otcqb: tlrs ǀ tsx.v: tbr - timberline resources · 2016. 7. 19. · economics of the talapoosa...
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OTCQB: TLRS ǀ TSX.V: TBR
D I S C O V E R I N G ǀ D E V E L O P I N G ǀ D E L I V E R I N G
July, 2016
Gold Focused in Nevada
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2
Forward Looking Statements
Forward Looking Statements
Statements contained herein that are not based upon current or historical fact are forward-looking in nature and constitute forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements reflect the Company's expectations about its future operating results,
performance and opportunities that involve substantial risks and uncertainties. These statements include but are not limited to: statements regarding the potential near-term gold production and
economics of the Talapoosa project as contained in the PEA, including but not limited to statements regarding After-Tax NPV, IRR, Initial Capital Costs, After-Tax Net Cash Flow, gold
production, sustaining costs, and all-in costs, the low-risk, pro- mining jurisdiction of Nevada, future optimization, de-risking, resource expansion and potential upgrade, future metallurgical
testing, timing and contents of a completed pre-feasibility study and feasibility study, future permitting requirements and the ability to update past permits, mineral resource estimates,
Appaloosa Zone targeted sampling timeframe, exploration potential, projected budget to reach production decision, potential exercise of the Talapoosa option, and other similar statements
regarding the future potential of the Talapoosa project, statements regarding the Eureka Project resources and exploration targets, statements regarding future extraction operations, monetizing
non-core assets, enhancing management team and board, and leveraging dual listing. When used herein, the words "anticipate," "believe," "estimate," “upcoming,” "plan," “target”, "intend" and
"expect" and similar expressions, as they relate to Timberline Resources Corporation, its subsidiaries, 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, those risks set forth in our press release dated April 27, 2015 relating to the results of the PEA under the heading “Risks”, risks related to
exploration projects, risks related to mining activities, risks related to potential future transactions, risks related to the Company continuing as a going concern, risks related to the ability to finance
any payment due at the exercise of the Talapoosa option, risks related to project development decisions, risks related to mineral resource estimates and other such factors, including risk factors
discussed in the Company's Annual Report on Form 10-K for the year ended September 30, 2015. Except as required by Federal Securities law, the Company does not undertake any obligation
to release publicly any revisions to any forward-looking statements..
Cautionary Statements
Cautionary note to United States Investors Regarding Estimates of Resources: This presentation uses the terms "Measured Resources", "Indicated Resources", "Measured & Indicated
Resources" and “Inferred Resources” We advise U.S. investors that while these terms are defined in and required by Canadian regulations under Canadian National Instrument 43-101, these
terms are not defined terms under United States Securities and Exchange Commission (“SEC”) Industry Guide 7 and are normally not permitted to be used in reports and registration statements
filed with the SEC. Under SEC Industry Guide 7 standards, a “final” or “bankable” feasibility study is required to report reserves, the three-year historical average price is used in any reserve or
cash flow analysis to designate reserves and all necessary permits and governmental authorizations must be filed with the appropriate governmental authority. Investors are cautioned not to
assume that any part or all of mineral deposits in these categories will ever be converted into reserves. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence,
and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under
Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Investors are cautioned not to assume that all or any
part of an inferred mineral resource exists or is economically or legally mineable. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the
SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC Industry Guide 7 standards as in place tonnage and grade without reference to unit
measures.
The PEA is not a definitive feasibility study and our projects currently do not contain any known proven or probable ore reserves under SEC Industry Guide 7 reporting standards.
The results of the PEA disclosed in this presentation are preliminary in nature and include Inferred Resources that are considered too speculative geologically to have the
economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty that the results of the PEA will be realized.
For Talapoosa resources, refer to Technical Report and Resource Estimate on the Talapoosa Project, Nevada effective March 24, 2015 and filed on SEDAR on April 1, 2015. For
Lookout Mountain resources, refer to Updated Technical Report on the Lookout Mountain Project effective March 1, 2013 and filed on SEDAR April 12, 2013.
Steven Osterberg, Ph.D., P.G., Timberline’s President and CEO, is a Qualified Person as defined by NI 43-101 and has reviewed and approved the technical contents of this presentation.
