Mr. Mark Backens reports

TIMMINS GOLD REPORTS CASH FLOW FROM OPERATIONS OF $13.3 MILLION FOR FISCAL 2015

Timmins Gold Corp. has released its financial results for the year ended Dec. 31, 2015. The comparative period is the year ended Dec. 31, 2014. All results are presented in U.S. dollars unless otherwise stated. Readers should refer to the fiscal 2015 management's discussion and analysis and audited consolidated financial statements for complete information.

"In the fourth quarter, mining operations at San Francisco were negatively affected by greater-than-expected waste tonnes mined due to block model variability versus forecast," stated interim chief executive officer Mark Backens. "We have made adjustments to the model and operating plan, and we have already seen a positive difference to date in Q1 2016. Due to the recent rise in gold prices, we are evaluating the possibility of mine life extension beyond 2016. In the meantime, we remain on track to achieve 2016 objectives, which is to produce between 75,000 and 85,000 gold ounces at a cash cost of $750 to $850 per gold ounce."

Fiscal 2015 highlights:

• Metal revenues were $109.2-million, compared with $154.1-million during fiscal 2014. This represents a 29.1-per-cent decrease from the prior year, primarily due to a reduction in gold ounces sold to 93,196 ounces from 121,441 ounces. The average London PM Fix price was $1,160 per gold ounce, compared with $1,266 per gold ounce during fiscal 2014. This represents an 8.4-per-cent decrease over the prior year and was also a contributing factor to the decrease in metal revenues over fiscal 2014.
• As a result of the sustained decrease in the gold price during fiscal 2015 and subsequent changes to the San Francisco mine plan, as well as changes to the company's areas of exploration focus and changes to the estimated recoverable ounces contained within the leach pad inventory, the company recorded a total impairment of mineral properties, plant and equipment, and other assets of $228.4-million during the year.
• Loss from operations was $241.8-million, compared with earnings from operations of $22.2-million during fiscal 2014. This difference was mainly due to the impairment charge of $228.4-million during the period, as well as decreased metal revenues.
• Loss and total comprehensive loss were $190.3-million or 77 cents per share, compared with earnings and total comprehensive income of $9.2-million or six cents per share during fiscal 2014.
• Cash provided by operating activities was $13.3-million or five cents per share, compared with $33.1-million or 20 cents per share during fiscal 2014. This represents a 59.8-per-cent and a 75.0-per-cent decrease, respectively, from the prior year.
• Cash provided by operating activities during fourth quarter 2015 was $2.1-million, compared with cash used in operating activities during fourth quarter 2014 of $2.7-million. During fourth quarter 2015, $5.4-million was spent on exploration, sustaining capital, expansion programs and payment of prior-quarter payables related to capital items, compared with $9.2-million during fourth quarter 2014. In addition, during fourth quarter 2014, the company spent $10.8-million as part of the cash consideration paid on the acquisition of the Caballo Blanco gold project.
• Cash and cash equivalents and restricted cash at Dec. 31, 2015, were $9.2-million and $2.3-million, respectively, after investing $7.1-million on exploration, $800,000 on sustaining capital, $6.6-million on expansion programs and $17.5-million on deferred stripping. Subsequent to Dec. 31, 2015, the company received $5.7-million of the $9.1-million value-added-tax receivable.
• Cash and cash equivalents at Dec. 31, 2014, were $26.9-million after investing $6.8-million on exploration, $2.0-million on sustaining capital, $12.5-million on expansion programs, $15.0-million on deferred stripping and $10.8-million as part of the cash consideration paid on the acquisition of Caballo Blanco. In addition, the company repaid $5.0-million (Canadian) ($4.5-million) of its loan facility during fiscal 2014.
• On Oct. 2, 2015, the company reported a small tear in the liner of the new leach pads at the San Francisco mine. This incident was immediately reported to the Mexican environmental agency, Profepa. The small tear in the liner was repaired, and approval was received from Profepa to continue irrigation in the area.

