Mr. Steve Osterberg reports

TIMBERLINE ANNOUNCES THIRD QUARTER 2016 FINANCIAL RESULTS

Timberline Resources Corp. has released its consolidated financial results for its third fiscal 2016 quarter, which ended June 30, 2016. A summary of selected financial results is presented in the accompanying table.

(in thousands of U.S. dollars, except per-share data)        Quarter ended June 30,
                                                                   2016       2015

Consolidated net (loss)                                         $  (463)   $  (682)
Consolidated net (loss) per share, basic and diluted              (0.03)     (0.06)
Mineral exploration expenses                                         34        292 
Working capital                                                     741        393

Timberline reported a consolidated net loss of $500,000 for the quarter ended June 30, 2016, including exploration expenditures of $34,000. The company's exploration expenditures during the quarter continued to be curtailed; however, in June, the company tripled the original amount of its non-brokered private placement and closed a $1.5-million equity financing, which allowed it to initiate a metallurgical and geotechnical test program at Talapoosa in July, 2016. The test program was designed to assess the potential to improve heap permeability and enhance gold and silver leach efficiency for the processing of the mineralized material at the Talapoosa gold-silver project in Lyon county, Nevada.

Timberline's president and chief executive officer, Steve Osterberg, commented: "We are pleased to see continued strength in the gold market and the significant support for our financing in May and June. In July, we moved quickly to commence metallurgical and geotechnical testing at Talapoosa in order to further advance the project. We look forward to continuing the advancement and development of our assets."

We seek Safe Harbor.