Timminco Limited

Timminco Limited

February 18, 2010 10:37 ET

Timminco Announces Long-Term Contracts for Silicon Metal Supply

TORONTO, ONTARIO--(Marketwire - Feb. 18, 2010) - Timminco Limited ("Timminco") (TSX:TIM) announced today that its wholly-owned subsidiary, Becancour Silicon Inc. ("Becancour"), has executed long-term contracts to supply approximately 90,000 metric tons of silicon metal over the next five years to one of its long-standing silicon metal customers. These contracts confirm and extend this customer's purchase commitments made in the fourth quarter of 2009 and that led to the restart the third silicon metal electric arc furnace at Becancour, as announced on October 16, 2009.

"This customer commitment reflects the growing demand for silicon metal products from our traditional chemical, aluminum and polysilicon industry customers," said Mr. Rene Boisvert, President and CEO of Becancour. "We are currently producing silicon metal at capacity, operating all three of our silicon metal furnaces, to satisfy the increased demand. We intend to satisfy our commitments under these contracts through our existing production capacity at Becancour."

The customer has committed to buy certain base quantities in each of the contract years 2010 through 2014, subject to adjustments at the customer's option. The volume commitments may also be suspended for any year after 2010 if the parties are unable to settle upon pricing within mutually agreed ranges.

About Timminco

Timminco produces silicon metal for the chemical (silicones), aluminum and electronic / solar industries. Timminco also produces solar grade silicon, using its proprietary technology for purifying silicon metal, for the solar photovoltaic energy industry.

Cautionary Notes

This news release contains "forward-looking information", as such term is defined in applicable Canadian securities legislation, concerning Timminco's future financial or operating performance and other statements that express management's expectations or estimates of future developments, circumstances or results. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "expects", "believes", "anticipates", "budget", "scheduled", "estimates", "forecasts", "intends", "plans" and variations of such words and phrases, or by statements that certain actions, events or results "may", "will", "could", "would" or "might" "be taken", "occur" or "be achieved". In this news release, such information includes statements regarding long-term contracts to supply silicon metal and the volume commitments thereunder. Forward-looking information is based on a number of assumptions and estimates that, while considered reasonable by management based on the business and markets in which Timminco operates, are inherently subject to significant operational, economic and competitive uncertainties and contingencies. Timminco cautions that forward-looking information involves known and unknown risks, uncertainties and other factors that may cause Timminco's actual results, performance or achievements to be materially different from those expressed or implied by such information, including, but not limited to: liquidity risk; global economic uncertainty; credit risk; pricing and availability of raw materials; silicon metal selling prices; customer concentration; power supply and electricity prices; production interruptions; transportation disruptions; limited history with solar grade silicon; solar grade silicon selling prices; customer commitments for solar grade silicon; solar grade silicon production costs; quality of solar grade silicon; producing ingots with Timminco's solar grade silicon; protection of intellectual property rights; expansion of solar grade silicon production capacity; class action lawsuits; closure of former magnesium facilities; foreign exchange; investment in Applied Magnesium; interest rate risk; financing for capital expenditures; environmental liabilities; relationships with AMG; dependence upon key executives and employees; completion and integration of potential acquisitions, partnerships or joint ventures; risks with foreign operations and suppliers; environmental, health and safety laws and liabilities; intellectual property infringement claims; new regulatory requirements; labour disputes; and changes in tax laws.
These factors are discussed in greater detail in Timminco's Annual Information Form for the year ended December 31, 2008, and in Timminco's most recent Management's Discussion and Analysis, each of which is available via the SEDAR website at www.sedar.com. Although Timminco has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in forward-looking information, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information in this news release is made as of the date of this news release and Timminco disclaims any intention or obligation to update or revise such information, except as required by applicable law.

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