Mr. Patrick Highsmith reports

TIMBERLINE ANNOUNCES UPDATED MINERAL RESOURCE ESTIMATE AT THE EUREKA PROJECT UNDER SEC REGULATION S-K 1300

Timberline Resources Corp. has released its initial mineral resource estimate for the Lookout Mountain gold deposit at its 100-per-cent-controlled Eureka project in Nevada under U.S. Securities and Exchange Commission (SEC) Regulation S-K 1300, which is an SEC requirement for U.S. mining projects governing the disclosure of mineral reserves and resources. The company has also filed the accompanying technical report summary (TRS) under its profile on EDGAR and provided a link to the document on its website. The updated mineral resource estimate is summarized in the attached table.

Qualified persons at Respec Company LLC of Reno, Nev., prepared the mineral resource estimates. The new resource estimate has been constrained by optimized open pits utilizing revenue and cost inputs as summarized in the notes to the attached table.

Notes:

• The mineral resources comprise oxidized model blocks that lie within optimized pits at a cut-off grade of 0.005 ounce per ton gold plus unoxidized blocks within the optimized pits at a cut-off of 0.055 ounce per ton gold.
• Mineral resources that are not mineral reserves do not have demonstrated economic viability.
• The mineral resources are potentially amenable to open-pit mining methods and are therefore constrained by optimized pits created using a gold price of $1,800 (U.S.) per ounce, a throughput rate of 10,000 tons per day, assumed metallurgical recoveries of 80 per cent for heap leaching of oxidized materials and 86 per cent for toll milling of unoxidized materials, a mining cost of $2.50 (U.S.) per ton, a heap leach processing cost of $3.60 per ton, a toll milling cost of $80 per ton, general and administrative costs of 83 cents per ton processed, a reclamation cost of 25 cents per ton processed, a refining cost of $3 per ounce gold produced, and a net smelter return royalty of 3.5 per cent. This study does not constitute an initial assessment under S-K 1300.
• The effective date of the resource estimate is Dec. 31, 2022.
• Rounding may result in apparent discrepancies between tons, grade and contained metal content.
• The technical report summary is written by Dr. Steven Osterberg, PhD, PG, Timberline's qualified person, and Respec Company of Reno, Nev.

Patrick Highsmith, Timberline's president and chief executive officer, commented: "Our newly updated mineral resource estimate at the Lookout Mountain gold deposit reflects our first limited economic analysis. The technical report summary documents a lot of work that has been accomplished over the last several years at Lookout Mountain, including solid initial metallurgical, environmental and engineering studies. Advancing the deposit to pit-constrained resources has also identified opportunities for growth and optimization of the project towards economic viability. The recommendations from this study as well as the exciting developments in the district highlight the potential growth for both gold and silver at the Eureka project."

S-K 1300 is a relatively new regulation that requires SEC registrants with material mining operations, including those in the exploration and development stages, to provide certain disclosures about its mining activities in its SEC filings.

Growth opportunities in and around the Lookout Mountain resource

Conclusions and recommendations from the TRS include the observation that the resources reported are open along strike in both directions, as well as down dip. The possible extension of the Lookout Mountain deposit south through to the South Adit resource provides the best opportunity for near-term enhancement of project resources. In addition, there is excellent potential to add to the existing resources that lie west of the Ratto Canyon fault at the Lookout Mountain deposit.

The TRS recommends a program of infill drilling, resource expansion drilling, further metallurgical testing, full three-dimensional geological modelling and the completion of an initial assessment based on the current resources.

Timberline's exploration work at Eureka in recent years has been largely outside the resource area, but geologic modelling and extensive drilling at the adjacent Water Well zone (WWZ) suggest that the two systems are related. Carlin-type gold mineralization has been intercepted at more than 1,000 feet (300 metres) deep down dip from the Lookout Mountain deposit in the WWZ. That target remains open to the east and south.

Timberline drilling farther to the northeast from the WWZ target has also intersected silver-lead-zinc mineralization that is consistent with carbonate-replacement-type deposits (CRD). A very large induced polarization (IP) chargeability anomaly occupies the corridor adjacent to and below the known Carlin-type gold and CRD-type drill intercepts. The IP anomaly has not been thoroughly drill tested.

Qualified person disclosure

The mineral resource estimate was completed and reviewed by a qualified person at Respec Company, which is independent of Timberline Resources.

In addition to Respec, the technical report summary was co-written by Dr. Steven Osterberg, PhD, PG, Timberline's vice-president, exploration, who is a qualified person but is not independent of the company as he is an officer.

Both Dr. Osterberg and Respec have reviewed and approved the contents of this release.

About Timberline Resources Corp.

Timberline Resources is a Nevada-based exploration company with its flagship gold-silver property in the Eureka district. The Eureka property includes the historical Lookout Mountain and Windfall mines in a total property position of approximately 27 square miles (70 square kilometres).

Near the northern end of the Battle Mountain/Eureka trend, the company also jointly holds the Paiute project with Nevada Gold Mines. Timberline also controls the Seven Troughs project in northern Nevada, which is one of the state's highest-grade former gold producers.

In total, Timberline controls over 43 square miles (111 square kilometres) of mineral rights in Nevada. Detailed maps and technical materials for the company's projects may be viewed on Timberline's website.

Timberline is listed on the OTCQB, where it trades under the symbol TLRS, and on the TSX Venture Exchange, where it trades under the symbol TBR.

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