NYSE MKT: TGD • $0.48     TSX: TMM • $0.65     Gold: 1243.10


Timmins Gold Reports 2015 First Quarter Financial Results

May 4, 2015

Vancouver, BC - Timmins Gold Corp. (TSX: TMM, NYSE MKT: TGD) (“Timmins Gold” or the “Company”) is pleased to report its financial results for the first quarter ended March 31, 2015 (“Q1 2015”). The comparative period is the first quarter ended March 31, 2014 (“Q1 2014”). All results are presented in United States dollars (“US Dollars”) unless otherwise stated. Readers should refer to the 2015 management discussion and analysis and condensed interim consolidated financial statements for complete information.

“Q1 production of 24,155 gold ounces was slightly lower than planned. We still maintained a strong quarter-end cash balance of approximately $25M and intend to fund our activities, including the planned advancement of our new projects, using cash flow from operations at current gold prices” said Bruce Bragagnolo, CEO of Timmins Gold. “We are still targeting to reach the lower end of our originally stated production guidance. As part of our mine schedule, production is expected to be back half-loaded, with approximately 55% of the production slated for the second half of the year.  We are still in the process of finalizing our plans regarding the new high-grade south-wall discovery.”

“We are extremely excited about the opportunity to develop the Ana Paula project now that the shareholders of both Timmins Gold and Newstrike Capital Inc. (“Newstrike”) have overwhelmingly voted in favour of the plan of arrangement (the “Arrangement”). The asset is a high-grade, high-margin project with relatively low capital intensity that would significantly increase our production level and dramatically lower our consolidated cost profile.  Additionally, it is located in Mexico, enabling us to leverage our in-country development and operating expertise to deliver additional value to shareholders. We are ready, upon closing of the transaction, to advance the project both from a permitting and technical optimization standpoint and will provide more detailed information in the near future.”

“At Caballo Blanco, we have initiated discussions with various stakeholders as part of a new Environmental Impact Assessment submission. Additionally we have begun planning internal and external studies to optimize the key technical aspects of the project, namely crushing and leaching.”





Under the terms of the Arrangement, Newstrike shareholders will receive 0.90 (the “Exchange Ratio”) of a Company common share and C$0.0001 in cash for each Newstrike common share. In addition, each outstanding option to purchase a Newstrike Share will be exchanged for an option to purchase a Company common share with equivalent terms based upon the Exchange Ratio.


US dollars (thousands) except where noted First Quarter Ended
March 31, 2015
First Quarter Ended
March 31, 2014
Gold sold (oz) 24,155 36,763
Silver sold (oz) 15,309 26,647
Metal revenues $29,492 $47,050
Production costs, excluding depreciation and depletion $22,599 $26,357
(Loss) earnings from operations $(222) $12,861
(Loss) earnings $(710) $8,105
(Loss) earnings per share, basic and diluted $(0.00) $0.05
Cash flows from operating activities $7,500 $12,259
Total cash and cash equivalents, end of period $24,994 $44,378
Total assets, end of period $312,411 $287,919
Total cash costs per gold ounce on a by-product basis $925 $703
All-in sustaining cash cost per ounce gold $1,055 $790
Average realized gold price per gold ounce $1,221 $1,280


Reminder of 2015 results conference call:

The Company’s senior management will host a conference call May 5, 2015 at 11:00 am (ET) to discuss the first quarter 2015. Participants may join the call by registering online through a link on the Timmins Gold website homepage www.timminsgold.com and entering the passcode 110046 or by following this link:

After entering your information, you will be given a passcode and pin # that you will need to join the conference call. Participants may join the call by dialing toll free 1-888-789-9572 (Canada and U.S.) or 1-416-695-7806 (International) and entering their personal passcode and pin #. A replay of the call will be available after the call until May 11, 2015, by dialing 1-800-408-3053 (Canada and U.S.) or 1-905-694-9451 (International) with the passcode 7508059.  A live and archived audio webcast will also be available at www.timminsgold.com.

Technical information contained in this news release was reviewed and approved by Taj Singh, M.Eng., P.Eng., a Vice President of the Company who is recognized as a QP under NI 43-101.

About Timmins Gold

Timmins Gold has a proven track record of delivering growth and value creation for its investors and is poised to become an emerging intermediate, Mexican-focused gold producer with a portfolio of high-quality production and growth assets all based in Mexico. The Company owns and operates the San Francisco open pit, heap leach gold mine in Sonora which provides a solid base of operations, allowing the Company to develop two economically robust growth projects with manageable capital requirements, the recently acquired Caballo Blanco gold project as well as the Ana Paula gold project which the Company will acquire once the Arrangement with Newstrike Capital is completed.

Timmins Gold Corp.
Bruce Bragagnolo
CEO and Director

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.

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 including projected production (and estimated cash costs). Such statements include estimates, forecasts and statements as to management’s expectations with respect to, among other things, receipt of the requisite approvals for and closing of the Newstrike Arrangement, business and financial prospects, financial multiples and accretion estimates, future trends, plans, strategies, objectives and expectations, including with respect to production (including  production at Caballo Blanco and Ana Paula), 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.