otcqb: tlrs ǀ tsx.v: tbr - timberline...

OTCQB: TLRS ǀ TSX.V: TBR

D I S C O V E R I N G ǀ D E V E L O P I N G ǀ D E L I V E R I N G

March 2016

Gold Focused in Nevada



2

Forward Looking Statements

Forward Looking Statements

Statements contained herein that are not based upon current or historical fact are forward-looking in nature and constitute forward-looking statements within the meaning of Section 27A of the

Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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 potential economics of the Talapoosa

project as contained in the PEA, including but not limited to statements regarding After-Tax NPV, IRR, Initial Capital Costs, After-Tax Net Cash Flow, gold production, sustaining costs, and all-in

costs, the low-risk, pro- mining jurisdiction of Nevada, future optimization and resource expansion and potential upgrade, timing and contents of a completed pre-feasibility study and

feasibility study, future permitting requirements and the ability to update past permits, mineral resource estimates, Appaloosa Zone exploration potential, and other similar statements regarding

the future potential of the Talapoosa project, projected budget to reach production decision, statements regarding the Eureka Project resources and exploration targets, and statements regarding

future extraction operations. When used herein, the words "anticipate," "believe," "estimate," “upcoming,” "plan," “target”, "intend" and "expect" and similar expressions, as they relate to

Timberline Resources Corporation, its subsidiaries, 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, those risks set forth in our press release dated April 27, 2015 relating to the results of the PEA under the heading “Risks”, risks related to exploration projects, risks related to mining activities,

risks related to potential future transactions, risks related to the Company continuing as a going concern, risks related to the ability to finance any payment due at the exercise of the Talapoosa

option, risks related to project development decisions, risks related to mineral resource estimates and other such factors, including risk factors discussed in the Company's Annual Report on

Form 10-K for the year ended September 30, 2015. Except as required by Federal Securities law, the Company does not undertake any obligation to release publicly any revisions to any

forward-looking statements..

Cautionary Statements

Cautionary note to United States Investors Regarding Estimates of Resources: This presentation uses the terms "Measured Resources", "Indicated Resources", "Measured & Indicated

Resources" and “Inferred Resources” We advise U.S. investors that while these terms are defined in and required by Canadian regulations under Canadian National Instrument 43-101, these

terms are not defined terms under United States Securities and Exchange Commission (“SEC”) Industry Guide 7 and are normally not permitted to be used in reports and registration statements

filed with the SEC. Under SEC Industry Guide 7 standards, a “final” or “bankable” feasibility study is required to report reserves, the three-year historical average price is used in any reserve or

cash flow analysis to designate reserves and all necessary permits and governmental authorizations must be filed with the appropriate governmental authority. Investors are cautioned not to

assume that any part or all of mineral deposits in these categories will ever be converted into reserves. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence,

and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under

Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Investors are cautioned not to assume that all or any

part of an inferred mineral resource exists or is economically or legally mineable. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however,

the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC Industry Guide 7 standards as in place tonnage and grade without reference to unit

measures. The PEA is not a definitive feasibility study and our projects currently do not contain any known proven or probable ore reserves under SEC Industry Guide 7 reporting

standards. The results of the PEA disclosed in this presentation are preliminary in nature and include Inferred Resources that are considered too speculative geologically to have the economic

considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty that the results of the PEA will be realized.

For Talapoosa resources, refer to Technical Report and Resource Estimate on the Talapoosa Project, Nevada effective March 24, 2015 and filed on SEDAR on April 1, 2015. For Lookout

Mountain resources, refer to Updated Technical Report on the Lookout Mountain Project effective March 1, 2013 and filed on SEDAR April 12, 2013.

Steven Osterberg, Ph.D., P.G., Timberline’s President and CEO, is a Qualified Person as defined by NI 43-101 and has reviewed and approved the technical contents of this presentation.



