04/12/05
SPOKANE, Wash., April 12, 2005 (PRIMEZONE) — Timberline Resources Corporation (Pink Sheets:TBLC) announced today that it has entered into a Mineral Lease Agreement to acquire the Downeyville Project, located in Nye County, Nevada. The Downeyville property consists of 21 unpatented lode mining claims located approximately ten miles north of the Paradise Peak Mine and within a 30-mile radius of four other Timberline properties. The lease calls for Timberline to make annual payments of $10,000 and perform $50,000 of exploration work annually. In addition, the lessor retains a 3Net Smelter Return royalty, which is reduced to a 1NSR if Timberline performs $150,000 of exploration work prior to October 2008 and makes an additional cash payment of $150,000 to the lessor.
Twenty-three rock chip samples were collected by Timberline geologists from mapped structures and existing dumps on the property. Nine of these samples returned assay values ranging from strongly anomalous to ore-grade for zinc, silver and gold. Assay values for selected samples include:
| Silver (oz/ton) | Gold (oz/ton) | Zinc | |
| Sample DX-2 | 11.81 | 0.240 | 11.30 |
| Sample DX-9 | 12.85 | 0.045 | 28.00 |
| Sample DX-14 | 8.62 | 0.040 | 6.10 |
| Sample DX-20 | 6.62 | 0.041 | 5.89 |
| Sample DX-21 | 3.81 | 0.034 | 10.20 |
| Sample DX-23 | 5.61 | 0.061 | 26.00 |
Strongly oxidized shear controlled and replacement-type mineralization occurs throughout the claim group. An airborne geophysical magnetic high to the southwest under alluvial cover could represent a buried intrusive related to the distal base and precious metal mineralization found on the Downeyville claims. The high zinc grades and consistently elevated gold and silver values accompanied by pyrrhotite, magnetite, and tremolite-actinolite indicate a proximal gold skarn system, similar to the Cove-McCoy Mine.
The Downeyville property is one of five precious metal targets the Company has acquired in Nevada’s Walker Lane mineral belt. Mapping and sampling by Timberline has identified drill targets on all five properties. The Company is currently seeking joint venture partners for these prospects.
Timberline Resources Corporation is a Spokane-based junior mineral exploration company focused on the cost-effective acquisition, exploration, and development of promising mineral properties in the western United States. Timberline’s common stock is quoted on the OTC Market under the symbol “TBLC”.
Certain statements contained in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on beliefs of management as well as assumptions made by and information currently available to management. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from expected results.
CONTACT: Timberline Resources Corporation
Bill Hoyt, Investor Relations
(785) 383-9246
www.timberline-resources.com