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Investment Highlights
Strong Management and Board
• Combines Nevada technical expertise with proven access to capital markets
Tight Capital Structure: 24 million shares outstanding
Nevada Focus: World-Class Gold Jurisdiction
Talapoosa Project, Nevada (Advanced Development) • Low risk: partially permitted, open pit, heap leach gold project
• NI 43-101 Gold Resource: M&I: 1,012,802 ozs. (31.3m tons @ 0.032 opt)
Inferred: 233,532 ozs. (11.2m tons @ 0.021 opt)
• Robust Preliminary Economic Assessment (PEA) announced in April 2015:
− After-tax NPV5% of $136 million and 39% IRR at $1,150/oz Au and $16/oz Ag
− Average production of 55,000 oz/yr Au and 679,000 oz/yr Ag over an 11-year mine life
− All-in sustaining cash costs of $599/oz Au (net of Ag)
− Low Initial Capital Requirement of $51 million to achieve production
Eureka Project, Nevada (Advanced Exploration) • High upside: district-scale property, historic production, 4 mi south of Ruby Hill Mine
• NI 43-101 Gold Resource: M&I: 508,000 ozs. (28.9m tons @ 0.018 opt)
Inferred: 141,000 ozs. (11.7m tons @ 0.012 opt)
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Strong Management and Board
4
Steven Osterberg, President, CEO & Director
• Over 25 years of domestic and international minerals
exploration, permitting and development experience with
Carlin, epithermal, and mesothermal gold deposits
• Senior technical and consulting positions with Knight
Piésold, Tetra Tech, and BHP Minerals International
Paul Dircksen, Director
• Over 35 years in precious metals world-wide exploration,
development, and mining
• Senior management positions with Orvana Minerals,
Lacana Gold, the Cordex Syndicate, Brett Resources and
Bravo Venture Group
Giulio Bonifacio, Director
• Over 30 years in senior executive positions in the mining
industry with extensive experience in capital markets,
project finance, securities matters, and mergers and
acquisitions.
• President & CEO of Nevada Copper, and past executive
roles at Getty Resources, TOTAL S.A., and Vengold
Leigh Freeman, Director
• Over 35 years of mining industry experience in technical
and executive positions
• Co-founder of Orvana Minerals and currently CEO of
Blue Sun Energy. Advisor to MT Tech, University of
Arizona, and South Dakota School of Mines
Bob Martinez, Director
• Metallurgical engineer with over 35 years of experience in
mining project development and management
• Senior positions with Metallica Resources Inc., Zacoro
Metals, Amselco, and Coeur d’Alene Mines
Paul Zink, Director
• Over 35 years as a natural resources professional
managing financial, investor relations, and business
development
• Senior management positions with Rare Earth Element
Resources, International Royalty Corp., Americas Bullion
Royalty Corp., and Eurasian Capital
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Capital Structure / Market Info
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Capital Structure Common Shares
Common Shares 24.0 M
Options (US$0.56 average strike price) 2.1 M
Warrants: US$3.00 strike price
US$0.25 strike price
12.5 K
10 M
Fully Diluted 36.1 M
Market and Financial Information (US$ except volume)
52-week Closing Price Range $0.11 - $0.45
3-Month Avg. Daily Volume 119,000
Ownership %
Gunpoint Exploration Ltd. 9
Insider and Associates 8
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Nevada Gold Project Pipeline
Talapoosa Project (Advanced Development)
• Low risk, partially permitted, open pit, heap leach project
• NI 43-101 Gold Resource(1):
1,012,802 oz (M&I) (31.3m tons @ 0.032 opt)
233,532 oz (Inferred) (11.2m tons @ 0.021 opt)
• Robust PEA completed in April 2015
Eureka Project (Advanced Exploration)
• District-scale (23 mi2) Carlin-type system
• NI 43-101 Gold Resource(2):
508,000 oz (M&I) (28.9m tons @ 0.018 opt)
141,000 oz (Inferred) (11.7m tons @ 0.012 opt)
• 2015 drilling confirmed higher grade gold mineralization
Seven Troughs Project (Early-Stage Exploration)
• 3,900-acre epithermal gold/silver district
• 150,000 ounces of high-grade historic production grading