Investment Highlights

Strong Management and Board

• Combines Nevada technical expertise with proven access to capital markets

Tight Capital Structure: 14 million shares I/O

Nevada Focus: World-Class Gold Jurisdiction

Talapoosa Project, Nevada (Advanced Development)

• Low risk: partially permitted, open pit, heap leach gold project

• NI 43-101 gold resource containing 1.01 Moz (M&I) and 0.23 Moz (Inferred)

• Robust Preliminary Economic Assessment (PEA) announced in April 2015:

− After-tax NPV5% of $136 million and 39% IRR at $1,150/oz Au and $16/oz Ag

− Average production of 55,000 oz/yr Au and 679,000 oz/yr Ag over an 11-year mine life

− All-in sustaining cash costs of $599/oz Au (net of Ag)

− Low Initial Capital Requirement of $51 million to achieve production

Eureka Project, Nevada (Advanced Exploration)

• High upside: district-scale property, historic production, 6 km S of Barrick’s Ruby Hill Mine

• NI 43-101 gold resource containing 508,000 oz (M&I) and 141,000 oz (Inferred)

3



Strong Management and Board

4

Steve Osterberg, President, CEO & Director

• Over 25 years of domestic and international minerals

exploration, permitting and development experience with

Carlin, epithermal, and mesothermal gold deposits

• Senior technical and consulting positions with Knight

Piésold, Tetra Tech, and BHP Minerals International

Paul Dircksen, Director

• Over 35 years in precious metals world-wide exploration,

development, and mining

• Senior management positions with Orvana Minerals,

Lacana Gold, the Cordex Syndicate, Brett Resources and

Bravo Venture Group

Bill Sheriff, Director, Chairman

• Entrepreneur with over 30 years of mineral exploration

experience

• Chairman/CEO of Till Capital Ltd., Chairman of Silver

Predator, Golden Predator, and enCore Energy Corp.

Leigh Freeman, Director

• Over 35 years of mining industry experience in technical

and executive positions

• Co-founder of Orvana Minerals and currently CEO of

Blue Sun Energy. Advisor to MT Tech, University of

Arizona, and South Dakota School of Mines

Bob Martinez, Director

• Metallurgical engineer with over 35 years of experience in

mining project development and management

• Senior positions with Metallica Resources Inc., Zacoro

Metals, Amselco, and Coeur d’Alene Mines; Director of

TrueGold Mining



Capital Structure / Market Info

5

Capital Structure Common Shares

Common Shares 13.3 M

Options (US$2.33 average strike price) 0.6 M

Share Units 0.7 M

Warrants (US$3.00 average strike price) 12.5 K

Fully Diluted 14.6 M

Market and Financial Information (US$ except volume)

52-week Closing Price Range $0.12 - $0.74

3-Month Avg. Daily Volume 100,000

Ownership (Fully Diluted) %

Gunpoint Exploration Ltd. 15

Insider and Associates 7

Waterton Precious Metals Fund II 10

Resource Re Ltd. (Till Capital) 5



6

Nevada Gold Project Pipeline

Talapoosa Project (Advanced Development)

• Low risk, partially permitted, open pit, heap leach project

• NI 43-101 Gold Resource(1):

1,012,802 oz (M&I)

233,532 oz (Inferred)

• PEA completed in April 2015

Eureka Project (Advanced Exploration)

• District-scale (23 mi2) Carlin-type system

• NI 43-101 Gold Resource(2):

508,000 oz (M&I)

141,000 oz (Inferred)

• 2015 drilling confirmed higher grade gold mineralization

Seven Troughs Project (Early-Stage Exploration)

• 3,900-acre epithermal gold/silver district

• 150,000 ounces of high-grade historic production grading

1.2 opt gold and 4.0 opt silver (1) Refer to Updated Technical Report on the Talapoosa Project, WSP Canada, Inc. Effective March 24, 2015,

Filed on SEDAR April 1, 2015 (2) Refer to Updated Technical Report on the Lookout Mountain Project, MDA, Effective March 1, 2013, Filed

on SEDAR April 12, 2013



Talapoosa Project Overview

100% control of 14,870 acres

45 Km east of Reno, Nevada

Excellent Infrastructure: road access, power, water

1970’s to 1990’s: 12 previous explorers completed 100,000m of drilling,

metallurgy, and mine planning

1996 and 1997: Miramar Mining Corporation obtained full permits for an

open pit, heap leach operation with the BLM and State of Nevada

2010 to 2014: Gunpoint Exploration completed 5,300m of drilling,

geologic modeling, NI 43-101 resource estimate, metallurgy

Current: Robust PEA completed in April 2015 – within scope of

previously permitted operation, with a valid BLM Record of Decision on

Plan of Operations

7



Talapoosa Option Agreement

Timberline acquired an option to purchase 100% of Talapoosa from Gunpoint Exploration

Ltd. in March 2015

Up-front consideration: 2M shares + $300k in cash

• $1.5M total value based on $0.60/share price on March 12, 2015

• No minimum spending requirements

Option is exercisable any time within 30 months by paying $10M in cash to Gunpoint

