High River Gold Mines Ltd.
TSX : HRG

High River Gold Mines Ltd.

November 14, 2005 20:04 ET

High River Reports Third Quarter 2005 Results

TORONTO, ONTARIO--(CCNMatthews - Nov. 14, 2005) -

(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 and nine month periods ended September 30, 2005. 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 Third Quarter of 2005

- Attributable gold production of 38,156 ounces at a total cash cost of US $282 ounce

- Consolidated net loss of $0.6 million ($0.00 per share) after non-cash expenses of $1.0 million

- Cash flow from operating activities of $1.8 million (before working capital changes)

- Bought deal equity financing for gross proceeds of $30 million

- Successful acquisition of Jilbey Gold Exploration Ltd.

- US $2.4 million exploration programme underway at the Bissa gold project acquired from Jilbey Gold Exploration Ltd.

Subsequent Events

- Signed term sheet with Royal Gold Inc. for US $35 million financing for Taparko-Bouroum development project

- Arranged US $10 million bridge loan facility for Berezitovy development project



Selected Financial Results

(in thousands of Canadian dollars except
per share amounts)

Three Months Ending Nine months Ending
September 30, September 30,
2005 2004 2005 2004
---------------------------------------------------------------------
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Gold revenue $19,976 $25,966 $59,317 $76,077
Net (loss) income(1) (554) 1,524 (2,023) 4,195
Net (loss) income per
share (basic) (0.00) 0.01 (0.01) 0.04
Cash flow from
operations(2) 1,775 4,646 9,649 14,544
Weighted average number
of shares outstanding
(basic) 195,415,663 105,986,016 179,124,346 105,978,539
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(1) The net loss in the third quarter of 2005 includes non-cash accounting items of $1.0 million (3Q2004 - $1.9 million).

(2) Before changes in non-cash working capital.

RESULTS OF OPERATIONS

The Company reported a net loss of $554,000 ($0.00 per share) in the third quarter of 2005 compared to net earnings of $1.5 million ($0.01 per share) for the same period last year. This decrease is attributable to lower operating profits of $2.6 million as a result of lower gold sales at OJSC Buryatzoloto's ("Buryatzoloto") operations and the closure of the New Britannia mine in September 2004 compounded with the strengthening of the Russian rouble and inflation. The current quarter was adversely impacted by non-cash accounting factors totalling $1.0 million compared to $1.9 million in the same corresponding period in 2004:

- $78,000 mark-to-market adjustment of the Company's put option contract

- $369,000 stock-based compensation cost (3Q2004 - $273,000)

- $433,000 financing cost associated with the New Britannia venture obligation (3Q2004 - $332,000)

For the nine months ended September 30, 2005, High River incurred a net loss of $2.0 million ($0.01 per share) versus net income of $4.2 million ($0.04 per share) in 2004. The major factors contributing to this shift include a $6.3 million reduction in operating income due to lower gold sales from the closure of the New Britannia mine and from Buryatzoloto operations, a mark-to-market adjustment of $862,000, and a write-down of $860,000 from the residual interest in New Britannia.

The Company's consolidated gold revenues for the third quarter of 2005 decreased to $19.8 million from $26.0 million for the same period of 2004. Although the Company realized a higher gold price on gold sales, the number of ounces sold decreased by 23% to 37,455 ounces from 48,916 ounces in the third quarter of 2004 mainly as a result of the suspension of production at the New Britannia mine in September 2004 and unsold gold production at Buryatzoloto's operations during the quarter. The realized gold price on sales averaged US $439 per ounce during the third quarter, an increase of 11% from the US $395 per ounce realized for the same period in 2004. The gold market remained strong in the third quarter of 2005 with prices averaging US $440 per ounce compared to US $401 per ounce for the same period last year. The Company remains unhedged and continues to sell its gold production at spot prices.

For the nine months ended September 30, 2005, the average price realized was US $431 per ounce on consolidated gold revenues of $59.3 million from 112,367 ounces sold compared to US $400 per ounce on consolidated gold revenues of $76.1 million from 142,125 ounces sold for the first nine months of 2004.

Cash flow from operating activities before changes in non-cash working capital for the quarter ended September 30, 2005 decreased to $1.8 million compared to $4.6 million in the same quarter of 2004. The decrease during the quarter was primarily the result of lower gold production due to the closure of the New Britannia mine and an increase in gold inventory levels at Buryatzoloto's operations. Operating activities consumed approximately $3.0 million of cash during the quarter compared to $4.7 million of operating cash flow provided by operations in the same period of 2004. The major factors contributing to the decrease in operating cash flow include lower gold revenues, higher operating costs, and cash used for increased working capital at the Taparko-Bouroum and Berezitovy development projects.

