Mr. Steven Osterberg reports

TIMBERLINE RESOURCES RE-INITIATES EUREKA PROJECT EXPLORATION AND RELINQUISHES TALAPOOSA PROPERTY OPTION

Timberline Resources Corp. is refocusing its exploration efforts on advancing the Windfall and Lookout Mountain projects at its Eureka property, concurrent with relinquishing its option to acquire the Talapoosa project. Eureka is a district-scale exploration property in Nevada's prolific Battle Mountain-Eureka gold trend that hosts numerous world-class gold deposits.

Timberline's president and chief executive officer, Steve Osterberg, commented: "We are excited about returning our focus to the Eureka project. While we investigated numerous financing alternatives in the current market environment, we were unable to meet the significant payment obligations related to the Talapoosa option. We believe that current and future available resources will be better directed toward advancing our substantial gold resources at Lookout Mountain and the very promising Windfall target at Eureka."

Eureka project: Windfall target

Timberline intends to resume exploration activities at the Eureka property this field season with particular emphasis on the Windfall target. At Windfall, historic gold production exceeded 100,000 ounces, with historic drilling including an intercept of 75 feet which returned 0.153 ounce per tonne gold (22.9 metres of 5.24 grams per tonne gold). Recent drilling of six holes in 2015 successfully tested on-strike, offset and down-dip extensions of the historic gold mineralization that was mined in the 1980s by a previous operator.

The six drill holes completed (BHWF-036 to 041) tested a strike length of approximately 3,000 feet and intersected gold mineralization consistent with results from over 600 historic drill holes.

Results of the 2015 drill program at Windfall are presented in the attached table.

Drill hole     From (feet)   Length (feet)(1)   Gold (o/t)   From (metres)  Length (metres)(1)  Gold (g/t)

BHWF-036              290                 40         0.04            88.4                12.2        1.26
BHWF-037              185                 90         0.06            56.4                27.4        2.20
including             185                 45         0.11            56.4                13.7        3.68
BHWF-038              420                 80         0.01           128.0                24.4        0.32
including             495                  5        0.045           150.9                1.52        1.45
BHWF-039              380                 35         0.01           115.8                10.7        0.46
BHWF-040              290                 80         0.09            88.4                24.4        3.04
including             305                 20         0.26            93.0                 6.1        8.79
BHWF-041              230                 60         0.04            70.1                18.3        1.24
     

The company anticipates calculation of an estimated National Instrument 43-101 resource on the Windfall trend, which is expected to confirm the company's exploration target potential and to augment the total gold resource at the Eureka property. Additional field studies are planned to include geologic and geochemical surveys for target expansion.

Eureka project: Lookout Mountain resource and technical information

Timberline's current gold resource estimate at Lookout Mountain, which was prepared by Mine Development Associates of Reno, Nev., consists of what is shown in the attached table.

                                     LOOKOUT MOUNTAIN GOLD RESOURCE (1)(2)(3)      
                                                                 
Resource category       Short tons Metric tonnes Ounces of gold per ton (o/t)  Grams of gold per tonne (g/t) Gold ounces

Measured                 3,043,000     2,761,000                       0.035                           1.20      106,000
Indicated               25,897,000    23,493,000                       0.016                           0.55      402,000
Measured and indicated  28,940,000    26,254,000                       0.018                           0.62      508,000
Inferred                11,709,000    10,622,000                       0.012                           0.41      141,000

Notes:
(1) 0.006 o/t (0.21 g/t) cut-off applied to oxidized material to capture mineralization potentially available to
open-pit extraction and heap-leach processing. 0.03 o/t (1.03 g/t) cut-off applied to unoxidized material
to capture mineralization potentially available to open-pit extraction and lower heap-leach recoveries or
sulphide processing.
(2) Rounding may cause apparent discrepancies.
(3) Refer to updated technical report on the Lookout Mountain project, MDA, effective March 1, 2013, filed on
SEDAR on April 12, 2013.

Refer to Timberline's website for the full MDA resource estimate with various cut-off grades.

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.

We seek Safe Harbor.