Should gold prices average >$1,600/oz over any 90-day period within 5 years of exercising

the option, Gunpoint would receive a further $10M

• $5M would be paid in cash, and $5M would be paid either in cash or in shares (at Timberline’s sole discretion)

Upon exercise, Gunpoint retains a 1% NSR, which Timberline may purchase for $3M

8

Gold Price Scenario

<$1,600/oz ≥$1,600/oz

Up-Front Consideration $1.5M $1.5M

Paid Upon Option Exercise $10.0M $10.0M

Contingent Payment $ - $10.0M

Total Payment $11.5M $21.5M

Per-Ounce Acquisition Cost

(Total MI&I Gold Resources) $9.23/oz $17.25/oz



NI 43-101 Technical Report prepared by WSP Canada Inc. was published on April 1, 2015:

81% of known gold ounces are in the M&I Resource categories

Talapoosa Resource Estimate

9

Au Ag Au Ag Au Ag

Tons (oz/ton) (oz/ton) Tonnes (g/t) (g/t) (oz) (oz)

Oxide Measured 3,126,050 0.038 0.553 2,835,890 1.29 18.96 117,253 1,728,323

Sulphide Measured 14,044,820 0.036 0.481 12,741,180 1.22 16.50 501,215 6,760,763

Total Measured 17,170,870 0.036 0.494 15,577,070 1.23 16.95 618,468 8,489,086

Oxide Indicated 1,412,000 0.032 0.416 1,280,900 1.10 14.25 45,328 586,999

Sulphide Indicated 12,681,600 0.028 0.361 11,504,500 0.94 12.36 349,005 4,573,274

Total Indicated 14,093,600 0.028 0.366 12,785,400 0.96 12.55 394,334 5,160,273

Total M&I 31,264,470 0.032 0.437 28,362,470 1.11 14.97 1,012,802 13,649,358

Oxide Inferred 1,762,000 0.027 0.065 1,598,000 0.93 2.24 47,745 115,115

Sulphide Inferred 9,436,000 0.02 0.218 8,560,000 0.68 7.48 185,787 2,057,651

Total Inferred 11,198,000 0.021 0.194 10,158,000 0.72 6.65 233,532 2,172,766

Note: resources estimated using a gold cut-off = 0.013 oz/ton (0.45 g/t), totals may not add due to rounding

Refer to Technical Report and Resource Estimate on the Talapoosa Project, Nevada, WSP Canada Inc., Effective March 24, 2015, Filed on SEDAR on April 1, 2015

Mineral resources that are not mineral reserves do not have demonstrated economic viability



10

Comparable OP/HL Deposits

Talapoosa’s resource grade is above average for comparable open pit, heap leach deposits

1.61 1.60

1.39

1.010.98

0.770.74 0.73 0.72 0.69

0.66 0.640.60 0.59 0.59 0.57 0.56

0.53 0.52

0.38 0.380.35

0.31 0.30

0.69

1.09

0.74

0.52 0.500.45 0.44

0.29

0.00

0.25

0.50

0.75

1.00

1.25

1.50

1.75

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)

Developer/Explorer Producer

Source: Company filings



Talapoosa PEA Results

Independent QPs:

WSP Canada Inc.

Mineral Property

Development Inc.

McClelland

Laboratories Inc.

Enviroscientists Inc.

DOWL

11

Operating Assumptions/Highlights (US$ unless otherwise indicated)

Mine Life 10.8 years

Strip Ratio 1.47 : 1

Processing Rate 3.8 Mtpa

Average Gold Head Grade 0.74 g/t

LOM Average Gold Recovery 66%

Total Recovered Gold Ounces 593,000 oz

Average Gold Production 55,000 oz/yr

Average Silver Head Grade 11.6 g/t

LOM Average Silver Recovery 52%

Total Recovered Silver Ounces 7,365,000 oz

Average Silver Production 679,000 oz/yr

Initial Capital Cost(1) $51.2 million

All-In Sustaining Cost (net of silver)(2) $599/oz Au

After-Tax Net Cash Flow $209 million

After-Tax NPV 5% $136 million

After-Tax IRR 38.8%

Payback Period 3.1 years

Note: All estimates using $1,150/oz gold price, $16/oz silver price; after-tax estimates include a 1% NSR royalty, 5% NV net profits tax,

depreciation and depletion, and a 35% US Federal income tax

(1)Includes $2 million reclamation bond and $6 million in contingency costs

(2)Cash operating cost plus royalties, refining costs, NV net proceeds tax, and sustaining capex

The PEA is preliminary in nature and includes

inferred mineral resources that are considered too

speculative geologically to have the economic

considerations applied to them that would enable

them to be categorized as mineral reserves.

