Timmins Gold Reports Record Profit From Operations of $18.3 Million for Q3 2012

Thu Nov 8, 2012 6:00am EST

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

Timmins Gold Corp. (TSX:TMM)(NYSE MKT:TGD)(NYSE Amex:TGD) (the "Company")
is pleased to report its third quarter of 2012 financial results for the
period ended September 30, 2012. For comparative purposes, Q3 2011 below
refers to the three months ended September 30, 2011. All results are
presented in United States dollars ("US Dollars") unless otherwise
stated. Readers should refer to the Q3 2012 management discussion and
analysis and condensed interim consolidated financial statements for
complete information.

    Q3 2012 HIGHLIGHTS

--  Metal revenues were $41.7 million, compared to $28.2 million during the
    same prior year period. This represents a 48% increase over the prior
--  Profit from operations was $18.3 million, compared to $10.3 million
    during the same prior year period. This represents a 77% increase over
    the prior year. 
--  Cash flows from operations were $14.5 million, compared to $7.8 million
    during the same prior year period. This represents an 85% increase over
    the prior year. 
--  Cash increased to $28.3 million at September 30, 2012 after investing
    $7.2 million in exploration and plant expansion. Cash at September 30,
    2011 was $7.0 million after investing $11.9 million in exploration and
    plant expansion. 
--  The Company produced a record 25,153 ounces of gold and sold 25,153
    ounces of gold, compared to 17,287 and 16,917, respectively, during the
    same prior year period. This represents a 46% and 49% increase of ounces
    produced and sold, respectively, over the prior year. 
--  The Company's cash cost per ounce on a by-product basis was $715,
    compared to $580 during Q3 2011 and $758 during Q2 2012. The increase
    over prior year is the result of global price increases in consumables
    used in gold production as well as increased quantities of consumables
    used. The quarter over quarter decrease is attributed to the higher
    number of ounces sold, increased production efficiencies in the current
    quarter, and that Q2 2012 included variable compensation of $0.3 million
    relating to 2011 ($14 per gold ounce). 
--  The Company tripled its earnings per share to $0.09, compared to $0.03
    during the same prior year period. 
--  The drill program for the San Francisco Gold Project continued in Q3
    2012 and during October, 2012 was expanded to 100,000 meters for
    calendar 2012: 
    --  A total of 5,523 meters of drilling were completed in and around the
        San Francisco pit (YTD 2012: 10,900 meters). 
    --  A total of 28,061 meters were drilled in the current quarter on the
        La Chicharra open pit gold mine located 1.5 kilometres west of the
        San Francisco pit (YTD 2012: 44,362 meters). 
--  A 5,000 meter core drill program at the San Onesimo project in
    Zacatecas, Mexico, commenced in July, 2012. 


                                             Quarter Ended     Quarter Ended
                                                 September         September
In US dollars unless otherwise indicated          30, 2012          30, 2011
Gold sold (oz)                                      25,153            16,917
Silver sold (oz)                                    13,857             8,640
Metal revenues                             $    41,748,393   $    28,248,994
Production costs, excluding depletion and                                   
 depreciation                              $    18,408,339   $    10,155,428
Profit from operations                     $    18,338,295   $    10,333,849
Earnings                                   $    13,098,975   $     3,596,399
Earnings per share, basic and diluted      $          0.09   $          0.03
Cash flows from operations                 $    14,506,525   $     7,820,924
Total cash, end of period                  $    28,276,536   $     6,988,376
Total assets, end of period                $   199,736,515   $   150,276,191
Total by-product cash costs per gold ounce $           715   $           580
Average realized gold price per ounce      $         1,660   $         1,702

    "Q3 was a strong quarter operationally as demonstrated by increased
profit from operations," stated Mr. Bruce Bragagnolo, CEO of Timmins Gold
Corp. The Company is realizing significant free cash flow and it
continues to fund all of its operations, expansion and drilling from
existing cash flows. The Company believes it is well positioned to
continue realizing current gold prices, generating strong margins and
increased 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

    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 New York Stock Exchange MKT
accepts responsibility for the adequacy or accuracy of this news release.

Timmins Gold Corp.
Bruce Bragagnolo
CEO and Director

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