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MDEQ Grants MPDES Water Discharge Permit for Timberline Butte Highlands Gold Project

Timberline Resources Corporation ("Timberline" or the "Company") announced today that Butte Highlands JV, LLC ("BHJV") has received the final Montana Pollutant Discharge Elimination System ("MPDES") water discharge permit for its Butte Highlands Gold Project joint venture from the Montana Department of Environmental Quality ("MDEQ").

With this permit, BHJV is authorized to discharge treated ground water encountered in the Butte Highlands Mine to four separate receiving surface waters, (1) Basin Creek, (2) a tributary of Fish Creek, (3) the Middle Fork of Moose Creek, and (4) a tributary to the Middle Fork of Moose Creek. This discharge is to be in compliance with the Montana Water Quality Act and the Federal Water Pollution Control Act, and in accordance with effluent limitations, monitoring requirements, and other conditions set forth in the permit.

Timberline President and CEO Paul Dircksen commented, "We have accomplished a significant objective at Butte Highlands with the receipt of this final MPDES water discharge permit. We recognize and appreciate the sustained efforts of our team, headed by Steve Osterberg, as well as those at the Water Protection Bureau, Permitting and Compliance Division of the MDEQ in achieving this milestone. BHJV has recently re-mobilized a crew and equipment to the site in order to conduct further exploration, development, and construction in anticipation of mining once all the required permits are obtained. Our JV partner continues to fully fund the permitting and development at Butte Highlands, as we work together to expedite the process as much as possible."

The final MPDES water discharge permit that was issued by the MDEQ may be viewed at http://www.deq.mt.gov/wqinfo/mpdes/majorpermits.mcpx.

Timberline owns a 50-percent carried-to-production interest in BHJV, which owns the Butte Highlands Gold Project where mining is expected to commence later this year following U.S. Forest Service approval of a road-use plan of operations for material haulage and the MDEQ final hard rock operating permit. 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.

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