Mr. Steven Osterberg reports

TIMBERLINE RESOURCES CLOSES FINAL TRANCHE OF US$2.0 MILLION PRIVATE PLACEMENT

Timberline Resources Corp. has closed the third and final tranche of its previously announced non-brokered private placement, for which it has received final approval from the TSX Venture Exchange.

In connection with the closing of the third and final tranche of the offering, the company has issued 1,845,000 units at a price of 25 U.S. cents for total consideration of $461,250 (U.S.). In the aggregate of the three tranches of the offering, the company has issued a total of eight million units for total consideration of $2-million (U.S.).

Each unit in the offering consisted 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.

The company intends to use the net proceeds of the offering for working capital, exploration program expenses as well as costs associated with claim maintenance, including property lease and option payments.

Insiders of the company have acquired 105,000 units under the offering. Their participation is considered to be a related-party transaction within the meaning of TSX-V Policy 5.9 and Canadian Multilateral Instrument 61-101. The company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of an insider participation as neither the fair market value of any shares issued to, nor the consideration paid by, such persons will exceed 25 per cent of the company's market capitalization.

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

We seek Safe Harbor.