Gold Production in Mexico

Targeting 2013 annual production of 118,000 ounces of gold

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Regulatory Review Completed

posted on Feb 03, 2009 01:41AM
February 2, 2009
Timmins Gold Corp.: Regulatory Review Completed
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 2, 2009) - As a result of a review by the British Columbia Securities Commission Timmins Gold Corp. (the "Company") (TSX VENTURE:TMM) is issuing the following news release to clarify its disclosure.

On April 7, 2008 the Company filed a technical report entitled "NI 43-101 Technical Report on the Preliminary Feasibility Study for the San Francisco Gold Project, Sonora, Mexico (the "Report") dated March 31, 2008 prepared by Micon International Limited and Independent Mining Consultants Inc. It has come to the Company's attention that certain disclosure in the Report is not in compliance with the guidelines established by National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). In particular, Tables 17.4 and 17.6 in the Report detailing the sensitivity analysis for "Floating Cones for Resource Definition - Measured, Indicated & Inferred Mineral Resources" were not prepared in compliance with NI 43-101, Part 2.2, since they included inferred mineral resources and additional tonnages derived from sensitivity analysis that should not have been treated as mineral resource estimates. The Company also disclosed the larger non-compliant estimate in a corporate presentation on its website, and it appeared in third party articles and media. The Company retracts its prior disclosure of mineral resource estimates exceeding those tabulated below.

As a result the reproduction of the above tables in the Company's news release dated April 8, 2008 and the Annual Information Form dated July 24, 2008 were also not in compliance with NI 43-101.

The Company has prepared and filed on SEDAR an amended technical report dated January 16, 2009.

Further, the Company's web site had posted a corporate presentation which referenced the potential for increasing the resource both around the existing pit area and on a regional basis. The Company retracts the reference to the potential in the corporate presentation. The Company also retracts an estimate of potential gold ounces in an exploration target appearing in an article by Jay Taylor previously posted on the Company's website and which also occurs in other third party media. The Company has no estimates of potential exploration targets compliant with NI 43-101.

The correct disclosure of both the mineral resource and mineral reserve at the San Francisco project as of February 29, 2008 are published in the revised Report and are as follows. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves.

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                                        Tonnes     Grade   Contained Gold
Category                                (000 t)  (g/t Au)             (oz)
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Measured Mineral Resource                5,352     0.912          156,930
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Indicated Mineral Resource              22,296     0.781          559,860
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Total Measured + Indicated Resources    27,648     0.806          716,790
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Inferred Mineral Resource                2,506     0.788           63,490
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The mineral reserve, which constitutes part of the mineral resource, is as follows:

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                                        Gold
                          Reserve    Cut-off    Reserve    Grade      Gold
Case                      Class         (g/t)    (000 t)    (g/t)  (000 oz)
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High Grade Crusher feed   Probable      0.50     12,000     1.05     403.7
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Low Grade Crusher feed    Probable      0.23      4,653     0.88     132.0
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Sub-total Crusher feed    Probable               16,653     1.01     535.7
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Low Grade ROM leach       Probable      0.28      5,981     0.39      75.3
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Grand Total               Probable               22,634     0.84     611.0
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Certain third party print and audio media have speculated about the potential for increasing the resource at the San Francisco project and have included statements about the mine life at the San Francisco project. The correct resource and reserve disclosure can be found in the tables above. As stated in the Report and the revised Report, the mine life with the current reserve is projected to be slightly in excess of 5 years at an annual rate of production of 80,000 ounces of gold. Further the Company disassociates itself from any conjecture that may be construed as share value guidance which may be found in such media.

On behalf of the Board of Directors

TIMMINS GOLD CORP.

Bruce Bragagnolo, CEO and Director
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