Tiomin Resources Inc.
TSX : TIO

Tiomin Resources Inc.

August 11, 2008 14:41 ET

Tiomin Reports 2008 Q2 Financial Results

TORONTO, CANADA--(Marketwire - Aug. 11, 2008) - Tiomin Resources Inc. ('Tiomin' or the 'Company') (TSX:TIO) reports that for the six month period ended June 30, 2008, it had a loss of $2,286,000 or $0.00 per share compared to a loss of $6,134,000 or $0.02 for the same period in 2007.

Company Highlights

- On July 28, 2008, Tiomin and Jinchuan Group Ltd. ('Jinchuan') of China entered into a Memorandum of Understanding ('MOU'), whereby Jinchuan will acquire 70% of Tiomin Kenya Ltd. ('TKL') by investing U$25 million into TKL, a wholly owned subsidiary of Tiomin that owns 100% of the Kwale Mineral Sands Project ('Kwale' or 'the project'). Jinchuan's investment will entitle it to a 70% interest in TKL and through its shareholding, the project. Under the terms of the MOU, Jinchuan will procure all financing, on normal commercial terms, to develop Kwale. The transaction (which is subject to certain conditions, including definitive documentation) is expected to close by no later than November 1, 2008.

Although Kwale still remains in Force Majeure from December 12, 2006, Tiomin is confident that, with Jinchuan's involvement and commitment to develop the project, the Government of Kenya ('GoK') will complete the steps required by international financiers and Jinchuan to secure debt financing for Kwale.

- On May 27, 2008 the Company and Radiant Resources Inc. ('Radiant') announced that they entered into a binding letter of intent ('LOI') pursuant to which Tiomin will acquire all of the outstanding securities of Radiant in exchange for securities of Tiomin (the 'Transaction'). Also, as part of the LOI, Tiomin loaned Radiant CDN$500,000 to begin drilling its Sarsuke property in the Altay Shan region of northwestern China. The transaction is expected to close by no later than October 1, 2008.

Tiomin continues to protect its capital and ended the quarter with a strong cash position of $23,746 and working capital of $24,398. Tiomin continues to evaluate investment opportunities but is committed to maintaining enough capital to finance its share of the potential costs of a full feasibility study at the Pukaqaqa properties, which have the potential to increase resources significantly.



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

-------------------------------------------------------------------
Three months ended June 2008 2008 2007
-------------------------------------------------------------------

Loss before interest and amortization 1,034 452
-------------------------------------------------------------------
Loss before income tax 933 267
-------------------------------------------------------------------
Loss per share 0.00 0.00
-------------------------------------------------------------------
Total assets 64,791 73,052
-------------------------------------------------------------------
Compensation expense relating to stock
options (55) 291
-------------------------------------------------------------------
Working capital 24,398 32,400
-------------------------------------------------------------------
Mineral properties 9,816 7,780
-------------------------------------------------------------------
Deferred exploration and development 27,046 27,074
-------------------------------------------------------------------
Share Capital:
-------------------------------------------------------------------
Outstanding (000's) 445,365,168 445,339,200
-------------------------------------------------------------------
Warrants (000's) 98,437,692 214,957,692
-------------------------------------------------------------------
Options (000's) 40,444,000 26,125,000
-------------------------------------------------------------------


Cash Flow and Liquidity

With the current issues in the market, it is important to note that the Company was never exposed to asset backed commercial papers or sub-prime mortgages. At June 30, 2008 the Company had a working capital surplus of $24,398 compared to $29,135 at December 31, 2007. For the quarter ended June 30, 2008, Tiomin (used)/ increased cash by ($2,414) and $7,628 for the same period in 2007. For the six months ended June 30, 2008 and 2007 Tiomin (used) or increased cash by ($5,699) and $1,395, respectively. During the six months ended June 30, 2008, the Company did not issue any shares. Cash decreased during the quarter ended June 30, 2008 from operating activities, primarily from a decrease in accounts payable of $202 (2007 - $3,727) and $948 (2007 - $5,976) for the respective six month period. During the six months ended June 30, 2008 the Company invested in fixed assets totaling $55.

About Tiomin Resources Inc.

Tiomin is involved in the exploration and development of industrial mineral and base metal projects. Tiomin has three main assets: approximately $24.0 million of cash, a 49% interest in the Pukaqaqa copper and gold project in Peru and currently 100% interest in the Kwale titanium project in Kenya. Tiomin's share price currently only reflects the value of its cash position and it receives no value for its other assets in Peru or Kenya. Tiomin is also working to optimize the value of its shares by acquiring, or investing in, other prospective exploration properties.

Tiomin and its 51% partner at Pukaqaqa, Compania Minera Milpo S.A. ('Milpo'), have an existing NI 43-101 measured and indicated copper resource and scoping study at Pukaqaqa, and also recently expanded its land position through the acquisition of the Puka Sur property. Tiomin and Milpo plan an extensive exploration program in 2008/9 aimed at increasing the resources.

Tiomin also expects to complete by October 1, 2008 its previously announced transaction with Radiant, which is a base metals and gold exploration company focused on the Altay Shan mineral belt in Xinjiang Province in northwestern China. Radiant is in partnership with Baodi, which is owned by the provincial government. Radiant and Baodi own a joint venture company, Xinjiang Pacific Resources ('XPR'), which owns the portfolio of exploration properties that are of interest to Tiomin. Radiant has satisfied the contractual requirements to increase its ownership of XPR from 51% to 70% and is in the process of registering this change. Radiant has a right to earn up to 90% of XPR.

Tiomin also expects to complete by November 1, 2008 its previously announced transaction with Jinchuan, whereby Jinchuan will acquire 70% of Tiomin Kenya Limited by investing U$25 million by way of a private placement into Tiomin Kenya Limited a wholly owned subsidiary of Tiomin in addition to providing all project financing requirements to develop the Kwale titanium mineral sands project.

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.

Contact Information