TIMBERLINE RESOURCES CORPORATION

TIMBERLINE RESOURCES CORPORATION

Previous company name

Name change date

Company Overview
Timberline Resources Corp, formerly known as Silver Crystal Mines, Inc, is an American company headquartered in Coeur d’Alene, Idaho. It is engaged in the evaluation, acquisition, and exploration of mineral prospects, including gold, silver, and copper deposits. The company was incorporated in 1968 and is listed on the NASDAQ OTC Bulletin Board under the ticker symbol TBLC.
Timberline Resources’ prospects include the Olympic property that consists of 112 unpatented claims; the Sun property comprising 47 unpatented lode claims located in southeast of the Olympic Mine; and the Cedar Mountain prospect, including the PAC, HD, and ACE gold properties located in Nevada. It also owns the Spencer prospect; and Montana Copper-Silver properties comprising the Minton Pass, East Bull, Standard Creek, and Lucky Luke prospects in Lincoln and Sanders counties. Further, the company owns aaproximately 49 percent interest in the Snowstorm prospect located in Idaho.
Timberline Resources, through its subsidiary, Kettle Drilling, Inc., provides drilling services to the mining and mineral exploration industries, specializing in underground, hardrock jobs primarily in North America.
Business Summary
Timberline Resources Corporation (Timberline) is an exploration-stage company. The Company is engaged in evaluating, acquiring and exploring mineral prospects with potential for economic deposits of precious and base metals. In October 2008, the Company announced that it had agreed to form a 50/50 joint venture with Small Mine Development (SMD) at the Butte Highlands project. In July 2009, the Company finalized the joint venture agreement with Highland Mining, LLC (an affiliate of SMD) to create Butte Highlands JV, LLC (BHJV). The Company has a wholly owned subsidiary, Timberline Drilling Incorporated (Timberline Drilling). Timberline Drilling provides core drilling services to mining and mineral exploration companies throughout North America. Timberline Drilling, along with its wholly owned Mexican subsidiary, World Wide Exploration, S.A. de C.V. (World Wide or WWE), has a combined fleet of 22 drill rigs. In June 2010, the Company acquired Staccato Gold Resources Ltd.
Description and history
Timberline Resources Corporation (Timberline), incorporated on August 28, 1968, is an exploration-stage company. The Company is engaged in evaluating, acquiring and exploring mineral prospects with potential for economic deposits of precious and base metals. In October 2008, the Company announced that it had agreed to form a 50/50 joint venture with Small Mine Development (SMD) at the Butte Highlands project. In July 2009, the Company finalized the joint venture agreement with Highland Mining, LLC (an affiliate of SMD) to create Butte Highlands JV, LLC (BHJV). The Company has a wholly owned subsidiary, Timberline Drilling Incorporated (Timberline Drilling). Timberline Drilling provides core drilling services to mining and mineral exploration companies throughout North America. Timberline Drilling, along with its wholly owned Mexican subsidiary, World Wide Exploration, S.A. de C.V. (World Wide or WWE), has a combined fleet of 22 drill rigs. In June 2010, the Company acquired Staccato Gold Resources Ltd.

The Company acquires properties, which has to host economic concentrations of minerals, particularly gold, silver and copper. The Company owns a number of unpatented mining claims outright. Portions of the Company’s mineral properties are owned by third parties and leased to the Company. Approximately 38 of these claims are located near the Company’s Snowstorm Project in Shoshone County, Idaho and have been included in the earn-in agreement with Hecla Mining Company. In Montana, the Butte Highlands Property is located in Silver Bow County and consists of 11 patented and 110 unpatented claims. Six additional groups of unpatented claims owned by the Company are located in Sanders and Lincoln counties, Montana. The contract on the East Camp Douglas property in Mineral County, Nevada consists of eight unpatented claims. As of December 2009, Timberline has acquired mineral prospects for exploration in Montana, Nevada and Idaho mainly for target commodities of gold, silver, zinc and copper.

Montana Gold Properties

The Montana Gold properties consist of the Butte Highlands Gold project. The project is located approximately 15 miles south of Butte, Montana in Silverbow County. The property covers 1,142 acres consisting of a combination of patented and unpatented mining claims. All of the unpatented claims are exploration lode claims located under federal and state guidelines, whereas each claim is 600 feet by 1500 feet consisting of 20 acres.

Nevada Gold Properties

The Nevada Gold properties consist of the East Camp Douglas prospect. The property is located approximately four miles southwest of the town of Mina in Mineral County, Nevada. The property consists of 115 unpatented mining claims and represents a district-scale project with multiple targets of low-sulphidation quartz-adularia and high-sulphidation quartz-alunite gold-silver mineralization. As of September 30, 2009, Timberline does not consider the East Camp Douglas prospect to be a material property.

Idaho Copper-Silver Property

The Idaho Copper-Silver property consists of the Snowstorm prospect. The Snowstorm Project is located in north Idaho’s Silver Valley and features the Snowstorm Mine. Snowstorm mineralization occurred as disseminated copper and silver found in the same Revett Formation quartzites that host the Troy, Rock Creek, and Montanore deposits on the Montana Copper Sulfide Belt. Timberline controls 100% of the Snowstorm Project.

Idaho Gold Property

The Idaho Gold property consists of the Spencer prospect. The Spencer prospect covers 640 acres on the western end of the Kilgore-Spencer Trend. The Spencer Prospect is held by State of Idaho Department of Lands Mineral Lease No. 9347. The lease covers an area of approximately 640 acres. As of September 30, 2009, Timberline does not consider the Spenser prospect to be a material property.

Montana Copper-Silver Properties

The Montana Copper-Silver properties consist of the Minton Pass, East Bull, Standard Creek, Lucky Luke, Clear Peak and Copper Rock prospects. All these properties are interpreted as sediment-hosted copper-silver occurrences located in the Revett Formation of the Montana Copper-Silver Belt and are considered early-stage exploration prospects. As of September 30, 2009, Timberline does not consider any of the Minton Pass, East Bull, Standard Creek, Lucky Luke, Clear Peak or Copper Rock prospects to be material properties.

Formerly known as Silver Crystal Mines, Inc

Business Line
Engaged in the evaluation, acquisition, and exploration of mineral prospects, including gold, silver, and copper deposits
Subsidiary
BUTTE HIGHLANDS JV LLC
Advisor
DECORIA, MAICHEL & TEAGUE P.S.
IPO date
7/7/2006
US SIC Code
1041
Company Address
101, E. Lakeside

City province or state postal code
83814, COEUR D’ALENE, ID
Phone: +1 208 664 4859
Fax: +1 208 664 4860
Country address: UNITED STATES OF AMERICA
Website url: www.timberline-resources.com