Mr. Steven Osterberg reports

TIMBERLINE RESOURCES ANNOUNCES INCREASE TO PRIVATE PLACEMENT

Due to demand, Timberline Resources Corp. has increased the amount of its previously announced private placement, disclosed in a press release dated May 11, 2016, from $500,000 (U.S.) to $1.5-million (U.S.). Under the increased offering, the company may issue up to 10 million units of the company at a price of 15 U.S. cents per unit, offered under Rule 506 (c) of Regulation D, promulgated by the Securities and Exchange Commission under the Securities Act of 1933, as amended, solely to persons who qualify as accredited investors. Each unit consists 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 U.S. cents per share until May 31, 2019.

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

We seek Safe Harbor.