Timberline Files Underground Exploration Plan

 

COEUR D'ALENE, ID - Timberline Resources Corporation reported on the filing of the Underground Exploration Plan and the acquisition of additional property at its Butte Highlands Gold Project in southwestern Montana.

Timberline has rapidly advanced its Butte Highlands Gold Project toward development and production since first purchasing the property in 2007.

Timberline recently filed its Underground Exploration Plan with Montana's Department of Environmental Quality (DEQ). The work plan at Butte Highlands is primarily aimed at advancing the deposit toward near-term development and production. The review and approval process is expected to take approximately 60 days after which the Company expects to begin the development ramp and drilling. The plan includes:

 *  Driving a 6,700-foot decline, providing access for 10 to 15

    underground drill stations and doubling as a production ramp.

 *  60,000 feet of underground drilling to further define and

    potentially expand known mineralized zones and to provide

    material for metallurgical testing.

 *  Additional surface drilling to test the deposit's western

    extension discovered last fall in Hole #08-03. (See

    Timberline's press release dated October 21, 2008 for more

    information.)

 *  A 10,000-ton bulk sample to provide material for pre-production

    ore characterization.

 *  Additional water monitoring drill holes for further definition

    of the hydrological character, verifying continuity with last

    year's single test hole.

In support of the project, Timberline has recently acquired approximately 150 acres of private land adjacent to and just south of its main Butte Highlands property. The strategic parcel is expected to reduce development and mining costs by providing improved portal access and more optimal facilities locations and staging areas.

Timberline V-P of Exploration Paul Dircksen stated, ``While this stage of the development process is fairly quiet from a public announcement perspective, it is typically when exploration companies are most active. The combination of Timberline geologists, contributions from our drilling staff, permitting and oversight of Klepfer Mining Services, and the engineering and design input from the team at Small Mine Development have allowed the plan to come together according to the time frame we originally outlined. In addition to the Underground Exploration Plan, we have been advancing geologic modeling, geologic targeting for resource expansion, mine modeling, engineering design, property consolidation, and permitting. We are looking forward to an acceleration of activities this summer.''

Butte Highlands is located 15 miles south of Butte, Montana within a favorable geologic domain that has hosted several multi-million ounce gold deposits including Butte, Golden Sunlight, Montana Tunnels, and Virginia City. The property was extensively drilled by Placer Dome, Battle Mountain, ASARCO, and Orvana Minerals in the 1980s and 1990s, and contains historic mineralization outlined by Orvana (not compliant with NI 43-101 or SEC Guide 7) exceeding 500,000 ounces of gold at a grade of nearly 0.30 ounces of gold per ton (oz/t). Past drilling highlights include gold intercepts of 50 feet of 0.65 oz/t, 31 feet of 1.06 oz/t, and 11.50 feet of 1.99 oz/t.

The companys address is 101 E. Lakeside, Coeur d'Alene, ID 83814, 208.664.4859, fax: 208.664.4860, email: [email protected], www.timberline-resources.com.