Mr. Steven Osterberg reports

TIMBERLINE ANNOUNCES SECOND QUARTER 2016 FINANCIAL RESULTS

Timberline Resources Corp. has released consolidated financial results for its second fiscal year 2016 quarter ended March 31, 2016. A summary of selected financial results is presented in the attached table.

                          SELECTED FINANCIAL RESULTS
          (in thousands of U.S. dollars, except earnings per share)           

                                                     Quarter ended March 31, 
                                                           2016        2015 
                                                    
Consolidated net (loss)                                  $ (413)    $(1,613)
Consolidated net (loss) per share, 
basic and diluted                                         (0.03)      (0.16)
Mineral exploration expenses                                  7         498 
Working capital                                            (276)        950 

Timberline reported a consolidated net loss of $400,000 for the quarter ended March 31, 2016, including exploration expenditures of $7,000 and a loss of $180,050 on the sale of the company's 50-per-cent interest in the Butte Highlands joint venture. The company's exploration expenditures during the quarter were almost completely curtailed due to the company's financial condition. Most of Timberline's activities during this quarter were related to seeking financing transactions in order to meet the company's obligations and advance its properties.

Timberline's president and chief executive officer, Steve Osterberg, commented: "It is satisfying to see the price of gold and gold equities begin to strengthen. This quarter, the sale of our interest in the Butte Highlands joint venture and the accelerated return of certain restricted cash held for bonding at various exploration projects, along with the continuation of significant cost-saving measures, have provided us with sufficient operating cash. For future operating funds, as we announced on May 11, 2016, we have initiated a $500,000 (U.S.) private-placement offering of units of the company at a price of 15 U.S. cents per unit to persons who qualify as accredited investors. This financing, together with our solid asset base, augmented by our continued efforts to secure the return of additional excess bond funds and other potential transactions, is expected to provide Timberline investors with growing shareholder value as the market turns more positive for junior gold explorers such as Timberline."

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