Mr. Greg McCunn reports

TIMMINS GOLD/ALIO GOLD ANNOUNCES EFFECTIVE DATE OF NAME CHANGE, SHARE CONSOLIDATION AND RESULTS OF AGM

Timmins Gold Corp. has provided the following updates.

Name change and share consolidation

The name change to Alio Gold Inc. and a 1:10 consolidation of the company's common shares were approved at the 2017 annual general and special meeting of shareholders of the company held earlier today, and are now effective. Following the share consolidation, the number of outstanding securities of the company will be approximately 35,562,860 common shares. The common shares are expected to commence trading on the Toronto Stock Exchange and the New York Stock Exchange on a postconsolidation basis on May 16, 2017, under the ticker symbol ALO on both exchanges.

Information for holders of common shares

The company has mailed a letter of transmittal to its registered holders of common shares, which must be completed and returned to Computershare Investor Services Inc. at the address specified in the letter of transmittal, together with share certificates for the preconsolidation common shares, in order to receive share certificates for the relevant number of postconsolidation common shares to which shareholders are entitled. Questions on how to complete the letter of transmittal, or requests for additional copies of the letter of transmittal, may be directed to Computershare at 1-800-564-6253 or by e-mail. A copy of the letter of transmittal may also be obtained from the SEDAR website or from the company's website.

Shareholders that hold their common shares through a broker, trust company or other intermediary do not need to complete and submit a letter of transmittal, as their intermediary will make arrangements on their behalf for their accounts to be updated for the relevant number of postconsolidation common shares that they beneficially hold.

AGM results

All matters outlined in the management proxy circular were also approved. In addition to approving the name change (93.73 per cent votes for, 6.27 per cent votes withheld) and share consolidation (92.4 per cent votes for, 7.6 per cent votes withheld), shareholders also approved the re-election of all directors nominated in the 2017 management proxy circular. A total of 166,324,736 common shares, or 46.77 per cent of the issued and outstanding common shares, were represented in person or by proxy at the meeting. Detailed results are as shown in the attached table.

Nominee                               Votes for       (%)   Votes withheld      (%)

Bryan A. Coates                     111,606,258   93.75%         7,444,191   6.25%
Greg McCunn                         117,456,145   98.66%         1,594,304   1.34%
George Brack                        117,318,131   98.54%         1,732,318   1.46%
Mark D. Backens                     117,282,477   98.51%         1,767,972   1.49%
Stephen Lang                        117,327,586   98.55%         1,722,863   1.45%
Anthony Hawkshaw                    117,415,838   98.63%         1,634,611   1.37%
Paula Rogers                        117,300,821   98.53%         1,749,628   1.47%
Jose Alberto Vizquerra Benavides    117,426,344   98.64%         1,624,105   1.36%

In addition, at the meeting, the appointment of Deloitte LLP, chartered accountants, as auditor was also approved (98.8 per cent votes for, 1.2 per cent votes withheld).

The formal report on voting results with respect to all maters voted upon at the meeting will be filed on SEDAR.