TORONTO, ONTARIO--(Marketwire - June
8, 2010) - High River Gold Mines Ltd. ("High River" or the
"Company") (TSX:HRG) was informed yesterday that the
Arbitration Court of the City of Moscow has approved the application of
OJSC Buryatzoloto ("Buryatzoloto") for official bankruptcy
procedures for Prognoz Silver LLC, which operates the Prognoz silver
project in the Republic of Sakha (Yakutia), Russia, which the Company
has an interest in. The commencement of the procedures will result in
the preservation of Prognoz Silver LLC's assets, an analysis of its
financial condition, the preparation of the list of creditors and the
holding of the first creditors' meeting. It is anticipated that the
bankruptcy procedures may last at least seven months and may permit
Buryatzoloto to collect or restructure the indebtedness of Prognoz.
Buryatzoloto is 85% owned by High River. High River holds a 50%
indirect interest in Prognoz Silver LLC. In October 2009, Buryatzoloto
filed a claim to the Arbitration Court of the City of Moscow against
Prognoz Silver LLC to recover an outstanding debt due under the
contract for exploration work on the Prognoz silver project. The amount
of claim including interest and other expenses was approximately US$18
million. The outstanding debt of Prognoz Silver LLC originated from the
inability of the shareholders other than High River to finance their
share of expenditures at Prognoz Silver LLC. In December 2009, the
court ruled in favour of Buryatzoloto. Later, in March 2010, the ruling
was confirmed by the appellate court. The court awarded Buryatzoloto the claimed
amount; however Buryatzoloto did not succeed in collecting it.
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.
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