Mr. Steven Osterberg reports

TIMBERLINE RESOURCES ANNOUNCES EXTENSION OF PRIVATE PLACEMENT FINANCING

Timberline Resources Corp. has received approval from the Toronto Venture Exchange to extend the final closing date of Timberline's non-brokered private placement until March 29, 2017. As announced on Feb. 17, 2017, the company has already closed the first tranche of the offering by issuing 1,945,000 units for a total of $486,250 (U.S.).

The offering, which was initially announced on Jan. 13, 2017, consists of up to five million units at a price of 25 U.S. cents per unit for a total of $1.25-million (U.S.), with an overallotment option to increase the offering by up to 20 per cent. 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 40 U.S. cents per share until the warrant expiration date of Jan. 31, 2020. The company may accelerate the warrant expiration date if the price of the company's common stock closes at or above 90 U.S. cents for 20 consecutive trading days.

The offering is being completed 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, and in accordance with applicable Canadian securities laws. The terms of the offering also include that the company will use commercially reasonable efforts to prepare and file a registration statement under the Securities Act for resale of the shares of common stock and the shares of common stock underlying the warrants to the extent allowed by the SEC.

About Timberline Resources Corp.

Timberline is focused on advancing district-scale gold exploration and development projects in Nevada, including its Talapoosa project in Lyon county, where the company has completed and disclosed a positive preliminary economic assessment. Timberline also controls the 23-square-mile Eureka project lying on the Battle Mountain-Eureka gold trend. At Eureka, the company continues to advance its Lookout Mountain and Windfall project areas.

We seek Safe Harbor.