NYSE MKT: TGD • $0.48     TSX: TMM • $0.65     Gold: 1256.84


$14,300,000 Second Tranche Of Private Placement Closed

July 18, 2008

Timmins Gold Corp. ("Timmins Gold") announces that further to its news release dated May 29, 2008, it has closed the second tranche of $14,300,000 from the $19,300,000 private placement with the Pacific Road Resources Funds.

The second tranche consisted of 11,000,000 special warrants at a price of $1.30 per special warrant. The special warrants are exercisable into units for no additional consideration. Each unit will have attached 0.318 of a share purchase warrant. Each whole share purchase warrant will be exercisable into one convertible preference share at a price of $1.50.

Timmins Gold will seek shareholder approval for the creation of the convertible preference shares at its upcoming annual and special meeting on September 10, 2008. The key features of the convertible preference shares are that they will be non-voting, non dividend paying, will be convertible into common shares for no additional consideration and will rank equally in all other material respects with the common shares of Timmins Gold. In the event shareholder approval for the creation of the convertible preference shares is not obtained on or before December 31, 2008 the conversion ratio for the units shall be 1.1.

The Pacific Road Resources funds will own approximately 23% of the Company's share capital if the warrants and convertible preference shares are converted into common shares. Accordingly shareholders will be asked to approve the creation of a new control person. In the event shareholder approval for the creation of a new control person is not obtained by December 31, 2008, the conversion ratio for the share purchase warrants only shall be 1.1.

The securities issued under the special warrant private placement will be subject to a statutory hold period expiring on November 15, 2008 and a contractual hold period expiring on April 15, 2009. A finder's fee of 4.25% of the proceeds of the first tranche was paid to arm's length parties.

The special warrants must be converted into either convertible preference shares or common shares by July 14, 2013 and the expiry date of the share purchase warrants is a maximum of two years from the date of issuance.

The proceeds of the second tranche financing will be used for re-commissioning of operations at the San Francisco Gold Mine located in Sonora, Mexico including the purchase of the secondary and tertiary crushers, conveyors and screens, and for general working capital.

For further information, contact:

Bruce Bragagnolo, LLB.,
Chief Executive Officer
Vancouver, BC, Canada
Tel: (604) 638-8980

Arturo Bonillas, B.Sc.(Eng)
Hermosillo, Sonora, Mexico
Tel: 011-52-662-262-1132

For Investor Relations, contact:

Leighton Bocking
Corporate Development
Vancouver, BC, Canada
Tel: 604-638-8977

Alex Tsakumis, B.A.
Corporate Development
Vancouver, BC, Canada
Tel: 604-638-8976

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.