Mr. Bruce Bragagnolo reports

TIMMINS GOLD REPORTS RESULTS FOR Q2 2013

Timmins Gold Corp. has released its financial results for the second quarter ended June 30, 2013. The comparative period is the three months ended June 30, 2012. All results are presented in United States dollars unless otherwise stated. Readers should refer to the 2013 management discussion and analysis and consolidated financial statements for complete information.

Second quarter highlights

• Metal revenues were $35.1-million on sales of 28,024 gold ounces, compared with $38.2-million on sales of 23,499 gold ounces during the same prior-year period. This represents an 8-per-cent decrease in revenue over the prior year, primarily due to the decrease in gold price beginning in April, 2013. The average London PM fix price was $1,415 per ounce, compared with $1,609 per ounce during the same prior-year period. This represents a 12-per-cent decrease over the prior year. A significant portion of second quarter sales occurred in the month of June due to the timing of gold production, which coincided with a particularly weak period in gold price. As a result, the average realized gold price decreased to $1,253 per gold ounce, compared with $1,624 per gold ounce during the same prior-year period.
• Profit from operations was $3.4-million, compared with $14.3-million during the same prior-year period. This represents a 76-per-cent decrease over the prior year. This was mainly due to the reduced revenues realized from the lower gold price and, as a result of the lower gold price, a $5.5-million impairment was required on the non-current unprocessed ore stockpile during the current period.
• Earnings were $1.0-million or one cent per share, compared with $6.7-million or five cents per share during the same prior-year period. This represents an 86-per-cent and 80-per-cent decrease, respectively, over the prior year.
• Cash flows from operations before changes in non-cash working capital were $12.1-million or eight cents per share, compared with $18.6-million or 13 cents per share during the same prior-year period.
• Cash at June 30, 2013, was $14.4-million after investing $17.0-million in exploration, plant expansion and spending on deferred stripping. Cash at June 30, 2012, was $21.2-million after investing $7.0-million in exploration, plant expansion and spending on deferred stripping.
• The company produced 28,024 ounces of gold and sold 28,024 ounces of gold, compared with 23,203 and 23,499, respectively, during the same prior-year period. This represents a 21-per-cent and 19-per-cent increase of ounces produced and sold, respectively, over the prior year due to increased throughput and crushing capacity.
• The company's cash cost per ounce on a byproduct basis was $705 (all-in sustaining cash cost per ounce on a byproduct basis -- $855), compared with $709 (all-in sustaining cash cost per ounce on a byproduct basis -- $1,048) during the same prior-year period. This decrease in cash costs is due to cost reduction initiatives including a reduction in mining services cost to $1.59 per tonne of material mined from $1.64 per tonne in the original contract and reduced cyanide costs offset by lower grades realized in the current quarter of 0.81 gram per tonne (g/t) gold (Au), compared with the same prior-year quarter 0.90 g/t Au. The company's corporate and administrative expenses also decreased over the prior year, further reducing the all-in sustaining cash costs per ounce on a byproduct basis.
• The drill program at the San Francisco gold property concluded in second quarter 2013 with a total of 49,413 metres (year to date 2013 -- 135,436 metres) drilled as follows:
  • A total of 41,447 metres (year to date 2013 -- 113,280 metres) of drilling was completed in and around the San Francisco open-pit gold mine.
  • A total of 3,342 metres (year to date 2013 -- 15,095 metres) were drilled in exploration areas outside of the San Francisco and La Chicharra pits with an additional 4,624 metres (year to date 2013 -- 7,061 metres) of core drilling.
• The company negotiated with Sprott Resource Lending Partnership to waive the anniversary fee of 1 per cent of the total balance outstanding on the loan facility (payable in shares), totalling $200,000, which was due July 28, 2013.
• The company processed a record average of 20,317 tonnes per day due to additional crushing capacity during the quarter.

       SUMMARIZED ANNUAL FINANCIAL STATEMENTS AND OPERATING RESULTS
                (In thousands, unless otherwise indicated)

                                       Second quarter ended     Second quarter ended
                                              June 30, 2013            June 30, 2012

Gold sold (oz)                                       28,024                   23,499
Silver sold (oz)                                     16,124                   14,452
Metal revenues                                      $35,123                  $38,160
Production costs, excluding
depletion and depreciation                           20,020                   17,021
Profit from operations                                3,382                   14,345
Earnings                                                972                    6,715
Earnings per share, basic and
diluted                                                0.01                     0.05
Cash flows from operations                            4,678                    9,610
Cash flows from operations
before changes in non-cash
working capital                                      12,103                   18,615
Total cash, end of period                            14,362                   21,168
Total assets, end of period                         248,021                  181,411
Byproduct cash costs per gold
ounce                                                   705                      709
All-in sustaining cash cost
per gold ounce                                          855                    1,048
Average realized gold price
per gold ounce                                        1,253                    1,624

"Second quarter was a very challenging quarter for the entire gold sector. For the company, the high levels of volatility and rapid decline in the gold price led to decreased revenues and a $5.5-million impairment on our ore stockpile," stated Bruce Bragagnolo, chief executive officer of Timmins Gold. "On a positive note, our production has stabilized and our all-in sustaining cash costs are among the lowest in the gold industry. Despite the impairment, the company still managed positive earnings. At current gold prices, the company remains self-financed and expects to generate free cash flow for the remainder of the year."

Reminder of second quarter 2013 results conference call

The company's senior management will host a conference call to discuss second quarter 2013 financial results on Aug. 8, 2013, at 11:45 a.m. (Eastern Standard Time). Participants may join the call by registering on-line through a link on the Timmins Gold website and entering the following pass code 845689. After entering your information, you will be given a pass code and PIN that you will need to join the conference call on Aug. 8. Participants may join the call by dialling toll-free 1-888-789-9572 (Canada and U.S.) or 1-416-695-7806 (international) and entering their personal pass code and PIN. A replay of the call will be available after the call until Aug. 14, 2013, by dialling 1-800-408-3053 (Canada and U.S.) or 1-905-694-9451 (international) with the pass code 4685359. A live and archived audio webcast will also be available at the company's website.

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