There is no certainty that the PEA will be realized.



Talapoosa Price Sensitivity

12

Commodity Price Assumption

Downside Case Base Case Upside Case

Gold Price $1,000/oz $1,150/oz $1,300/oz

Silver Price $14.50/oz $16.00/oz $17.50/oz

Pre-Tax

Net Cash Flow $183 million $278 million $372 million

NPV @ 5% $114 million $184 million $254 million


IRR 30.4% 48.4% 68.4%

Payback Period(1) 5.4 years 0.9 years 0.8 years

After-Tax

Net Cash Flow $138 million $209 million $278 million



IRR 25.4% 38.8% 52.6%

Payback Period(1) 5.5 years 3.1 years 1.0 years

Talapoosa demonstrates strong economics using conservative metals price assumptions

(1)Payback is from the start of mine production



Talapoosa Metallurgy

Gold occurs primarily as electrum, free gold and in sulphides

Conclusions from 13 metallurgical programs to-date:

• Heap leach cyanide extraction recoveries are sensitive to crush size

• Estimated heap leach cycle times: 50% gold recovery within 60

days, 75% gold recovery within 120 days

• Gunpoint (2013-2015) testing on unoxidized material:

− HPGR (nominal -6 mesh) column test recovery profiles indicate

continued leaching at end of testing

− Milling potential suggested by bottle roll tests of 75 µm material

indicating up to 92% gold recovery

Gold recovery sensitivity analysis supports robust economics

PFS trade-off studies to de-risk metallurgy:

• Analysis to optimize heap leach recovery parameters and address

coarse gold recovery options. Testing to include:

− Full grind (to -270 mesh or greater) with flotation and gravity

testing to collect coarse gold

− Wet screen separation of HPGR “fines” fraction for treatment by

CIL or other method

− Permeability and column testing of HPGR “coarse” fraction to

validate enhanced leach pad stability, minimized agglomeration,

and improved leach kinetics

13

PEA Recovery Assumptions Gold Silver

Oxide-Type (19% of resource) 77% 47%

Unoxidized Material (81% of resource)

Hanging-wall Type 65% 60%

Footwall-Type 59% 45%

LOM Average 66% 52%

Gold Recovery Sensitivity -10% Base

Case +10%

Average Gold Recovery 59% 66% 73%

After-tax NPV5% (US$M) $100 $136 $172

After-tax IRR 30% 39% 48%

0

20

40

60

80

100

0 30 60 90 120 150 180 210 G

old

Re

cove

ry, %

Leach Time, days

Column Test Leach Rate Profiles, Unoxidized Material

(HPGR crush, nominal -6 mesh)

Hanging wall-Type

Footwall-Type



Talapoosa Geology

Volcanic-hosted low-

sulphidation epithermal

gold/silver system

Mineralization at Dyke

Adit, Main, Bear Creek

and East Hill zones

Parallel Appaloosa

structural zone remains

untested over 7km of

strike length

Analogous to historically

rich Comstock Lode

(~20mi SW of Talapoosa)

14

A

A`

Basalt

Alluvium

Andesite

East Hill

Dike Adit

Andesite

Main & Bear

Creek Zones

1,000 m

N



Talapoosa Cross-Section

3 primary mineralized domains, with Main Vein oxide material at surface (i.e. no pre-strip)

Sub-vertical structural and stratigraphic mineralization controls

15

Andesite

Tuff Breccia

Welded Lithic Tuff

Dacite

Crystal Lithic Tuff

Basalt

A A`

100 m

Base of Oxidation



Talapoosa Geologic Model

Low sulphidation epithermal gold-silver

Talapoosa dominated by mineralized nested

veins representing mid-level erosional

preservation

Appaloosa Zone is well preserved including

high-level, hydrothermal eruption breccias

with vein fragments

16

Inc

rea

sin

g L

eve

l o

f E

ros

ion

Appaloosa

breccia with

vein fragments

Talapoosa gold-

mineralized vein



Talapoosa Conceptual Design

17

East Hill

Central Pit

Dyke Adit

Administrative Facilities &

Processing Plant

Approximates mine

configuration originally

permitted by Miramar

Mining Corp.

