Mr. Steven Osterberg reports

TIMBERLINE RESOURCES ANNOUNCES GOLD AND COPPER ASSAY RESULTS FOR THE ELDER CREEK PROJECT, BATTLE MOUNTAIN DISTRICT, NEVADA

Geologic mapping, surface sampling and an aeromagnetic survey have defined a large porphyry copper target on Timberline Resources Corp.'s Elder Creek project in the Battle Mountain district of Nevada. Timberline has entered into a purchase and sale agreement with America's Gold Exploration Inc. pursuant to which it may obtain the right to acquire a 65-per-cent interest in the 41-square-kilometre property by spending $5.1-million (U.S.) over six years through an earn-in joint venture agreement with McEwen Mining Inc. Additional details of the transaction are available in a previous news release dated May 24, 2018.

Rock geochemical sampling results, along with geologic and geophysical characteristics evident at Elder Creek, are common to major porphyry copper deposits. The core of the Elder Creek porphyry target covers approximately 4.5 square kilometres, and has at least three intrusive phases which form two granodiorite porphyry centres that are similar in age (35 million to 37 million years) to the intrusive rocks at Newmont's Phoenix gold-copper mine 18 kilometres to the south. The core is characterized by intense quartz veining and elevated copper and molybdenum values, and is flanked by proximal potassic alteration and distal biotite-pyrite-pyrrhotite hornfels. The porphyry core forms a pronounced magnetic low that is ringed by a strong magnetic high doughnut of hornfels. Large target areas of gold-copper veining occur within the hornfels to the south and east of the porphyry core. Most of the approximately 100 historic drill holes are less than 150 metres deep and tested some of the areas of polymetallic veining within the hornfels on the eastern portion of the property and encountered multiple intercepts of both copper oxide and sulphide, and gold mineralization. Only two shallow holes were drilled in the main porphyry copper target area, leaving it relatively untested both areally and to depth.

Sampling results

The company recently collected 12 surface grab samples to complement 41 rock samples collected in 2013 across the Elder Creek project area. Twenty-five of the samples contain elevated copper mineralization (greater than 1,000 parts per million), with 13 of those over 1 per cent copper (greater than 10,000 ppm) and reaching a maximum of 17 per cent in a sample taken from a copper-oxide mineralized outcrop. Gold assays in excess of one gram per tonne (g/t) (1,000 ppb) were also noted in multiple locations, with elevated levels of indicator minerals, including bismuth, molybdenum and arsenic, present in many samples as well. These assay results corroborate those from over 1,100 rock samples that have been documented from the same area, including numerous duplicate samples from individual outcrops. Additional metallogenic associations, together with the company's new interpretive exploration models, are presented.

Timberline's president and chief executive officer, Steve Osterberg, commented, "The occurrence of copper and gold in outcrop over such large areas, combined with our extensive geologic, geochemical and geophysical data sets, support our belief that a major, mineralized system developed at Elder Creek."

Cautionary statement

Apart from recent sampling disclosed in the attached table, all other geochemical data are considered historical and does not conform to National Instrument 43-101 standards. These data include historical drill information for which 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 from which a representative group have been field verified.

Mr. Osterberg continued: "Most of the project area remains completely untested by drilling. Undertested targets of this magnitude are rare in established, world-class mining jurisdictions such as Nevada's Battle Mountain district, and we intend to test the vast exploration opportunity at the Elder Creek project."

Exploration planning

The company is continuing its review of historical exploration data, including approximately 14,100 soil samples collected by previous explorers of the property, and results from approximately 100 historic drill holes. Historical geophysical data including gravity and induced polarization/resistivity data are currently being re-evaluated in the context of the current geologic model.

Exploration plans include completion of additional geophysical surveys to better assess distribution of sulphide mineralization, continued geologic mapping and an initial fence of drill holes across priority targets, including copper oxide mineralization identified in outcrops.

Dr. 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 projects in Nevada, including its 23-square-mile Eureka property and other property interests in 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. Upon completion of the property acquisition from AGEI, Timberline's owned and controlled mineral rights in Nevada will increase to over 43 square miles (24,500 acres), including the Seven Troughs property in northern Nevada, known to be one of the state's highest-grade, former-gold-producing properties.

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