 17,189 $ 2,346
----------------------------------------------------------------------------
----------------------------------------------------------------------------



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

Three Months Ended June 30, Six months ended June 30,
(unaudited) 2008 2007 2008 2007
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Share capital
Balance at beginning
of period $ 490,162 $ 339,516 $ 453,225 $ 338,371
Issue of common
shares - 3,654 36,937 4,799
----------------------------------------------------------------------------
Balance at end of
period 490,162 343,170 490,162 343,170
----------------------------------------------------------------------------

Warrants
Balance at beginning
of period 13,680 6,290 19,951 6,294
Issued - 565 - 565
Exercised - - (6,269) -
Expired - - (2) (4)
----------------------------------------------------------------------------
Balance at end of
period 13,680 6,855 13,680 6,855
----------------------------------------------------------------------------

Contributed surplus
Balance at beginning
of period 12,059 11,635 11,192 11,363
Expired warrants - - 2 4
Stock-based
compensation, net (218) 534 981 1,265
Stock options
exercised - (282) (334) (745)
----------------------------------------------------------------------------
Balance at end of
period 11,841 11,887 11,841 11,887
----------------------------------------------------------------------------

Debenture conversion
option 538 538 538 538
----------------------------------------------------------------------------

Deficit
Balance at beginning
of period (58,211) (43,955) (57,494) (41,562)
Transitional
adjustment on
adoption of
new accounting
policies 333 - 1,924 (2,659)
----------------------------------------------------------------------------
Balance at beginning
of period as
restated (57,878) (43,955) (55,570) (44,221)
Net income (loss)
for the period (4,725) 896 (7,033) 1,162
----------------------------------------------------------------------------
Balance at end of
period (62,603) (43,059) (62,603) (43,059)
----------------------------------------------------------------------------

Accumulated other
comprehensive
income (loss)
Balance at beginning
of period 20,648 (13,266) (9,431) (22,693)
Transitional
adjustment on
adoption of
new accounting
policies - - - 8,855
----------------------------------------------------------------------------
Balance at beginning
of period as
restated 20,648 (13,266) (9,431) (13,838)
Comprehensive income
(loss) for the
period 12,512 (5,314) 42,591 (4,742)
----------------------------------------------------------------------------
Balance at end of
period 33,160 (18,580) 33,160 (18,580)
----------------------------------------------------------------------------

Shareholders' equity
at end of period $ 486,778 $ 300,811 $ 486,778 $ 300,811
----------------------------------------------------------------------------
----------------------------------------------------------------------------



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

Three Months Ended June 30, Six months ended June 30,
(unaudited) 2008 2007 2008 2007
----------------------------------------------------------------------------
Net income (loss)
for the period $ (4,725) $ 896 $ (7,033) $ 1,162
----------------------------------------------------------------------------
Other comprehensive
income (loss),
net of income taxes
Unrealized gain
(loss) on
translation
of net foreign
operations (4,149) (7,996) 13,137 (8,887)
Net change in
unrealized gains in
available-for-sale
securities 16,661 2,682 29,454 4,145
----------------------------------------------------------------------------
Comprehensive income
for the period 12,512 (5,314) 42,591 (4,742)
----------------------------------------------------------------------------
Net comprehensive
income (loss) for
the period $ 7,787 $ (4,418) $ 35,558 $ (3,580)
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Contact Information

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