Timberline Announces Terms of Reverse Stock Split

COEUR D'ALENE, IDAHO--(Marketwired - Oct. 24, 2014) - Timberline Resources Corporation (NYSE MKT:TLR)(TSX VENTURE:TBR) ("Timberline" or the "Company") today announced the terms of the reverse stock split that was approved by the Company's stockholders at its Annual and Special Meeting of the Stockholders held on August 5, 2014 ("Annual Meeting"). The Company's Board of Directors has set the ratio for the reverse stock split at one (1) for twelve (12) to be effective at the close of business on Friday, October 31, 2014 and in effect for trading on a reverse split-adjusted basis on the NYSE MKT and the TSX-V on Monday, November 3, 2014.

"The reverse split is important to maintain our listing on the NYSE MKT exchange, which we believe provides value and liquidity to our stockholders," said Paul Dircksen, Timberline's President and CEO. "Our stockholders demonstrated strong support for the reverse split with their overwhelming approval of the proposal at the Annual Meeting."

At the effective time of the amendment to Timberline's Certificate of Incorporation effecting the reverse stock split, every twelve (12) shares of Timberline's issued and outstanding common stock will be consolidated into one (1) newly issued and outstanding share of common stock, without any change in the par value per share. Timberline's shares of common stock will continue to trade on the NYSE MKT under the symbol TLR and on the TSX-V under the symbol TBR with a new CUSIP number of 887133205.

The reverse stock split will reduce the number of shares of Timberline's outstanding common stock from approximately 119 million to approximately 9.9 million. Proportional adjustments will be made to the Company's outstanding stock options, outstanding warrants, and equity incentive plan. The number of authorized shares of the Company's common stock will remain unchanged.

Once the reverse stock split becomes effective, stockholders holding shares through a brokerage account will have their shares automatically adjusted to reflect the 1:12 reverse stock split. Existing stockholders holding common stock certificates will receive a transmittal letter from the company's transfer agent, Corporate Stock Transfer, with specific instructions regarding the exchange of certificates. No fractional shares will be issued in connection with the reverse stock split. Stockholders who otherwise would be entitled to receive fractional shares because they hold a number of pre-reverse stock split Timberline shares not evenly divisible by twelve, will have the number of post-reverse split Timberline shares to which they are entitled rounded up to the next whole number of Timberline shares. No stockholders will receive cash in lieu of fractional shares.