Timmins Gold Reports Record Profit From Operations of $18.3 Million for Q3 2012

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov 8, 2012) - Timmins Gold Corp.(TMM.TO)(NYSE MKT:TGD)(NYSE Amex:TGD) (the "Company") is pleased to report its third quarter of 2012 financial results for the period ended September 30, 2012. For comparative purposes, Q3 2011 below refers to the three months ended September 30, 2011. All results are presented in United States dollars ("US Dollars") unless otherwise stated. Readers should refer to the Q3 2012 management discussion and analysis and condensed interim consolidated financial statements for complete information.

Q3 2012 HIGHLIGHTS

• Metal revenues were $41.7 million, compared to $28.2 million during the same prior year period. This represents a 48% increase over the prior year.
  
  
• Profit from operations was $18.3 million, compared to $10.3 million during the same prior year period. This represents a 77% increase over the prior year.
  
  
• Cash flows from operations were $14.5 million, compared to $7.8 million during the same prior year period. This represents an 85% increase over the prior year.
  
  
• Cash increased to $28.3 million at September 30, 2012 after investing $7.2 million in exploration and plant expansion. Cash at September 30, 2011 was $7.0 million after investing $11.9 million in exploration and plant expansion.
  
  
• The Company produced a record 25,153 ounces of gold and sold 25,153 ounces of gold, compared to 17,287 and 16,917, respectively, during the same prior year period. This represents a 46% and 49% increase of ounces produced and sold, respectively, over the prior year.
  
  
• The Company''s cash cost per ounce on a by-product basis was $715, compared to $580 during Q3 2011 and $758 during Q2 2012. The increase over prior year is the result of global price increases in consumables used in gold production as well as increased quantities of consumables used. The quarter over quarter decrease is attributed to the higher number of ounces sold, increased production efficiencies in the current quarter, and that Q2 2012 included variable compensation of $0.3 million relating to 2011 ($14 per gold ounce).
  
  
• The Company tripled its earnings per share to $0.09, compared to $0.03 during the same prior year period.
  
  
• The drill program for the San Francisco Gold Project continued in Q3 2012 and during October, 2012 was expanded to 100,000 meters for calendar 2012:
  
  
  • A total of 5,523 meters of drilling were completed in and around the San Francisco pit (YTD 2012: 10,900 meters).
    
    
  • A total of 28,061 meters were drilled in the current quarter on the La Chicharra open pit gold mine located 1.5 kilometres west of the San Francisco pit (YTD 2012: 44,362 meters).
    
    
• A 5,000 meter core drill program at the San Onesimo project in Zacatecas, Mexico, commenced in July, 2012.
  
  

SUMMARIZED INTERIM FINANCIAL STATEMENTS AND OPERATING RESULTS