For the year-to-date, cash flow used by operations amounted to $346,000 compared to a cash inflow of $16.2 million in 2004.

Investing activities consumed $20.9 million of cash in the third quarter of 2005 compared to $5.1 million for the same period in 2004. The significant increase was due to the planned capital expenditures on the construction of the Taparko-Bouroum and Berezitovy gold projects, which totalled $18.6 million for the quarter.

The Company's investment in property, plant and equipment for the third quarter totalled $1.0 million compared to $989,000 for the same period last year. Year-over-year costs have declined as a result of a decrease in expenditures at the Russian operations and a significant investment in the seasonal flotation circuit during 2004.

The Company ended the third quarter with cash and cash equivalents of $8.9 million and working capital of $6.2 million compared to cash and cash equivalents of $40.7 million and working capital of $42.7 million at the end of 2004.

High River closed a bought deal financing on July 27, 2005 for 24,000,000 units at $1.25 per unit. Each unit comprised one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one additional share of High River for $1.60 at any time prior to January 27, 2007. Net proceeds were approximately $28.4 million.

On September 1, 2005, the Company completed its acquisition of Jilbey whereby High River acquired all the outstanding common shares of Jilbey not already owned by High River on the basis of 0.75 High River shares for every one share of Jilbey. Options and warrants of Jilbey will be exchanged for options and warrants of High River on a pro-rata basis.

REVIEW OF OPERATIONS, DEVELOPMENT PROJECTS AND EXPLORATION ACTIVITIES

High River, through its Russian subsidiary Buryatzoloto, is producing gold at the Zun-Holba and Irokinda underground mines and at a small seasonal placer operation, all located in southern Siberia, Russia. With the Company's increased interest to 84.6% in Buryatzoloto, the Company's attributable gold production increased to 38,156 ounces at a total cash cost of US $282 per ounce in the third quarter of 2005 from 32,497 ounces at a total cash cost of US $255 per ounce in the corresponding period of 2004 (which included High River's 50% interest in the New Britannia Mine of 9,080 ounces). Mining costs in the third quarter of 2005 decreased to $14.7 million from $18.0 million in the same period of 2004 as a result of the closing of the New Britannia mine in late 2004.

The Company's total cash costs are calculated in accordance with the Gold Institute Production Cost Standards and include operating costs such as mining, milling, refining and transportation, by-product credits, royalties and production taxes, and administration but exclude depreciation, reclamation and mine closure, and foreign exchange. Calculated unit costs are based on ounces of gold produced.

Buryatzoloto Operations

For the third quarter of 2005, Buryatzoloto exceeded its production objectives with 45,103 ounces of gold produced at an estimated total cash cost of US $282 per ounce from its two underground mines and a small placer operation, which accounted for 3,586 ounces. For comparison, gold production in the third quarter of 2004 totalled 43,284 ounces at a total cash cost of US $245 per ounce, which included 3,541 ounces from the placer operation. The higher operating costs in the third quarter of 2005 resulted mainly from scheduled works to improve water treatment in the tailings facilities of the Zun-Holba mine. Costs were also affected by inflation and the strengthening of the Russian rouble against the U.S. dollar and the increase in development work at both mines.

For the nine months ended September 30, 2005, Buryatzoloto's operations exceeded the mine plan and produced 118,905 ounces of gold at a total cash cost of US $273 per ounce compared to 116,631 ounces at a total cash cost of US $253 for the same period of 2004. Gold production for fiscal 2005 is forecast to exceed the budgeted 147,000 ounces at a total cash cost of less than US $280 per ounce.

During the third quarter, due to timing issues, Buryatzoloto had an increase in inventory levels resulting, in part, from approximately 7,000 ounces of unsold gold.

Gold production from Buryatzoloto's operations is subject to seasonal fluctuations. The placer operation and one of the circuits at the Irokinda plant treating low-grade ore only operate during the summer months. Assuming normal operations on a yearly basis, gold production is highest in the third quarter and lowest in the first quarter of the calendar year.



