Exploration Update On Eureka Project In Nevada

COEUR D'ALENE, ID - Timberline Resources Corporation reported on exploration progress at the Eureka Project including drilling at Lookout Mountain and district-scale geophysical surveys. The Company has prioritized discovery of high-grade (> 3 grams/tonne) Carlin Type Gold Deposits (CTGD) on the project, commencing with Phase 1 drilling at the Lookout Mountain Target. The objective of this drill program is discovery of additional high grade gold mineralization both outside, and within the existing gold resource area (508,000 oz Measured & Indicated and 141,000 oz Inferred.

Core drilling continues at the Lookout Mountain Target, where approximately 800 meters (m) of the planned 1,900m core program have been completed to date. The first vertical core hole, BHSE-188C, was completed to 472m depth. It was designed as a 525m step-out to the east of the historic open pit to test an induced polarization/resistivity (IP) anomaly below post-mineral volcanic rocks. It encountered significant alteration and textures consistent with Carlin-type systems, including approximately 212m of highly fractured to brecciated limestone, 56m of black sulfidic to carbonaceous breccia, and several zones (46m total) of sanded dolomite. The hole was terminated after an interval of 67m of pyritic jasperoid intruded by multiple pyritic quartz-feldspar aplitic dikes. A second core hole, BHSE-190C is in progress, and five additional core holes are planned. All core assays are pending.

In addition, approximately 2,600 m of Reverse Circulation (RC) drilling has been completed in 12 holes in and around the historic Lookout Mountain open pit, which produced approximately 18,000 oz of gold grading 4.1 grams per tonne (0.12 ounces per ton) during the mid-1980s. This drilling targeted resource infill and extensions of high-grade mineralization within the pit area, and tested strike extensions of the mineralized system to the north over approximately 200m. RC hole BHSE-187 tested extension of the high-grade gold mineralization in the Water Well "Orpiment Discovery Zone" east of the pit and intersected 32m of black, siliceous argillite with notable orpiment (arsenic sulfide). All RC assays are pending.

Timberline cautions that proximity or similar geology to an active or past-producing mine does not indicate that mineralization will occur on Timberline's property, and if present, that it will occur in sufficient quantity or grade that would be economic to mine. This information is provided for context and as an element of the prospectivity analysis of the Company's properties.

Magee Geophysical Services LLC has completed a detailed gravity survey of the Eureka Project encompassing approximately 60 square kilometers (km) on nominal 200m spacings.

The Company has also initiated a 28 line-km IP survey by Simcoe Geoscience Limited on the Lookout Trend to follow-up on the abundant sulfides and carbonaceous material encountered in several of the deeper drill holes. The survey is expected to be completed in approximately 30 days. Weather-permitting, up to 30-line km of controlled-source audio-frequency magnetotellurics (CSAMT) is planned to augment the IP and enhance the detailed interpretation of structure and alteration along the Lookout Trend.

Timberline will utilize the district scale gravity and CSAMT data in conjunction with the geology and its extensive technical databases to advance additional CTGD targets throughout the property, including those associated with the historic Windfall Mine.

Timberline's President and CEO, Patrick Highsmith, said, "The 2020 field program at Eureka has been very successful so far. We are pleased to be on track with respect to our budget and timeline. Our preliminary review of the drilling and geophysical data to date indicates the presence of considerable alteration at depth and well beyond the existing resource area. The team is working collaboratively to understand the controls on the known high-grade mineralization and apply that knowledge to new targets along the Lookout Trend and beyond."