Mr. Steven Osterberg reports

TIMBERLINE RESOURCES CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT FINANCING

Timberline Resources Corp. has received conditional approval from the TSX Venture Exchange for its private placement and has closed the first tranche of the previously announced non-brokered private placement by issuing 2,290,867 units for a total of $687,260 (U.S.). A second tranche is expected to close by mid-November.

The offering, which was initially announced on Oct. 12, 2017, consists of up to 4,166,667 units at a price of 30 U.S. cents per unit for a total of up to $1.25-million, with an overallotment option to increase the offering by up to 20 per cent. 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 45 cents per share until the warrant expiration date of Oct. 31, 2022.

The offering is being completed under Rule 506(b) of Regulation D promulgated by the U.S. Securities and Exchange Commission (SEC) under the Securities Act of 1933, as amended, solely to persons who qualify as accredited investors and in accordance with applicable Canadian securities laws.

The company intends to use the net proceeds of the offering for working capital, costs associated with property and claim maintenance, and exploration expenses. In connection with this tranche of the offering, cash finders' fees of 7 per cent were paid to certain eligible finders in the amount of $41,548 (U.S.).

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. At Eureka, the company continues to advance its Lookout Mountain and Windfall project areas. Exploration potential occurs within three separate structural-stratigraphic trends defined by distinct geochemical gold anomalies.

We seek Safe Harbor.