Buryatzoloto Operational and Financial Data

Three Months Ending Nine Months Ending
September 30, September 30,
2005 2004 2005 2004
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Tonnes mined 138,175 141,253 432,603 410,231
Tonnes milled 152,046 143,990 399,770 395,980
Head grade (g/t) 8.8 9.1 9.4 9.3
Recovery (%) 94.3 95.2 94.1 94.2
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Gold production (oz)
(100%)(1) 45,103 43,284 118,905 116,631
High River share of
production (oz) 38,156 23,417 100,593 63,098
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Direct mining cost
(US $/oz) 259 226 249 231
By-product credits
(US $/oz) - (5) (4) (3)
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Mine operating cost
(US $/oz) 259 221 245 228
Royalty expense and
production tax
(US $/oz) 23 24 28 25
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Total cash cost (US $/oz) 282 245 273 253
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(1) Includes production from the placer operation.


Zun-Holba Mine

The Zun-Holba mine is an underground operation with a cyanidation and carbon-in-pulp (CIP) processing plant. In the third quarter of 2005, the mine produced 17,992 ounces of gold compared to 16,030 ounces of gold in the same period of 2004. The mill processed 63,049 tonnes of ore at an average grade of 9.0 g/t gold. The head grade obtained was slightly lower than planned for the quarter.

In the third quarter of 2005, direct mining costs increased to US $313 per ounce (total cash cost of US $341 per ounce) from US $297 per ounce (total cash cost of US $330 per ounce) in the corresponding period of 2004. Although more ounces were produced during the third quarter of 2005 compared to the same corresponding period in 2004, the operating costs were negatively impacted by scheduled repair costs at the tailings facilities to treat excess cyanide waters, which had accumulated over time. These repairs added approximately US $36 per ounce to the processing costs during the quarter. Other factors contributing to higher operating costs included the increase in stope development and the strengthening of the rouble against the US dollar.

A total of 59,375 tonnes of ore was mined from Sul'phidnoye 1 and 2, Vavilovskoye 1 and 3, Severnoye 1, 2, and 3 between levels 1690 and 1590 metres. During the third quarter, Buryatzoloto completed 5,723 metres of infill drilling of the main orebodies Sul'phidnoye 1 and 2, and Severnoye 1 and 2, which confirmed the presence of economic mineralization within the Russian classified reserve blocks outlined by previous exploration work.



Zun-Holba Operational Data

Three Months Ending Nine Months Ending
September 30, September 30,
2005 2004 2005 2004
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Tonnes mined 59,375 55,110 187,698 175,023
Tonnes milled 63,049 56,599 178,803 168,890
Head grade (g/t) 9.0 9.5 9.4 9.5
Recovery (%) 93.2 93.4 92.9 93.2
Gold production (oz) 17,992 16,030 52,391 48,449
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During the third quarter, a total of 1,028 metres of exploration drilling were completed on the Novoye-1 and Novoye-2 orebodies between levels 1540 and 1490 metres, and the Dal'nee orebody between levels 1540 and 1490 metres. One of the four holes drilled on the Dal'nee orebody intersected 24.6 metres averaging 9.3 g/t gold. Buryatzoloto has started a 4,800 metre drilling programme between levels 1490 and 1390 metres (the lowest levels of the mine).

Irokinda Mine

The Irokinda mine is an underground operation with a processing plant comprised of a conventional crushing grinding circuit followed by gravity separation and flotation of all ores. The gravity concentrate is refined to a dore on site while the flotation concentrate is dried and then transported to the CIP plant at Zun-Holba for further processing.

In the third quarter of 2005, Irokinda produced 23,525 ounces of gold compared to 23,713 ounces for the same period in 2004. The mill processed 88,997 tonnes of ore at an average grade of 8.7 g/t gold. The tonnage processed in the quarter was significantly higher than that mined as ore was stockpiled during the second quarter due to planned maintenance at the flotation circuit. The grade of the ore was as planned for the quarter. During the period, direct mining costs increased to US $206 per ounce (total cash cost of US $233 per ounce) compared to direct mining costs of US $195 per ounce (total cash cost of US $219 per ounce) in 2004. The rise in operating costs was mainly the result of the strengthening of the rouble against the US dollar, higher general expenses, expanded stope preparation and development activities.



