Exploration Drill Results From Butte Highlands 

COEUR D'ALENE, ID - Timberline Resources Corporation reported initial drill results from the first phase of its surface exploration drilling at the Butte Highlands Joint Venture Property.

The initial part of Timberline's seven-hole, 7,000 foot surface exploration program was designed to test the upper extension of the known Butte Highlands mineralization in the area of historic drill hole BH88-5, which was drilled by a previous operator and contained an intercept of 10 feet from a depth of 170 feet to 180 feet grading 0.31 ounces per ton gold (opt Au). This phase of the surface drilling program consisted of two holes approximately 120 feet to the southeast of that historic drill intercept. BHDDH 10-01 was designed to intercept the mineralized horizon approximately 120 feet to the southeast and at the same elevation as the historic intercept. It penetrated the contact zone but encountered only weakly mineralized diorite where the mineralized horizon was expected. BHDDH 10-02 was drilled from the same site at a steeper angle and was designed to intercept the mineralized zone 120 feet to the southeast and 130 feet down dip of the historic intercept. It encountered mineralization in a 10-foot intercept from a depth of 262 feet to 272 feet grading 0.383 opt Au, including 4.4 feet grading 0.768 opt Au. This intercept extends the mineralized zone identified by the historic intercept by approximately 120 feet downdip to the southeast. Paul Dircksen, Timberline's Executive Chairman, said, "The extension of mineralization is both encouraging and important, and will complement our understanding and planning for production at the Butte Highlands Joint Venture Property. We will incorporate this new data into our future calculations and modeling of the mineralization." Timberline is continuing with the second phase of the surface exploration drilling program at Butte Highlands with four additional holes which will test targets outside the known area of mineralization and one additional hole in the eastern extent of the known mineralization.