March 17, 2009

Toronto, Canada: Timminco Reports Fourth Quarter and Year-End Fiscal 2008 Results

Timminco Limited today announced its financial results for the fourth quarter and fiscal year ended December 31, 2008.

Timminco's 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.

Timminco produces low cost solar grade silicon for the solar photovoltaic energy industry. Using its proprietary, patent pending technology, Timminco purifies silicon metal into solar grade silicon (also known as upgraded metallurgical silicon) for use in the manufacture of solar cells. Timminco also produces silicon metal, magnesium extrusions and other specialty metals for use in a broad range of industrial applications serving the aluminum, chemical, pharmaceutical, electronics and automotive industries.

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.

Net loss for the fourth quarter of 2008 was $1.3 million, or $0.01 per share, compared to a net loss of $8.8 million, or $0.08 per share, for the fourth quarter of 2007. Net loss for the fourth quarter of 2008 included updated charges for provisions related to reorganization, environmental remediationand capital asset impairments Excluding these items, adjusted net income for the fourth quarter of 2008 was $1.9 million. Net loss for the 2008 year was $22.6 million, or $0.22 per share, compared to a net loss of $18.0 million, or $0.20 per share for 2007. The increase in the net loss for the 2008 year was primarily the result of charges relating to the closure of the Magnesium Group's Haley, Ontario manufacturing facility and an asset impairment charge relating to the Company's investment in Fundo Wheels. Excluding the Haley costs, impairment charges, and the equity in the loss of Fundo Wheels, adjusted net income for the 2008 year was $10.4 million.

During the fourth quarter of 2008, Timminco invested approximately $20.0 million to support the expansion of its solar grade silicon production facility to 14,400 metric tons of nominal annual production capacity. Total investment in the Company's solar grade silicon production facility for the 2008 year was approximately $67.0 million.

Sales for the Silicon Group for the fourth quarter of 2008 were $58.5 million, an increase of 140% from $24.3 million for 2007, and accounted for 80% of Timminco's total sales. Sales for the 2008 year were $189.5 million, an increase of 83% from $103.7 million for 2007 and accounted for 75% of Timminco's total sales. The increases were due to higher sales volumes for each of the solar grade silicon and silicon metal product lines, as well as higher average selling prices for silicon metal. The weakness of the Canadian dollar relative to the US dollar and the Euro had a favourable impact on sales of $6.5 million for the fourth quarter of 2008 and $8.8 million for the 2008 year.

The Silicon Group shipped 424 metric tons of solar grade silicon in the fourth quarter, an increase of 41% from 300 metric tons shipped in the third quarter of 2008, generating revenue of $27.7 million. For the 2008 year, the Silicon Group shipped 1,045 metric tons of solar grade silicon, generating revenue of $64.6 million.

Gross profit for the fourth quarter of 2008 increased to $15.4 million, or 26.3% of sales, from negative $2.7 million, or negative 11.1% of sales, for the fourth quarter of 2007. Gross profit for the 2008 year increased to $40.1 million, or 21.2% of sales, from $0.9 million, or 0.9% of sales, for 2007. Total solar grade silicon product cost of sales for the fourth quarter 2008 and fiscal 2008 were $12.6 million and $33.0 million respectively. The increases in gross profit were primarily the result of higher sales volumes of solar grade silicon.

EBITDA for the fourth quarter of 2008 increased to $11.6 million from an EBITDA loss of $2.1 million for the fourth quarter of 2007. EBITDA for the 2008 year increased to $31.9 million from an EBITDA loss of $0.7 million for 2007. The increases are the result of the change in the sales mix to a higher proportion of solar grade silicon, the favourable impact of translation of U.S. dollar and Euro denominated sales to Canadian dollars and higher margins on solar grade silicon.

Net income for the fourth quarter of 2008 increased to $7.5 million from a net loss of $3.1 million for the fourth quarter of 2007 and net income for the 2008 year increased to $19.9 million from a net loss of $1.6 million for 2007.

Further details about: Timminco Limited