Irokinda Operational Data

Three Months Ending Nine months Ending
September 30, September 30,
2005 2004 2005 2004
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Tonnes mined 78,800 86,143 244,905 235,208
Tonnes milled 88,997 87,391 220,967 227,090
Head grade (g/t) 8.7 8.9 9.2 9.2
Recovery (%) 95.0 95.0 95.2 95.1
Gold production (oz) 23,525 23,713 62,011 63,696
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During the quarter, 78,800 tonnes were mined from 10 vein structures. Approximately 663 metres of underground development and 297 metres of infill drilling were completed on five veins. On the exploration front, work carried out at the mine included surface and underground drilling (8,698 metres), underground development, trenching and mapping of 11 veins. Further work will continue on six of them, including vein # 52 returning 22.2 g/t over 2 metres, 13.1 g/t over 0.5 metres, and 14.6 g/t over 0.3 metres in trench samples; and vein Yubileinaya yielding 28.8 g/t over 1.1 metres in a trench sample.

Project Development

Berezitovy Project, Russia

High River continued to carefully manage expenditures until the start of drawdown of the US $32 million project loan from the European Bank for Reconstruction and Development ("EBRD"), which is now expected in early 2006. In order to continue construction activities on the project, High River has arranged a US $10 million bridge financing through Natexis Banques Populaires with Bank Natexis (ZAO) of Moscow, Russia. It is expected that the first drawdown of US $5 million will occur on November 16, 2005. As a prerequisite for the EBRD project loan, the Company has completed its documentation on the environmental and social assessment of the project. These documents are currently under review by the EBRD and once approved will be posted for public comments for a period of 60 days. During this period, the Company and the EBRD will be finalizing legal and regulatory matters.

During the third quarter of 2005, the Company completed the assembling of the modular camp that was purchased in Hungary and continued with site clearing and earthwork for the mill facilities.

The major components of the Mill 4 Gold Ore Processing Facility ("Mill 4") were received at Russian ports in September and early October. Approximately 80% of the material cleared customs and has arrived at the project site. Additional container loads are making their way to the project from Vladivostok. Clean-up of the Mill 4 site in Nevada was completed during the quarter with the reclamation bond refunded to High River.

The Company presented an updated feasibility study to the Russian federal authorities in September 2005, which incorporated design improvements for Mill 4, process flowsheet modifications, and location changes for both the tailings storage facilities and the permanent camp. High River has received verbal approval by the Russian authorities but is awaiting written receipt before starting pre-stripping activities. The optimized operating costs are currently under review by independent consultants for the EBRD project financing. Overall, the Company is expecting an increase in capital expenditures mitigated by lower operating costs.

As at September 30, 2005, the Company has spent approximately US $43.1 million on the development and construction of the project.

Based on the current project development schedule, construction of the mine is expected to be completed at the end of 2006.

Taparko-Bouroum Project, Burkina Faso

On October 18, 2005, High River announced the signing of an innovative, US $35 million project finance facility with Royal Gold, Inc. of Denver, Colorado ("Royal Gold") to fund completion of the construction of the Taparko-Bouroum project. Closing is anticipated before the end of November with drawdowns on the facility to be linked to specific project milestones associated with the remaining development of the project. As a result of this financing, High River concluded its discussions with ABSA Corporate & Merchant Bank ("ABSA") regarding the previously announced initiative for financing the Taparko-Bouroum project.

Construction of the permanent camp structure is advancing with completion expected in early 2006. Site clearing and surface preparation for the plant facilities, which started in August 2005 are continuing. The Company has also completed the earthwork on the sanitary landfill. Surface clearing of the tailings facilities is complete with dam construction starting on the west side. The first shipment of liner material has arrived in Tema, Ghana, and is scheduled to arrive on site within the next two weeks. Pre-stripping activities at the Taparko deposit are also well underway with the waste being used for the construction of the tailings dam.

The pipeline material and pumps are on site and will be installed in the coming months. The Company plans to pump overflow water to the project site water containment area from the Yalogo dam, located nine kilometres from the project, during the rainy season. The used ball mill bought in the Philippines is currently being refurbished in South Africa. New crushers are being fabricated and are advancing as planned.

Following the arrangement with Royal Gold, the lump sum turnkey contract for the construction of plant and other facilities with Metallurgical Design and Management (Pty) Ltd. is being modified given the additional flexibility provided by the Royal Gold financing. Somita SA, a subsidiary of High River, anticipates taking more responsibilities in the construction activities going forward.

As at September 30, 2005, the Company has spent approximately US $23.7 million on the development and construction of the project.

Exploration Activities

During the third quarter of 2005, the Company conducted exploration activities in Burkina Faso and Russia.

