Mr. Steven Osterberg reports

TIMBERLINE ISSUES SHARES FOR TALAPOOSA OPTION PAYMENT

Timberline Resources Corp. has received approval from the TSX Venture Exchange and has issued one million common shares to American Gold Capital U.S. Inc., a subsidiary of Gunpoint Exploration Ltd., in satisfaction of the company's share portion of the option payment for its Talapoosa gold project in Lyon county, Nevada. The stock payment was made pursuant to the terms of the amended option agreement, which permits the company to acquire 100 per cent of the Talapoosa gold project.

As previously announced, Timberline's focus is on finalizing the continuing metallurgical studies and preparations for initial drill testing of the resource expansion target areas at Talapoosa and exploration on the adjacent Appaloosa zone (see press releases dated Dec. 7, 2016, and Jan. 31, 2017).

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. Exploration potential occurs within three separate structural-stratigraphic trends defined by distinct geochemical gold anomalies. 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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