1.2 opt gold and 4.0 opt silver (1) Refer to Updated Technical Report on the Talapoosa Project, WSP Canada, Inc. Effective March 24, 2015,
Filed on SEDAR April 1, 2015 (2) Refer to Updated Technical Report on the Lookout Mountain Project, MDA, Effective March 1, 2013, Filed
on SEDAR April 12, 2013
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Talapoosa Project Overview
100% control of 14,870 acres
45 Km east of Reno, Nevada
Excellent Infrastructure: road access, power, water
1970’s to 1990’s: 12 previous explorers completed 100,000 meters of
drilling, metallurgy, and mine planning
1996 and 1997: Miramar Mining Corporation obtained full permits for an
open pit, heap leach operation with the BLM and State of Nevada
2010 to 2014: Gunpoint Exploration completed 5,300 meters of drilling,
geologic modeling, NI 43-101 resource estimate, & metallurgical testing
Current: Robust PEA completed in April 2015 – within scope of
previously permitted operation, with a valid BLM Record of Decision on
Plan of Operations
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Talapoosa Option Agreement
Timberline acquired an option to purchase 100% of Talapoosa from Gunpoint Exploration
Ltd. in March 2015
Up-front consideration: 2M shares + $300k in cash
• $1.5M total value based on $0.60/share price on March 12, 2015
• No minimum spending requirements
Option is exercisable any time within 30 months by paying $10M in cash to Gunpoint
Should gold prices average >$1,600/oz over any 90-day period within 5 years of exercising
the option, Gunpoint would receive a further $10M
• $5M would be paid in cash, and $5M would be paid either in cash or in shares (at Timberline’s sole discretion)
Upon exercise, Gunpoint retains a 1% NSR, which Timberline may purchase for $3M
8
Gold Price Scenario
<$1,600/oz ≥$1,600/oz
Up-Front Consideration $1.5M $1.5M
Paid Upon Option Exercise $10.0M $10.0M
Contingent Payment $ - $10.0M
Total Payment $11.5M $21.5M
Per-Ounce Acquisition Cost
(Total MI&I Gold Resources) $9.23/oz $17.25/oz
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NI 43-101 Technical Report prepared by WSP Canada Inc. was published on April 1, 2015:
81% of known gold ounces are in the M&I Resource categories
Talapoosa Resource Estimate
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Au Ag Au Ag Au Ag
Tons (oz/ton) (oz/ton) Tonnes (g/t) (g/t) (oz) (oz)
Oxide Measured 3,126,050 0.038 0.553 2,835,890 1.29 18.96 117,253 1,728,323
Sulphide Measured 14,044,820 0.036 0.481 12,741,180 1.22 16.50 501,215 6,760,763
Total Measured 17,170,870 0.036 0.494 15,577,070 1.23 16.95 618,468 8,489,086
Oxide Indicated 1,412,000 0.032 0.416 1,280,900 1.10 14.25 45,328 586,999
Sulphide Indicated 12,681,600 0.028 0.361 11,504,500 0.94 12.36 349,005 4,573,274
Total Indicated 14,093,600 0.028 0.366 12,785,400 0.96 12.55 394,334 5,160,273
Total M&I 31,264,470 0.032 0.437 28,362,470 1.11 14.97 1,012,802 13,649,358
Oxide Inferred 1,762,000 0.027 0.065 1,598,000 0.93 2.24 47,745 115,115
Sulphide Inferred 9,436,000 0.02 0.218 8,560,000 0.68 7.48 185,787 2,057,651
Total Inferred 11,198,000 0.021 0.194 10,158,000 0.72 6.65 233,532 2,172,766
Note: resources estimated using a gold cut-off = 0.013 oz/ton (0.45 g/t), totals may not add due to rounding
Refer to Technical Report and Resource Estimate on the Talapoosa Project, Nevada, WSP Canada Inc., Effective March 24, 2015, Filed on SEDAR on April 1, 2015
Mineral resources that are not mineral reserves do not have demonstrated economic viability
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Comparable OP/HL Deposits
Talapoosa’s resource grade is above average for comparable open pit, heap leach deposits
1.61 1.60
1.39
1.010.98
0.770.74 0.73 0.72 0.69
0.66 0.640.60 0.59 0.59 0.57 0.56
0.53 0.52
0.38 0.380.35
0.31 0.30
0.69
1.09
0.74
0.52 0.500.45 0.44
0.29
0.00
0.25
0.50
0.75
1.00
1.25
1.50
1.75
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g/t
)
Developer/Explorer Producer
Source: Company filings
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Talapoosa PEA Results
Independent QPs:
WSP Canada Inc.