Bissa Project, Burkina Faso - In mid-September 2005, High River started a US $2.4 million drilling programme at the Bissa project. A combination of core, reverse circulation (RC) and rotary air blast (RAB) drilling for a total of approximately 34,000 metres is testing the southwest extension of the Bissa Hill deposit, extension of the Bissa Southwest zone and other targets within the Bissa-Gonglou corridor along the Sabce shear zone. In the month of September, High River completed 125 RAB holes (5,751 metres), 15 RC holes (1,783 metres), 4 core holes (666 metres), and 2 trenches (101 metres). Results of this programme will be made public starting in November. The objective of this drilling programme is to provide the information required to calculate a new resource estimate for the Bissa property by early 2006 and build sufficient resources to support a mining operation.

In addition, the Company announced on November 10, 2005 positive results from compilation work carried out by Mercator Geological Services Limited and data review interpretation by A.C.A. Howe International Ltd. ("ACA Howe") on the 1,000 square kilometres Bissa group permits, which includes the Bissa project. The compilation work outlined five other major areas of gold mineralization that are targeted as priority areas for further exploration work. Review, modeling and interpretation of the available data by ACA Howe concluded that these areas, including the 6.7 kilometres Bissa-Gonglou corridor, indicate the potential for the Bissa permits to host multi-million ounce deposits and develop into a significant gold mining district.

Novophirsovskoye Ore Field Project, Russia - Following the February 2005 acquisition by auction of the property, located in the Altai region of southern Siberia, data compilation was completed and various governmental permissions were obtained to start an exploration programme. Field work started in August 2005 and by the quarter end, seven diamond drill holes (1,513 metres) and two trenches (560 metres) were completed on the highest priority areas (zones 1 and 3). Historical work on zone 1 had identified gold mineralization associated with a plunging synclinal structure and widespread argillic alteration in silicious sub-volcanic, intrusive and sedimentary rocks. Fire assays are pending. Additionally, Buryatzoloto carried out reconnaissance mapping and sampling over 16 square kilometres covering 20 mineralized areas.

OUTLOOK

Gold production for fiscal 2005 is expected to exceed 150,000 ounces at a total cash cost of under US $280 per ounce. High River and Buryatzoloto will continue to focus on optimizing these operations with the objective of maintaining its current production rate, increasing reserves and reducing operating costs.

High River's two key development projects continue to be advanced towards production. Both projects are scheduled to commence production at the end of 2006. The successful start-up of the Taparko-Bouroum and the Berezitovy projects will significantly increase High River's gold production profile to over 300,000 ounces by 2007, establishing the Company as a mid-tier gold producer.

The successful acquisition of Jilbey has established High River as a dominant player in Burkina Faso with a prospective land position exceeding 8,000 square kilometres. High River's drilling activities in Burkina Faso are focussing on the prospective Bissa area, where Jilbey had defined a small resource at Bissa Hill, with the objective of providing an updated resource estimate by the end of the first quarter of 2006 and ultimately building sufficient resources to support a mining operation. In addition, High River is conducting its initial exploration programme at the recently acquired Novophirsovskoye project in Russia.

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)

September 30, December 31,
(unaudited) 2005 2004
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Assets
Current Assets
Cash and cash equivalents $ 8,860 $ 40,709
Restricted cash 1,647 2,021
Accounts receivable 5,191 5,301
Inventory 15,776 13,369
Other assets 612 116
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32,086 61,516
Investments 6,046 8,980
Property, plant and equipment 71,683 65,799
Exploration properties and deferred
exploration 52,098 4,111
Development properties 119,544 64,151
Other assets 1,112 1,289
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Total Assets $ 282,569 $ 205,846
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Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable $ 8,434 $ 14,274
Loans and interest payable 17,495 4,560
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25,929 18,834
Loans and interest payable 3,580 12,048
Reclamation 1,355 2,029
Venture obligation 33,879 29,881
Future income taxes 8,516 2,713
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73,259 65,505
Non-controlling interest 14,916 41,994
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Total Liabilities 88,175 107,499
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Shareholders' Equity
Share capital 275,648 177,084
Warrants 9,188 8,620
Contributed surplus 5,776 4,664
Cumulative translation adjustment (22,632) (20,458)
Deficit (73,586) (71,563)
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194,394 98,347
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Total Liabilities and Shareholders' Equity $ 282,569 $ 205,846
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HIGH RIVER GOLD MINES LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands of Canadian dollars, except for income per share and
number of shares)

