High River Gold Mines Ltd.

High River Gold Mines Ltd.

March 29, 2005 16:01 ET

High River Increases Equity Interest in Jilbey Gold


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: HIGH RIVER GOLD MINES LTD.

TSX SYMBOL: HRG

MARCH 29, 2005 - 16:01 ET

High River Increases Equity Interest in Jilbey Gold

TORONTO, ONTARIO--(CCNMatthews - March 29, 2005) - High River Gold Mines
Ltd. (TSX:HRG) ("High River") today announced it has reached agreement
with European investors to acquire 4,944,500 common shares and 2,000,000
common share purchase warrants of Jilbey Gold Exploration Ltd.
("Jilbey") in exchange for shares of High River to be issued from
treasury. High River will issue 2,382,240 common shares in exchange for
the Jilbey shares and warrants. The share purchase exchange agreement is
subject to satisfaction of all conditions to closing, including receipt
of all regulatory and Board approvals.

Of the Jilbey common share purchase warrants, 1.1 million warrants each
entitle the holder to acquire one common share at a price of $0.60 until
October 14, 2005, while the remaining 900,000 warrants each entitle the
holder to acquire one common share at a price of $0.70 until May 12,
2006.

High River currently holds 5,266,660 common shares of Jilbey (15.0%) and
1,875,000 common share purchase warrants. Assuming completion of the
transaction, High River would hold a total of 10,211,160 common shares
(29.0%) and, assuming exercise of all warrants held by High River, a
total of 14,086,160 common shares (36.1%).

As well as being a shareholder of Jilbey, High River is party to a
strategic alliance with Jilbey that was established in February 2004
regarding Burkina Faso. The strategic alliance provides Jilbey with
defined rights of access to the planned Taparko mill so that Jilbey's
discoveries can either enhance the Taparko project by expanding the
production profile or extending the mine life, or result in new
stand-alone development projects for Jilbey in Burkina Faso.

Jilbey contracts with High River to operate Jilbey-funded exploration
programmes in Burkina Faso using High River's existing exploration team
and infrastructure. High River and Jilbey currently control properties
in Burkina Faso covering in excess of 7,700 square kilometres;
approximately two-thirds of those properties are within trucking
distance of High River's planned Taparko mill.

High River holds common shares and warrants in Jilbey for investment
purposes only, and not for the purpose of influencing the control or
direction of Jilbey. High River may, subject to market conditions and
other relevant factors, make additional investments in, or dispose of,
securities of Jilbey in the future.

David Mosher, President and CEO of High River, is a member of the Board
of Directors of Jilbey.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    High River Gold Mines Ltd.
    Don Whalen
    Chairman
    (416) 947 1440
    (416) 360 0010 (FAX)
    or
    High River Gold Mines Ltd.
    Laurie Gaborit
    VP Investor Relations & Corporate Secretary
    (416) 947 1440
    (416) 360 0010 (FAX)
    info@hrg.ca
    www.hrg.ca