NYSE MKT: TGD • $0.39     TSX: TMM • $0.52     Gold: 1284.56

2007

Mineral Resource Estimate, San Francisco Project, Sonora, Mexico


January 18, 2007

Timmins Gold Corp. has received the independent mineral resource estimate on its San Francisco property. The estimate, completed by Independent Mining Consultants, Inc. of Tucson, Arizona (IMC), was prepared using the CIM definitions (August, 2004) for mineral resources as required by National Instrument 43-101. The mineral resource, based on a US$500 per ounce gold floating cone with 64% recoveries, US$1.00 per tonne mining cost (reflecting projected owner mining costs) and 0.23 g/t gold cutoff grade is:

Resource Classification

Ore
(million tonnes)

Grade
(g/t Au)

Gold (thousand troy oz)

Measured Mineral Resource

5.35

0.91

156.9

Indicated Mineral Resource

22.30

0.78

559.9

Total Measured + Indicated

27.65

0.81

716.8

Inferred Mineral Resource

2.51

0.79

63.5


The mineral resource estimate is based on a total of 116,000 meters of core and reverse circulation drilling from 1,133 holes completed by both Timmins and previous operators, most notably Geomaque de Mexico and Fresnillo. Timmins completed approximately 8,778 meters of drilling in 28 core and 43 RC holes during its 2005 and 2006 drill campaigns. Management is pleased with the success of the most recent drill program and the estimate as it provides a moderate increase over historical estimates and will allow the Company to proceed to pre-feasibility with increased confidence. In addition the program identified high grade intersections that, while not necessarily influencing the resource estimate, provided additional information on the potential for increasing the resource base outside of the current area. Micon International Limited, along with IMC has been commissioned to complete a NI 43-101 compliant technical report supporting the mineral resource estimate. The Company expects to be in receipt of this report in February, 2007.

Separately, Sol & Adobe, Ingenieros Asociados S.A. de C.V ("Sol") have been commissioned to complete a pre-feasibility study on the San Francisco project. Sol is now in receipt of the mineral resource estimate and all additional information necessary to complete the study. The San Francisco project had a relatively long history and a significant amount of technical and economic data and information were available from previous operators. As a result several elements of the study, while contingent upon receipt of the mineral resource estimate and confirmation of certain assumptions and parameters, are already near completion. Timmins expects the pre-feasibility study including reserve estimate to be completed early in its new fiscal year.

The Mineral Resource Estimate:

The mineral resource estimate used an indicator kriging estimation method to establish ore zones. The resource model is based on 10m by 10m by 6m high blocks with the topography surface updated to reflect the end of Geomaque mining activity in 2000. Assays were capped at 20 g/t Au to reflect historical production. Gold grades were estimated by ordinary kriging with a search radius of 50m along strike, 60m down dip and 20m in the perpendicular (near vertical) direction. As required by NI 43-101, CIM definitions (August, 2004) were used to classify mineral resources with the classification of each kriged ore block dependant upon the number of penetrating holes. Based on historical data, an in-situ block density of 2.66 t/cu m and 2.77 t/cu m were assigned the ore and waste blocks respectively. The model was validated by comparing the IMC model with reported gold production. This process established good correlation between the model and historic production. It also determined that the previous 30 g/t cap on gold grade resulted in too low a gold head grade compared to historical results. Consequently a 20 g/t Au cap has been used in the IMC estimate to better reflect historical production.

Future Programs & Other Targets:

The IMC mineral resource estimate was restricted to the area proximate to the existing San Francisco Pit. The San Francisco Property exceeds 40,000 hectares in size and the Company believes there is significant potential to expand this resource both along strike between the San Francisco and Chicharra pits and from several other previously identified targets. The information provided by the most recent drill programs has been valuable in determining the nature and characteristics of the gold mineralization and its controls. The Company has initiated a metallurgical testing program and a comprehensive review of the ore mineralogy in an effort to improve recoveries. Future exploration programs will concentrate on the identification and testing of specific targets through geophysical and exploratory drilling methods.

Quality Control

As part of its QA/QC program the Company uses standard industry practice in its handling, preparation and processing of samples. This includes but is not limited to the separation of functions and the use of blanks, standards and duplicate samples. The Company contracted Acme Analytical Laboratories Ltd., an ISO 9001:2000 accredited lab, to complete geochemical analysis of the samples. Preparation of the samples occurs in Acme's facility in Hermosillo, Sonora, Mexico prior to secured shipment to Vancouver, BC for analysis. In Vancouver each sample was subjected to fire assay and 22 element ICP-ES (Inductively Coupled Plasma-Atomic Emission Spectrometer) analysis.

Qualified Person

Pursuant to National Instrument 43-101, Darcy Krohman, P.Geo., C.A,. Executive Vice-President and CFO of Timmins Gold Corp. is the Qualified Person (QP) responsible for the disclosure in this news release. Field work has been conducted by Timmins Gold Corp. employees and contractors.

For Further information, contact:

Arturo Bonillas, B.Sc.(Eng)
President & CEO
Hermosillo, Sonora, Mexico
Tel: 011-52-662-262-1132
arturo@timminsgold.com

Darcy Krohman, P.Geo., C.A.
Vice-President & CFO
Vancouver, BC, Canada
Tel: 604-682-4002
darcy@timminsgold.com

For Investor Relations, contact:

Derek Thomson
Corporate Development
Vancouver, BC, Canada
Tel: 604-682-4002
derek @timminsgold.com

Leighton Bocking
Investor Relations
Vancouver, B.C., Canada
Tel: 604-682-4002
leighton@timminsgold.com

For further information, contact:

Arturo Bonillas, B.Sc.(Eng)
President & CEO
Hermosillo, Sonora, Mexico
Tel: 011-52-662-262-1132
arturo@timminsgold.com

Darcy Krohman, P.Geo., C.A.
Vice-President & CFO
Vancouver, BC, Canada
Tel: 604-682-4002
darcy@timminsgold.com

For Investor Relations, contact:

Derek Thomson
Corporate Development
Vancouver, BC, Canada
Tel: 604-682-4002
derek@timminsgold.com

Leighton Bocking
Investor Relations
Vancouver, B.C., Canada
Tel: 604-682-4002
leighton@timminsgold.com


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

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 out 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 suggests herein. Except as required by applicable law the Company does not intend to update any forward-looking statements to conform these statements to actual results.