Mineral Property
Development Inc.
McClelland
Laboratories Inc.
Enviroscientists Inc.
DOWL
11
Operating Assumptions/Highlights (US$ unless otherwise indicated)
Mine Life 10.8 years
Strip Ratio 1.47 : 1
Processing Rate 3.8 Mtpa
Average Gold Head Grade 0.74 g/t
LOM Average Gold Recovery 66%
Total Recovered Gold Ounces 593,000 oz
Average Gold Production 55,000 oz/yr
Average Silver Head Grade 11.6 g/t
LOM Average Silver Recovery 52%
Total Recovered Silver Ounces 7,365,000 oz
Average Silver Production 679,000 oz/yr
Initial Capital Cost(1) $51.2 million
All-In Sustaining Cost (net of silver)(2) $599/oz Au
After-Tax Net Cash Flow $209 million
After-Tax NPV 5% $136 million
After-Tax IRR 38.8%
Payback Period 3.1 years
Note: All estimates using $1,150/oz gold price, $16/oz silver price; after-tax estimates include a 1% NSR royalty, 5% NV net profits tax,
depreciation and depletion, and a 35% US Federal income tax
(1)Includes $2 million reclamation bond and $6 million in contingency costs
(2)Cash operating cost plus royalties, refining costs, NV net proceeds tax, and sustaining capex
The PEA is preliminary in nature and includes
inferred mineral resources that are considered too
speculative geologically to have the economic
considerations applied to them that would enable
them to be categorized as mineral reserves.
There is no certainty that the PEA will be realized.
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Talapoosa Price Sensitivity
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Commodity Price Assumption
Downside Case Base Case Upside Case
Gold Price $1,000/oz $1,150/oz $1,300/oz
Silver Price $14.50/oz $16.00/oz $17.50/oz
Pre-Tax
Net Cash Flow $183 million $278 million $372 million
NPV @ 5% $114 million $184 million $254 million
NPV @ 8% $85 million $145 million $205 million
IRR 30.4% 48.4% 68.4%
Payback Period(1) 5.4 years 0.9 years 0.8 years
After-Tax
Net Cash Flow $138 million $209 million $278 million
NPV @ 5% $84 million $136 million $188 million
NPV @ 8% $61 million $106 million $150 million
IRR 25.4% 38.8% 52.6%
Payback Period(1) 5.5 years 3.1 years 1.0 years
Talapoosa demonstrates strong economics using conservative metals price assumptions
(1)Payback is from the start of mine production
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Talapoosa Metallurgy
Gold occurs primarily as electrum, free gold and in sulphides
Conclusions from 13 metallurgical programs to-date:
• Heap leach cyanide extraction recoveries are sensitive to crush size
• Estimated heap leach cycle times: 50% gold recovery within 60
days, 75% gold recovery within 120 days
• Gunpoint (2013-2015) testing on unoxidized material:
− HPGR (nominal -6 mesh) column test recovery profiles indicate
continued leaching at end of testing
− Milling potential suggested by bottle roll tests of 75 µm material
indicating up to 92% gold recovery
Gold recovery sensitivity analysis supports robust economics
Future trade-off studies to de-risk metallurgy:
• Analysis to optimize heap leach recovery parameters and address
coarse gold recovery options. Testing to include:
− Fine HPGR crush with separation of HPGR “fines” fraction for
treatment by CIL or other method
− Permeability and column testing of HPGR “coarse” fraction to
validate enhanced leach pad stability, minimized agglomeration,
and improved leach kinetics
13
PEA Recovery Assumptions Gold Silver
