VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 30, 2011) - Timmins Gold Corp. (TSX:TMM) is pleased to report its fourth quarter and fiscal year end March 31, 2011 financial results.

2010/2011 HIGHLIGHTS

--  The San Francisco gold project commenced commercial production in April

    2010 making fiscal 2011 the first year of operations for the Company. 



--  Income from operations was $35,106,384 in fiscal 2011, compared to a

    loss from operations in fiscal 2010 of $6,546,016 representing a

    $41,652,400 increase over the prior year. 



--  Cash flow from operations during fiscal 2011 increased to $43,380,416

    compared to cash used in operations of $15,793,611 in fiscal 2010. 



--  The Company produced 65,786 ounces of gold during fiscal 2011, and sold

    62,761 ounces of gold. The Company commenced commercial production in

    April, 2010 and realized sequential quarter over quarter improvements in

    operations and financial performance during the year.  



--  The Company's cash cost per ounce in fiscal 2011 was US$530 per gold

    ounce, with a cash cost per gold ounce in Q4 of US$527 



--  Revenue from metals was $84,351,172 compared to $nil in the prior year. 



--  In June 2011 the Company replaced and restructured the $15 million gold-

    linked debt facility (the "Gold Loan") with an $18 million credit

    agreement. The new credit agreement does not contain any payments which

    are indexed to movements in gold prices and thus allows the Company to

    freely realize current gold prices. In addition the new facility does

    not carry a guaranteed minimum payment as outlined in the previous Gold

    Loan. 



--  In April 2010 the Company announced an increase in the mineral resource

    estimate at the San Francisco gold project with an increase in measured

    and indicated resources to 895,725 gold ounces and the inferred resource

    to 154,038 gold ounces. A further update was provided in November 2010

    incorporating new drilling with an increase in the mineral reserve and

    mineral resource for San Francisco to 780,000 gold ounces from 611,000

    gold ounces, or a 28% increase.  



--  In November 2011, a NI 43-101 F1 updated resources and reserves and mine

    plan for the San Francisco gold mine was prepared by MICON International

    Limited. The highlights of the report outlined the following: 



    --  Total gold produced of 539,699 from 2011 to 2016 

    --  Average annual gold production of approximately 100,000 ounces of

        gold 

    --  Base case life of mine cash costs of US$489 per ounce 

    --  Strip Ratio of 1.73 

    --  Increase in crushing capacity to 18,000 tonnes per day 



--  In February 2011, the Company staked an additional 95,000 hectares of

    claims along the highly prospective Sonora-Mojave Megashear structural

    province of Northern Sonora, Mexico. The Company's semi contiguous

    claims along the Sonora-Mojave Megashear now total approximately 165,000

    hectares. 



--  In November, 2010, the Company signed an option agreement whereby a 100%

    interest in a 12,000 hectare claim on the eastern section of Soltoro

    Ltd.'s Quila claim in Jalisco, Mexico may be earned. To earn

    the 100% interest, the Company must make a total of $1,000,000 in cash

    payments and incur $2,000,000 in exploration expenditures on the

    Property over 3 years. On signing the Company made an initial $100,000

    payment to Soltoro. 



--  In March 2011, the Company received conditional approval for listing its

    common shares on the Toronto Stock Exchange (TSX), and effective March

    23, 2011, the common shares were listed for trading on the TSX under the

    symbol TMM, and delisted from the TSX Venture Exchange.  

