Mr. Kiran Patankar reports

TIMBERLINE FILES PEA TECHNICAL REPORT ON TALAPOOSA

Timberline Resources Corp. has filed a positive preliminary economic assessment, disclosed in the company's press release dated April 27, 2015, on the company's Talapoosa project located in western Nevada. The PEA was prepared by WSP Canada Inc., with technical contributions from Mineral Property Development Inc., McClelland Laboratories Inc., Enviroscientists Inc., and DOWL LLC.

The PEA report is available under the company's profile at SEDAR and on Timberline's website.

Kiran Patankar, Timberline's president and chief executive officer, commented: "As we noted in our April 27 press release, the PEA development scenario demonstrates robust economics using conservative metals price assumptions and, importantly, fits within the scope of the previously permitted operation. With the filing of the PEA report, our stakeholders can now see the level of detailed analysis that capitalized on Talapoosa's extensive historic engineering and permitting work.

"Two key findings in the PEA further support the project's low-risk profile. First, Talapoosa has current permits in place for open-pit mining and heap-leaching operations, including an approved BLM plan of operations and a Nevada reclamation permit that remain active for the life of the project. Second, the results of 13 separate metallurgical testing programs conducted between 1981 and 2015 suggest that conventional heap leaching at a relatively fine crush size is the preferred approach for processing mineralized material from Talapoosa. Results from the recent and historic programs provided the basis for the estimated heap leach recoveries used in the PEA.

"The report recommends proceeding with a two-phased work program, including additional metallurgical testing and completion of a prefeasibility study, with an estimated total cost of $3.6-million (U.S.). Based on these positive PEA results, our key priority is to complete the recommended work program and deliver a prefeasibility study in first quarter 2016."

PEA highlights

• Aftertax net present value at a 5-per-cent discount rate (NPV5) of $136-million and 39-per-cent internal rate of return at $1,150/ounce gold price and $16/ounce silver price;
• Estimated average annual production of 55,000 ounces of gold and 679,000 ounces of silver for 11 years;
• Life-of-mine all-in sustaining costs of $599/ounce gold (net of silver byproduct at $16/ounce silver price);
• Low initial capital requirement of $51-million required to achieve production.

PEA disclaimer

The PEA is preliminary in nature and the economic analysis it presents is based, in part, on inferred resources that are considered too speculative geologically to have mining and economic considerations applied to them that would enable them to be categorized as mineral reserves. Estimates of inferred resources may not form the basis of feasibility or prefeasibility studies, except in rare cases. There is no certainty that the economic forecasts contained within the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Dr. Steven Osterberg, PhD, PG, Timberline's vice-president of exploration, is a qualified person as defined by National Instrument 43-101, and has reviewed and approved disclosure of the technical contents of this news release.

We seek Safe Harbor.