Timminco Reports Fourth Quarter and Year-End Fiscal 2008 Results

Market Wire, March, 2009

Timminco Limited ("Timminco" or the "Company") (TSX: TIM), today announced its financial results for the fourth quarter and fiscal year ended December 31, 2008.

Fourth Quarter 2008 Highlights

- Shipped 424 metric tons of solar grade silicon at an average selling price of $65 per kilogram, generating gross revenue of $27.7 million.

- Consolidated sales were $72.7 million, an increase of 100% from $36.4 million for the fourth quarter of 2007.

- Earnings before interest, taxes, depreciation, and amortization (EBITDA)(1) increased to $6.4 million from an EBITDA loss of $7.3 million for the fourth quarter of 2007.

- Net loss was $1.3 million, or $0.01 per share, compared with a net loss of $8.8 million, or $0.08 per share, for the fourth quarter of 2007.

- Adjusted net income(2) was $1.9 million.

- Received $4.4 million in deposits from solar grade silicon customers under long- term contracts.

- Amended credit agreement with Bank of America to increase the maximum revolving line of credit to US$50 million from US$32.8 million.

Fiscal 2008 Highlights

- Signed long-term agreements to supply solar grade silicon to leading solar cell manufacturers.

- Commissioned six solar grade silicon purification lines at its Becancour, Quebec facility.

- Shipped 1,045 metric tons of solar grade silicon at an average selling price of $62 per kilogram, generating gross revenue of $64.6 million.

- Consolidated sales were $252.6 million, an increase of 52% from $166.2 million for 2007.

- EBITDA was $21.3 million compared to an EBITDA loss of $8.9 million for 2007.

- Net loss was $22.6 million, or $0.22 per share, compared with a loss of $18.0 million, or $0.20 per share, for 2007.

- Adjusted net income was $10.4 million.

Highlights Subsequent to Year End

- Commissioned our seventh solar grade silicon purification line.

- Completed an equity offering by way of a private placement to AMG Advanced Metallurgical Group N.V. ("AMG") and several other investors, generating net proceeds of $24.2 million.

- Signed a non-binding letter of intent to merge the principal components of the Company's magnesium business with Winca Tech Limited, a China-based producer of magnesium products.

- Commenced an orderly wind down of operations at the Company's magnesium extrusion facility in Aurora, Colorado.

Global economic conditions have deteriorated rapidly over the last several months as a result of the financial crisis and recession that negatively impacted markets in North America, Europe and Asia during 2008. These developments are having and will likely continue to have a broad-reaching impact on the Company's businesses and the industries in which they operate. The severity, duration and impact of these developments are not yet fully understood. Many of the Company's customers are experiencing financial constraints and have reduced or deferred their purchases. In response to this current environment, the Company has subsequent to the year end announced certain initiatives in both its Silicon and Magnesium Groups, including those noted above and a cost containment plan as separately announced today, to reduce expenditures and accelerate reduction of working capital.

"2008 was a transformational year for Timminco marked by significant progress in the build out of our solar grade silicon product line, which contributed nearly $65 million to revenue," said Dr. Heinz Schimmelbusch, Chairman of the Board and Chief Executive Officer of Timminco. "Based on our proprietary purification process in the production of UMG Si, Timminco is positioned to capitalize on the long-term opportunity in the solar industry. In the near term, however, the rapid deterioration of global economic and credit conditions and its profound impact on demand for solar energy installations have caused many of our customers to reduce orders. However, with a low-cost purification process for producing solar grade silicon, we remain confident about our prospects as market conditions improve. Moreover, through our relationship with AMG, we are exploring opportunities to leverage our position as a leading supplier of UMG Si to further improve the value proposition of our product."

Financial Results

Timminco has two reporting segments: the Silicon Group, which includes the silicon metal and solar grade silicon product lines, and the Magnesium Group, which includes the magnesium extrusion, fabrication and specialty metals product lines.

Consolidated sales for the fourth quarter of 2008 were $72.7 million, an increase of 100% from $36.4 million for the fourth quarter of 2007. Consolidated sales for the 2008 year were $252.6 million, an increase of 52% from $166.2 million for 2007. The increases were primarily attributable to higher sales for the Company's Silicon Group, specifically its solar grade silicon and silicon metal products.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the fourth quarter of 2008 increased to $6.4 million from an EBITDA loss of $7.3 million for the fourth quarter of 2007. EBITDA for the 2008 year increased to $21.3 million from an EBITDA loss of $8.9 million for 2007.