Tiomin Resources Inc. (”Tiomin” or the “Company”) (TSX: TIO) announces that it has entered into a letter of intent with ATW Venture Corp. (”ATW”) providing for the grant to ATW of an option (the “Kenya Option”) to acquire up to a 50% interest in Tiomin’s Kenyan mineral sands projects (the “Kenya Projects”), including the Kwale project, for US$35 million. In addition, ATW has an option (the “Tanzania Option”) to acquire a 50% interest in Tiomin’s Tanzanian exploration projects for US$3 million.

Jean-Charles Potvin, Chief Executive Officer of Tiomin, commented: “We are extremely pleased with this transaction with ATW Venture Corp., which will provide the additional equity funding required to proceed with the development of the Kwale project. The injection of an additional US$35 million in new equity improves the balance sheet of the project. Tiomin continues to work closely with the Government of Kenya to resolve the remaining outstanding issues. We are now moving forward in completing the terms and conditions to satisfy the lenders for the drawing down on the US$155 million project debt package. Tiomin continues to receive solid support from its customers regarding off-take contracts for the Kwale project.”

Cost escalation for the development of the Kwale project is now projected at US$16 million, which includes US$12 million in capital expenditures and US$4 million in foreign exchange. Tiomin now intends to finance the estimated US$12 million power plant from internal resources. In addition, Tiomin Kenya Ltd. will now also be able to accelerate its exploration activities for minerals sands in East Africa.

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