Mr. Randy Reifel of Gunpoint reports

GUNPOINT EARLY WARNING REPORT WITH RESPECT TO SHARES OF TIMBERLINE RESOURCES

Gunpoint Exploration Ltd. acquired on March 31, 2015, indirect beneficial ownership of 2.0 million shares of common stock of Timberline Resources Corp. at a deemed issue price of 60 U.S. cents per share, representing 16.7 per cent of the current outstanding Timberline shares.

The Timberline shares were issued by Timberline as partial consideration for an option to acquire from Gunpoint's subsidiary, American Gold Capital US Inc., a 100-per-cent interest in the Talapoosa gold project located in Nevada. The 2.0 million Timberline shares are held in escrow and will be released from escrow in four instalments by March 12, 2017. The Timberline shares will carry full voting rights, pending release from escrow. Gunpoint has no other direct or indirect beneficial ownership or control of Timberline shares.

If Timberline exercises the option to acquire Talapoosa, and should the daily price of gold during the following five years be fixed at or average above $1,600 (U.S.) per ounce for over 90 days, then Timberline will be required to pay an additional $10.0-million (U.S.) to American Gold, of which $5.0-million (U.S.) will be a cash payment. Timberline may elect to pay the additional $5.0-million (U.S.) in common shares, in which event Gunpoint would acquire indirect beneficial ownership of additional Timberline shares.

A copy of the related early warning report may be obtained from SEDAR under Timberline's SEDAR profile.