New Life Of Mine Plan For San Francisco Gold Mine

VANCOUVER, BC - Timmins Gold Corp. reported results of a recently completed National Instrument 43-101 Technical Report (NI 43-101) for the San Francisco Gold Mine in Sonora State, Mexico, prepared by Micon International Limited (Micon) of Toronto, Ontario.  President Arturo Bonillas said, “We are very pleased to provide guidance for the continued operations at San Francisco which will generate significant free cash flow and offers the Company continued exposure to the rising gold price environment. Over the course of the past year, we made significant reductions in costs and increased operating efficiencies, which contribute greatly to the estimated profitability of the new life of mine plan.  Additionally, the low capital requirements throughout the mine life result in very attractive all-in costs.” Mark Backens, Interim CEO adds, “Expected cash flow from operations will comfortably fund the pre-construction work program at Ana Paula while meaningfully contributing to the Company’s treasury. Gold production at San Francisco should continue well through the expected start of production at Ana Paula. Further, the cash flow from operations will be an important source of funding for Ana Paula construction.”