First Quarter 2012 Financial Results

Timberline Resources Corporation (TSXV:TBR) reported a consolidated net income of $0.45 million for the quarter ended December 31, 2011, and a loss from continuing operations of 1.67 million, including exploration expenditures of $1.06 million.

As quoted in the press release:

The Company’s exploration expenditures during the quarter were related primarily to our recently completed exploration drill program at the South Eureka Property in Nevada. As previously reported, this exploration program is expected to significantly increase the current Lookout Mountain NI 43-101 resource estimate.

As previously announced, in November 2011 Timberline closed the sale of its Timberline Drilling, Inc. (“TDI”) subsidiary. The results of TDI are reported in the Company’s financial statements under discontinued operations. The Company’s consolidated results include income (loss) from discontinued operations of $2.12 million and ($0.15) million for the quarters ended December 31, 2011 and 2010, respectively. The income from discontinued operations for the quarter ended December 31, 2011 includes a gain on the sale of TDI of $1.64 million.

A portion of the proceeds from the sale of TDI was used to repay $5 million in convertible debt, which resulted in Timberline becoming debt-free. At present, the Company has approximately $6.1 million in both cash and working capital.

Timberline President and CEO, Paul Dircksen, said:

“Having accomplished the sale of TDI, we are concentrating on advancing our properties, expanding our gold resource base at South Eureka, and proceeding toward production at Butte Highlands, where our JV partner is completing the application for the required water discharge permit and finalizing the responses to the latest comments related to the operating permit.”

Click here to read the Timberline Resources Corporation (TSXV:TBR) press release