Tiomin Resources Inc.

Tiomin Resources Inc.

July 30, 2009 16:23 ET

Tiomin Reports Second Quarter Financial Results


TORONTO, ONTARIO--(Marketwire - July 30, 2009) - Tiomin Resources Inc. ('Tiomin' or the 'Company') (TSX:TIO) reported its results today for the second quarter ended June 30, 2009. Tiomin had a strong cash position at the end of the quarter, with cash and cash equivalents at $13.8 million. For the second quarter, Tiomin reported a loss of $2.2 million or $0.00 per share, which was approximately $1.2 million worse than the prior period a year ago primarily due to a $1 million increase in professional fees and $188,000 in foreign exchange losses.

"We continue to seek a company-making transaction consistent with our strategy of marrying our strong cash position with producing or near producing assets or particularly good quality late stage exploration properties," said Robert Jackson, President and CEO of Tiomin. "The recent settlement with Jaguar Financial Corp. removes a significant barrier to a transaction and we are actively reviewing several alternative deals" continued Mr. Jackson.

Results of Operations
(Expressed in thousands of Canadian dollars except share and per share data)

Three Three Six Six
months months months months
ended ended ended & ended &
June 30 June 30 at June 30 at June 30
2009 2008 2009 2008

Loss before interest and
amortization 2,029 1,034 3,553 2,112
Loss before income tax 2,231 1045 3,878 2,018
Loss per share $ 0.00 $ 0.00 $ 0.00 $ 0.00
Total assets 56,272 61,268
Working capital 15,005 24,398
Mineral properties 9,680 9,680
Deferred exploration and
development 27,046 27,046
Share Capital:
Outstanding (000's) 480,814 445,365
Warrants (000's) 103,294 98,438
Options (000's) 39,770 40,444

Tiomin's consolidated financial statements and management discussion and analysis (MD&A) for the second quarter ended June 30, 2009 will be available shortly on the company website at www.tiomin.com and filed on www.sedar.com.

Cash Flow and Liquidity

At June 30, 2009 the Company had a working capital surplus of $15,005,000, including $13,834,000 in cash and equivalents, compared to $19,964,000 in working capital at December 31, 2008. For the quarter ended June 30, 2009, Tiomin used cash of $1,461,000 and $2,414,000 for the same period in 2008. For the six months ended June 30, 2009, the Company used cash of $5,466,000 and $5,699,000 for the same period in 2008.

Kwale Mineral Sands Project, Kenya

Jinchuan and Tiomin continue to work cooperatively to find a way to build the Kwale project. The Government of Kenya ('GoK') has yet to complete all the steps to allow the project to proceed and until all these steps are completed Jinchuan will not sign the definitive agreement, which will require Tiomin shareholder approval to proceed with the construction of the Kwale project.
Jinchuan is currently covering most of the costs associated with the Kwale project and readers should note that if the GoK fails to complete all the required steps, or if Jinchuan and Tiomin are unable to reach a definitive agreement based on the MoU signed on July 28, 2008, the Kwale project may be further impaired which will require an adjustment to the carrying value of the Kwale assets.

Jaguar Settlement

On July 22nd Tiomin announced that the Company, its current board of directors, a former director, Freegold Ventures Limited and Kivu Gold Corp. ('the Respondents') entered into a settlement agreement (the 'Settlement Agreement') with Jaguar Financial Corporation ('Jaguar') to settle Jaguar's previously announced application to commence a derivative legal action against the Respondents. Additional information regarding the Settlement Agreement is included in the July 22nd press release and the MD&A for Q2 2009 filed on SEDAR.

About Tiomin Resources Inc.

Tiomin Resources Inc. ("Tiomin") (TSX:TIO) is a mining company traded on The Toronto Stock Exchange with a focus on the exploration and development of base metals, precious metals, and titanium mineral sands projects. Tiomin has significant funds available for its projects, a strong management team, and a very experienced board. Tiomin's strategy is clear: to create long term value by realizing a return on the Company's current projects as well as seeking an accretive transaction that marries Tiomin's cash with producing or near-producing assets.

To find out more about Tiomin Resources Inc., please visit the company website at www.tiomin.com or review the documents filed on www.sedar.com.

Certain of the information contained in this news release constitute 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including but not limited to those respect to the prices of metals and minerals, estimated future production, estimated costs of future production and the Company's sales policy, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any forecast results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the actual prices of copper and gold, the actual results of current exploration, development and mining activities, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's documents filed from time to time with the Ontario Securities Commission.

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