Mr. Kiran Patankar reports

TIMBERLINE COMPLETES SUCCESSFUL EUREKA DRILL PROGRAM

Timberline Resources Corp. has released drill results from its recently completed drill program at the Eureka project in Nevada. Recent drilling tested on-strike, offset and downdip extensions of gold mineralization that were previously mined at the Windfall area and also confirmed a newly recognized zone of higher-grade gold mineralization at depth associated with the company's existing National Instrument 43-101 resource estimate at Lookout Mountain.

Kiran Patankar, Timberline's president and chief executive officer, commented: "Timberline's recent drilling success at Eureka is a credit to our technical team. At Windfall, four drill holes encountered wide intercepts of greater than one gram per tonne of gold near surface. When considered along with historical gold production in the Windfall area, this bodes well for potential open-pit mine development with heap-leach processing. At Lookout Mountain, a confirmed new zone of higher-grade gold mineralization at depth provides strong evidence for a meaningful expansion of the existing National Instrument 43-101 resource. These results demonstrate the opportunity for adding high-quality gold ounces through multiple discoveries within our district-scale Eureka project."

Windfall drilling

Six drill holes completed at Windfall (BHWF-036 to 041, detailed maps) tested a strike length of approximately 3,000 feet and intersected gold mineralization consistent with results from over 600 historic drill holes.

Results of the drill program at Windfall are presented in the table.

                    RESULTS OF THE WINDFALL DRILL PROGRAM 

Drill hole      From    Length          Au      From      Length          Au         
                 (ft)      (ft)      (oz/t)       (m)         (m)       (g/t)

BHWF-036         290        40        0.04      88.4        12.2        1.26
BHWF-037         185        90        0.06      56.4        27.4        2.20
including        185        45        0.11      56.4        13.7        3.68
BHWF-038         420        80        0.01     128.0        24.4        0.32
BHWF-039         380        35        0.01     115.8        10.7        0.46
BHWF-040         290        80        0.09      88.4        24.4        3.04
including        305        20        0.26      93.0         6.1        8.79
BHWF-041         230        60        0.04      70.1        18.3        1.24

Lookout Mountain drilling

Two drill holes completed at Lookout Mountain (BHSE-172 and BHSE-173, detailed maps) intersected gold mineralization confirming a new higher-grade gold zone previously identified in drill holes BHSE-152 and BHSE-171 (refer to Jan. 14, 2015, news release). This mineralization is not included in the company's reported NI 43-101 resource estimate of 508,000 ounces of gold in the measured and indicated resources categories, and 141,000 ounces of gold in the inferred resource category.

The company also reported results of infill drill hole BHSE-174, which intersected gold mineralization consistent with the existing Lookout Mountain resource.

Results of the Lookout Mountain drill program are presented in the table.

                 RESULTS OF THE LOOKOUT MOUNTAIN DRILL PROGRAM

Drill hole      From    Length          Au      From      Length          Au
                 (ft)      (ft)      (oz/t)       (m)         (m)       (g/t)

BHSE-152       1,025      15.0        0.14     312.4         4.6        4.73
BHSE-171         990      65.0        0.09     301.8        19.8        3.22
including      1,020      25.0        0.14     310.9         7.6        4.93
BHSE-172         895      46.6        0.10     272.8        14.2        3.47
including        901      25.2        0.15     274.7         7.7        5.02
BHSE-173         930      57.4        0.06     283.5        17.5        1.92
including        953      14.7        0.09     290.5         4.5        3.12
BHSE-174         380      75.0        0.02     115.8        22.9        0.57

True widths of the drill intercepts have not been determined.

Drill holes BHSE-172 and BHSE-173, which were offset approximately 140 feet from BHSE-171, are stratigraphically well correlated, as the gold intercepts occur in mineralized collapse breccias similar to previous gold intercepts in the pyritic Dunderberg shale-Hamburg dolomite contact zone. The intercepts are thought by Timberline geologists to be related to a higher-grade feeder system as recognized in many Carlin-type systems.

Next steps

Timberline is currently updating the geologic models at Lookout Mountain and Windfall based on these drill results. When completed, the company intends to incorporate the new results into an initial NI 43-101 resource estimate for Windfall and assess potential additional follow-up drilling at Lookout Mountain and Windfall.

Technical information

Timberline's current gold resource estimate at Lookout Mountain, which was prepared by Mine Development Associates (MDA) of Reno, Nev., is shown in the table.

                         LOOKOUT MOUNTAIN GOLD RESOURCE

Resource category   Short tons      Tonnes         Au         Au          Au
                                                (oz/t)      (g/t)        (oz)

Measured             3,043,000   2,761,000      0.035       1.20     106,000
Indicated           25,897,000  23,493,000      0.016       0.55     402,000
Measured and
indicated           28,940,000  26,254,000      0.018       0.62     508,000
Inferred            11,709,000  10,622,000      0.012       0.41     141,000

(1) A 0.006-ounce-per-ton (0.21 g/t) cut-off applied to oxidized material to
capture mineralization potentially available to open-pit extraction and
heap-leach processing. A 0.030-ounce-per-ton (1.03 g/t) cut-off applied to
unoxidized material to capture mineralization potentially available to
open-pit extraction and lower heap-leach recoveries or sulphide processing.
(2) Rounding may cause apparent discrepancies.
(3) The effective date of the Lookout Mountain updated gold resource is Feb.
20, 2013.

Refer to Timberline's website for the full MDA resource estimate with various cut-off grades.

Timberline's district-scale Eureka project is strategically located within the greater Eureka mining district, just four miles from Barrick Gold's multimillion-ounce Archimedes/Ruby Hill mine. The Eureka project features three distinct zones defined by structure and geochemistry, and includes past-producing open pits, along with several untested zones and underexplored exploration targets (detailed maps).

Dr. Steven Osterberg, PhD, PG, Timberline's vice-president of exploration, is a qualified person as defined by NI 43-101, and has reviewed and approved the technical contents of this news release. He has verified the drill results and other data disclosed in this news release, including sampling, analytical and test data. Fieldwork has been conducted under his supervision. The Timberline sampling and analysis program included an industry-standard quality assurance/quality control program. After logging and cutting or dividing the sample intervals in half, the samples were picked up by Inspectorate America Corp. and taken to its ISO-9001-certified assay lab in Sparks, Nev., for analysis. The samples were analyzed for gold using a standard 30 g fire assay with an AA finish. Samples returning a gold value in excess of three parts per million were reanalyzed using a 30 g fire assay with a gravimetric finish.

The Lookout Mountain mineral resources were modelled and estimated by MDA by evaluating the drill data statistically, utilizing geologic interpretations provided by Timberline to interpret gold mineral domains on cross-sections spaced at 50- to 100-foot intervals across the extents of the Lookout Mountain mineralization, rectifying the mineral-domain interpretations on level plans spaced at 10-foot intervals, analyzing the modelled mineralization geostatistically to aid in the establishment of estimation parameters and interpolating grades into a 3-D block model. Mike Gustin, CPG, of MDA is a qualified person as defined by National Instrument 43-101 and is responsible for the resource estimate.

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