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Toronto, Canada. January 10, 2007. Tiomin Resources Inc. ("Tiomin" orthe "Company") (TSX: TIO) is currently reviewing its strategic optionsfor the Kwale mineral sands project in Kenya (the "Project") andexpects to make a decision regarding the development of the Project bythe end of January 2007. The Project has suffered legal and bureaucratic delays that arenegatively impacting the Project's rate of return to Tiomin'sshareholders. Although the majority of the issues causing the delayshave been, or are likely to be, resolved in the near future, theincremental costs of the delays mean that it is unlikely that Tiominwill be able to satisfy the lenders' financial conditions to meet theFebruary 2007 deadline to begin drawing down on its US$155 million debtpackage. As previously indicated, the Company can no longer meet thepreviously published development schedule and budget. Tiomin is currently assessing the full financial impact of the recentevents. During the delay period, the Company has incurred severalmonths of additional overhead costs and, in addition, the value of theCompany's development funds in United States and Canadian currenciesdeclined against a basket of foreign currencies resulting in increasedcosts. The Company has not hedged its foreign exchange risk exposureand only planned to hedge the US$155 million debt facility oncedrawdown had been achieved. As part of its review, Tiomin has requested Ausenco, the primarycontractor, to review the capital cost estimates and developmentschedule for the Project. Ausenco expects to complete its evaluationwithin two weeks. Tiomin will also review the impact of having delayedthe orders of long-lead items on the start of production, which maypotentially affect some customer off-take contracts. The Government of Kenya ("GoK") made significant progress in resolvingoutstanding issues after Tiomin declared Force Majeure in December 2006and is working to complete the remaining steps required to develop theProject. Significantly, the GoK won its legal dispute regarding accessto the eight disputed plots of land, as described in the press releaseof December 19, 2006. The Company understands that the GoK willimmediately proceed with compulsory acquisition of the land once therequired compensation payments have been made. The GoK has grantedTiomin acceptable port tariffs and an exemption from paying certainstamp duties. It has also written to Tiomin indicating its intention tocomplete and gazette the remaining items required by the lenders. Otheroutstanding items include an agreement with the GoK on withholdingtaxes and the modification of the existing mining lease to encompassall land required for the Project. Tiomin continues to work closelywith the GoK to satisfy these conditions but remains in Force Majeure,as provided for in the Special Mining Lease issued to Tiomin by the GoKin July 2004. The Board of Directors of Tiomin is committed to acting in the bestinterests of the shareholders in this challenging situation. For further information, please contact Tiomin at [phone] JeanCharles Potvin, CEO, ext. 227; Robert Jackson, President, ext. 230; orLaurie Gaborit, Investor Relations, ext. 222 ([e-mail]).Visit the Company's website at www.tiomin.com. Certain of the information contained in this news release constitute"forward-looking statements" within the meaning of the PrivateSecurities Litigation Reform Act of 1995. Such forward-lookingstatements, including but not limited to those respect to the prices ofrutile, zircon, ilmenite, estimated future production, estimated costsof future production and the Company's sales policy, involve known andunknown risks, uncertainties and other factors which may cause theactual results, performance or achievements of the Company to bematerially different from any forecast results, performance orachievements expressed or implied by such forward-looking statements.Such factors include, among others, the actual prices of rutile, zirconand ilmenite, the actual results of current exploration, developmentand mining activities, changes in project parameters as plans continueto be evaluated, as well as those factors disclosed in the Company'sdocuments filed from time to time with the Ontario SecuritiesCommission.