High River Gold Mines Ltd.

High River Gold Mines Ltd.

September 11, 2008 09:26 ET

High River Gold Strengthens Board

Special Committee Established

TORONTO, ONTARIO--(Marketwire - Sept. 11, 2008) - High River Gold Mines Ltd. ("High River" or the "Company")(TSX:HRG) is pleased to announce the appointment of four new members to the Board of Directors. To make room for the new directors, four current directors - Michael Chieng, Laurence Curtis, David Davidson and Donald Whalen - have stepped aside.

Board Composition

The four new directors are:

Robert Buchan - Mr. Buchan has over 35 years of experience in the mining sector. He is the founder of Kinross Gold Corporation and served as its Chairman and Chief Executive Officer until 2005. Mr. Buchan has also served as Chairman of Katanga Mining Limited, Vice Chairman of Dundee Bancorp Inc. and Chairman of Quest Capital Corp. Mr. Buchan is currently a director of a number of public companies including Allied Nevada Gold Corp. and Polyus Zoloto OAO, Russia's leading gold producer.

Terrence Lyons - Mr. Lyons has over 35 years experience in the financing and management of natural resource and merchant banking companies. Mr. Lyons is currently Chairman of Northgate Minerals Corporation and a director of several public corporations including Canaccord Capital Inc., Polaris Minerals Corporation and Sprott Resource Corporation. Previously, Mr. Lyons was a Managing Partner of Brookfield Asset Management (formerly Brascan) where he was responsible for the merchant banking and restructuring activities in the natural resource sector.

Stephen Polakoff - Mr. Polakoff is a New York qualified lawyer with eleven years of experience working on capital markets, project finance, banking and corporate transactions, the last five years of which have been spent in Russia. He currently serves as General Counsel for Integra Group, a Russian oil services and field equipment manufacturing company listed on the London Stock Exchange. Prior to joining Integra, Mr. Polakoff was General Counsel and Head of the Legal Department for Deutsche UFG in Moscow. While with Deutsche UFG, he served as the Bank's senior in-house advisor on numerous financial offerings on Russian and International exchanges. Mr. Polakoff resides in Moscow.

Murray Sinclair - Mr. Sinclair has over 20 years experience in the financing and restructuring of public companies in Canada. He is one of the founders of the Quest Group of companies and currently serves as the Co-Chairman of Quest Capital Corp., a publicly listed Mortgage Investment Corporation serving Canadian real estate markets. Mr. Sinclair also serves as Chairman of Helmsdale Bank Corporation and Co-Chairman of Buffalo Resources Corp., a Calgary based oil & gas producer. Mr. Sinclair is currently a director of a number of public companies including Gabriel Resources Inc., Sprott Resource Corporation, and Breakwater Resources Ltd.

The High River Board will continue to be comprised of nine directors, with the five continuing directors being David Mosher (President & CEO), John Crow, Valery Dmitriev, Graham Farquharson and Mark Rachovides.

As part of this change, Terrence Lyons has been elected as Chairman of the Board.

David Mosher, President & CEO of High River, commented: "We are delighted to welcome our new directors to High River. The new directors will provide the financial and operational expertise to allow High River to operate from a position of strength in considering all available alternatives to build shareholder value. To those directors who are departing, we offer our sincere thanks."

"With three operating gold mines, a fourth mine anticipated to achieve commercial production in a few weeks, as well as a pipeline of advanced exploration projects, High River has a very strong asset base and growth profile. A strong board significantly enhances the ability of the Company to maximize its potential."

Special Committee Established

High River has established a Special Committee of the Board of Directors with the mandate of examining strategic alternatives that are available to it with the objective of maximizing shareholder value. The members of this Committee are: Messrs. Sinclair, Lyons, Buchan, Crow and Farquharson, with the latter serving as Chair of the Committee. These additions to the Company's Board of Directors, and specifically their capital markets expertise, will strengthen this Committee's efforts.

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 Statements - This release and subsequent oral statements made by and on behalf of the Company may contain forward-looking statements, which reflect management's expectations with respect to the proposed transaction. Wherever possible, words such as "intends", "expects", "scheduled", "estimates", "anticipates", "believes", and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, have been used to identify these forward-looking statements. Although the forward-looking statements contained in this release reflect management's current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, High River cannot be certain that actual results will be consistent with these forward-looking statements. A number of factors could cause events and achievements to differ materially from the results expressed or implied in the forward-looking statements. Such factors include, but are not limited to, any inability of High River to obtain TSX approval for the transaction, or an inability of High River to issue Common Shares from treasury. These factors should be considered carefully and prospective investors should not place undue reliance on the forward-looking statements. Forward-looking statements necessarily involve significant known and unknown risks, assumptions and uncertainties that may cause High River's actual results, event, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Although High River has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that the forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, prospective investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date of this release, and High River assumes no obligation to update or revise them to reflect new events or circumstances, unless otherwise required by law.

Contact Information

  • High River Gold Mines Ltd.
    David Mosher
    President & CEO
    (416) 947-1440
    (416) 360-0010 (FAX)
    Email: info@hrg.ca
    Website: www.hrg.ca