Mr. Steven Osterberg reports

TIMBERLINE ANNOUNCES SECOND QUARTER 2017 FINANCIAL RESULTS

Timberline Resources Corp. is releasing its consolidated financial results for the second quarter of fiscal year 2017, which ended March 31, 2017. A summary of selected financial results is presented in the attached table.

                          SUMMARY OF RESULTS
     (in thousands of U.S. dollars, except earnings per share)
                                           
                                                    Quarter ended March 31, 
                                                         2017         2016 

Consolidated net (loss)                                $ (531)      $ (413)
Consolidated net (loss) per share, basic and diluted   $(0.02)      $(0.03)
Mineral exploration expenses                           $   36       $    7 
Working capital                                        $  210       $ (276)

Timberline reported a consolidated net loss of $500,000 for the quarter ended March 31, 2017, including exploration expenditures of $36,000 and a gain on the sale of available-for-sale securities of $24,000. The company's exploration expenditures during the quarter were focused on its Talapoosa project. Significant activity during this quarter was related to closing two tranches of a private placement of units and meeting the company's obligations pursuant to its amended option agreement to acquire the Talapoosa property.

Timberline's president and chief executive officer, Steve Osterberg, commented: "We appreciate the continued support of our shareholders in our recent financing. With this year's Talapoosa option payment completed, we intend to focus on advancing our Talapoosa exploration and metallurgical testing programs, and further defining the exploration opportunities along the Appaloosa structural trend. We believe that gold and silver prices will remain relatively strong, and that capital will be available for continued exploration and potential development of our projects."

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, where 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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