09/11/09

Bond Posted and Mine Development Underway at Timberline’s Butte Highlands Gold Project  

Ground Breaking Ceremony Planned 

September 11, 2009 – Coeur d’Alene, Idaho – Timberline Resources Corporation (NYSE Amex: TLR)(“Timberline”) announced today that it has posted the required reclamation bond and site development has begun at its Butte Highlands Gold Project, located 15 miles south of Butte, Montana.  The company anticipates that the initial site facilities and portal will be in place and it will be advancing underground by late October or early November.  A ground breaking ceremony is tentatively scheduled for November 1, 2009.

Timberline’s Vice President of Exploration, Paul Dircksen, commented, “We are very pleased with the progress at our Butte Highlands Gold Project over the past few weeks.  Upon securing the permit and posting the bond, our joint venture company began site work immediately and is making good progress.  The Butte Highlands project demonstrates the unique abilities of the Timberline and Small Mine Development (SMD) teams to evaluate the geologic viability along with the mining feasibility of underground mining projects.  We have identified other similar sized underground projects that this partnership is uniquely qualified to take advantage of, and we will pursue those that have the potential to provide cash flow and enhance shareholder value.”

More information regarding Timberline and its projects, including photo and video updates on the Butte Highlands Gold Project JV, may be found on the company’s web site at www.timberline-resources.com.

Timberline Resources Corporation has taken the complementary businesses of mining services and mineral exploration and combined them into a unique, forward-thinking investment vehicle that provides investors exposure to both the “picks and shovels” and “blue sky” aspects of the mining industry.  Timberline has contract core drilling subsidiaries in the western United States and Mexico and an exploration division focused on district-scale gold projects with the potential for near-term, low-cost development.  The Company has formed a 50/50 joint venture with Highland Mining, LLC, an affiliate of Small Mine Development, LLC, at its Butte Highlands Gold Project which is permitted and has begun development in 2009.  Timberline is listed on the NYSE Amex and trades under the symbol “TLR”.

Statements contained herein that are not based upon current or historical fact are forward-looking in nature. Such forward-looking statements reflect the Company’s expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties, including but not limited to the Company’s 50/50 joint venture with Highland Mining LLC, the development and production of the Company’s Butte Highlands project, and the Company’s expected operations in 2009. When used herein, the words “anticipate,” “believe,” “estimate,” “plan,” “intend” and “expect” and similar expressions, as they relate to Timberline Resources Corporation, or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company’s actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, such factors, including risk factors, discussed in the Company’s Annual Report on Form 10-KSB for the year ended September 30, 2008.  Except as required by the Federal Securities law, the Company does not undertake any obligation to release publicly any revisions to any forward-looking statements.

Contact Information:
Randal Hardy, CEO
Phone: 208.664.4859