Mr. Patrick Highsmith reports

TIMBERLINE ANNOUNCES NON-BROKERED PRIVATE PLACEMENT

Timberline Resources Corp. has filed with the TSX Venture Exchange for approval of a non-brokered private placement of units of the company at a price of five U.S. cents per unit (approximately 6.7 cents, based on a currency exchange rate of $1 to 74.2 U.S. cents as of Aug. 16, 2023) for gross proceeds of up to $1-million (U.S.). The units will be offered solely to persons or institutions who qualify as accredited investors under Rule 506(b) of Regulation D promulgated by the Securities and Exchange Commission under the Securities Act of 1933, as amended. The offering may be completed in one or more tranches and is subject to approval by the TSX Venture Exchange.

Each unit will consist of one share of common stock of the company and one-half of one common share purchase warrant, with each whole warrant exercisable to acquire an additional share of common stock of the company at a price of eight U.S. cents per share for three years from the date of issuance.

The private placement is being led by orders from Crescat Capital and an offshore precious metals fund. Crescat is a global macro asset management firm headquartered in Denver, Colo., and is already a significant shareholder of Timberline.

The company plans to use the net proceeds of the offering for exploration, resource development and permitting at its Eureka project, and for general corporate purposes, including the retirement of a senior unsecured note held by William Matlack, a director of the company. A payment in the amount of $387,591.43 (U.S.) to Mr. Matlack on Aug. 31, 2023, will settle the note, leaving the company debt free.

Finder's fees may be payable with respect to subscriptions for units accepted by the company, and consulting fees may be payable by the company in relation to the offering. Certain insiders may participate in the offering.

The securities to be issued pursuant to the offering will be subject to a statutory hold period in accordance with applicable securities legislation.

The company also announces that it has terminated the private placement previously announced on April 27, 2023.

About Timberline Resources Corp.

Timberline is a Nevada-focused exploration company targeting Carlin-type gold and carbonate replacement-type silver-lead-zinc-gold deposits in the Eureka mining district.

We seek Safe Harbor.