Timminco Limited
TSX : TIM

Timminco Limited

July 10, 2008 14:55 ET

Timminco Announces Solar Grade Silicon Supply Agreement

Formalized Agreement Builds on Existing Supply Relationship

TORONTO, ONTARIO--(Marketwire - July 10, 2008) - Timminco Limited ("Timminco")(TSX:TIM) today announced that its wholly-owned subsidiary, Becancour Silicon Inc. ("BSI"), has signed an agreement to supply solar grade silicon to a leading global manufacturer of wafers for the solar photovoltaic energy industry. The agreement provides for shipments of approximately 1,150 metric tons of solar grade silicon through December 2009 (approximately 150 metric tons in 2008 and approximately 1000 metric tons in 2009). Shipments under the agreement are expected to commence in July 2008. BSI has been shipping solar grade silicon to this customer since the beginning of 2008 on a purchase order basis.

"We are very pleased to formalize our relationship with this customer through the signing of this agreement," said Mr. Rene Boisvert, President and CEO of BSI. "They have been using our solar grade silicon to manufacture solar wafers since January of this year and, based on its success with our material, have chosen to secure supply for at least the next 18 months. Importantly, the agreement continues to demonstrate the utility and value of our material as a lower-cost alternative to polysilicon for the solar photovoltaic energy industry."

ABOUT TIMMINCO

Timminco is a leader in the production and marketing of lightweight metals, specializing in solar grade silicon for the rapidly growing solar photovoltaic energy industry. Using its proprietary technology, Timminco processes metallurgical grade silicon into low cost solar grade silicon for use in the manufacture of solar cells. Timminco also produces silicon metal, magnesium extrusions and other specialty metals for use in a broad range of industrial applications serving the aluminum, chemical, pharmaceutical, electronics and automotive industries.

CAUTIONARY NOTE ON FORWARD-LOOKING INFORMATION

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 agreements and commitments to supply solar grade silicon. 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, limited history with solar grade silicon production; expansion of solar grade silicon production and sales generally; production capacity expansion at the Becancour facilities; protection of intellectual property rights; increasing and maintaining the purity of solar grade silicon; long-term contracts for supplying solar grade silicon; selling prices for solar grade silicon; price volatility for silicon metal; pricing and availability of raw materials for silicon mental and solar grade silicon production; dependence upon power supply for silicon metal production; the cost of solar grade silicon production; price volatility for magnesium metal; magnesium supply chain interruptions; dependence upon key customers of magnesium extruded products; manufacturing cost reduction initiatives; financing requirements for capital expenditures; limitations under existing credit facilities; foreign currency exchange; dependence upon key executives and employees; customer concentration; completion and integration of potential acquisitions, partnerships or joint ventures; risks with foreign operations and suppliers; environmental, health and safety laws and liabilities; equipment failures; transportation disruptions; conflicts of interest; 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, 2007, 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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Contact Information

  • Timminco Limited
    Robert J. Dietrich
    Executive Vice President - Finance and CFO
    (416) 364-5171
    (416) 364-3451 (FAX)
    Email: rdietrich@timminco.com
    or
    Becancour Silicon Inc.
    Rene Boisvert
    President and CEO
    (819) 294-6000
    (819) 294-9001 (FAX)
    Email: rboisvert@silbec.com