Oxide-Type (19% of resource) 77% 47%
Unoxidized Material (81% of resource)
Hanging-wall Type 65% 60%
Footwall-Type 59% 45%
Life Of Mine (LOM) Average 66% 52%
Gold Recovery Sensitivity -10% Base
Case +10%
Average Gold Recovery 59% 66% 73%
After-tax NPV5% (US$M) $100 $136 $172
After-tax IRR 30% 39% 48%
0
20
40
60
80
100
0 30 60 90 120 150 180 210 G
old
Re
cove
ry, %
Leach Time, days
Column Test Leach Rate Profiles, Unoxidized Material
(HPGR crush, nominal -6 mesh)
Hanging wall-Type
Footwall-Type
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Talapoosa Geology
Volcanic-hosted low-
sulphidation epithermal
gold/silver system
Mineralization at Dyke
Adit, Main, Bear Creek and
East Hill zones
Parallel Appaloosa
structural zone remains
untested over 7km of
strike length
Analogous to historically
rich Comstock Lode
(~20 mi SW of Talapoosa)
14
A
A`
Basalt
Alluvium
Andesite
East Hill
Dike Adit
Andesite
Main & Bear
Creek Zones
1,000 m
N
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Talapoosa Cross-Section
3 primary mineralized domains, with Main Vein oxide material at surface (i.e. no pre-strip)
Sub-vertical structural and stratigraphic mineralization controls
15
Andesite
Tuff Breccia
Welded Lithic Tuff
Dacite
Crystal Lithic Tuff
Basalt
A A`
100 m
Base of Oxidation
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Talapoosa Geologic Model
Low sulphidation epithermal gold-silver
Talapoosa dominated by mineralized nested
veins representing mid-level erosional
preservation
Appaloosa Zone is well preserved including
high-level, hydrothermal eruption breccias
with vein fragments
16
Inc
rea
sin
g L
eve
l o
f E
ros
ion
Appaloosa
breccia with
vein fragments
Talapoosa gold-
mineralized vein
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Talapoosa Conceptual Design
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East Hill
Central Pit
Dyke Adit
Administrative Facilities &
Processing Plant
Approximates mine
configuration originally
permitted by Miramar
Mining Corp.
Compact footprint
minimizes haulage
distances
500 m
N
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Permitting Head Start
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Agency Permit Status Timeline
U.S. Bureau of Land
Management (BLM)
Record of Decision on EIS for
42Mt open-pit, heap leach operation
Approved in 1996;
remains valid for life of project
U.S. BLM Nevada Reclamation Permit Approved in 1996;
remains valid for life of project
U.S. BLM Right-of-Way Permit for
power and water pipeline
Required; possible Environmental
Assessment Required Up to 6 months
Nevada Bureau of
Mining Regulation and
Reclamation (BMRR)
Water Pollution Control Permit
Re-application to include updated
waste rock characterization, and
closure plan
8-14 months
BMRR/BLM (joint) Reclamation Cost Estimate Bonding Updated bond to be determined
from re-submitted closure plan 4 months
Nevada Bureau of
Air Pollution Control
Air Quality and Mercury
Operating Permits Re-application 6-9 months
Nevada Division of
Water Resources Water Rights
Requires lease or purchase
of water rights
9-12 months after
lease or purchase
Lyon County, Nevada County Special Use Permit Required Approximately 6
months
Various
(Federal and State)
Ten minor ministerial permits
and notifications
Required before or during
construction Up to 180 days
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Opportunities to Improve on PEA
