08/18/05

SPOKANE, Wash., Aug. 18, 2005 (PRIMEZONE) — Timberline Resources Corporation (Pink Sheets:TBLC) today announced the appointment of John Swallow as chairman of its Board of Directors, along with other recent corporate developments.

Mr. Swallow is a businessman from Coeur d’Alene, Idaho and a former president and director of Sterling Mining Corporation. He brings wide-ranging experience from within the local mineral exploration industry as well as extensive knowledge of the junior equity markets. Mr. Swallow holds a Bachelor of Science degree in finance from Arizona State University.

Timberline also announced that Mr. Swallow, through Cougar Valley LLC, has recently closed a series of private transactions giving him control of 1.9 million shares of Timberline stock, as well as a 500,000-unit private placement with Timberline. Timberline now has approximately 6.9 million shares outstanding and approximately 8.4 million shares, fully diluted. Following these transactions, Mr. Swallow controls just under 35 percent of Timberline stock.

Placement proceeds have enabled Timberline to hire an attorney to begin the process of preparing and filing the documentation necessary to become a fully reporting company. Placement proceeds have also enabled Timberline to hire an external marketing consultant as the company seeks to improve its public profile. In addition, Timberline has begun the permitting process for an initial drill program on its flagship Snowstorm Project. Drilling is planned for later this year, subject to available funding.

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 primary focus is the Snowstorm Project in north Idaho’s “Silver Valley”, where it can earn a 49 percent interest from Hecla Mining Company in a bulk-tonnage stratabound copper-silver target, potentially similar to well-known deposits at Troy, Rock Creek and Montanore. Timberline has fewer than seven million shares outstanding and its 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. The timing of the SEC registration and review process is inherently uncertain and may be delayed indefinitely, and if completed does not guarantee that Timberline will attract additional market attention or complete any necessary financing in the future, or that the price of Timberline’s securities will rise.
CONTACT: Timberline Resources Corporation
Stephen Goss, President
(509) 747-5225
www.timberline-resources.com