Timmins Gold Corp.: Sprott Asset Management LP Agrees to USD$15 Million Gold Denominated Financing

VANCOUVER, BRITISH COLUMBIA, Oct 08 (MARKET WIRE) --
Timmins Gold Corp. ("Timmins Gold") (TSX VENTURE: TMM) is pleased to
announce that Sprott Asset Management LP, for and on behalf of certain of
the Sprott funds, has agreed to provide USD$15 million senior secured
financing to fund the development of Timmins Gold's wholly-owned San
Francisco gold project in Sonora, Mexico ("San Francisco" or the
"Project"). The financing will consist of the purchase of US$15 million
in Senior Secured Notes (the "Notes"). In addition to the Notes the
Noteholders will be granted an aggregate of 3 million share purchase
warrants exercisable for a period of 24 months at a strike price of
CDN$0.80 per share. The proceeds from the Notes will provide the funding
required to advance San Francisco through production. The financing
replaces, and comes after credit approval was received for, the project
debt facility previously announced by Timmins Gold.

This financing provides Timmins Gold with financial and operational
flexibility to advance the Project without resort to hedging and other
restrictions on operations. The financing is expected to close on or
before October 30, 2009, subject to definitive documentation. The Notes
shall be repaid in 12 equal monthly installments commencing on the
seventh month after the advance of funds. Each payment shall be equal to
the value at the time of payment of 1,667 ounces of gold (20,004 ounces
total). Timmins Gold has guaranteed a minimum rate of return of 15% per
annum. A finder's fee of 2% of the proceeds is payable to an arm's length
party.

The variance in financing amount from the US$22 million previously
announced by the Company is accounted for by the reduced up front fees,
the elimination of any debt reserve accounts, and that the short term
debt of the Company will be repaid as originally scheduled by March of
2010 and not from the financing proceeds.

At the San Francisco Project, the ramp up to full production has begun
and the brand new USD$12 million secondary and tertiary crushing system
has been tested at loads in excess of the planned processing capacity of
550 metric tonnes per hour. During testing the crushing system was
successfully operated at loads in excess of 750 metric tonnes per hour.
The increased capacity, if utilized, would result in an increase of
capacity from 11,000 metric tonnes per day to 15,000 metric tonnes per
day to produce close to 100,000 ounces of gold per year without any
additional equipment. The first 8 hectares of heap leach pads have been
constructed and a further 7 hectares are almost complete. Crushed ore
totaling approximately 70,000 metric tonnes has been placed on the heap
leach pads as part of the initial load.

About Timmins Gold - Timmins Gold is a near term gold producer in Mexico.
With construction at the San Francisco gold mine complete, Timmins Gold
plans to pour gold by January of 2010. In addition to the San Francisco
gold mine and its 42,000 hectare land package, Timmins Gold has over
30,000 hectares of prospective claims in the immediate area. Timmins Gold
has assembled other properties in Mexico including the Cocula project
which Timmins Gold has identified as a potential open pit heap leach
operation, the 45,000 hectare TIM claims in Zacatecas which are adjacent
to Goldcorp's Penasquito deposit, and the Tequila gold project in Jalisco
which returned an intercept of 5.88 g/t gold across 24.3 meters from
Timmins Gold's 2008 diamond drill program.

Timmins Gold's goal is to utilize future cash flow to expand reserves at
the San Francisco gold mine, advance its exploration projects and make
strategic acquisitions.

This News Release contains forward-looking statements. Forward-looking
statements are statements which relate to future events. In some cases,
you can identify forward-looking statements by terminology such as "may",
"should", "expects", "plans", "anticipates", believes", "estimates",
"predicts", "potential", or "continue" or the negative of these terms or
other comparable terminology. These statements are only predictions and
involve known and unknown risks, uncertainties and other factors that may
cause our or our industry's actual results, level of activity,
performance or achievements to be materially different from any future
results, levels of activity, performance, or achievements expressed or
implied by these forward-looking statements.

While these forward-looking statements, and any assumptions upon which
they are based, are made in good faith and reflect our current judgment
regarding the direction of our business, actual results will almost
always vary, sometimes materially, from any estimates, predictions,
projections, assumptions or other future performance suggestions herein.
Except as required by applicable law, Timmins Gold does not intend to
update any forward-looking statements to conform these statements to
actual results.

The TSX Venture Exchange has not reviewed and does
not accept responsibility for the adequacy or accuracy of this release.

Contacts:
Timmins Gold Corp.
Bruce Bragagnolo, LLB.
Chief Executive Officer
(604) 638-8980
bruce@timminsgold.com

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