Timberline Closes $5-Million Offering,
Fast-Track Exploration to Continue at Lookout Mountain
Coeur
d'Alene, Idaho - March 3, 2011 - Timberline Resources Corporation (NYSE
Amex: TLR; TSX-V: TBR) ("Timberline" or the
"Company") announced today that it has closed its $5-million
offering of common stock. Proceeds from the financing will be used to
continue the Company's aggressive exploration program at its Lookout Mountain
Gold Project on the prolific Battle Mountain-Eureka Trend of central Nevada.
Timberline's
Executive Chairman Paul Dircksen stated, "Our
recent work at Lookout Mountain strongly supports our belief in the potential
for near-term development of a low capital, low operating cost, open pit,
heap-leach gold mine. This financing will allow us to maintain momentum
with continued resource expansion drilling, along with exploration drilling
at other priority targets at South Eureka. We expect to release an
updated NI 43-101 gold resource for Lookout Mountain within the next two
weeks, as soon as current metallurgical tests are sufficiently complete, and
we are also beginning work on a Preliminary Economic Assessment (PEA) of the
project. With anticipated gold production by early Q1 2012 at Butte
Highlands, where development is completely funded by our JV partner, we
believe that Timberline is exceptionally well-positioned for the ongoing bull
market in gold."
Lookout
Mountain is the most advanced project within Timberline's 23 square-mile
South Eureka land package and is located just a few miles from Barrick Gold Corporation's two-million ounce Archimedes /
Ruby Hill mine. Lookout Mountain hosts significant oxide gold mineralization
amenable to low-cost, heap-leach recovery, along with a smaller, high-grade,
sulfide resource.
Timberline
also announced today that it will be an exhibitor at the Prospectors and
Developers Association of Canada (PDAC) International Convention, Trade Show
and Investors Exchange at the Metro Toronto Convention Centre (South
Building), March 6-9, 2011. Timberline management invites shareholders
and investors to visit Booth #3151 of the PDAC Investors Exchange, which is
open to the public and free of charge. Members of the Timberline team
will be available to discuss progress and plans at its Lookout Mountain and
Butte Highlands gold projects.
Shareholders
and investors are also invited to view additional information, including the
Company's Corporate Presentation, at Timberline's recently-updated web site
at www.timberline-resources.com.
About Timberline Resources
Timberline
is a U.S.-based exploration/development company with a focus on
advanced-stage precious metals properties. The Company's management team
has a solid track record of achievement in building successful companies and
discovering, exploring, and developing economic mineral
deposits. Currently, Timberline is executing an aggressive exploration
program at its South Eureka Property, a large drill-tested and highly
prospective property in Nevada's Battle Mountain - Eureka gold trend. In
addition, Timberline has two other business units. The Company has a 50%
carried-to-production interest at the Butte Highlands Joint Venture which is
currently in development and targeted to begin gold production in early
2012. Timberline also has a wholly-owned subsidiary, Timberline
Drilling, which provides cash flow to the Company from its underground and
surface drilling operations at operating mines and advanced development and
exploration projects.
Timberline
is listed on the NYSE Amex where it trades under the symbol "TLR"
and on the TSX Venture Exchange where it trades under the symbol
"TBR".
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. These statements include but are
not limited to statements regarding the anticipated use of proceeds from the
offering, development and production of the Company's Butte Highlands project
and South Eureka project, the targeted production date for the Butte
Highlands project, targeted dates and results for the South Eureka resource
calculation, technical report and PEA, results of the Company's drilling
subsidiary, possible growth of the Company and the Company's expected
operations, including a potential open pit gold mine at South Eureka. When
used herein, the words "anticipate," "believe,"
"estimate," "upcoming," "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, the risk that economic and other
considerations will cause the Company to use the proceeds of the offering
other than as currently expected, and such other factors, including risk
factors, discussed in the Company's Annual Report on Form 10-K for the year
ended September 30, 2010. Except as required by Federal Securities law,
the Company does not undertake any obligation to release publicly any
revisions to any forward-looking statements.
Neither the TSX Venture Exchange
nor its Regulation Services Provider (as that term is defined in the policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contact
Information:
Paul Dircksen, Executive Chairman
Randy
Hardy, CEO
Phone: 208.664.4859
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