Timminco Pursuing Opportunities to Expand Silicon Metal Production

Timminco Limited ("Timminco") (TSX: TIM.TO) announced today that it is pursuing opportunities to expand its silicon metal capacity, through a potential new silicon metal production facility in Iceland based on geothermal power. To this end, Timminco and Orkuveita Reykjavikur, an Icelandic power company, have agreed in principle on the terms of a long-term power supply contract for such a facility. Timminco has also secured convertible debt financing from Stokkur Energy, an Icelandic private equity firm, to fund preliminary expenses associated with this project.

"The production of silicon metal for the chemical and aluminum industries is the core of Timminco's business," said Dr. Heinz C. Schimmelbusch, Chairman of the Board and CEO of Timminco.

"Our Becancour silicon metal facility is now operating at full capacity. As the markets for our silicon metal products continue to grow, we are developing opportunities to expand the capacity, both for our traditional customers as well as for our solar grade silicon product line once the solar photovoltaic market strengthens. The Timminco management team has the technical expertise to pursue these opportunities, as well as experience with silicon-related project development in Iceland."

Orkuveita Reykjavikur, also known as Reykjavik Energy, has agreed in principle on the key terms for a proposed agreement to supply up to 85 MW of electrical power from a proposed new geothermal power plant to be built in Hverahlid, Iceland, which is expected to become operational in the latter half of 2013. The power would be supplied for a minimum 20-year term, priced in U.S. dollars at internationally competitive rates, to a greenfield silicon metal plant expected to be built in Olfus Municipality, about 50 km from Reykjavik. This new silicon metal facility, which is expected to have a nominal annual production capacity of up to approximately 50,000 mt of silicon metal when fully operational, would be based on the silicon metal processing technology and leverage the know-how of Timminco's wholly-owned subsidiary, Becancour Silicon Inc. The parties have targeted to complete their negotiations on definitive power contract by a deadline of April 15, 2010.

"We are looking forward to developing our relationship with Timminco and the Olfus Municipality and thereby diversifying our energy clientele. Utilizing Iceland's eco-friendly geothermal resources plays a vital part in this country's economy," said Hjorleifur B. Kvaran, CEO of Orkuveita Reykjavikur. "I am optimistic that this move towards supplying renewable energy to silicon metal and solar grade silicon production will strengthen Iceland as the home of pure energy."

In pursuing this project, Timminco has also partnered with Strokkur Energy ehf ("Strokkur"), which is focused on investments in power intensive industries. Strokkur has agreed to provide initial financing for certain activities to be undertaken during the preliminary phase of this project in parallel with negotiations on the power contract. This financing will be in the form of a convertible bond in the principal amount of US$1 million (the "Bond"). The proceeds will be used to fund preliminary engineering work to be performed by an international engineering consulting firm engaged to conduct a conceptual study, which is expected to be completed by mid-April. In the event of a positive outcome from such study, and subject to successful negotiations on the power contract and preliminary commitments from one or more silicon metal customers, a full feasibility study for the project would be commissioned, with an expected completion in the latter half of this year. This feasibility study would assist in securing long-term off-take agreements with customers and external financing for the construction of the proposed new facility, which are two of the key conditions for proceeding with the project.

The Bond will be a direct obligation of Thorsil ehf ("Thorsil"), a special purpose vehicle in Iceland that is currently owned by Timminco and Strokkur. The Bond will have a maturity date of May 1, 2010, subject to extension if the deadline for signing the power contract is extended. The Bond will bear interest at 12% per annum, payable on maturity. The outstanding principal and interest will be reduced by 10% if the power contract is not signed by the agreed deadline and, in such event, the maturity date would be extended to June 19, 2010. The Bond will be convertible, at Strokkur's option, into Thorsil common shares at a nominal value, or into Timminco common shares at a conversion price that is the lesser of $1.09 per share and the 5-day weighted average trading price per share on the Toronto Stock Exchange ("TSX") on the date of notice of conversion, with the US dollar amount converted into Canadian dollars at a fixed exchange rate of US$0.95. Any notice of conversion shall be given within 5 days after the power contract has been signed or the agreed deadline has passed. The net proceeds of the Bond financing will be used exclusively for agreed project expenses. Completion of the Bond financing is expected to occur on February 19, 2010, subject to certain conditions, including approval of the TSX.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the Common Shares or the Convertible Note in the United States. Neither the Common Shares nor the Convertible Note has been, nor will be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any other state securities laws and may not be offered or sold in the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About Timminco

Timminco produces silicon metal for the chemical (silicones), aluminum and electronics / solar industries. Timminco also produces solar grade silicon, using its proprietary technology for purifying silicon metal, for the solar photovoltaic energy industry.

About Orkuveita Reykjavikur

Orkuveita Reykjavikur is Iceland's largest multi-utility provider, delivering electricity and hot water, generated predominantly from geothermal sources, as well as drinking water and wastewater services to more than two thirds of the country's population.

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 construction of a new silicon metal production facility in Iceland, negotiation and completion of a definitive power contract with Orkuveita Reykjavikur, completion of the Bond financing and related approvals, future equity participation and ownership positions in Thorsil, the outcome of the conceptual study and any feasibility study to be performed, and securing long-term off-take agreements with customers and external financing for the construction of the proposed new facility. 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 risk; global economic uncertainty; credit risk; pricing and availability of raw materials; silicon metal selling prices; customer concentration; power supply and electricity prices; production interruptions; transportation disruptions; limited history with solar grade silicon; solar grade silicon selling prices; customer commitments for solar grade silicon; solar grade silicon production costs; quality of solar grade silicon; producing ingots with Timminco's solar grade silicon; protection of intellectual property rights; expansion of solar grade silicon production capacity; class action lawsuits; closure of former magnesium facilities; foreign exchange; investment in Applied Magnesium; interest rate risk; financing for capital expenditures; environmental liabilities; relationships with AMG; dependence upon key executives and employees; completion and integration of potential acquisitions, partnerships or joint ventures; risks with foreign operations and suppliers; environmental, health and safety laws and liabilities; intellectual property infringement claims; new regulatory requirements; labour disputes; and changes in tax laws. These factors are discussed in greater detail in Timminco's Annual Information Form for the year ended December 31, 2008, 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.

Sedar File Profile #00000838

Contacts

Robert Dietrich
Timminco Limited
Executive Vice President - Finance and CFO
(416) 364-5171
(416) 364-3451 (FAX)
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Lawrence Chamberlain

The Equicom Group Inc.

(416) 815-0700 ext. 257

(416) 815-0080 (FAX)

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