Timminco Limited ("Timminco") (TSX:TIM) announced today that its wholly-owned subsidiary, Bécancour Silicon Inc. ("Bécancour Silicon"), has signed a new, long-term silicon metal supply contract with one of its long-standing silicon metal customers. This new contract, which replaces all previous commitments with this customer for the years 2011 to 2014, provides for revised pricing retroactive to January 1, 2011 and extends the supply commitments through to the end of 2015.

"The contract amendment with this long-standing customer will provide additional liquidity to Bécancour Silicon in the near term through higher pricing," said Mr. John Fenger, President and Chief Operating Officer of Timminco.

The base quantity of silicon metal to be delivered under the new contract is 17,500 metric tons (mt) per year from 2011 through 2015, plus an additional quantity of approximately 8,000 mt to be delivered by the end of 2013, for a total volume of 95,500 mt over the five-year term. The previous contract had a total volume of 94,500 over its five-year term from 2010 to 2014. The volumes under the new contract, together with Bécancour Silicon''s commitments to other silicon metal customers, represent substantially all of Bécancour Silicon''s anticipated allocation of up to 51% of the silicon metal output from the Québec Silicon production partnership between Bécancour Silicon and Dow Corning for at least the next three years, based on Québec Silicon''s existing production capacity and commitments under its output and supply contract with Bécancour Silicon and Dow Corning.

The prices under the new contract are fixed for 2011 and are subject to negotiation within a defined price range for each of the remaining four years, as was the case under the previous supply commitments. However, under the new contract, the fixed prices for 2011 have increased and, in exchange, the upper limits of the defined price range for negotiations for the years 2012 through 2014 have been reduced, relative to the previous commitments. The price range for negotiations in respect of 2015 will be based on a percentage spread above and below the actual pricing for silicon metal deliveries in 2014. All pricing under the new contract is in Euros, and is subject to the currency adjustment clause from the previous contract.

The new pricing is effective as of January 1, 2011 and, as a result, Bécancour Silicon will receive a true-up payment from this customer of approximately €1.2 million (C$1.7 million), on account of deliveries made in 2011 prior to signing the new contract.

The new contract still contains annual call and put rights in respect of the supply commitments, starting with 2012 and based on the upper and lower limits of the defined price range for annual negotiations, if Bécancour Silicon and the customer are unable to mutually agree on prices for silicon metal deliveries for the following year.

About Timminco

Timminco produces silicon metal for the chemical (silicones), aluminum and electronics/solar industries, through its majority owned production partnership between Bécancour Silicon and Dow Corning, known as Québec Silicon. Timminco is also a producer of solar grade silicon, using its proprietary technology for purifying silicon metal, for the solar photovoltaic energy industry, through Timminco Solar, a division of Bécancour Silicon.

Cautionary Notes

This news release contains "forward-looking information," as such term is defined in applicable Canadian securities legislation, concerning Timminco''s future financial or operating performance and other statements that express management''s expectations or estimates of future developments, circumstances or results. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "expects", "believes", "anticipates", "budget", "scheduled", "estimates", "forecasts", "intends", "plans" and variations of such words and phrases, or by statements that certain actions, events or results "may", "will", "could", "would" or "might" "be taken", "occur" or "be achieved". In this news release, such information includes statements regarding Bécancour Silicon''s silicon metal supply commitments and production allocation, and the impact of the new supply contract on Timminco''s liquidity.

Forward-looking information is based on a number of assumptions and estimates that, while considered reasonable by management based on the business and markets, in which Timminco operates, are inherently subject to significant operational, economic and competitive uncertainties and contingencies. Timminco cautions that forward-looking information involves known and unknown risks, uncertainties and other factors that may cause Timminco''s actual results, performance or achievements to be materially different from those expressed or implied by such information, including, but not limited to: liquidity risks; foreign currency exchange rates; equipment failures, downtime or inefficiencies; dependence upon power supply for silicon metal production; pricing and availability of raw materials; global economic conditions; credit risk exposure; selling price of silicon metal; customer concentration; transportation delays and disruptions; class action lawsuits; contract termination claims; interest rates; future growth plans and strategic objectives; environmental, health and safety laws and liabilities; conflicts of interest; limited history with the solar grade silicon business; selling price of solar grade silicon; customer commitments; production cost targets; achieving and maintaining quality of solar grade silicon; customer capabilities in producing ingots; protection of intellectual property rights; production capacity expansion at the Bécancour facilities; closure of the magnesium facilities; investment in Applied Magnesium; insurance costs; government and economic incentives; dependence upon key executives and employees; completion and integration of potential acquisitions, partnerships or joint ventures; intellectual property infringement claims; and climate change. These factors are discussed in greater detail in Timminco''s Annual Information Form for the year ended December 31, 2010, and in Timminco''s most recent Management''s Discussion and Analysis, each of which is available via the SEDAR website at www.sedar.com. Although Timminco has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in forward-looking information, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate or that management''s expectations or estimates of future developments, circumstances or results will materialize. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information in this news release is made as of the date of this news release and Timminco disclaims any intention or obligation to update or revise such information, except as required by applicable law.