Mr. Steven Osterberg reports

TIMBERLINE RESOURCES CLOSES SECOND TRANCHE OF PRIVATE PLACEMENT FINANCING TO FACILITATE TALAPOOSA OPTION PAYMENT

Timberline Resources Corp. has closed the second tranche of its previously announced non-brokered private placement by issuing 4.21 million units for a total of $1,052,500 (U.S.). In the two tranches of the offering that have closed, the company has issued 6,155,000 units for a total of $1,538,750 (U.S.). A final tranche is expected to close in April, 2017.

The company intends to use a portion of the net proceeds of the offering to pay the option payment of $1-million (U.S.) on its Talapoosa gold and silver property in Lyon county, Nevada, that is due on March 31, 2017, as well as for working capital, exploration program expenses and costs associated with claim maintenance.

The offering was initially announced on Jan. 13, 2017, for a total amount of $1.25-million (U.S.). Due to demand for the offering, the offering amount was increased to $1.75 (U.S.) and the termination extended until April 28, 2017. The increase and the extension were announced on March 24, 2017.

The increased offering consists of up to seven million units at a price of 25 U.S. cents per unit for a total of $1.75-million (U.S.). 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. Certain finders' fees and consulting fees may be payable by Timberline in relation to this transaction to support in marketing this offering.

About Timberline Resources Corp.

Timberline Resources 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.

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