Timmins Gold Corp.

Timmins Gold Corp.

June 17, 2008 08:30 ET

Timmins Gold Corp.: $5,000,000 First Tranche of Private Placement Closed

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 17, 2008) - Timmins Gold Corp. ("Timmins Gold") (TSX VENTURE:TMM) announces that further to its news release dated May 29, 2008, it has closed the first tranche of $5,000,000 from the $19,300,000 private placement with the Pacific Road Resources Funds.

The first tranche consisted of the issuance of 4,000,000 common shares at a price of $1.25 per share for gross proceeds of $5,000,000. The common shares are subject to a hold period expiring on October 11, 2008. A finder's fee of 4.25% of the proceeds of the first tranche was paid to arm's length parties.

The second tranche of $14,300,000 is scheduled to close on or before July 18, 2008. Timmins Gold has agreed to take actions to create a class of convertible preference shares to accommodate the investment. The key features of the convertible preference shares are that they will be non-voting, non dividend paying, will be convertible into common shares for no additional consideration and will rank equally in all other material respects with the common shares of Timmins Gold.

The proceeds of the first tranche financing will be used to provide part of the payment for the purchase of the secondary and tertiary crushing systems and general working capital including drilling.

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 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.

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

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