Timmins Gold Announces Updated National Instrument 43-101 Technical Report for San Francisco Gold Mine

Timmins Gold Corp. ("Timmins" or the "Company") is pleased to announce an updated National Instrument 43-101 Technical Report for its San Francisco Gold Mine in the state of Sonora, Mexico, prepared by Micon International Limited (Micon). The San Francisco Gold Mine ("the Mine") is comprised of the San Francisco deposit ("SF") and the La Chicharra ("LC") deposit. The report was previously updated as of December 15, 2013.

This update incorporates production depletion from the date of the last report, production / confirmation drilling and an update to the resource and reserve assumptions, primarily a lower gold price assumption (Reserves at $1,100/oz gold, Resources at $1,200/oz gold). The update also includes a maiden resource for the San Francisco underground. All figures quoted below are in US Dollars.

Highlights:

• As at December 31, 2015, the updated Proven and Probable Reserves for the San Francisco Gold Mine ($1,100/oz gold) are 374,000 ozs of gold (18.5 Mt at 0.63 g/t). This is exclusive of stockpiled ore, 62,000 ozs of gold (7.4 Mt at 0.26 g/t).
• As at December 31, 2015, the updated Measured and Indicated Resources (inclusive of Reserves) for the San Francisco Gold Mine ($1,200/oz) are 693,000 ozs of gold (34.6 Mt at 0.62 g/t). This is inclusive of the SF underground M&I Resource of 53,000 ozs (0.48 Mt at 3.48 g/t)
• As at December 31, 2015, the updated Inferred Resources for the San Francisco Gold Mine ($1,200/oz) are 41,000 ozs of gold (0.95 Mt at 1.33 g/t). This is inclusive of the SF underground Inferred Resource of 27,000 ozs (0.24 Mt at 3.50 g/t).
• In the fourth quarter of 2015, based upon the gold price at the time, the Company announced that mining operations at San Francisco would continue through 2016, at which point the mine would be placed on care and maintenance, with heap leach operations continuing into 2017.
• Production guidance for fiscal 2016 is 75,000 to 85,000 gold ounces with cash costs of approximately $750 to $850 per gold ounce sold. Estimated operating parameters include an average ore throughput of 20-22 ktpd, average stacked grade of 0.58-0.62 g/t Au, and average strip ratio in the 1.75:1 range. Total 2016 capital expenditures (sustaining and development) are estimated to be approximately $1-2 million.
• Timmins notes that the recent rise in the gold price could have a positive impact on the operations at the San Francisco Mine. A sustainable higher gold price may enable operations at the Mine to be extended beyond the end of 2016. However, production rates and detailed mining schedules, etc., would be developed based on the higher gold price at the time and an economic analysis of continuing the operations.
• The Company is also investigating potential underground scenarios, which may supplement the open pit production. Timmins believes that further delineation drilling for the underground resource is required and would be subject to available funding.

MINERAL RESERVES & RESOURCES

Table 1 - Mineral Reserve Estimate for the San Francisco Gold Mine, USD $1,100/oz Gold, as at December 31, 2015

The figures in Table 1 have been rounded to reflect that they are estimates. The mineral reserve estimate has been audited by Micon. It is Micon's opinion that the December 31, 2015 mineral reserve estimate has been prepared in accordance with the CIM standards and definitions for mineral reserve estimates and that Timmins can use this estimate as a basis for further mine planning and operational optimization at the San Francisco Gold Mine.

The figures in Table 2 have been rounded to reflect that they are estimates. The mineral resource estimate has been audited by Micon. It is Micon's opinion that the December 31, 2015 mineral resource estimate has been prepared in accordance with the CIM standards and definitions for mineral resource estimates.

POTENTIAL UNDERGROUND SCENARIO

With higher sustained gold prices, the Company would also investigate potential underground production scenarios at San Francisco. The initial maiden resource, as of December 31, 2015, for the San Francisco underground is shown below:

Very limited drilling has been done on the potential underground mineralization. Most of the current resource estimate is based upon open pit confirmation /delineation drilling. The Company is investigating delineation drill programs that could increase the confidence in the underground resource as well as potentially grow the resource beyond the currently estimated quantity. Different scenarios exist for the processing of the mineralization, including utilizing the current three-stage crushing and heap leaching processing used for open-pit ore, or a form of finer grinding / milling coupled with a form of more intensive cyanide leaching resulting in increased metallurgical recoveries. Ultimately Timmins envisions a small underground operation (~500 tpd) that could supplement the open pit ore.

The National Instrument 43-101 ("NI 43-101") Technical Report describing the details of the updated Reserve and Resource estimates will be filed on SEDAR (www.sedar.com) within 45 days from the date of this press release.

Technical Information and Qualified Person Notes

This press release was reviewed by Taj Singh, M.Eng, P.Eng, a Vice-President of the Company, who is recognized as a Qualified Person ("QP") under the guidelines of National Instrument 43-101 ("NI 43-101"). Mr. William Lewis, B.Sc, P.Geo, Mr. Mani Verma, M.Eng, P.Eng, Ing. Alan J. San Martin, MAusIMM(CP), of Micon are the independent QPs responsible for the Mineral Reserve and Mineral Resource Estimate. Mr. Richard M. Gowans of Micon is the independent QP responsible for the metallurgy section. Each of Mr. Lewis, Mr. Verma, Mr. San Martin, Mr. Gowans, and Mr. Singh have read and approved the contents of this news release.