Timberline Resources Corporation

COMPANY DATA | INTRODUCTION | PROJECT IN HAND | MANAGEMENT
NEWS UPDATE | CHINESE

Address:	101 E. Lakeside Avenue Coeur d'Alene, ID 83814 U.S.A.
Tel No.:	(208) 664-4859
Fax No.:	(208) 664-4860
Web Site:	www.timberline-resources.com
Corporate Email:	hardy@timberline-resources.com
Contact Person:	Randal Hardy
Position:	CEO

COMPANY DATA

Traded Market:	NYSE Amex	TSX-V
Traded Symbol:	TLR	TBR
Outstanding Shares:	55,645,778
Public Float:	49,200,000
52 Week High:	US$ 1.68
52 Week Low:	US$ 0.43
Present Price:	Click Here

INTRODUCTION

Timberline is a diversified gold company with three complementary business units:

Butte Highlands Joint Venture - currently in development with anticipated gold production in 2011;
An active exploration division with a large, drill-tested, highly prospective project portfolio in Nevada's Battle Mountain - Eureka gold trend;
Two contract core drilling subsidiaries in the U.S. and Mexico providing revenues and cash flow to the company.

Timberline is focused on the evaluation and the acquisition of advanced-stage exploration opportunities, with the potential for near-term development and production. The management team has experience, depth, and a solid track record of achievement in building successful companies and discovering economic ore bodies.

PROJECT IN HAND

Butte Highlands Gold Project, Butte, Western Montana

Timberline formed a 50/50 joint venture with Highland Mining, LLC, an affiliate of Small Mine Development, at its royalty-free Butte Highlands Gold Project located approximately 15 miles south of Butte, Montana, within a favorable geologic domain that has hosted several multi-million ounce gold deposits. The Project is an advanced-stage gold project with historic (non NI 43-101 compliant) mineralization estimate exceeding 500,000 ounces of gold at a grade of nearly 0.3 oz/t gold and excellent potential for significant expansion. The Project commenced development in the summer of 2009 and has gold production targeted in 2011.

Small Mine Development is a privately held underground mining contractor whose owner is one of the Company's directors and its largest shareholder. They are funding all of the development up through production, and Timberline is expecting to be producing about 50,000 ounces of gold per year beginning in about one year at a cost of about $450 per ounce. The Company is also doing additional exploration drilling to expand its mineralized material base at Butte Highlands, which stands right now at about 750,000 ounces of gold.

Exploration permit granted for underground development, drilling, and site preparations. Development plans for 2010:

6,700 foot underground ramp
60,000 feet of underground RC and core drilling
10,000-ton bulk sample

South Eureka Project, Nevada

The South Eureka property, including the Lookout Mountain project, was the primary exploration asset Timberline acquired in its acquisition of Staccato Gold Resources Ltd. in June 2010. The South Eureka property is one of the largest exploration properties in Nevada, strategically located within the southern portion of Nevada's productive Battle Mountain-Eureka gold trend. Barrick Gold's Archimedes Mine is located approximately 5 miles north of the South Eureka property. The Lookout Mountain project is an advanced-stage gold property at the pre-feasibility level, with historic gold production and a previously-reported gold resource in excess of 800,000 ounces. The Lookout Mountain project has potential for near-term open pit production, and the ore is very amenable to low-cost heap leaching processing techniques.

Total land package at South Eureka is approximately 15,000 acres (23 square miles), with multiple exploration targets. All outlined mineralized zones are open and require additional in-fill and step-out drilling in order to initiate a Timberline preliminary economic scoping study. Additionally, a number of identified drill targets will be tested for potential resource expansion

An aggressive exploration and drilling program has already begun at the South Eureka property with a focus on the Lookout Mountain project. Timberline's exploration objective is to confirm the existing resource and apply economic parameters as part of a preliminary study to determine the economic feasibility of the project.

Contract Drilling Services

Timberline owns two contract diamond drilling subsidiaries
- Timberline Drilling, Inc. - 15 drill rigs in Nevada and Western U.S.
- World Wide Exploration, S.A. de C.V. - 6 rigs in Mexico
Specialize in underground core drilling for major companies at active mine and development projects
Experienced drilling employees serving world-class clients including Newmont Mining in the U.S. and Penoles in Mexico
Drilling operations are focused on safety, client satisfaction, efficiency and profitability
Combined revenue over US$17 million in FY2009
Profitable and positive cash flow

MANAGEMENT

Officers and Directors

Paul Dircksen, M.S. Geology, Executive Chairman, VP of Exploration & Director
Mr. Dircksen has over 35 years of experience in the mining and exploration industry, serving in executive, managerial, and technical roles at several companies. He has a strong technical background, serving as a team member on nine gold discoveries, seven of which later became operating mines. Mr. Dircksen has held senior management positions with Lacana Gold, The Cordex Syndicate, Orvana Minerals, Bravo Venture Group, and Brett Resources.

Randal Hardy, CEO, CFO & Director
Before joining Timberline, Mr. Hardy was the President and CFO of a public exploration company. Prior to that, he was President and CEO of Sunshine Minting, Inc. He has also served as Treasurer of the NYSE-listed Sunshine Mining and Refining Company where he participated in raising and managing over $60-million in debt and equity financing. Mr. Hardy has a Business Administration degree from Boise State University and has earned certifications as a Certified Management Accountant and Certified Cash Manager.

Craig Crowell, Chief Accounting Officer
Before joining Timberline, Mr. Crowell was responsible for the accounting and financial reporting for two divisions of a NYSE-listed forest products company. Prior to that, he served in several accounting roles with a NYSE-listed international energy company. He has also worked in public accounting with PriceWaterhouse. Mr. Crowell has a Commerce degree from the University of Alberta and is both a CPA (Illinois) and a Canadian Chartered Accountant (Alberta).

Eric Klepfer, Director
Mr. Klepfer has over 23 years of experience in the mining industry. He is the principal of Klepfer Mine Services.

Ron Guill, Director
Mr. Guill is the owner of Small Mine Development, one of the largest underground mine contractors in the United States.

Vance Thornsberry, Director
Mr. Thornsberry is a Registered Professional Geologist with over 35 years of experience in the mining and exploration industry.

James H. Moore, Director
Mr. Moore has over 30 years of experience in senior level financial management within the mining industry.

Robert Martinez, Director
Mr. Martinez is a metallurgical engineer with over 35 years of experience in the mining and exploration industry.

NEWS UPDATE

On August 10, 2010, Timberline Resources Corporation announced consolidated financial results for its third fiscal quarter ended June 30, 2010.

For the third fiscal quarter of 2010, Timberline reported a consolidated net loss of $0.81 million compared to consolidated net income of $0.24 million in the same fiscal quarter of 2009. The net loss for the third fiscal quarter of 2010 includes expenses of $0.21 million related to the acquisition of Staccato Gold Resources during the quarter. The net income for the third fiscal quarter of 2009 included a one-time recovery of previously expensed professional fees of $0.53 million.