Mr. Kiran Patankar reports

TIMBERLINE ANNOUNCES SECOND QUARTER 2015 FINANCIAL RESULTS

Timberline Resources Corp. is releasing consolidated financial results for its second quarter of fiscal year 2015, which ended March 31, 2015.

                SUMMARY OF SELECTED FINANCIAL RESULTS 
        (in thousands of U.S. dollars, except per-share data)
                                           
                                                     Quarter ended March 31,    
                                                        2015           2014 

Consolidated net (loss)                              $(1,613)       $  (678)
Consolidated net (loss) per share, basic and                                  
diluted                                              $ (0.16)       $ (0.11)
Mineral exploration expenses                             498             89 
Working capital                                          950           (460)

Timberline reported a consolidated net loss of $1.6-million for the quarter ended March 31, 2015, including exploration expenditures of $498,000 and impairment of mineral rights of $426,000 related to an exploration property that was returned to the underlying property owner during the quarter. The company's exploration expenditures during the quarter were primarily related to permitting and drilling activities, including an archeological study required for permitting at the company's Eureka project in Nevada. Timberline completed a successful Eureka drill program, which confirmed a newly recognized zone of higher-grade gold mineralization at depth in the Lookout Mountain area and extended known gold mineralization in the Windfall area. The reported drill results will support the company's future advancement of Eureka. In addition, limited exploration expenditures were related to performing due diligence related to the company's acquisition of the option to acquire 100 per cent of the Talapoosa project in western Nevada that closed on March 31, 2015, preparing a preliminary economic assessment (PEA) on the Talapoosa project and completing a small amount of geologic fieldwork at the Seven Troughs gold project in Nevada.

Timberline's president and chief executive officer, Kiran Patankar, commented: "The rapid progress we have made at our flagship Talapoosa project represents just one of several major milestones reached during the quarter. With the strongly positive results from our recently announced Talapoosa PEA, our focus is now squarely on further optimizing and derisking the project by completing a prefeasibility study in the first quarter of 2016, and commencing long-lead-time permitting activities. In addition, we anticipate that our recent drilling success at our district-scale Eureka project will lead to a meaningful expansion of the existing NI 43-101 resource. We are also encouraged by the recent permitting milestones achieved by the Butte Highlands joint venture and look forward to the receipt of the final U.S. forest service road use permit, which is scheduled to be issued in June, 2015."

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