Prognoz Silver Project

On June 21, 2006 High River Gold announced that its 85%-owned Russian subsidiary, OJSC Buryatzoloto, through a subsidiary, entered into an agreement to acquire a 50% equity interest in LLC Gazteck Industry ("Gazteck"), a private Russian company holding the licence for the high grade Prognoz Silver Project. Buryatzoloto is "operator" of the project. (See news release dated June 21, 2006) The Prognoz Project is one of the few undeveloped, significant, silver-rich projects in the world. The Prognoz Project was the target of extensive exploration by the Russian State exploration department during the period 1987 through 2000, which included 317 trenches (17,756 metres) and 89 diamond drill holes (17,805 metres). Based on the results of this exploration and using the Russian Classification System for calculating mineral reserves and resources, the Prognoz deposit contains published:

These estimates have been calculated according to standard Russian industry practice and do not conform to the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) standards and definitions for resource estimates, as set out in Canadian National Instrument 43-101 (NI43-101).

The Prognoz Silver Project is located in the central portion of the Republic of Sakha (Yakutia) of the Russian Federation, approximately 450 kilometres north of the capital city of Yakutsk. The property is in a mountainous area comprised of gently rolling terrain with elevations ranging from 300 metres to 1100 metres above sea level. The property is 56 km² in size.

Geology

Mineralization is epithermal in origin. Regionally, the property is located within a major foldbelt, the Verkhoyansk mobile belt, a fold-and-thrust belt that forms part of one of the earth's great orogenic systems. The district where the Prognoz deposit is located covers the areas of junction of the Sartang sinclinorium at the west with the Adychan fold-and-block dome to the east. The boundaries of the majority of the mineralized deposits at the property are determined by the intersection of longitudinal and lateral faults.

All of the mineralized zones on the Prognoz property are considered to be mineralized fracture zones which are identified as veins of quartz-carbonate-sulphide-sulphosalt composition. The Prognoz project has an extensive vein system containing silver mineralization with lesser amounts of lead and zinc mineralization. More than 30 mineralized fracture zones distributed between four areas have been discovered within the Prognoz project area where the host rocks are sandstone. Many of these vein sets are multi-kilometre in length, and on average 2-15 metres wide and 200+ metres deep. The veins appear to be moderately to steeply dipping.

A great deal of the previous work was focused on two zones, the Glavnaya and the Boloto Zones. These two zones are extensive but remain open along strike, on surface and at depth. In addition, there are some 28 other geochemical/geophysical anomalies and veins which are known to exist in relatively close association with the two main zones but where limited exploration has been conducted.

The Prognoz Property

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Glavnaya Zone

The Glavnaya Zone is the largest and richest mineralized zone and has been traced with trenches and drill holes over 4.1 kilometres with an inferred strike length of 5.1 kilometres.

The vein is steeply dipping (700-800) to the south and reverses direction on the eastern flank. Drilling has traced the vein from surface to a depth of between 200 and 600 metres. The width of the vein varies between less than a metre to 25 metres with an average width of between 2 metres and 4 metres.

The following table tabulates the characteristic grade ranges for silver, lead and zinc for the Glavnoye deposit:

Boloto Zone

The Boloto Zone hosts the second most important deposit on the Prognoz property based on Russian records. The Boloto deposit is located in the central part of the mineralized area south of the Glavnoye deposit. It has been traced along strike for 2.4 kilometres and remains open along strike.The down dip extension as determined by drilling so far is 320 metres. The thickness along strike varies from 0.2 metres to 7.2 metres and down-dip varies from 0.2 metres to 3.7 metres. The deposit is steeply dipping northward between 500 and 800.

The following table tabulates the characteristic grade ranges for silver, lead and zinc for the Boloto deposit:

Other Zones

Limited exploration has been conducted on the 28 other anomalies and veins known to exist in proximity to the Glavnaya and Boloto Zones. This limited work has identified 17 additional zones. The following table tabulates the range of values for the 17 other potential deposits from limited exploration:

Metallurgical testing

No metallurgical testing has been conducted recently; however, in 1988 the state mining-geological company, Yangeologia, collected a 358 kilogram sample composed of channel samples from trenches from the Glavnoye deposit. The sample was composed of veinlets -- dissemination and breccia types of silver-lead mineralization. The metallurgical test work was carried out at the Scientific Research Institute in the City of Magadan.

The Research Institute tests included crushing and grinding the sample and silver recovery by gravity separation, flotation and cyanide leaching.

According to historical metallurgical testwork, gravity and flotation recovered 92.3% of the silver, 89.2% of the lead and 73.0% of the zinc. Recovery of silver can be increased by an additional 5.7% through cyanidation of the flotation concentrate.

Current Exploration Activity

From June to late August 2006, two diamond drill rigs completed 49 drill holes (7,411 metres) of an infill drilling programme on the Glavnoye deposit, one of 30 veins identified on the 56 square kilometre Prognoz property. The results received to-date are from 25 holes located in block C2-1, which represents approximately 1.2 kilometres of an overall 4 kilometre strike length of known mineralization within the Glavnoye deposit. The main purpose of the drilling programme was to test the vertical and horizontal (along strike) continuity within the central portion (640 metre strike length) of block C2-1 of the Glavnoye deposit, with the aim of ultimately confirming historical data and deriving a 43-101 independently estimated resource.

Results of the other 24 holes will be released as they become available. To the end of 2006, a further 87 drill holes are planned, for a total of 136 drill holes (13,000 metres). Eleven of these will be infill holes, drilled on a 160 metre by 80 metre grid to the east of the main section of the Glavnoye deposit. Further east and west, along strike, 6 step-out holes will be drilled to test for continuity beyond current known mineralization of the Glavnoye deposit. An additional 70 holes will test other veins identified on the Prognoz property. During 2007, Buryatzoloto plans to drill 42,000 metres in order to continue exploring the entire 4 kilometre strike length of the Glavnoye deposit, and to explore the Boloto and other vein targets on the property. The total three year exploration programme (phase 1 in 2006, phase 2 in 2007/2008) being undertaken by Buryatzoloto and its partner is budgeted at approximately US $15 million. The objective of this two-phase exploration programme is to increase the total resource to 275-325 million ounces of silver.

Maps

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Prognoz long	Prognoz plan
Section 1	Section 2
Section 3	Section 4
Section 5	Section 6
Section 7	Section 8