Timmins Gold Reports Record Production of 25,153 Ounces of Gold and 13,857 Ounces of Silver During Q3 2012

Tue Oct 9, 2012 6:30am EDT

* Reuters is not responsible for the content in this press release.

  VANCOUVER, BRITISH COLUMBIA, Oct 09 (MARKET WIRE) --
Timmins Gold Corp. (TSX:TMM)(NYSE MKT:TGD)(NYSE Amex:TGD) is pleased to
report record production of 25,153 ounces of gold for its Q3 2012 fiscal
quarter ended September 30, 2012. Timmins Gold also produced 13,857
ounces of silver during the quarter.

    During Q3 2012 a total of 40,490 ounces of gold were placed on the heap
leach pads, compared to 35,282 ounces of gold in Q3 2011, a 14.76%
increase. Gold produced during Q3 2012 reached 25,153 ounces, compared to
16,917 ounces in Q3 2011, an increase of 48.69% and 23,203 ounces in the
previous quarter (Q2 2012), an 8.4% increase. The number of gold ounces
placed on the pads is scheduled to increase during the rest of the year
as the mine continues its expansion. Timmins Gold maintains its
production target of 100,000 ounces of gold during 2012.

    The increased production in Q3 was achieved as a result of improvements
in process and commitment to our expansion plan, which was initiated late
last year. Modifications to the existing crushing circuit, changes in our
blasting patterns and optimization of our heap leaching process are
producing results.

    The following are some key production statistics for Q2:


----------------------------------------------------------------------------
                                       July-Sept      July-Sept             
Category                                    2012           2011     % Change
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Ore Placed on Pads (dry tonnes)        1,420,414      1,364,290        4.11%
----------------------------------------------------------------------------
Average Grade (g/t Au)                     0.887          0.804       10.23%
----------------------------------------------------------------------------
Low Grade Stockpiled                     842,973        671,185       25.59%
----------------------------------------------------------------------------
Average Grade Stockpiled (g/t Au)          0.229          0.276      -17.21%
----------------------------------------------------------------------------
Waste Mined                            4,210,428      5,097,293      -17.40%
----------------------------------------------------------------------------
Total Mined (tonnes)                   6,476,932      7,128,270       -9.13%
----------------------------------------------------------------------------
Strip Ratio                                 1.86           2.51      -25.90%
----------------------------------------------------------------------------
Gold Ounces Placed on Pads                40,490         35,282       14.76%
----------------------------------------------------------------------------
Gold Ounces Produced                      25,153         17,287       45.50%
----------------------------------------------------------------------------
Gold Ounces Sold                          25,153         16,917       48.69%
----------------------------------------------------------------------------
Days                                          92             92        0.00%
----------------------------------------------------------------------------
Average Ore Processed (t/d)               15,439         14,829        4.11%
----------------------------------------------------------------------------
Total Mined (t/d)                         70,401         77,474       -9.13%
----------------------------------------------------------------------------


    "We would like to congratulate our President Arturo Bonillas and his
operating team for achieving our target of 25,000 ounces for the
quarter," stated Bruce Bragagnolo, CEO of Timmins Gold Corp. "The strong
operating quarter was the result of a number of incremental process
improvements. Completion of Stage 2 of our crusher expansion is expected
to take us to over 22,000 t/d in Q4, and crushing capacity is scheduled
to reach over 30,000 t/d early in 2013 as we continue with our expansion
program. We continue to fund all of our operations, expansion and
drilling from existing cash flows, and we believe that we are well
positioned to continue realizing current gold prices, generating strong
margins and increasing cash flow from operations." 

    About Timmins Gold 

    Focused solely in Mexico, Timmins Gold Corp. is in commercial gold
production at its wholly owned San Francisco gold mine in Sonora, Mexico.
The mine is an open pit heap leach operation. Timmins Gold has forecast
production at a rate in excess of 100,000 ounces of gold per year. (Micon
International NI 43-101F1 Technical Report dated November, 2011). 

    Cautionary Note Regarding Forward-Looking Statements

    Certain statements contained herein may constitute forward-looking
statements and are made pursuant to the "safe harbor" provisions of the
United States Private Securities Litigation Reform Act of 1995 and
Canadian securities laws. Forward-looking statements are statements which
relate to future events. Such statements include estimates, forecasts and
statements as to management's expectations with respect to, among other
things, business and financial prospects, financial multiples and
accretion estimates, future trends, plans, strategies, objectives and
expectations, including with respect to production, exploration drilling,
reserves and resources, exploitation activities and events or future
operations. Information inferred from the interpretation of drilling
results and information concerning mineral resource estimates may also be
deemed to be forward-looking statements, as it constitutes a prediction
of what might be found to be present when, and if, a project is actually
developed.

    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.

    Neither the TSX nor its Regulation Services Provider (as that term is
defined in the policies of the TSX) nor the NYSE MKT accepts
responsibility for the adequacy or accuracy of this news release.

Contacts:
Timmins Gold Corp.
Bruce Bragagnolo
CEO and Director
604-638-8980
bruce@timminsgold.com
www.timminsgold.com

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