The TSX Venture Exchange has accepted for filing an option agreement dated March 12, 2015, among Timberline Resources Corp., Gunpoint Exploration Ltd. and certain subsidiaries of Gunpoint.

Pursuant to the agreement, the company has acquired the option to purchase 100 per cent of Gunpoint's Talapoosa project, located in Nevada.

The terms of the agreement are as follows:

• The agreement provides Timberline with the right to acquire a 100-per-cent interest in the property at any time within 30 months of March 12, 2015.
• As consideration for the option, Timberline has agreed to issue to Gunpoint two million shares of common shares of the company, and pay to Gunpoint $100,000 (U.S.) upon closing of the transaction and a further $200,000 (U.S.) within 180 days of closing the transaction.
• At any time during the option period, Timberline may purchase 100 per cent of the property by providing written notification thereof and paying to Gunpoint $10-million (U.S.) in cash within 90 days of the notification date.

For a period of five years following the date that Gunpoint receives the option payment, should the daily price of gold average $1,600 (U.S.) per ounce or greater for a period of 90 consecutive trading days, Timberline will be required to pay Gunpoint an additional $10-million (U.S.) within 90 days of the date that the trigger event is deemed to have occurred. The Contingent payment shall include $5-million (U.S.) in cash, with the remainder paid either in cash or in shares of common stock of the company, or a combination thereof, at Timberline's sole discretion.

Upon Timberline's acquisition of 100 per cent of the property, Gunpoint will retain a 1-per-cent net smelter return royalty on all minerals, which Timberline may purchase at any time by paying $3-million (U.S.) to Gunpoint.

Please refer to the company's news releases dated March 17, 2015, and April 1, 2015, for further information.