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Timberline Provides Update on Butte Highlands Gold Project

Timberline Resources Corporation ("Timberline" or the "Company") announced today that with the recent receipt of the final MPDES water discharge permit and the progress on the remaining permits, Butte Highlands JV, LLC ("BHJV") management has directed the recently mobilized mining, construction, and exploration crews at the Butte Highlands mine site to proceed with several of projects.

The final water discharge permit was issued on June 30, 2013 and will become effective on August 1, 2013. BHJV has filed an updated Evacuation, Ventilation, and Escapeway Plan with the Mine Safety and Health Administration ("MSHA") and expects approval of that plan in mid-August. With MSHA authorization, crews will begin work on a number of development and exploration initiatives in preparation for future production at the Butte Highlands Gold Project, including:

  • Underground exploration diamond drilling targeting additional potentially mineralized zones, including some new targets above the existing water table;
  • Planning and initiating mining of the required secondary escapeway from the mine workings;
  • Installation of two additional monitoring wells required by the Montana Department of Environmental Quality ("MDEQ") and a second de-watering well;
  • Installation of the ventilation system, providing access to previous development areas;
  • Planning for the extraction, metallurgical testing, and processing of the 10,000-ton bulk sample; and
  • Staffing of the operation, including mining crews, environmental and administrative personnel.

Timberline President and CEO Paul Dircksen commented, "It is exciting to see these development and exploration activities taking place at the Butte Highlands mine site. With the remaining permitting activities progressing, it is important for us to advance as many projects as possible under our existing exploration permit. We recognize the inherent uncertainties in the timing of permit issuances, but we are pleased that our joint venture partner, who is funding the development and managing the project, is proactively preparing to begin production as soon as the permits are granted."

Timberline owns a 50-percent carried-to-production interest in BHJV, which owns the Butte Highlands Gold Project where mining is expected to commence following the issuance of the final hard rock operating permit and the U.S. Forest Service approval of a road-use plan of operations for material haulage. Timberline's joint venture partner has and will continue to fund all mine development costs through to commercial production with Timberline's share of those costs to be repaid from proceeds of future mine production.

About Timberline Resources

Timberline Resources Corporation is exploring and developing advanced-stage gold properties in the western United States. Timberline holds a 50-percent carried interest ownership stake in the Butte Highlands Joint Venture in Montana. Timberline's exploration is primarily focused on the major gold districts of Nevada, where it is advancing its flagship Lookout Mountain Project toward a production decision while exploring a pipeline of quality earlier-stage projects at its South Eureka Property and elsewhere. Timberline management has a proven track record of discovering economic mineral deposits that are developed into profitable mines.

Timberline is listed on the NYSE MKT where it trades under the symbol "TLR" and on the TSX Venture Exchange where it trades under the symbol "TBR".


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