Mr. Steven Osterberg reports

TIMBERLINE RESOURCES ANNOUNCES PRIVATE PLACEMENT OFFERING OF COMMON STOCK

Timberline Resources Corp. has initiated a $500,000 private placement offering of units of the company at a price of 15 cents per unit solely to persons who qualify as accredited investors under Rule 506(c) of Regulation D promulgated by the Securities and Exchange Commssion under the Securities Act of 1933, as amended. Each unit will consist of one share of common stock of the company and one common share purchase warrant, with each warrant exercisable to acquire an additional share of common stock of the company at a price of 25 cents per share for a period of three years.

The company intends to use the net proceeds of the offering for working capital, costs associated with claim maintenance and other exploration expenses.

We seek Safe Harbor.