Tiomin Resources Inc.
TSX : TIO

Tiomin Resources Inc.

May 12, 2008 10:32 ET

Tiomin Adds Exploration Land in Peru and Updates Status in Kenya

TORONTO, CANADA--(Marketwire - May 12, 2008) - Tiomin Resources Inc. ('Tiomin' or the 'Company') (TSX:TIO) is pleased to announce that it has acquired a 49% interest in the 5,000 hectare (12,400 acre) Pukaqaqa Sur property, which is contiguous to Tiomin's existing resource at the Pukaqaqa Norte copper-gold project, located in central Peru. Tiomin and its 51% partner, Compania Minera Milpo S.A. ('Milpo'), plan to explore the new property in 2008/9.

Bob Jackson, Tiomin CEO, said "We enjoy a close working relationship with Milpo and will use our strong cash position to finance our share of the costs at Pukaqaqa".

In Kenya, the Kwale Titanium Project ('Kwale') remains in Force Majeure while the Government of Kenya ('GoK') completes the remaining conditions likely to be required by lenders. Tiomin is confident that Kwale can ultimately be developed but notes that bureaucratic processes are unpredictable and often take longer than expected.

Mr. Jackson commented "Kwale was financed and ready to start construction in 2006 but the GoK bureaucracy was not ready, which ultimately prevented Tiomin from accessing the debt. Kenya has calmed down since the election-related troubles and the GoK is making progress with its tasks. However, our prior experience means that we will not attempt to restart Kwale until the GoK meets all the lenders' previous conditions. In the meantime, we have slashed our costs in Kenya while we wait for the GoK and appointed Joyce Misoi, who formerly managed Tiomin's investor relations, to advise on political developments in Kenya. Various parties have approached us about Kwale and our options include another attempt at building Kwale ourselves, a partial sale and an outright sale. Each alternative has risks and advantages and we continue to evaluate our choices."

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.

Contact Information

  • Tiomin Resources Inc.
    Jean-Charles Potvin
    Executive Chairman
    (416) 350-3779
    or
    Tiomin Resources Inc.
    Robert Jackson
    President & CEO
    (416) 350-3779
    or
    Tiomin Resources Inc.
    Jim O'Neill
    Corporate Controller, Investor Relations
    (416) 350-3779
    Email: joneill@tiomin.com
    Website: www.tiomin.com