COEUR D'ALENE, Idaho, July 24, 2007 (PRIME NEWSWIRE) -- Timberline Resources Corporation (OTCBB:TBLC) today announced preliminary third quarter revenue figures for its wholly-owned contract drilling subsidiary, Kettle Drilling, Inc. ("Kettle"). For the quarter ending in June 2007, unaudited results indicate total consolidated revenues of approximately $4.8-million, nearly double the revenue generated a year ago. This marks the fifth consecutive quarter of record revenues at Kettle since it was acquired by Timberline in March 2006. Kettle specializes in underground drilling services in support of active mining operations and advanced exploration projects.
Timberline Chairman and CEO John Swallow stated, "We are pleased to have reached our revenue target as we experienced some unexpected difficulties last quarter. In June, there was a serious accident at the Midas Mine where we have two underground rigs and drill crews. While Kettle personnel were nowhere near the accident site and were not involved in any way, the rigs and crews have experienced significant down time pending an investigation by MSHA. This is standard industry practice and we must wait for regulators to approve remobilization of the rigs. We also experienced significant down time at other sites due to warranty-covered technical issues that are being capably addressed by their manufacturer. While meeting our revenue target last quarter, we believe that these setbacks will prevent us from achieving our previously-announced profit targets."
Swallow continued, "On a more positive note, we were also able to capitalize on an opportunity this past quarter to re-enter the Alaskan drilling market. We signed a lease (with option to purchase) on two LF-70 surface drills and hired two available and experienced local drill crews. We also have a new U-8 scheduled for deployment to Industrias Penoles in September and expect to receive two new LF-90 surface drills shortly. These recent purchases were made possible by the exercise of purchase warrants from past financings, primarily by Praetorian Capital which has proven to be an outstanding supporter of the Company since getting involved late last year."
Kettle and its subsidiary, World Wide Exploration, S.A. de C.V. ("World Wide"), have active contracts with Newmont Mining, Industrias Penoles, Teck Cominco, Kinross Gold, Kennecott Exploration, Klondex Mines, Continuum Resources, Andover Ventures, and Consolidated Gold Win Ventures. Kettle also recently commenced drilling operations for SNS Silver Corp. at its Crescent Mine Project in northern Idaho's "Silver Valley". Two Kettle drills are now active at the Crescent with a third scheduled for deployment shortly.
Timberline Resources Corporation is a unique, growth-oriented company that combines positive cash flow from its ownership of Kettle Drilling, Inc. with "blue sky" upside from its mineral exploration division. Timberline common stock is quoted on the OTC Bulletin Board under the symbol "TBLC."
Statements contained herein that are not based upon current or historical fact are forward-looking in nature. Such forward-looking statements reflect the Company's expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. When used herein, the words "anticipate," "believe," "estimate," "plan," "intend" and "expect" and similar expressions, as they relate to Timberline Resources Corporation, 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, such factors, including risk factors, discussed in the Company's Annual Report on Form 10-KSB, as amended, for the year ended September 30, 2006. Except as required by the Federal Securities law, the Company does not undertake any obligation to release publicly any revisions to any forward-looking statements to reflect.