Severstal intends to close its final cash offer for High River Gold at 11:59 p.m (Toronto time) on August 10, 2009

    TORONTO, Aug. 7 /CNW/ - Lybica Holding B.V. ("Lybica"), an affiliate of
ZAO Severstal Resources ("Severstal"), the mining division of OAO Severstal,
announced today that it intends to close its final offer (the 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) at 11:59 p.m. on August 10, 2009, as previously
announced, and will take up all Common Shares tendered.
    Upon expiration of the Offer, Severstal intends to seek to restructure
the loans between Severstal and High River which remain in default with a view
to retirement of the loans and will review operational options for High River.
    Alexei Kulichenko, Chief Financial Officer of OAO Severstal, commented:
"As previously announced, this represents our best and final offer which we
think provides High River shareholders with attractive cash value for their
shares. This view has been supported by a number of independent research
analysts from such reputable firms as CIBC, Cormark Securities and Scotia
Capital, and we believe High River shareholders should take advantage of the
last opportunity to tender their shares."
    Morgan Stanley & Company Limited and Torys LLP are acting as the
financial and legal advisors to Severstal on this transaction.

For further information:

For further information: Sergey Loktionov, Press Secretary, Severstal
Resources, +7 495 9810910 ext. 6648,; Peter Bacchus,
Managing Director, Morgan Stanley, +44 (0) 20 7425 4669; Vladimir Samarin,
Vice President, Morgan Stanley, +44 (0) 20 7425 4361; David Kaiser, Senior
Vice President, Fleishman-Hillard Canada Inc. for Severstal, (416) 645-3682,

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