Three Months Nine months
Ended September 30, Ended September 30,
(unaudited) 2005 2004 2005 2004
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Revenue
Gold $ 19,796 $ 25,966 $ 59,317 $ 76,077
Other 359 (349) 1,744 505
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20,155 25,617 61,061 76,582
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Expenditures
Mining costs 14,711 17,967 41,886 54,143
Amortization and
depletion 1,728 1,991 7,725 6,069
Exploration 2,056 669 3,273 755
Administrative
costs 936 829 2,724 2,232
Financing costs 397 409 1,286 1,424
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19,828 21,865 56,894 64,623
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Income before the
under noted 327 3,752 4,167 11,959
Financing costs on
venture obligation (433) (332) (1,223) (1,031)
Equity loss from
associated company (21) - (99) -
Stock-based
compensation (369) (273) (1,111) (773)
Loss on sale of
assets (77) (56) (224) (56)
Gain on sale of
investments - - 539 -
Write-down of
carrying value - - (860) -
Unrealized
derivatives loss (78) - (862) -
Non-controlling
interest in
earnings of
subsidiary 18 (1,216) (381) (3,500)
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(633) 1,875 (54) 6,599
Income tax expense
(recovery) (79) 351 1,969 2,404
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Net income(loss)
for the period $ (554) $ 1,524 $ (2,023) $ 4,195
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Net income(loss)
per share
- basic $ (0.00) $ 0.01 $ (0.01) $ 0.04
- diluted $ (0.00) $ 0.01 $ (0.01) $ 0.04
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Weighted average
number of common
shares outstanding
- basic 195,415,663 105,986,016 179,124,346 105,978,539
- diluted 195,415,663 106,940,537 179,124,346 107,133,176
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Consolidated
Statements of
Deficit
Three Months Nine months
Ended September 30, Ended September 30,
(unaudited) 2005 2004 2005 2004
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Deficit -
Beginning of
period $ (73,032) $ (66,145) $ (71,563) $ (70,179)
Change in
accounting policy - - - 1,363
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As restated (73,032) (66,145) (71,563) (68,816)
Net income (loss)
for the period (554) 1,524 (2,023) 4,195
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Deficit - End of
period $ (73,586) $ (64,621) $ (73,586) $ (64,621)
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HIGH RIVER GOLD MINES LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Thousands of Canadian dollars)

Three Months Nine months
Ended September 30, Ended September 30,
(unaudited) 2005 2004 2005 2004
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Cash provided by (used in):
Operating activities
Net income (loss) for the
period $ (554) $ 1,524 $ (2,023) $4,195
Non-cash items:
Non-controlling interest in
earnings of subsidiary (18) 1,216 381 3,500
Equity loss from associated
company 21 - 99 -
Financing cost on venture
obligation 433 - 1,223 -
Amortization and depletion 1,728 2,038 7,725 6,194
Write-down of carrying value - - 860 -
Unrealized derivative loss 78 - 862 -
(Gain) loss on disposal of
assets 77 30 77 56
Gain on sale of investments - - (539) -
Stock-based compensation 369 273 1,111 773
Future income taxes (359) (435) (127) (60)
Other - - - (114)
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Subtotal 1,775 4,646 9,649 14,544
Change in non-cash working
capital (4,794) 97 (9,995) 1,646
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Total operating (3,019) 4,743 (346) 16,190
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Investing Activities
Property, plant and equipment (1,034) (989) (4,974) (9,832)
Exploration properties and
deferred exploration (193) (3,631) (7,860)(12,520)
Development properties (18,643) - (56,047) -
(Increase) decrease in
investments - - 1,350 (2,575)
Purchase of subsidiary net of
cash acquired (410) - (410) -
Allocation to restricted cash (164) (452) (162) (1,293)
Decrease (increase) in other
long term assets (440) (13) (440) -
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Total investing (20,884) (5,085) (68,543)(26,220)
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Financing Activities
Dividends paid by subsidiary
to non-controlling interest 13 (538) (66) (538)
Increase (decrease) in loans
and interest payable (400) (4,070) 6,543 (4,781)
Issuance of common shares 30,427 4,794 30,956 4,799
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Total financing 30,040 186 37,433 (520)
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Effect of exchange rate
changes on cash held in
foreign currencies (1,000) (778) (393) (636)
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Increase (decrease) in cash
and cash equivalents during
the period 5,137 (934) (31,849)(11,186)
Cash and cash equivalents -
Beginning of period 3,723 8,005 40,709 18,257
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Cash and cash equivalents -
End of period $ 8,860 $ 7,071 $ 8,860 $ 7,071
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Contact Information

  • High River Gold Mines Ltd.
    Don Whalen
    Executive Chairman
    (416) 947-1440
    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