Compact footprint

minimizes haulage

distances

500 m

N



Permitting Head Start

18

Agency Permit Status Timeline

U.S. Bureau of Land

Management (BLM)

Record of Decision on EIS for

42Mt open-pit, heap leach operation

Approved in 1996;

remains valid for life of project

U.S. BLM Nevada Reclamation Permit Approved in 1996;

remains valid for life of project

U.S. BLM Right-of-Way Permit for

power and water pipeline

Required; possible Environmental

Assessment Required Up to 6 months

Nevada Bureau of

Mining Regulation and

Reclamation (BMRR)

Water Pollution Control Permit

Re-application to include updated

waste rock characterization, and

closure plan

8-14 months

BMRR/BLM (joint) Reclamation Cost Estimate Bonding Updated bond to be determined

from re-submitted closure plan 4 months

Nevada Bureau of

Air Pollution Control

Air Quality and Mercury

Operating Permits Re-application 6-9 months

Nevada Division of

Water Resources Water Rights

Requires lease or purchase

of water rights

9-12 months after

lease or purchase

Lyon County, Nevada County Special Use Permit Required Approximately 6

months

Various

(Federal and State)

Ten minor ministerial permits

and notifications

Required before or during

construction Up to 180 days



Opportunities to Improve on PEA

Resource Upgrade: Dyke Adit / East Hill Zones from Inferred to Indicated

Expand Known Resource: on-strike to NW and SE; higher-grade feeder

potential beneath Dyke Adit

Complete Metallurgical Testing: optimize heap leach parameters and

evaluate mill processing alternatives with potential for enhanced gold and

silver recoveries

Optimize Mine Plans: evaluate open pit mine sequencing and equipment,

competitive contractor bids, and an owner-operator scenario

19



Talapoosa Blue Sky Potential

Appaloosa Zone Exploration

• Parallel structural zone located 1.5 km

north of Talapoosa

• 7 km untested strike length

• District-scale footprint, similar to

Comstock Lode

• Outcropping epithermal sinter, and

breccia with mineralized vein fragments

• More deeply eroded SE portion is

mineralized at surface

• Applicable geophysical tools:

IP/resistivity and magnetics

• Targeted sampling planned for 2016

20



Lookout Mountain NI 43-101 Gold Resource(1):

• Measured 106,000 ounces (2,761,000 tonnes @ 1.20 g/t gold)

• Indicated 402,000 ounce (23,493,000 tonnes @ 0.55 g/t gold)

• Inferred 141,000 ounces (10,622,000 tonnes @ 0.41 g/t gold)

Carlin-type gold system

23 mi2 land package remains

largely untested

Trend Hosts Several Multi-Million

Ounce Gold Mines

• Cortez/Pipeline Complex

• Goldrush Prospect

• Ruby Hill / Archimedes

Eureka Project District-Scale on the Battle Mountain-Eureka Gold Trend

21

Lookout

Mountain

Ruby Hill &

Archimedes

Gold Bar

Gold Pick

Buckhorn

Cortez

Tonkin Springs

Pipeline

Goldrush

(1) Refer to Updated Technical Report on the Lookout Mountain Project, MDA,

Effective March 1, 2013, Filed on SEDAR April 12, 2013

Windfall

4 km

N



Eureka Project Lookout Mountain High Grade Target Zone

Open on-strike

and at depth

Recent discovery

of parallel higher-

grade feeder zone:

proof-of-concept

Favorable host

rocks: collapse

breccias b/t

Dunderberg Sh

and Hamburg Dol

Secret Canyon Sh

(successfully

drilled at Kinsley

Mtn, Bald Mtn)

largely untested

22

Refer to Updated Technical Report on the Lookout Mountain Project, MDA, Effective March 1, 2013, Filed on SEDAR April 12, 2013 and the Company’s April 20, 2015 press release

Lone Mountain

Dolomite

NI 43-101 Resource

508,000 oz, M&I @ 0.56 g/t gold

141,000 oz, Inf @ 0.50 g/t

BHSE-171

19.8 m @ 3.22

incl. 7.6 m @

4.93 g/t

BHSE-152

4.6 m @ 4.73 g/t

BHSE-173

17.5 m @ 1.92 g/t

Incl. 4.5 m @ 3.12

BHSE-172

14.2 m @ 3.47 g/t

Incl. 7.7 m @ 5.02

A A`

Lookout Pit:

