N@N

The Company's consolidated net gold revenues for 2010 increased to $435.6 million from $363.3 million in 2009. Higher production by Taparko increased the number of ounces sold. The average gold price realized on sales was US$1,238 per ounce during 2010, up from US$976 in 2009 and up from US$862 in 2008.

The Company had a net income of $114.9 million compared to a net loss of $9.8 million in 2009 and a net loss of $57.4 million in 2008.

Cash flow from operations of $155.9 million increased from $125.5 million in 2009. Cash flow from operations increased from last year largely due to the higher gold revenue as discussed above.

OVERVIEW OF OPERATIONS

Underground Mines

The Zun-Holba and Irokinda underground gold mines located in Russia and operated by Buryatzoloto reported no material changes or shortcomings in their operations during the year and continue to operate according to plan. Buryatzoloto continues to be profitable and achieved its production objectives for 2010 with 135,636 ounces (100%) of gold produced at an estimated total cash cost of US$628 per ounce as compared to 149,382 ounces at US$494 per ounce in 2009. The increase of cash costs is due mainly to the decrease in ore grade which leads to higher volumes of mining and processing necessary to get the same output and inflation processes.

Replacing reserves at these mines is a priority of local management. An approximately $17 million budget for mine-site exploration is proposed for 2011 to replace mined-out reserves and extend the mine life at Irokinda and Zun-Holba.

Open Pit Mines

Berezitovy Mine (Russia)

Berezitovy continued to underperform. Production (100%) at Berezitovy in 2010 was 66,651 ounces of gold, compared to 87,448 ounces produced in 2009. The second ball mill was successfully installed and the second crushing unit was ordered in 2010. However, due to mechanical problems, the plant availability remained below planned level in 2010.

Taparko-Bouroum Mine (Burkina Faso)

In 2010, gold poured at Taparko (100%) totaled 127,684 ounces, up from the 2009 level of 99,536 ounces. The production exceeded the planned level in 2010 mainly because of increased throughput in the mill.

Advanced Exploration Projects

Bissa Gold Project

In 2010 the Company finalized the work related to a feasibility study of the Bissa project and published technical report on the Feasibility Study. The Company applied for the mining license (which may be granted in 2011), and prepared for construction of the mine. In 2011, new reserve and resource estimates for Bissa project were released.

At the same time, High River continues exploration at Bissa. Approximately US$5 million is recommended for additional exploration at Bissa.

Other Exploration Properties

Exploration work continued on other areas within the Bissa Group Permits and on other exploration concessions in Burkina Faso. The first time resource estimates for some exploration properties in Burkina Faso (Yeou, Ankouma, Bouly, Gougre, Zinigma) were announced in 2011.

About High River

High River is an 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.

High River Gold Mines Ltd.
Consolidated Balance Sheets
(Expressed in thousands of Canadian dollars)
As at December 31		2010		2009
Assets
Current Assets
	Cash and cash equivalents	$ 153,964		$ 82,061
	Restricted cash	1,285		562
	Accounts receivable	13,639		18,115
	Inventory	97,663		81,090
	Other assets	15,589		12,382
		282,140		194,210
Investments		109,633		64,810
Property, plant and equipment		291,130		340,606
Exploration properties and deferred exploration		119,847		105,061
Other assets		7,986		697
Future income taxes		1,596		1,578
Total Assets		$ 812,332		$ 706,962
Liabilities
Current Liabilities
	Accounts payable	$ 53,692		$ 39,726
	Loans and interest payable	23,293		58,666
		76,985		98,392
Loans and interest payable		1,732		25,365
Reclamation and other non-current obligations		17,839		14,208
Non-hedge derivatives		-		13,684
Future income taxes		24,291		20,567
		120,847		172,216
Non-controlling interests		34,330		21,922
Total Liabilities		155,177		194,138
Shareholders' Equity
Share capital		640,157		610,770
Warrants		-		13,265
Contributed surplus		24,538		15,907
Debenture conversion option		538		538
Deficit		(6,949	)	(121,801	)
Accumulated other comprehensive income		(1,129	)	(5,855	)
Total Shareholders' Equity		657,155		512,824
Total Liabilities and Shareholders' Equity		$ 812,332		$ 706,962

High River Gold Mines Ltd.
Consolidated Statements of Operations
(Expressed in thousands of Canadian dollars except per share figures)
For the years ended December 31,	2010		2009
Revenue
Gold	$ 435,615		$ 363,259
Silver	5,154		6,090
	440,769		369,349
Expenses
Mining costs	193,272		183,433
Mine administrative costs	11,166		9,717
Mine amortization and depletion	60,682		58,716
Asset retirement obligation accretion	1,191		853
	266,311		252,719
Income before the undernoted	174,458		116,630
Administrative costs	(4,469	)	(13,245	)
Amortization	(6	)	(46	)
Exploration expense	(15,518	)	(4,330	)
Financing costs and investment income, net	6,032		(21,699	)
Other expenses	(12,000	)	(80,026	)
Income (loss) before tax and non-controlling interest	148,497		(2,716	)
Income tax expense	(21,237	)	(3,593	)
Income (loss) before non-controlling interest	127,260		(6,309	)
Non-controlling interests in earnings of subsidiary	(12,408	)	(3,455	)
Net income (loss) for the year	114,852		$ (9,764	)
Net income (loss) per share – basic and diluted	$ 0.14		$ (0.02	)

High River Gold Mines Ltd.
Consolidated Statements of Cash Flows
(Expressed in thousands of Canadian dollars)
For the years ended December 31,		2010		2009
Operating Activities
Net income (loss) for the year		$ 114,852		$ (9,764	)
Non-cash items:
	Non-controlling interest in earnings of subsidiary	12,408		3,455
	Mining costs	(25,081	)	(4,482	)
	Amortization and depletion	60,688		58,762
	Asset retirement obligation accretion	1,191		853
	Financial instrument accretion	392		835
	Fair value adjustments to financial instruments	(13,684	)	1,917
	Stock based compensation	74		223
	Write down of exploration	628		70,764
	Loss on disposal of assets	1,121		1,977
	Future income taxes	(1,929	)	(7,794	)
	Foreign exchange loss	5,361		2,992
	Other	1,223		2,278
Subtotal		157,244		122,016
Change in non-cash working capital		(1,338	)	3,480
Net cash provided by operating activities		155,906		125,496
Investing Activities
	Property, plant and equipment	(40,740	)	(25,798	)
	Proceeds on disposal	1,641		1,756
	Exploration properties and deferred exploration	(17,110	)	(8,484	)
	Allocation of restricted cash	(813	)	(562	)
	Purchase/sale of other long-term assets	(7,810	)	168
Net cash used in investing activities		(64,832	)	(32,920	)
Financing Activities
	Loans received	10,154		12,331
	Loans repaid	(46,528	)	(106,781	)
	Common shares issued	26,249		67,511
	Net cash used in financing activities	(10,125	)	(26,939	)
Effect of exchange rate changes on cash held in foreign currencies		(9,046	)	(2,699	)
Increase in cash and cash equivalents during the year		71,903		62,938
Cash and cash equivalents - Beginning of year		82,061		19,123
Cash and cash equivalents - End of year		$ 153,964		$ 82,061

Contributing Sources

---

Market Wire