OREANDA-NEWS. July 29, 2009. Lybica Holding B.V. (“Lybica”), an affiliate of ZAO Severstal Resources (“Severstal”), the mining division of OAO Severstal, announced today that it intends to increase its offer (the “Increased Offer”) for all of the issued and outstanding common shares (the “Common Shares”) of High River Gold Mines Ltd. (“High River”) (excluding the Common Shares currently controlled by Severstal).  High River shareholders who accept the Increased Offer will now receive USD 0.30 per Common Share in cash, an increase of USD 0.08 or 36% per Common Share from the previous offer price of USD 0.22 per Common Share.

The Increased Offer represents a premium of 90% over the volume weighted average High River share price for the 60-trading day period preceding and including May 21, 2009, the last trading day prior to High River’s announcement that it was in discussions with Severstal regarding a possible transaction. It also represents a 7% premium to the closing High River share price on July 27, 2009 and a 36% premium over the volume weighted average High River share price for the period since May 21, 2009.

The Board of High River (with Severstal nominees abstaining) unanimously recommends that High River shareholders accept the Increased Offer.

Severstal further confirms that the Increased Offer is full and final and that the Increased Offer will not be extended beyond the revised closing date of August 10, 2009.

Those High River shareholders who have tendered their Common Shares under the terms of the original offer will receive USD 0.30 per Common Share in cash and are not required to take any further steps to accept the Increased Offer.

A Notice of Variation and Extension, containing the amended terms of the Increased Offer, will be mailed to High River’s shareholders on or about July 30, 2009.  The Increased Offer expires at 11:59 p.m. (Toronto time) on August 10, 2009. 

Alexei Kulichenko, Chief Financial Officer of ZAO Severstal Resources, commented upon the Increased Offer: 

“Severstal wanted to put forward its best offer in full and final form and we are pleased to be able to offer this substantially revised price which is unanimously recommended by the Board of Directors of High River.  We confirm that whatever the level of acceptances, provided that all other conditions of the offer are satisfied, we intend to take up all Common Shares tendered.”
 
Morgan Stanley & Company Limited and Torys LLP are acting as the financial and legal advisors to Severstal on this transaction.  In addition, any questions or requests for assistance or further information on how to tender common shares to the Offer, may be directed to and copies of the above referenced documents may be obtained by contacting the information agent at 1-866-581-1490 or by email at contactus@kingsdaleshareholder.com.