Timmins Gold Reported Preliminary Production Results For Operations in Mexico

HERMOSILLO, MEXICO - Timmins Gold Corp. reported preliminary production results for the Company's fourth quarter and year ended December 31, 2016. The Company achieved production of 25,287 gold ounces for the quarter and 100,322 gold ounces for the year.

"We are very pleased with our operating performance in the fourth quarter and for the year 2016," stated Arturo Bonillas, President of the Company. "Gold ounces produced in the fourth quarter were 25,287, bringing the total to over 100,000 ounces for the year and putting us through the upper end of our guidance which had been revised higher during the year. We would like to acknowledge our dedicated team at the San Francisco Mine for their commitment and efforts during what began as a challenging year."

Mining operations at the San Francisco Mine continues to proceed as per the Company's mine plan. Guidance for 2017 is between 70,000 and 75,000 gold ounces at cash costs of US$900 to US$950 per gold ounce (which includes all waste strip costs). The production profile for the year will be affected by an increase in waste stripping required mid-year. We expect first quarter production of approximately 20,000 ounces, trending to approximately 15,000 ounces in the third quarter then returning to the 20,000 ounce range for the fourth quarter.

As stated in the recently updated San Francisco technical report, mining operations at San Francisco are expected to continue to 2023 producing 450,000 to 500,000 ounces of gold at cash costs of US$900 to US$950 per ounce (inclusive of 2016).

Pre-construction activities at Ana Paula are proceeding according to plan. The feasibility study test work is advancing as planned and the 20,000-meter drill program (infill, geotechnical and condemnation) is nearing completion. The Company anticipates completing the feasibility study by mid-2017, with construction permits received by the end of the year.

Additionally and pursuant to the Company's short form prospectus dated November 28, 2016, 36,400,000 units were issued at a price of C$ 0.55 per unit. Total net proceeds to the company amounted to $13.8 million.

Timmins Gold is a Canadian gold mining company engaged in exploration, development and production exclusively in Mexico. Its principal assets include the producing San Francisco mine in Sonora, Mexico and the development stage Ana Paula project in Guerrero, Mexico. The Company also has a portfolio of other exploration properties, all of which are located in Mexico.