Resource Upgrade: Dyke Adit / East Hill Zones from Inferred to Indicated
Expand Known Resource: on-strike to NW and SE; higher-grade feeder
potential beneath Dyke Adit
Complete Metallurgical Testing: optimize heap leach parameters and
evaluate mill processing alternatives with potential for enhanced gold and
silver recoveries
Optimize Mine Plans: evaluate open pit mine sequencing and equipment,
competitive contractor bids, and an owner-operator scenario
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Talapoosa Blue Sky Potential
Appaloosa Zone Exploration
• Parallel structural zone located 1.5 km
north of Talapoosa
• 7 km untested strike length
• District-scale footprint, similar to
Comstock Lode
• Outcropping epithermal sinter, and
breccia with mineralized vein fragments
• More deeply eroded SE portion is
mineralized at surface
• Applicable geophysical tools:
IP/resistivity and magnetics
• Targeted sampling planned for Q3/2016
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Lookout Mountain NI 43-101 Gold Resource(1):
• Measured 106,000 ounces (3,043,000 tons @ 0.035 opt gold)
• Indicated 402,000 ounce (25,897,000 tons @ 0.016 opt gold)
• Inferred 141,000 ounces (11,709,000 tons @ 0.012 opt gold)
Carlin-type gold system
23 mi2 land package with multiple
untested targets
Trend Hosts Several Multi-Million
Ounce Gold Mines
• Cortez/Pipeline Complex
• Goldrush Prospect
• Ruby Hill / Archimedes
Eureka Project District-Scale on the Battle Mountain-Eureka Gold Trend
21
Lookout
Mountain
Ruby Hill &
Archimedes
Gold Bar
Gold Pick
Buckhorn
Cortez
Tonkin Springs
Pipeline
Goldrush
(1) Refer to Updated Technical Report on the Lookout Mountain Project, MDA,
Effective March 1, 2013, Filed on SEDAR April 12, 2013
Windfall
4 km
N
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Eureka Project Lookout Mountain High Grade Target Zone
Open on-strike and
at depth
Recent discovery of
parallel higher-
grade feeder zone:
proof-of-concept
Favorable host
rocks: collapse
breccias b/t
Dunderberg Shale
and Hamburg
Dolomite
Secret Canyon
Shale (successfully
drilled at Kinsley
Mtn & Bald Mtn)
largely untested
22
Refer to Updated Technical Report on the Lookout Mountain Project, MDA, Effective March 1, 2013, Filed on SEDAR April 12, 2013 and the Company’s April 20, 2015 press release
Lone Mountain
Dolomite
NI 43-101 Resource
508,000 ozs, M&I (28.9m tons @ 0.018 opt gold)
141,000 ozs, Inf (11.7m tons @ 0.012 opt gold)
BHSE-171
19.8 m @ 3.22
incl. 7.6 m @
4.93 g/t
BHSE-152
4.6 m @ 4.73 g/t
BHSE-173
17.5 m @ 1.92 g/t
Incl. 4.5 m @ 3.12
BHSE-172
14.2 m @ 3.47 g/t
Incl. 7.7 m @ 5.02
A A`
Lookout Pit:
18,000 Ounces
Produced
NI 43-101 Resource
508,000 ozs, M&I
141,000 ozs, Inferred
BHSE-074
22.9 m @ 0.57 g/t
BHSE-152
BHSE-171
BHSE-172
BHSE-173
A A`
750 m
N
100 m
D I S C O V E R I N G ǀ D E V E L O P I N G ǀ D E L I V E R I N G
OTCQB: TLRS ǀ TSX.V: TBR
Eureka Project Windfall – 2015 Drilling Plan and Section View
23
2.5km mineralized
trend with historic
open pit, heap
leach gold mining
Recent drilling
confirms historic
drill assays,
including deep
high grade
intercepts
Refer to Updated Technical Report on the Lookout Mountain Project, MDA, Effective March 1, 2013, Filed on SEDAR April 12, 2013 and the Company’s April 20, 2015 press release
BHWF-040
24.4 m @ 3.04 g/t incl.
6.1 m @ 8.79
BHWF-040
BHWF-037
27.4 m @ 2.20 g/t incl.