SUMMARIZED ANNUAL FINANCIAL STATEMENTS AND OPERATING RESULTS

                                 Year ended      Year ended      Year ended

                             March 31, 2011  March 31, 2010  March 31, 2009

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Gold ounces sold                     62,761           8,065               -

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Metal revenues                 $ 84,351,172               -               -

Cost of sales, excluding                                                   

 depletion and depreciation    $ 33,821,693               -               -

Income (loss) before taxes     $ 23,133,628    ($ 8,615,920)   ($ 3,414,781)

Net income (loss)              $ 11,464,054    ($ 8,615,920)   ($ 3,414,781)

Net income (loss) per share    $       0.09    ($      0.08)   ($      0.05)

Net income (loss) per share,                                               

 diluted                       $       0.08    ($      0.08)   ($      0.05)

Cash flow from (used in)                                                    

 operations                    $ 43,380,416    ($15,793,611)   ($ 1,727,070)

Total cash and cash                                                        

 equivalents                   $  5,480,840     $ 2,694,825     $   700,104

Total assets                   $113,674,840     $82,279,282     $52,844,859

Total long term financial                                                  

 liabilities                   $ 29,214,892     $10,053,535     $   222,236

Cash dividends declared        $        Nil     $       Nil     $       Nil

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Total cash costs per gold                                                  

 ounce (USD)                   $        530     $       Nil     $       Nil

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Average realized gold price                                                

 per ounce                     $      1,344     $       Nil     $       Nil

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SUMMARY OF QUARTERLY FINANCIAL AND OPERATING RESULTS



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                          Q4 2011       Q3 2011       Q2 2011       Q1 2011

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Gold ounces sold           15,730        20,031        15,682        11,319

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Metal revenues        $21,716,720   $27,989,038   $20,322,817   $14,322,597

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Cost of sales,                                                             

 excluding depletion                                                       

 and amortization     $ 8,415,352   $ 8,941,857   $ 8,385,517   $ 8,078,967

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Net income (loss)     $ 3,841,034   $ 7,537,351   $   914,320  ($   828,651)

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Net income (loss)                                                          

 per share - basic    $      0.03   $      0.06   $      0.01  ($      0.01)

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Net income (loss)                                                         

 per share - diluted  $      0.03   $      0.05   $      0.01  ($      0.01)

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Cash from (used in)                                                        

 operations           $14,586,265   $15,876,565   $ 7,837,989   $ 5,079,597

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Cash dividends                                                             

 declared             $       Nil   $       Nil   $       Nil   $       Nil

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Total cash costs per                                                       

 gold ounce (USD)     $       527   $       439   $       515   $       697

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Average realized                                                           

 gold price           $     1,358   $     1,382   $     1,293   $     1,255

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                          Q4 2010       Q3 2010       Q2 2010       Q1 2010

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Gold ounces sold            5,321         1,773             -             -

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Metal revenues        $       Nil   $       Nil   $       Nil   $       Nil

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Cost of sales,                                                             

 excluding depletion                                                       

 and amortization     $       Nil   $       Nil   $       Nil   $       Nil

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Net income (loss)    ($ 5,456,353) ($ 1,793,238) ($   561,999) ($   804,330)

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Net income (loss)                                                          

 per share - basic   ($      0.04) ($      0.02) ($      0.01) ($      0.01)

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Net income (loss)                                                          

 per share - diluted ($      0.04) ($      0.02) ($      0.01) ($      0.01)

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Cash from (used in)                                                        

 operations          ($13,082,573) ($ 1,787,838) ($   599,084) ($   324,116)

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Cash dividends                                                             

 declared             $       Nil   $       Nil   $       Nil   $       Nil

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Total cash costs per                                                       

 gold ounce (USD)     $       Nil   $       Nil   $       Nil   $       Nil

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Average realized                                                           

 gold price           $       Nil   $       Nil   $       Nil   $       Nil

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"The Company's first year of commercial production has been a tremendous success. We've seen operational improvements on a quarter over quarter basis, and with nine drill rigs currently on site have embarked on an aggressive exploration program to increase the mine life at San Francisco," stated Mr. Bruce Bragagnolo, CEO of Timmins Gold Corp. "The expansion plan from 12,000 tonnes per day to 18,000 tonnes per day is now complete, with expected benefits of the expansion being realized in the next fiscal quarter. The completion of the expansion will allow the mine to operate at an annual production rate of 100,000 ounces of gold per year. The Company is well positioned to continue realizing current gold prices and record margins, while generating strong operating cash flow on a quarter over quarter basis."

Caution Regarding Forward-Looking Statements