Mr. Steven Osterberg reports

TIMBERLINE ANNOUNCES FIRST QUARTER 2017 FINANCIAL RESULTS

Timberline Resources Corp. has released consolidated financial results for the first quarter of fiscal year 2017, which ended Dec. 31, 2016. A summary of selected financial results is presented in the attached table. All financial amounts are in United States dollars, unless otherwise stated.

                     (in thousands, except per-share amounts)                        

                                                            Quarter ended Dec. 31, 
                                                               2016          2015 

Consolidated net (loss)                                   $    (327)     $   (784)
Consolidated net (loss) per share, basic and diluted          (0.01)        (0.06)
Mineral exploration expenses                                     46           139 
Working capital                                                 121          (583)

Timberline reported a consolidated net loss of $300,000 for the quarter ended Dec. 31, 2016, including exploration expenditures of $46,000. The company's exploration expenditures during the quarter continued to be curtailed to conserve cash. During the quarter ended Dec. 31, 2016, the company received $375,000 from the refund of reclamation bond funds that are no longer required in Nevada. The company has a continuing metallurgical and geotechnical test program at the Talapoosa gold and silver project in Nevada, from which it continues to receive positive results. The primary objective of the test program is to assess the potential to improve heap permeability and enhance gold and silver leach efficiency for the processing of the mineralized material at Talapoosa. The company expects, subject to raising sufficient capital, to continue to advance the Talapoosa project toward a feasibility study and further development.

Timberline's president and chief executive officer, Steve Osterberg, commented: "We are pleased to see recent strengthening in the precious metal commodities and equities markets. As noted in our press release on Jan. 31, the results of our ongoing metallurgical testing at Talapoosa continue to confirm our belief that recoveries can meet or exceed those estimated in the May, 2015, Talapoosa preliminary economic assessment. Based in part on these factors, we anticipate that we will be able to obtain capital for the continued advancement and development of Talapoosa."

We seek Safe Harbor.