13.7 m @ 3.68
Rustler Pit:
~50,000 Ounces Produced
Windfall Pit:
27,077 Ounces Produced
Section
1710800N
South Paroni Pit:
~33,000 Ounces Produced
BHWF-036
12.2 m @ 1.26 g/t BHWF-039
10.7 m @ 0.46 g/t
BHWF-038
24.4 m @ 0.32 g/t
B B`
BHWF-041
18.3 m @ 1.24 g/t
B B`
375 m
N
100 m
D I S C O V E R I N G ǀ D E V E L O P I N G ǀ D E L I V E R I N G
OTCQB: TLRS ǀ TSX.V: TBR
24
3,900-acre district near
Lovelock, Nevada
Epithermal gold/silver district
with some of the highest-grade
gold production in Nevada
mining history
150,000 ounces of historic gold
production grading 1.2 opt gold
and 4.0 opt silver
Seven Troughs Project
D I S C O V E R I N G ǀ D E V E L O P I N G ǀ D E L I V E R I N G
OTCQB: TLRS ǀ TSX.V: TBR
Go-Forward Strategy
Target Near-Term Gold Production and Cash Flow at Talapoosa
• Optimize and de-risk a low capital and operating cost advanced gold development project
• Evaluate heap leach vs. milling alternatives
• Initiate long-lead-time permitting for development
• Drill to upgrade Inferred resources and provide metallurgical samples
• Complete pre-feasibility study followed by feasibility study
• Budget to reach construction decision: $5M
Discover Additional Ounces Through Focused Nevada Exploration
• Advance district-scale projects in pro-mining jurisdictions with compliant resources and upside
Maintain Capital Discipline and Enhance Shareholder Value
• Pursue and execute value-accretive transactions (e.g. Talapoosa)
• Monetize non-core assets through JV/option/sale
• Capitalize on opportunities to further enhance management team and board
• Leverage dual listing on OTCQB and TSX-V
25
D I S C O V E R I N G ǀ D E V E L O P I N G ǀ D E L I V E R I N G
OTCQB: TLRS ǀ TSX.V: TBR
Key Success Factors
Management/Board with Technical and Capital Markets Expertise
Tight Share Structure: 24 million shares outstanding
Nevada Focus: World-Class Gold Jurisdiction
Advanced Gold Development Project with Permitting Head Start
High-Quality Gold Project Pipeline
Value-Accretive Transactions and Capital Discipline
26
D I S C O V E R I N G ǀ D E V E L O P I N G ǀ D E L I V E R I N G
OTCQB: TLRS ǀ TSX.V: TBR
APPENDIX
D I S C O V E R I N G ǀ D E V E L O P I N G ǀ D E L I V E R I N G
OTCQB: TLRS ǀ TSX.V: TBR
Comparable OP/HL Projects
Project Talapoosa Lincoln Hill Commonwealth Castle Mountain Hasbrouck Mt. Hamilton
Company Timberline
Resources Rye Patch Gold
Commonwealth
Silver & Gold
Castle Mountain
Mining
West Kirkland
Mining
Solitario Exploration
& Royalty
Location Nevada Nevada Arizona California Nevada Nevada
Development Stage PEA PEA PEA PEA Pre-Feasibility Feasibility
Gold Price (US$/oz) 1,150 1,300 1,350 1,350 1,300 1,225 1,300
Silver Price (US$/oz) 16.00 17.50 22.00 22.50 n/a 17.50 20.00
Throughput (Mtpa) 3.8 1.8 4.0 8.1 6.1 3.5
Strip Ratio (W : O) 1.5 : 1 0.5 : 1 1.0 : 1 6.9 : 1 1.1 : 1 2.5 : 1
Mine Life (Years) 11 5 9 17 8 7
LOM Average AuEq*
Production (koz/yr) 64 45 57 176 71 73
Average Gold Head Grade (g/t) 0.74 0.65 0.39 0.85 0.58 0.82
Gold Recovery (%) 66 64 80 83 74 76
Initial Capital (US$M) 51 26 27 98 54 92
Sustaining Capital (US$M) 1 4 21 423 83 30
LOM Avg. All-in AuEq*
Sustaining Cost (US$/oz) 680 692 759 872 949 779 833
NPV @ 5% (US$M) 136 188 41 101 352 75 79
IRR (%) 39 53 53 58 20 26 26
Payback (Years) 3.1 1.0 1.6 1.6 2.6 3.7 2.9
28
*Note: AuEq based on project-specific metals price assumptions
Source: Company filings
D I S C O V E R I N G ǀ D E V E L O P I N G ǀ D E L I V E R I N G
OTCQB: TLRS ǀ TSX.V: TBR
Initial LOM Avg. LOM Avg.