18,000 Ounces

Produced

NI 43-101 Resource

508,000 oz, M&I

141,000 oz, Inf

BHSE-074

22.9 m @ 0.57 g/t

BHSE-152

BHSE-171

BHSE-172

BHSE-173

A A`

750 m

N

100 m



Eureka Project Windfall – 2015 Drilling Plan and Section View

23

2.5km mineralized

trend with historic

open pit, heap

leach gold mining

Recent drilling

confirms historic

drill assays,

including deep

high grade

intercepts

Refer to Updated Technical Report on the Lookout Mountain Project, MDA, Effective March 1, 2013, Filed on SEDAR April 12, 2013 and the Company’s April 20, 2015 press release

BHWF-040

24.4 m @ 3.04 g/t incl.

6.1 m @ 8.79

BHWF-040

BHWF-037

27.4 m @ 2.20 g/t incl.

13.7 m @ 3.68

Rustler Pit:

~50,000 Ounces Produced

Windfall Pit:

27,077 Ounces Produced

Section

1710800N

South Paroni Pit:

~33,000 Ounces Produced

BHWF-036

12.2 m @ 1.26 g/t BHWF-039

10.7 m @ 0.46 g/t

BHWF-038

24.4 m @ 0.32 g/t

B B`

BHWF-041

18.3 m @ 1.24 g/t

B B`

375 m

N

100 m



24

3,900-acre district near

Lovelock, Nevada

Epithermal gold/silver district

with some of the highest-grade

gold production in Nevada

mining history

150,000 ounces of historic gold

production grading 1.2 opt (41.1

g/t) gold and 4.0 opt (137 g/t)

silver

Seven Troughs Project



Go-Forward Strategy

Target Near-Term Gold Production and Cash Flow at Talapoosa

• Optimize and de-risk a low capital and operating cost advanced gold development project

• Evaluate heap leach vs. milling alternatives

• Initiate long-lead-time permitting for development

• Drill to upgrade Inferred resources and provide metallurgical samples

• Complete pre-feasibility study in Q4 2016 followed by feasibility study

• Budget to reach construction decision: $5M

Discover Additional Ounces Through Focused Nevada Exploration

• Advance district-scale projects in pro-mining jurisdictions with compliant resources and upside

Maintain Capital Discipline and Enhance Shareholder Value

• Pursue and execute value-accretive transactions (e.g. Talapoosa)

• Monetize non-core assets through JV/option/sale

• Capitalize on opportunities to further enhance management team and board

• Leverage dual listing on OTCQB and TSX-V

25



Key Success Factors

Management/Board with Technical and Capital Markets Expertise

Tight Share Structure: 14 million shares I/O

Nevada Focus: World-Class Gold Jurisdiction

Advanced Gold Development Project with Permitting Head Start

High-Quality Gold Project Pipeline

Value-Accretive Transactions and Capital Discipline

26



APPENDIX



Comparable OP/HL Projects

Project Talapoosa Lincoln Hill Commonwealth Castle Mountain Hasbrouck Mt. Hamilton

Company Timberline

Resources Rye Patch Gold

Commonwealth

Silver & Gold

Castle Mountain

Mining

West Kirkland

Mining

Solitario Exploration

& Royalty

Location Nevada Nevada Arizona California Nevada Nevada

Development Stage PEA PEA PEA PEA Pre-Feasibility Feasibility

Gold Price (US$/oz) 1,150 1,300 1,350 1,350 1,300 1,225 1,300

Silver Price (US$/oz) 16.00 17.50 22.00 22.50 n/a 17.50 20.00

Throughput (Mtpa) 3.8 1.8 4.0 8.1 6.1 3.5

Strip Ratio (W : O) 1.5 : 1 0.5 : 1 1.0 : 1 6.9 : 1 1.1 : 1 2.5 : 1

Mine Life (Years) 11 5 9 17 8 7

LOM Average AuEq*

Production (koz/yr) 64 45 57 176 71 73

Average Gold Head Grade (g/t) 0.74 0.65 0.39 0.85 0.58 0.82

Gold Recovery (%) 66 64 80 83 74 76

Initial Capital (US$M) 51 26 27 98 54 92

Sustaining Capital (US$M) 1 4 21 423 83 30

LOM Avg. All-in AuEq*

Sustaining Cost (US$/oz) 680 692 759 872 949 779 833

NPV @ 5% (US$M) 136 188 41 101 352 75 79

IRR (%) 39 53 53 58 20 26 26

Payback (Years) 3.1 1.0 1.6 1.6 2.6 3.7 2.9

28

*Note: AuEq based on project-specific metals price assumptions

Source: Company filings



Initial LOM Avg. LOM Avg.

