High River Gold Announces Exercise of Warrants by Severstal Gold N.V. and Receipt of C$26 Million in Proceeds

TORONTO, ONTARIO -- (Marketwire) -- 08/16/10 -- High River Gold Mines Ltd. ('High River' or the 'Company')(TSX: HRG) announced today that Severstal Gold N.V. ('Severstal Gold'), a subsidiary of OAO Severstal ('Severstal') (LSE: SVST)(RT: CHMF), has exercised warrants (the 'Warrants') held by it and acquired 40,674,540 common shares ('Common Shares') of High River at a price of C$0.64 per share. The Warrants were transferred to Severstal Gold in November 2009 from another Severstal subsidiary. High River received cash proceeds of C$26,031,705.60 from the exercise of the Warrants.

Following this transaction, Severstal will have beneficial ownership and control over 591,362,172 Common Shares, representing approximately 70.38 % of the issued and outstanding Common Shares as at the date hereof.

About High River

High River is unhedged gold company with interests in producing mines and advanced exploration projects in Russia and Burkina Faso. Two underground mines, Zun-Holba and Irokinda, are situated in the Lake Baikal region of Russia. Two open pit gold mines, Berezitovy in Russia and Taparko-Bouroum in Burkina Faso, are also in production. Finally, High River has two advanced exploration projects with NI 43-101 compliant resource estimates, the Bissa gold project in Burkina Faso and 50% interest in the Prognoz silver project in Russia.

FORWARD LOOKING INFORMATION

This release and subsequent oral statements made by and on behalf of the Company may contain forward-looking statements. 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. 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 anticipated, estimated or intended, including those risk factors discussed in the Company's 2009 Annual Information Form. 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. Any 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.

Contacts:

High River Gold Mines Ltd.

Igor Klimanov

CEO

011 7 495 981 0910 ext. 6678
info@hrg.ca
www.hrg.ca