Mr. Mark Backens reports

TIMMINS GOLD CORP. ANNOUNCES C$20 MILLION BOUGHT DEAL OFFERING OF UNITS

Timmins Gold Corp. has entered into an agreement with a syndicate of underwriters led by National Bank Financial Inc. and RBC Capital Markets pursuant to which the underwriters have agreed to purchase, on a bought-deal basis, 36.4 million units of the company at a price of 55 cents per unit for gross proceeds to the company of approximately $20-million.

Each unit will consist of one common share of Timmins Gold and one-half of one common share purchase warrant. Each warrant will entitle the holder to acquire one common share of Timmins Gold at a price of 70 cents at any time prior to the date which is 18 months following completion of the offering.

In addition, Timmins Gold has granted the underwriters an option, exercisable at any time, in whole or in part, until the date that is 30 days following the closing of the offering, to purchase up to an additional 15 per cent of the number of units solely to cover overallotments, if any, and for market stabilization purposes. The underwriters can elect to exercise the option for units, common shares only, or warrants only, or any combination thereof.

The net proceeds of the offering will be used for exploration, preconstruction activities at the Ana Paula project, working capital and general corporate purposes.

The units to be issued under this offering will be offered by way of a short-form prospectus in all of the provinces of Canada, except Quebec.

The offering is scheduled to close on or about Nov. 30, 2016, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange, NYSE MKT and the securities regulatory authorities.