Timberline Advancing Two Projects

COEUR D'ALENE, ID - Timberline Resources Corporation reported exploration expenditures during the first quarter were related primarily to ongoing metallurgical, engineering, and environmental studies at the Lookout Mountain Project on the Company's South Eureka Property in Nevada, in addition to the completion of an updated resource estimate for Lookout Mountain.

Timberline's President and CEO, Paul Dircksen, said, "We are continuing to advance both our Butte Highlands and Lookout Mountain projects in spite of difficult equity market conditions. At Butte Highlands in Montana, where our joint venture partner is funding the project development, the permitting process continues to advance, and we expect to receive all required permits and to commence operations this year. Earlier the company announced an agreement to form a joint venture at Lookout Mountain that is expected to provide significant funding toward the development of that project toward a production decision."

Timberline Resources Corporation is exploring advanced-stage gold properties in the western United States. Timberline holds a 50-percent carried interest ownership stake in the Butte Highlands Joint Venture in Montana where gold production is targeted to commence in 2013. Timberline's exploration is primarily focused on the goldfields of Nevada, where it is advancing its flagship Lookout Mountain Project toward a production decision while exploring a pipeline of quality earlier-stage projects at its South Eureka Property and elsewhere.