COEUR D'ALENE, ID / ACCESSWIRE / July 11, 2019 / Timberline Resources Corporation (OTCQB: TLRS; TSX-V: TBR) ("Timberline" or the "Company") announces that, further to its news release of May 9, 2019, it has entered into a joint venture with PM&Gold Mines, Inc. ("PM&G" and together with Timberline, the "JV Partners") whereby the JV Partners formed a limited liability company to conduct operations on the Company's Lookout Mountain Project in Nevada (the "Project") pursuant to a limited liability company agreement (the "Agreement") . Pursuant to the Agreement, PM&G can earn an initial 51% interest in the project, which is located on the southern end of the Battle Mountain-Eureka Trend, by expending US$6 million on exploration and development over a 2-year period, as further described below.

In connection with the Agreement and subject to TSX Venture Exchange approval, further to Timberline's February 8, 2019 news release announcing a US$500,000 non-brokered private placement of Timberline units at a price of US$0.08 per unit (the "Offering"), PM&G has subscribed for a 4.99% ownership position in the Company under the Offering. Pursuant to additional Offering subscriptions received, the Company expects to close the Offering on a fully subscribed basis immediately following TSX Venture Exchange approval of the Offering and Agreement.

Lookout Mountain Joint Venture Agreement

Under the Agreement, PM&G will initially fund exploration and development activities in two stages. Timberline will contribute the claims that constitute the Lookout Mountain project and adjacent historical Oswego Mine area (the "Project") to the joint venture. Timberline will manage the joint venture at least through the initial US$6 million Stage I investment. PM&G has the right to manage the Stage II activities.

Steven Osterberg, Timberline's President and CEO, stated, "This well-funded joint venture allows us to advance the Lookout Mountain Project at minimal dilution. Phase I work will begin in Q3/19 and includes an aggressive drilling program to target expansion of known high-grade Carlin-style gold mineralization."

Stage I: Earn 51%: PM&G can earn an initial 51% interest by expending US$6 million on certain exploration expenses over a 2-year period. Work will focus on the near-surface oxide and deeper high-grade gold mineralization to identify near term production potential, which the Company proposes to use to develop an updated gold resource estimate prepared in accordance with National Instrument 43-101. This exploration will also test for expansion of gold mineralization outside the existing defined resource.

Stage II: After completion of Stage I, Timberline may elect to participate at 49% on a pro rata basis. If Timberline elects not to fund Stage II exploration, PM&G can elect to earn a 70% interest in the Project by funding completion of a feasibility study prepared in accordance with National Instrument 43-101 within 3 years, and Timberline can exercise this option if PM&G elects not to. If neither party elects to exercise the 70% option, subsequent expenditures would be on a pro rata basis unless either party exercises the options described below.

Options:

Following completion of its initial (Stage I) US$6M contribution in years 1 and 2, PM&G may elect not to proceed with its Stage II obligations, and instead may elect to relinquish its interest in the joint venture in exchange for (i) a 10% net profit interest or (ii) a 2% net smelter royalty.

Following completion of PM&G's Stage II contributions, Timberline may elect to relinquish its interest in the joint venture in exchange for (i) a 10% net profit interest or (ii) a 2% net smelter royalty.

Mutual Right of First Refusal ("ROFR"): The Agreement includes a standard mutual ROFR pursuant to which either JV Partner will have the right to acquire the other partner's interest before that interest may be conveyed to a third party on terms no less favourable to the purchasing JV Partner than those proposed to the third party.

The completion of the joint venture as contemplated under the Agreement is subject to certain conditions, including receipt of all necessary regulatory approvals.

Lookout Mountain Gold Mineralization

The Lookout Mountain project lies within Timberline's 23 square-mile Eureka property which is strategically located within the greater Eureka Mining District (see a detailed description and maps at http://timberlineresources.co/projects/). Lookout Mountain is a large "Carlin-style" gold-system with a defined gold resource (see Updated Technical Report on the Lookout Mountain Project, MDA, Effective March 1, 2013, Filed on SEDAR April 12, 2013) and drill-indicated mineralization which extends over a north-south trend of approximately 3 miles (~ 5 km). High-grade gold mineralization near the historical open pit occurs on a northwest-southeast trend within the resource area and includes 17 intercepts ranging from 0.136 ounces gold per ton ("opt") to 2.250 opt gold (Table 1) (see press release dated July 10, 2018 at http://timberlineresources.co/press-releases). The mineralization is associated with extensive zones of fault breccias, as well as variably carbonaceous collapse-breccias, and with orpiment and realgar (arsenic sulfides) (Figure 1) which are commonly found in many major Carlin-style gold deposits.

Table 1. Representative High Grade Gold Drill Intercepts from the Lookout Mountain Deposit

Timberline's current gold resource estimate (Table 2) at Lookout Mountain, which was prepared by Mine Development Associates ("MDA") of Reno, Nevada, includes:

Table 2. Lookout Mountain Gold Resource(1)(2)(3)
Resource Category	Tons	Tonnes	Gold (opt)	Gold (g/t)	Gold Ounces
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