Mr. Steven Osterberg reports

TIMBERLINE RESOURCES INCREASES PRIVATE PLACEMENT FINANCING AMOUNT TO US$2 MILLION

Timberline Resources Corp., due to additional demand, and with approval from the TSX Venture Exchange, has increased the amount of its previously announced non-brokered private placement from $1.75-million (U.S.) to $2-million (U.S.).

Under the increased offering, the company may issue up to eight million units of the company at a price of 25 U.S. cents per unit, and it is 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 40 U.S. cents per share until Jan. 31, 2020.

Two tranches of the offering have already closed, and 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 the net proceeds of the increased offering for property payments, exploration program expenses and working capital.

The terms of the increased 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. Timberline also owns the Seven Troughs property in northern Nevada, known to be one of the state's highest-grade, former producers.

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