Gunpoint To Sell 100% Interest in Talapoosa

VANCOUVER, BC - Gunpoint Exploration Ltd. reported the closing of its transaction with Timberline Resources Corporation from Gunpoint's subsidiary, American Gold Capital US Inc., a 100% interest in the Talapoosa gold project located in Nevada.

In consideration for the Option Timberline has paid US$100,000 and issued 2.0 million shares of common stock of Timberline to American Gold. American Gold owns 16.7% of the outstanding shares issued in Timberline. The Timberline shares are subject to staged vesting over 24 months from closing. Timberline will also pay an additional US$200,000 to American Gold within the next 180 days.

Timberline has within 30 months from March 12, 2015 to exercise the Option to acquire a 100% interest in Talapoosa. The company can exercise the Option by making a US$10.0 million cash payment to American Gold. For a period of five years after Timberline exercises the Option, Timberline will be required to pay American Gold an additional US$10.0 million (payable in cash and Timberline common shares) if the daily price of gold averages US$1,600 per ounce or greater for a period of ninety consecutive trading days.

Timberline plans to complete a feasibility study on Talapoosa during the option period. American Gold retains a 1% net smelter royalty on Talapoosa, which Timberline can purchase for US$3.0 million.