Timmins Gold Corp.

Timmins Gold Corp.

November 08, 2007 12:42 ET

Timmins Gold Corp.: 100% of Outstanding Warrants Exercised

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 8, 2007) - Timmins Gold Corp. (the "Company") (TSX VENTURE:TMM) is pleased to announce that a total of 7,601,047 warrants were exercised at a price of $0.70 per warrant share. These constitute all of the warrants issued pursuant to a brokered private placement that closed in May, 2007, including approximately 1,297,207 Broker warrants. The Company received gross proceeds of $5,320,732 from the warrant exercises.

The largest exercise of warrants was made by Sprott Asset Management Ltd., as agent, who exercised 2,000,000 warrants to bring its holdings to 6,000,000 common shares, which is just under 10% of the issued and outstanding shares of the Company. Other large exercises were made by Bolder Investment Partners, Ltd. with 1,297,207 warrants and Macquarie Resource Capital Canada Ltd. with 500,000 warrants.

The proceeds from the exercise will be used to make various capital expenditures associated with recommencing operations at the San Francisco mine (CDN$4,000,000) including deposits on the acquisition of secondary and tertiary crushers, screens, conveyors, refurbishing of existing equipment including the gold plant and primary crusher, construction of the heap leach pads and exploration of the 20,000 hectare Norma and Patricia claims immediately to the west of the San Francisco claims. Additional funds will be allocated to drill programs on the Tequila (US $300,000) and Las Coloradas (US$500,000) projects. The balance will be added to the existing general working capital. The drill programs on the Tequila and Las Coloradas projects are expected to commence shortly.

The Company has commissioned a pre-feasibility study on the San Francisco deposit which is expected by the end of 2007.

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.

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

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