Timmins Gold Reports Financial Results for Its First Year of Commercial Operations at San Francisco Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - 06/30/11) - Timmins Gold Corp. (TSX:TMM - News) is pleased to report its fourth quarter and fiscal year end March 31, 2011 financial results.

2010/2011 HIGHLIGHTS

 

--  The San Francisco gold project commenced commercial production in April
    2010 making fiscal 2011 the first year of operations for the Company.

--  Income from operations was $35,106,384 in fiscal 2011, compared to a
    loss from operations in fiscal 2010 of $6,546,016 representing a
    $41,652,400 increase over the prior year.

--  Cash flow from operations during fiscal 2011 increased to $43,380,416
    compared to cash used in operations of $15,793,611 in fiscal 2010.

--  The Company produced 65,786 ounces of gold during fiscal 2011, and sold
    62,761 ounces of gold. The Company commenced commercial production in
    April, 2010 and realized sequential quarter over quarter improvements in
    operations and financial performance during the year.

--  The Company's cash cost per ounce in fiscal 2011 was US$530 per gold
    ounce, with a cash cost per gold ounce in Q4 of US$527

--  Revenue from metals was $84,351,172 compared to $nil in the prior year.

--  In June 2011 the Company replaced and restructured the $15 million gold-
    linked debt facility (the "Gold Loan") with an $18 million credit
    agreement. The new credit agreement does not contain any payments which
    are indexed to movements in gold prices and thus allows the Company to
    freely realize current gold prices. In addition the new facility does
    not carry a guaranteed minimum payment as outlined in the previous Gold
    Loan.

--  In April 2010 the Company announced an increase in the mineral resource
    estimate at the San Francisco gold project with an increase in measured
    and indicated resources to 895,725 gold ounces and the inferred resource
    to 154,038 gold ounces. A further update was provided in November 2010
    incorporating new drilling with an increase in the mineral reserve and
    mineral resource for San Francisco to 780,000 gold ounces from 611,000
    gold ounces, or a 28% increase.

--  In November 2011, a NI 43-101 F1 updated resources and reserves and mine
    plan for the San Francisco gold mine was prepared by MICON International
    Limited. The highlights of the report outlined the following:

    --  Total gold produced of 539,699 from 2011 to 2016
    --  Average annual gold production of approximately 100,000 ounces of
        gold
    --  Base case life of mine cash costs of US$489 per ounce
    --  Strip Ratio of 1.73
    --  Increase in crushing capacity to 18,000 tonnes per day

--  In February 2011, the Company staked an additional 95,000 hectares of
    claims along the highly prospective Sonora-Mojave Megashear structural
    province of Northern Sonora, Mexico. The Company's semi contiguous
    claims along the Sonora-Mojave Megashear now total approximately 165,000
    hectares.

--  In November, 2010, the Company signed an option agreement whereby a 100%
    interest in a 12,000 hectare claim on the eastern section of Soltoro
    Ltd.'s Quila claim in Jalisco, Mexico may be earned. To earn
    the 100% interest, the Company must make a total of $1,000,000 in cash
    payments and incur $2,000,000 in exploration expenditures on the
    Property over 3 years. On signing the Company made an initial $100,000
    payment to Soltoro.

--  In March 2011, the Company received conditional approval for listing its
    common shares on the Toronto Stock Exchange (TSX), and effective March
    23, 2011, the common shares were listed for trading