Timberline Intercepts Additional High-Grade Gold  

COEUR D'ALENE, ID - Timberline Resources Corporation reported final drill results for its 2010 surface exploration drill program at the Butte Highlands Joint Venture Property in Montana.

The seven hole drill program included three holes within the mineralized envelope currently under development, while four holes were drilled outside the envelope to test potential eastern extensions of the mineralized zone. Drill hole BHDDH10-07 returned a significant intercept of 43.2 feet averaging 0.82 ounces per ton (opt) (13.2 metres at 28.1 grams per tonne (g/t)) gold including 2.2 feet grading 15.24 opt (0.7 metres of 521.9 g/t) gold. This hole indicates a bonanza grade zone within the current mineralized area and could represent some of the initial production, which is expected to commence in Q3/Q4 2011. Additional drill holes within the zone demonstrate a strike distance of continuous bonanza gold grades of nearly 200 feet. This zone will be in-fill drilled from underground drill stations during the Butte Highlands Joint Venture Definition Drill Program to commence during the final quarter of this year. The results from the first two holes in the Butte Highlands exploration drill program were reported earlier and included drill hole number BHDDH10-01 which contained no significant mineralization, and drill hole number BHDDH10-02 which had a mineralized interval of 4.4 feet grading 0.77 opt (1.3 metres of 26.4 g/t) gold. Exploration drill holes numbered BHDDH10-03 thru BHDDH10-06 were drilled to the east of the current mineralization, and although they did not return potentially economic grades, they did return several intervals of gold mineralization. These results will assist in planning of future exploration in the area. Timberline's Executive Chairman, Paul Dircksen, stated, "We are extremely pleased with these drill results. The impressive gold grades in drill hole number BHDDH10-07 and the nearby high-grade intervals demonstrate the grade continuity of one of the high-grade portions of the Butte Highlands deposit. We are confident that our final in-fill drilling will continue to enhance the economics of the project." The company's address is 101 E. Lakeside Coeur d'Alene, ID 83814, 208.664.4859, fax: 208.664.4860, email: [email protected].