Timberline closes acquisition of Staccato Gold Resources

Timberline Resources Corp. (NYSE Amex:TLR) has closed on its acquisition of Staccato Gold Resources Ltd.

As previously announced, the acquisition, by way of a plan of arrangement, was overwhelmingly approved by the shareholders of Timberline and Staccato, and the final order from the Supreme Court of British Columbia was issued approving the proposed acquisition of Staccato by Timberline.

Timberline's shares of common stock began trading on the TSX Venture Exchange in substitution for Staccato's common shares on Thursday under the symbol "TBR."

"We are very happy to have met all the closing conditions and to have closed on the acquisition of Staccato," Randal Hardy, Timberline's chief executive officer said in a statement. "We appreciate the support of our shareholders, and we welcome the Staccato shareholders, as we continue to explore opportunities to increase shareholder value. We are excited to start working on the Lookout Mountain project, as well as several of the other exploration opportunities on the South Eureka property in the Battle Mountain/Eureka gold trend. In addition, we are progressing well at our Butte Highlands Gold Project, which is still on target with our objective to achieve production in 2011, and Timberline Drilling is doing very well as our team continues to optimize the operations and find opportunities to leverage our expertise in both underground and surface core drilling."

Investment promoter/adviser agrees to cease activities

The Idaho Department of Finance has entered a cease-and-desist order against Coeur d'Alene resident James C. Stone. Stone agreed to the entry of the order.

The state alleges that Stone, doing business as JCS Consulting, operated as an unlicensed investment adviser since at least January 2009. Stone is also alleged to have offered stock in a company so that the company could engage in various financial transactions, including buying and selling securities to generate profit. In connection with the offer of the corporate stock, Stone is alleged to have omitted important information to potential investors. Stone is alleged to have:

n Omitted to inform investors about his 2005 10-count criminal indictment by federal authorities and his subsequent 2006 guilty plea to one count of false statements in relation to documents required by ERISA, as well as failing to disclose his past personal bankruptcies.

n Omitted to inform investors that he remained under federal "supervised release" after his January 2009 release from the federal prison system and that he failed to tell investors that he still owed more than $150,000 in restitution.

Without admitting or denying the state's allegations, Stone consented to the entry of the order and agreed to a) immediately cease offering investment advisory services, b) cease offering to sell any form of securities in, into or from Idaho, and c) not engage in future violations of the Idaho Uniform Securities Act.

The state's order is primarily intended to cease the activities described in the order while it continues its investigation into Stone's activities. Any individuals that have purchased securities or advisory services through Stone are encouraged to contact the Department of Finance at (208) 332-8004 or Idaho toll-free at (888) 346-3378. A copy of the order can be found on the Internet at http://finance.idaho.gov or may be obtained by calling the department.

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