Share Price % of 52 Mkt Cap EV P/NAV(1)
EV/MI+I(2)
MI&I Production Annual Prod. AISC Initial Capex
Company Name Stage (US$/sh) Week High (US$mm) (US$mm) (Current) (US$/oz) (koz Au-Ag Eq) (Year)(1)
(koz Au-Ag Eq)(3)
(US$/oz Au-Ag Eq)(3)
(US$mm)(3)
North American Developers & Explorers
PERSHING GOLD Resource $5.93 80% $129 $112 0.61x $156 717 2016 - - -
KAMINAK GOLD PEA $0.66 68% $95 $77 0.43x $18 4,156 2020 167 $688 $305
GOLD STANDARD Resource $0.53 72% $89 $74 0.21x $40 1,826 - - - -
INTEGRA GOLD PEA $0.29 99% $83 $67 0.41x $48 1,392 2017 110 $598 $51
CORVUS GOLD PEA $0.57 43% $46 $40 0.26x $19 2,118 - 124 $739 $60
SOLITARIO EXPLORATION & ROYALTY FS $0.66 42% $26 $29 0.45x $18 1,643 2017 73 $672 $175
CASTLE MOUNTAIN MINING PEA $0.30 42% $23 $20 0.46x $5 4,244 2018 176 $949 $98
RYE PATCH GOLD PEA $0.14 83% $20 $15 0.28x $5 2,962 - 44 $759 $26
WEST KIRKLAND PEA $0.05 43% $16 $13 0.30x $5 2,607 2018 71 $779 $54
NORTHERN VERTEX MINING CORP FS $0.18 43% $13 $9 0.25x $18 489 - 40 $624 $33
Average - - 62% $54 $46 0.37x $33 2,215 - 101 $726 $100
TIMBERLINE RESOURCES PEA $0.64 35% $8 $7 0.06x $3 2,123 2018 65 $680 $51
Resource(2)
Comparable Companies Leading North American Gold Developers and Explorers
29
Source: Macquarie Capital
Prices as of June 18, 2015
(1) Based on analyst consensus estimates
(2) Reserves and Resources reported as gold equivalent (including silver only) and using Macquarie long-term price forecasts: US$1,250/oz Au, US$18.00/oz Ag
(3) Based on company technical reports
(4) Pending sale of Mt. Hamilton gold project with Ely Gold to Waterton Precious Metals for total consideration of US$30mm, announced June 11, 2015
(5) Timberline P/NAV based on Talapoosa $136M after-tax NAV based on US$1,150/oz Au and US$16.00/oz Ag and excludes other assets. Timberline MI&I resource shown on 100% basis.
(5)
(4)
D I S C O V E R I N G ǀ D E V E L O P I N G ǀ D E L I V E R I N G
OTCQB: TLRS ǀ TSX.V: TBR
Comparable Companies P/NAV vs. Peer Group Indicates Re-Rating Potential
30
Average = 0.37x
Note: Street research consensus NAVs are shown; average excludes Timberline Resources; Timberline NAV based on $136M Talapoosa after-tax NPV (excludes other assets); prices as of June 18, 2015
0.61x
0.46x 0.45x 0.43x
0.41x
0.30x 0.28x
0.26x 0.25x
0.21x
0.06x
0.00x
0.25x
0.50x
0.75x
Pers
hin
g G
old
Ca
stle M
oun
tain
Solit
ari
oE
xp
lora
tio
n &
Royalty
Kam
ina
k
Inte
gra
Go
ld
West K
irkla
nd
Rye P
atc
h G
old
Co
rvus G
old
No
rth
ern
Vert
ex
Gold
Sta
ndard
Ventu
res
Tim
be
rlin
eR
eso
urc
es
P/N
AV
D I S C O V E R I N G ǀ D E V E L O P I N G ǀ D E L I V E R I N G
P H O N E 2 0 8 . 6 6 4 . 4 8 5 9 ǀ F A X 2 0 8 . 6 6 4 . 4 8 6 0 ǀ I N F O @ T I M B E R L I N E – R E S O U R C E S . C O M
T I M B E R L I N E – R E S O U R C E S . C O M
OTC QB: TLRS ǀ TSX.V: TBR