Timminco Completes Next Phase of Magnesium Business Strategy With Closure of Facility in Haley, Ontario

TORONTO, ONTARIO, Jun 06 (MARKET WIRE) --
Timminco Limited ("Timminco")(TSX: TIM) today announced that, consistent
with its strategy to restore its magnesium extrusion and related
specialty metals business to profitability, Timminco will close its
manufacturing facility in Haley, Ontario, located about 100 km west of
Ottawa, Ontario. The closure is expected to result in annual cost savings
of approximately $5 million for Timminco.

"Our magnesium business has significant long-term potential, but current
economic conditions require that we further reduce our operating costs
significantly," said John Fenger, President - Light Metals of Timminco.
"The closure, although difficult, provides us with a path to
profitability and potential divestiture or other strategic alternative
for the rest of our magnesium business."

The Haley facility supplied the cast magnesium billet used in Timminco's
magnesium extrusion operations in Aurora, Colorado. All of these supplies
will now be provided by outsource partners. This facility also produced
specialty magnesium granules and turnings which will now be produced in
Timminco's Nuevo Laredo, Mexico facility.

The closure of the Haley facility is expected to result in a charge to
earnings in the second quarter of 2008 of approximately $15 to $17
million before taxes. This charge is comprised of $10 million related to
the acceleration of the recognition of future pension plan expenses and
$5 to $7 million of severance, site closure and remediation costs, asset
relocation costs and asset write-downs. The Haley facility currently has
24 hourly unionized employees. The assets located at the Haley facility
were deemed to be impaired as of December 31, 2006 and were written down
to $1.25 million at that time.

The cash impact of the closure is expected to be lower than the charge
against earnings by approximately $2 to $4 million. The lower cash cost
is related primarily to the pension liability for which funding of the
wind up of the defined benefit pension plan for the hourly employees at
the Haley facility, in accordance with pension regulations, is expected
to be lower than the charge against earnings. Timminco expects the cash
impact to be approximately $3.5 to $5.0 million during the balance of
2008. Cash will be disbursed over a period of 2 to 5 years for the
pension plan funding and up to 10 years in the case of site remediation.

"We would like to publicly acknowledge and thank our dedicated employees
for their many contributions to our magnesium business," Mr. Fenger said.
"It is unfortunate that the economics of our industry have led to the
closure of our Haley operations."

ABOUT TIMMINCO

Timminco is a leader in the production and marketing of lightweight
metals, specializing in solar grade silicon for the rapidly growing solar
photovoltaic energy industry. Using its proprietary technology, Timminco
processes metallurgical grade silicon into low cost solar grade silicon
for use in the manufacture of solar cells. Timminco also produces silicon
metal, magnesium extrusions and other specialty metals for use in a broad
range of industrial applications serving the aluminum, chemical,
pharmaceutical, electronics and automotive industries.

CAUTIONARY NOTE ON FORWARD-LOOKING INFORMATION

This news release contains "forward-looking information", as such term is
defined in applicable Canadian securities legislation, concerning
Timminco's future financial or operating performance and other statements
that express management's expectations or estimates of future
developments, circumstances or results. Generally, forward-looking
information can be identified by the use of forward-looking terminology
such as "expects", "believes", "anticipates", "budget", "scheduled",
"estimates", "forecasts", "intends", "plans" and variations of such words
and phrases, or by statements that certain actions, events or results
"may", "will", "could", "would" or "might" "be taken", "occur" or "be
achieved". In this news release, such information includes statements
regarding the amount and timing of future cost savings, charges to
earnings and cash flow impacts of the closure of the Haley facility.
Forward-looking information is based on a number of assumptions and
estimates that, while considered reasonable by management based on the
business and markets in which Timminco operates, are inherently subject
to significant operational, economic and competitive uncertainties and
contingencies.

Timminco cautions that forward-looking information involves known and
unknown risks, uncertainties and other factors that may cause Timminco's
actual results, performance or achievements to be materially different
from those expressed or implied by such information, including, but not
limited to: limited history with solar grade silicon production;
expansion of solar grade silicon production and sales; production
capacity expansion at the Becancour facilities; protection of
intellectual property rights; increasing and maintaining the purity of
solar grade silicon; long-term contracts for supplying solar grade
silicon; selling prices for solar grade silicon; price volatility for
silicon metal; pricing and availability of raw materials for silicon
metal and solar grade silicon production; dependence upon power supply
for silicon metal production; cost of solar grade silicon production;
price volatility for magnesium metal; magnesium supply chain
interruptions; dependence upon key customers of magnesium extruded and
fabricated products; manufacturing cost reduction initiatives; financing
requirements for capital expenditures; limitations under existing credit
facilities; foreign currency exchange; dependence upon key executives and
employees; customer concentration; completion and integration of
potential acquisitions, partnerships or joint ventures; risks with
foreign operations and suppliers; environmental, health and safety laws
and liabilities; equipment failures; transportation disruptions;
conflicts of interest; intellectual property infringement claims; new
regulatory requirements; labour disputes; and changes in tax laws. These
factors are discussed in greater detail in Timminco's Annual Information
Form for the year ended December 31, 2007, which is available via the
SEDAR website at www.sedar.com. Although Timminco has attempted to
identify important factors that could cause actual results, performance
or achievements to differ materially from those contained in
forward-looking information, there can be other factors that cause
results, performance or achievements not to be as anticipated, estimated
or intended. There can be no assurance that such information will prove
to be accurate or that management's expectations or estimates of future
developments, circumstances or results will materialize. Accordingly,
readers should not place undue reliance on forward-looking information.
The forward-looking information in this news release is made as of the
date of this news release and Timminco disclaims any intention or
obligation to update or revise such information, except as required by
applicable law.

Sedar Filer Profile #00000838

Contacts:
Timminco Limited
Robert J. Dietrich
Executive Vice President - Finance and CFO
(416) 364-5171
(416) 364-3451 (FAX)
Email: rdietrich@timminco.com

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