Share Price % of 52 Mkt Cap EV P/NAV(1)

EV/MI+I(2)

MI&I Production Annual Prod. AISC Initial Capex

Company Name Stage (US$/sh) Week High (US$mm) (US$mm) (Current) (US$/oz) (koz Au-Ag Eq) (Year)(1)

(koz Au-Ag Eq)(3)

(US$/oz Au-Ag Eq)(3)

(US$mm)(3)

North American Developers & Explorers

PERSHING GOLD Resource $5.93 80% $129 $112 0.61x $156 717 2016 - - -

KAMINAK GOLD PEA $0.66 68% $95 $77 0.43x $18 4,156 2020 167 $688 $305

GOLD STANDARD Resource $0.53 72% $89 $74 0.21x $40 1,826 - - - -

INTEGRA GOLD PEA $0.29 99% $83 $67 0.41x $48 1,392 2017 110 $598 $51

CORVUS GOLD PEA $0.57 43% $46 $40 0.26x $19 2,118 - 124 $739 $60

SOLITARIO EXPLORATION & ROYALTY FS $0.66 42% $26 $29 0.45x $18 1,643 2017 73 $672 $175

CASTLE MOUNTAIN MINING PEA $0.30 42% $23 $20 0.46x $5 4,244 2018 176 $949 $98

RYE PATCH GOLD PEA $0.14 83% $20 $15 0.28x $5 2,962 - 44 $759 $26

WEST KIRKLAND PEA $0.05 43% $16 $13 0.30x $5 2,607 2018 71 $779 $54

NORTHERN VERTEX MINING CORP FS $0.18 43% $13 $9 0.25x $18 489 - 40 $624 $33

Average - - 62% $54 $46 0.37x $33 2,215 - 101 $726 $100

TIMBERLINE RESOURCES PEA $0.64 35% $8 $7 0.06x $3 2,123 2018 65 $680 $51

Resource(2)

Comparable Companies Leading North American Gold Developers and Explorers

29

Source: Macquarie Capital

Prices as of June 18, 2015

(1) Based on analyst consensus estimates

(2) Reserves and Resources reported as gold equivalent (including silver only) and using Macquarie long-term price forecasts: US$1,250/oz Au, US$18.00/oz Ag

(3) Based on company technical reports

(4) Pending sale of Mt. Hamilton gold project with Ely Gold to Waterton Precious Metals for total consideration of US$30mm, announced June 11, 2015

(5) Timberline P/NAV based on Talapoosa $136M after-tax NAV based on US$1,150/oz Au and US$16.00/oz Ag and excludes other assets. Timberline MI&I resource shown on 100% basis.

(5)

(4)



Comparable Companies P/NAV vs. Peer Group

30

Average = 0.37x

Note: Street research consensus NAVs are shown; average excludes Timberline Resources; Timberline NAV based on $136M Talapoosa after-tax NPV (excludes other assets); prices as of June 18, 2015

0.61x

0.46x 0.45x 0.43x

0.41x

0.30x 0.28x

0.26x 0.25x

0.21x

0.06x

0.00x

0.25x

0.50x

0.75x

Pers

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Tim

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P/N

AV



$0.08 - $0.78

~ $6.00

~ $4.00

$0.00

$2.00

$4.00

$6.00

$8.00

3 Month Trading Range Share Price Based on Comparable P/NAVMultiple

Share Price Based on ComparableEV/MI+I Multiple

Tim

be

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ha

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US

$)

31

Timberline Resources Re-Rating Potential

Price as of June 18, 2015

(1) Based on PEA Average P/NAV multiple from slide 30

(2) Based on PEA Average EV/MI+I multiple from slide 30

(1)

(2)

6.1

x –

9.2

x

8.1

x –

12

.2x


P H O N E 2 0 8 . 6 6 4 . 4 8 5 9 ǀ F A X 2 0 8 . 6 6 4 . 4 8 6 0 ǀ I N F O @ T I M B E R L I N E – R E S O U R C E S . C O M

T I M B E R L I N E – R E S O U R C E S . C O M

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