Tiomin Resources Inc.
TSX : TIO

Tiomin Resources Inc.

February 25, 2009 13:35 ET

Tiomin Corrects & Responds to Jaguar Press Release

TORONTO, ONTARIO--(Marketwire - Feb. 25, 2009) - Tiomin Resources Inc. ('Tiomin' or the 'Company') (TSX:TIO) wishes to correct and clarify the press release issued today by Jaguar Financial Corp. ('Jaguar') (TSX:JFC).

Jaguar incorrectly states in its press release that Robert Jackson, President & CEO of Tiomin, is currently also a director of Freegold Ventures Limited ('Freegold') and then draws a connection with the extension of the loan by Tiomin to Freegold. As plainly stated on SEDI, Mr. Jackson resigned from the board of Freegold prior to the payment default in January 2009 to remove any conflict between the interests of Tiomin and Freegold. Tiomin's shareholders should also note that the Tiomin loan to Freegold is subordinate to the lead lender in the United States and that the decision to extend the loan and the determination of the terms and length of the extension were unilaterally decided by this lender and not by Tiomin. The Company did however negotiate to receive the same compensation and terms that the lead lender received. Tiomin encourages Jaguar to check its facts before introducing incorrect information into the public domain.

Tiomin's board of directors ('the board') entirely refutes the insinuation the Company acted improperly in proposing the merger with Cadiscor Resources Inc. ('Cadiscor'). Tiomin established an independent committee of the board to review the transaction, had indications from an investment dealer that the transaction was fair to Tiomin and obtained a technical due diligence report from Scott Wilson RPA, a respected international mining consultant, indicating no fatal flaws with the property. Mr. Potvin sits on the board of Tiomin and Cadiscor but it is not abnormal for individuals to sit on the boards of both companies involved in a transaction. There are standard procedures to follow in these circumstances that Tiomin and Mr. Potvin followed precisely under the advice of counsel. Mr. Potvin abstained from voting and recused himself where appropriate. Tiomin and Cadiscor mutually agreed to cease negotiations on the proposed arrangement due to factors that arose following the requisition of a shareholder meeting by Jaguar.

The board also entirely refutes the insinuation that it did not act in the interests of the Company and shareholders of Tiomin when it approved investments in Kivu Gold Corp. ('Kivu'). It notes that Tiomin's investments in Kivu were fully reviewed by the TSX and have been determined to be fair by qualified independent third parties, both for technical merit and fairness. The independent directors of the board carefully reviewed the Kivu transactions for fairness to Tiomin's shareholders and the board is confident that it has represented the best interests of Tiomin's shareholders in this respect. All conflicted individuals abstained from voting. Given that the transactions were deemed to be fair, in the opinion of the board, the interests of Tiomin's shareholders have been fully and fairly represented.

Tiomin encourages its shareholders to understand the nature and history of Jaguar when evaluating Jaguar's press releases concerning Tiomin. Tiomin also notes that certain Jaguar shareholders have requested a meeting to replace the board of Jaguar, to be held on April 9, 2009. Jaguar's January 15th news release included the following:

"Mr. Bill Iannaci, Chief Executive Officer of Royal Laser Corporation, requisitioned a meeting of Jaguar shareholders for the purpose of removing the current Board of Directors of Jaguar and electing a slate of directors to be proposed by Mr. Iannaci. Mr. Iannaci's alternate slate of directors will be considered by shareholders at the Meeting, along with management's proposed slate of directors. At this time, an alternative slate of directors has not been proposed by Mr. Iannaci."

Mr. Robert Jackson, President and CEO of Tiomin, commented "The board of Tiomin has never once failed to act fully in the interests of its shareholders and is disappointed that Jaguar persists in attempting to create a negative impression, using incorrect information. Tiomin has a solid portfolio of assets that it continues to nurture is these very difficult times. We particularly regret that Jaguar is trying to stand in the way of Tiomin taking advantage of opportunities currently available in the market."

About Tiomin Resources Inc.

Tiomin is enhancing shareholder value by the acquisition, exploration and development of industrial mineral, precious and base metal projects. Jinchuan Group Limited ('Jinchuan'), one of China's largest mining companies, owns approximately 18.7% of Tiomin.

Tiomin has four main assets:

1) approximately $17.3 million of working capital (after the Feb. 20th Kivu Gold Corp. investment);

2) 49% interest in the Pukaqaqa copper and gold project in Peru;

3) 100% interest in the Kwale titanium project in Kenya; and

4) 33.5% interest in Kivu Gold Corporation, a mineral exploration focused on sub-Saharan Africa.

Tiomin's share price currently only reflects the value of its working capital position and it receives no value for its other assets in Peru or Kenya. Tiomin has an outstanding memorandum of understanding with Jinchuan whereby Jinchuan would acquire 70% of Tiomin Kenya Limited ('TKL') a wholly owned subsidiary of Tiomin that owns 100% of the Kwale titanium project ('Kwale') by contributing US$25 million in cash directly in TKL and by providing 100% of the financing required to build and operate Kwale. Under this proposed transaction Tiomin retains a 30% ownership interest in TKL and its future net cash flow from a successful Kwale project.

To find out more about Tiomin Resources Inc., please visit the company website at www.tiomin.com.

Certain of the information contained in this news release constitutes 'forward-looking statements' within the meaning of securities laws. Such forward-looking statements, including but not limited to those with respect to the prices of metals and minerals, estimated future production and estimated costs of future production involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements 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 documents of the Company filed from time to time with the Ontario Securities Commission.

Contact Information