Timberline Announces Financial Results and Recaps Accomplishments for 2007, Provides...

Timberline Announces Financial Results and Recaps Accomplishments for 2007,
Provides Forecast for 2008

COEUR D'ALENE, Idaho, Jan. 15, 2008 (PRIME NEWSWIRE) -- Timberline Resources
Corporation (OTCBB:TBLC) today announced consolidated financial results for
2007, its first full year as an operating company, along with a recap of its
2007 accomplishments and its goals and objectives for 2008. For the year ended
September 30, 2007, Timberline reported gross revenues of $19.23-million, a
210-percent increase over 2006, and an overall net loss of $2.69-million, which
includes $1.15-million in depreciation and amortization expense and more than
$1-million dollars in other non-cash charges.

In 2007, Timberline's contract drilling subsidiary, Kettle Drilling Inc.
("Kettle") and its wholly-owned Mexican subsidiary, World Wide Exploration, S.A.
de C.V. ("World Wide"), reported combined gross revenues of $19.23-million
(compared to $6.21-million in 2006), a combined gross operating profit of
$4.49-million (compared to $1.22-million in 2006), and a combined after-tax loss
of $545,715 (compared to a loss of $897,459 in 2006). Revenue growth at Kettle
and World Wide was aggressive and deliberate in 2007 with the combined fleet
nearly doubling from 11 to 21 operating drill rigs. This was accomplished by
reinvesting all operating cash flow and by investing nearly $3-million in
additional funds from Timberline. Subsequent to year-end, Timberline purchased
two additional rigs and provided additional funding to assist with Kettle's
continued expansion.

Commenting on the results, Timberline CEO Randy Hardy stated, "We have
aggressively pursued opportunities to expand our drilling operations since
acquiring Kettle in March 2006. However, as previously announced, our primary
focus in 2008 is to reduce costs and increase profitability while maintaining
sustainable organic growth. We expect to deliver greatly improved bottom-line
results in our 2008 fiscal year and beyond, while significantly expanding our
in-house exploration programs."

Included in the numbers stated above, Timberline's exploration business and main
corporate office reported a net loss of $2.14-million for 2007. The loss
reflects more than $1-million dollars in non-cash charges, including expenses
for consulting services, stock-based compensation, vested options, depreciation
and amortization.

Timberline's 2007 Annual Report was filed with the SEC on Form 10KSB on January
14, 2008. It can be viewed in its entirety on the SEC website which can be
accessed from the "Investors" page of the Timberline website at
www.timberline-resources.com.

In 2007, Timberline accomplished several objectives within its drilling and
exploration divisions, as well as at the corporate level.

Drilling Highlights

* Increased operating drill rigs from 11 to 21.

* Compiled record revenues in every quarter.

* Achieved profitability in the 2nd quarter, had a minor downturn in
the 3rd quarter, and then resumed profitability in the 4th quarter
which, management believes, will sustain and improve into 2008.
Exploration Highlights

* Closed acquisition of Conglomerate Mesa and Santa Rosa projects.

* Closed the purchase of the advanced-stage Butte Highlands gold
project.

* Completed a massive data compilation effort at the East Camp Douglas
gold project.

* Conducted geophysical surveys at the Downeyville and Long Canyon
projects and subsequently expanded the land positions at both
locations.

* Funded by exploration partner Christopher James Gold Corp, the
Olympic-Sun property was drill-tested and its lease was subsequently
dropped.

* Acquired a drill rig for dedicated use on Timberline exploration
properties.
Corporate Highlights

* Completed stock offerings totaling $7.63-million.

* Hired Randal Hardy as CEO and CFO.

* Applied for listing on the American Stock Exchange (AMEX).

* Paid off approximately $1.1 million in related-party notes,
including the remainder owed from the Kettle acquisition.
Subsequent to year-end, on December 5, 2007, Timberline announced the signing of
a non-binding Letter of Intent (LOI) to acquire Small Mine Development, LLC
("SMD"), one of the largest underground mine contractors in the United States.
Upon receipt of shareholder approval and closing, the acquisition is expected to
immediately and sharply increase revenue and profitability, providing the
Company with the "critical mass" needed to become a major player in the North
American mining services industry.

Looking ahead to 2008, Timberline VP of Exploration Paul Dircksen stated,
"Despite our past focus on growing our services business, we remain committed to
providing exploration 'blue sky' to our investors and will become significantly
more active on our projects in the coming year. Our exploration plans include
near-term drilling at Downeyville, Conglomerate Mesa, and possibly at other of
our California and Nevada gold properties. In the spring, we intend to resume
exploration and drilling at Butte Highlands. We continue to pursue joint-venture
possibilities for our East Camp Douglas and Snowstorm properties."

Timberline's goals and objectives for 2008 include:

* Complete the listing process and begin trading on the AMEX.

* Complete due diligence and close the acquisition of SMD.

* Achieve substantially increased profitability in our services
business.

* Complete exploration and drilling programs at several project sites.

* Increase exploration activity and seek to reduce financial risk
through increased use of strategic partnerships.

* Continue evaluating additional merger and acquisition opportunities
in both mining services and mineral exploration.
For more information about Timberline, please visit the Company's website at
www.timberline-resources.com.

Timberline Resources Corporation is a unique, growth-oriented company that
combines positive cash flow from its ownership of Kettle Drilling, Inc. with
"blue sky" upside from its mineral exploration division. Timberline common stock
trades on the OTC Bulletin Board under the symbol "TBLC."

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. When used
herein, the words "anticipate," "believe," "estimate," "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, such factors,
including risk factors, discussed in the Company's Annual Report on Form 10-KSB,
as amended, for the year ended September 30, 2007. Except as required by the
Federal Securities law, the Company does not undertake any obligation to release
publicly any revisions to any forward-looking statements.

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CONTACT: Timberline Resources Corporation
John Swallow, Executive Chairman
(208) 664-4859
www.timberline-resources.com

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