Mr. Steven Osterberg reports

TIMBERLINE RESOURCES ANNOUNCES GOLD ASSAY RESULTS FOR THE PAIUTE PROJECT, BATTLE MOUNTAIN DISTRICT, NEVADA

Mapping and surface sampling on Timberline Resources Corp.'s Paiute joint venture project, located in the Battle Mountain district of Nevada, have further defined a north-northeast-trending structural zone, measuring 2,500 metres long by 500 metres wide, which hosts gold-silver mineralization. The project, which is located 2.5 kilometres west of Newmont's Copper basin copper-gold deposit, also contains a deeper copper-gold porphyry target. Timberline has entered into a definitive agreement with Americas Gold Exploration Inc. to acquire a 73.7-per-cent interest in the Paiute project joint venture, with the remaining interest owned by a subsidiary of Barrick Gold Corp.

As shown in the attached table, 10 of the 21 surface grab samples collected by the company along the structural zone returned gold values greater than 1.0 gram per tonne (g/t), with three samples over 10 g/t gold, including one sample assaying 42.9 g/t gold and 527 g/t silver. The assay results in the table are consistent with gold and silver values from historical rock chip and soil sampling along the structural zone.

 ASSAY RESULTS FROM PAIUTE 
 PROJECT ROCK SAMPLING* **

Sample   Au (g/t)   Ag (g/t)

18PC-001   0.345        6.8
18PC-002  17.200      723.0
18PC-003   0.609       20.5
18PC-004   1.425        1.7
18PC-005   0.304        9.4
18PC-006   0.214        3.6
18PC-007   1.220        8.8
18PC-008   0.967        1.5
18PC-009   0.667        4.3
18PC-010   4.120       58.4
18PC-011   0.120        5.0
18PC-012   3.250       59.5
18PC-013   0.271        0.5
18PC-014   0.336        2.7
18PC-015   0.010        0.2
18PC-016   0.211        2.4
18PC-017  42.900      527.0
18PC-018   2.940       36.7
18PC-019  10.400       80.0
18PC-020   1.820        6.4
18PC-021   2.180       13.5

* Grab samples are selective 
  and do not represent the 
  true mineralization of the 
  prospect.

** The assays were determined 
   by ALS USA Inc. from grab 
   samples. The samples were 
   crushed and pulverized 
   and a fraction was selected 
   for analyses. Gold was 
   determined by 30-gram fire 
   assay with an atomic 
   adsorption finish. Samples 
   assaying over 10 parts per 
   million (ppm) gold were 
   reassayed and completed with 
   a gravimetric finish. 
   Silver and base metals 
   concentrations were analyzed 
   using aqua regia ICP-AES.

Approximately 375 historic rock chip samples and 1,076 soil samples were collected between 1993 and 2017 by previous operators of the property, including Battle Mountain Gold, LAC Minerals, Pathfinder Exploration, High Desert Minerals Resources (HDMR) and Americas Gold Exploration Inc. (AGEI), with assays similar in range to those from recent sampling. The historic rock and soil samples gold assays support delineation of the gold-silver target zone.

Timberline's president and chief executive officer, Steve Osterberg, commented: "We are very pleased with the results of our initial sampling at Paiute as it clearly confirms the presence of a gold-silver structural system of substantial size. Much of the target zone remains completely untested by drilling, and, where drilling has occurred, it has generally been to only very shallow depths below the surface. Based on the sampling results and our analysis of historical data, we believe that the potential for a Lonetree-type gold deposit is high in this district."

Thirty-nine drill holes have been completed by previous operators at the Paiute project with the majority less than 125 metres deep. Approximately 600 metres near the south end of the gold-silver structural target zone are entirely undrilled.

Cautionary statement

Apart from recent sampling disclosed in the attached table, all other geochemical data are considered historical and do not conform to National Instrument 43-101 standards. These data include historical drill information for which drill logs and assay certificates from industry standard laboratories are available and compiled in a database including UTM co-ordinates for each sample site. UTM sample location co-ordinates are also available for all historic rock grab samples, a representative group of which have been field verified; ALS assay certificates are available for rock samples collected between 2014 and 2017. Historic soil sample data, including location co-ordinates, are compiled in a database and were collected on lines spaced at 60 m separation, with samples collected at 30 m intervals along lines. Infill soil samples were collected in 1997 by Pathfinder Exploration on 30 m spaced lines and analyzed by Chemex Labs for which assay certificates are available.

Copper-gold porphyry target

In addition to the priority gold-silver structural target, compilation of historic drill-related data also confirms the presence of a copper-gold porphyry target at shallow to moderate depth in the south-central part of the five-square-kilometre Paiute project area. Multiple gold intercepts were drilled in 1995 to 1996 within altered granodiorite porphyry. Quartz monzonite porphyry was intercepted at 160-metre depth by a single vertical drill hole (No. 96-5), which was terminated at 178.3 metres due to technical difficulties after drilling a 4.6-metre interval bearing copper sulphide (chalcopyrite), which assayed 1.24 g/t gold.

Mr. Osterberg continued: "The gold-copper occurrence in drill hole No. 96-5 suggests mineralization in the quartz monzonite porphyry is distinct from the priority gold-silver structural target zone. The copper-gold mineralization and associated alteration is considered to be consistent with that of a porphyry copper-gold mineralized system and may represent that similar to the Copper basin project of Newmont Mining Company, located approximately 2.5 km to the east. We are keen to test this distinct target with drilling to follow completion of our geologic review of the historical data."

Drill sites and access roads have been fully permitted by the Bureau of Land Management to complete initial drill testing of both the untested strike length of the gold-silver structural target and the copper-gold porphyry target.

Cautionary statement

A qualified person has not done sufficient work to classify the historical information as a current mineral resource and the company is not treating the historical information as a current mineral resource. Additional drilling and analysis will be required to verify the historical information or create a current mineral resource.

Further technical details of the Paiute project may be viewed at the company's website.

Steven Osterberg, PhD, PG, Timberline's president and chief executive officer, is a qualified person as defined by National Instrument 43-101 and has reviewed and approved the technical contents of this release.

About Timberline Resources Corp.

Timberline Resources is focused on advancing district-scale gold exploration and development projects in Nevada, including its 23-square-mile Eureka property, comprising the Lookout Mountain, Windfall and Oswego projects which lie along three separate structural stratigraphic trends defined by distinct geochemical gold anomalies; and as operator of two joint venture projects -- the Paiute project joint venture with a subsidiary of Barrick Gold, and the Elder Creek project joint venture with McEwen Mining.

We seek Safe Harbor.