Lookout Mountain Gold Zone Extended With Additional Drill Results  

COEUR D'ALENE, ID - Timberline Resources Corporation has extended the gold zone at its Lookout Mountain Project with additional significant assay results from the recently-completed 45,000-foot drill program at its South Eureka Property near Eureka, Nevada.

Highlights include several significant intercepts with excellent recoveries of oxide gold mineralization. Hole BHSE-108 returned three mineralized intervals, including 0.016 ounces per ton (opt) gold over 240 feet, and Hole BHSE-124 returned 0.022 opt gold over 75 feet. At South Adit, highlights included Hole BHSE-121 which returned 0.021 opt gold over 80 feet and 0.016 opt gold over 45 feet. Infill and step-out drilling at South Adit in 2011 successfully confirmed and expanded the historic gold resource. Additional drilling in the 2012 program will seek to expand this zone.

These and other results from the 2011 drill program have successfully extended the gold zone at Lookout Mountain 600 feet to the south of the existing resource, and have expanded gold mineralization along the west margin of the resource. Results from Lookout Mountain, and from the South Adit area, are expected to significantly increase the current Lookout Mountain NI 43-101 Measured and Indicated resource estimate of 286,000 ounces of gold, and the Inferred resource estimate of 206,000 ounces of gold.

Paul Dircksen, President and CEO said, "We continue to be very pleased with drill results from our South Eureka property. Progress achieved in 2011 includes the demonstration of mineralization continuity to the south and west of Lookout Mountain, consistent gold grades and metallurgical characteristics, and improved definition of structural controls and possible pit boundaries. Our drill program has succeeded in advancing the project toward development of a low cost, run-of-mine heap leach gold operation. We also enjoyed drilling success in the South Adit area and will define a NI 43-101 resource in that zone for the first time."

The company's address is 101 E. Lakeside,Coeur d'Alene, ID 83814, 208.664.4859,?fax: 208.664.4860, email: [email protected].