Operating performance:

• The company produced and sold 93,353 and 93,196 ounces of gold, respectively, compared with 120,023 and 121,441 ounces of gold, respectively, during fiscal 2014. The change from prior year is primarily due to a reduction in average processing grade to 0.51 gram per tonne gold, compared with the fiscal 2014 average of 0.62 g/t Au, which resulted in fewer ounces of gold available for processing. More specifically, 138,031 ounces of gold were loaded to the leach pads, compared with 171,421 ounces of gold during fiscal 2014. This reduction was in accordance with the company's mine plan.
• The company's cash cost per ounce on a byproduct basis was $1,017 (all-in sustaining cash cost per ounce on a byproduct basis: $1,144), compared with $790 (all-in sustaining cash cost per ounce on a byproduct basis: $925) during fiscal 2014. This increase in cash costs over the prior year is primarily driven by an increased strip ratio and by fewer ounces being produced during fiscal 2015.

Key developments:

• On May 26, 2015, the company completed the all-share acquisition of Newstrike Capital Inc. for total consideration of $67.2-million. Newstrike's principal asset is the Ana Paula gold project in Guerrero, Mexico.
• On Oct. 19, 2015, the company completed a $6.0-million (Canadian) ($4.6-million) non-brokered private placement with Goldcorp Inc. consisting of 20 million common shares at a price of 30 Canadian cents (23 cents) per unit. Each unit consists of one share and one-half of a warrant, each whole warrant being exercisable for one common share of the company at a price of 35 Canadian cents (27 cents) per share for a term of 24 months. This private placement was in connection with the company's agreement to purchase a processing plant from Goldcorp for total consideration of $8.0-million (Canadian) ($6.1-million). The cash received from the private placement is restricted to use for disassembly of the plant.
• On Dec. 31, 2015, the company renegotiated the $10.2-million loan facility with an extension of the maturity date to Jan. 31, 2016, with the annual interest rate remaining at 9.0 per cent.

Recent developments:

• On Jan. 26, 2016, the company finalized an agreement with Sprott Resource Lending Partnership and Goldcorp to refinance the $10.2-million loan. The new credit facility has a maturity date of June 30, 2016. Interest is payable monthly at a rate of 12 per cent per annum, and the principal amount outstanding is payable on the maturity date. In consideration of the refinancing, the company will pay a bonus to the lenders under the credit facility of $400,000 on the earlier of the repayment of the loan and June 30, 2016. The bonus is payable at the option of each lender, in relation to its proportion of the credit facility, in cash or in common shares of the company. Any shares issued in connection with the bonus payment shall be issued at a deemed price equal to the volume-weighted average price per share on the Toronto Stock Exchange for the 10 days immediately preceding issuance, less 10 per cent.

             SUMMARIZED ANNUAL FINANCIAL STATEMENTS AND OPERATING RESULTS
                     (U.S. dollars (thousands) except where noted)

                                    Q4 2015        Q4 2014    Fiscal 2015    Fiscal 2014

Gold ounces sold                     22,786         25,007         93,196        121,441
Silver ounces sold                   13,158         16,322         52,047         85,262
Metal revenues                    $  25,310      $  30,400      $ 109,192      $ 154,068
Production costs, excluding
depreciation and depletion        $  26,459      $  23,508      $  95,542      $  97,525
(Loss) earnings from
operations                        $  (9,453)     $  (1,854)     $(241,778)     $  22,167
(Loss) earnings                   $  (9,517)     $  (3,701)     $(190,311)     $   9,187
(Loss) earnings per share,
basic and diluted                 $   (0.14)     $   (0.02)     $   (0.77)     $    0.06

Rest of fiscal 2015 results conference call

The company's senior management will host a conference call on March 17, 2016, at 11 a.m. (ET), to discuss fiscal 2015. Participants may join the call by dialling 416-695-7806 or 888-789-9572 (Canada and the U.S. toll-free number) or by webcast.

A replay of the call will be available until March 22, 2016, by dialling 905-694-9451 or 800-408-3053 (Canada and the United States). The passcode is 2625102. A live and archived audio webcast will also be available at the Timmins Gold website.

Technical information contained in this news release was reviewed and approved by Taj Singh, PEng, a vice-president of the company, who is recognized as a qualified person under NI 43-101.

We seek Safe Harbor.