Timberline Expands Land Position at Its Butte Highlands Gold Project

COEUR D'ALENE, Idaho, Oct. 29, 2009 (GLOBE NEWSWIRE) -- Timberline Resources
Corporation (NYSE Amex:TLR) ("Timberline") announced today that it has acquired
the mineral and surface rights to additional mineral claims adjacent to and
nearby its Butte Highlands Gold Project joint venture.

Timberline executed a lease agreement with an option to purchase four patented
claims at its Butte Highlands Gold Project. The additional claims are contiguous
to the company's existing claims and along strike with the mineralization that
is expected to be mined by the company and its joint venture partner. Timberline
intends to conduct geologic mapping, analyze surface samples, perform
geochemical and geophysical analyses, and develop a drill program for the
exploration of these claims. If additional mineralization is discovered, the
company would expect to access the ore from the underground workings currently
being developed at the Butte Highlands Gold Project.

Paul Dircksen, Timberline's Vice President of Exploration, stated, "These
additional claims are important as we assess the potential around our current
resource area. It appears that the mineralized lenses we intend to mine on our
existing claims at Butte Highlands may extend into these additional claims. This
agreement gives us the ability to explore the potential of those claims and to
purchase the property if we believe an economic resource exists."

Timberline also staked 49 additional claims (approximately 930 acres) to the
southwest of their Butte Highlands gold project. These claims cover ground that
is in a similar geologic setting to Butte Highlands and hosts historic placer
workings. These claims are part of the company's strategy to assess the
potential of the district as development and mining proceed at the Butte
Highlands gold project.

Timberline also announced that an S-3 Shelf Registration Statement was filed
with the SEC last week. In relation to this filing, Randal Hardy, Timberline's
CEO, stated, "The amount of the registration statement is intended to provide
the company with flexibility and greater certainty should we choose to raise
capital over the next three years. The primary objective of this filing is to
put us in a better position to more quickly take advantage of strategic
opportunities, including the possibility of replacing our long-term debt with
equity, without the potentially lengthy and costly delays associated with SEC
reviews of future registration statements. We remain very protective of our
share structure and will continue to be prudent with transactions involving
equity."

More information and photos are available on the company's web site at
www.timberline-resources.com.

Timberline Resources Corporation is a diversified gold company comprised of
three complementary business units: a mine in production with upcoming gold
production, exploration, and drilling services. Its unique,
vertically-integrated business model provides investors exposure to gold
production, the "blue sky" potential of exploration, and the "picks and shovels"
aspect of the mining industry. Timberline has contract core drilling
subsidiaries in the western United States and Mexico and an exploration division
focused on district-scale gold projects with the potential for near-term,
low-cost development. The Company has formed a 50/50 joint venture with Highland
Mining, LLC, an affiliate of Small Mine Development, LLC, at its Butte Highlands
Gold Project and has begun development in 2009. Timberline is listed on the NYSE
Amex and trades under the symbol "TLR".

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, including but
not limited to the Company's 50/50 joint venture with Highland Mining LLC, the
development and production of the Company's Butte Highlands project, and the
Company's expected operations in 2009. 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, such factors, including risk
factors, discussed in the Company's Annual Report on Form 10-KSB for the year
ended September 30, 2008. 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.

-0-
CONTACT: Timberline Resources Corporation
Randal Hardy, CEO
208.664.4859