UNITED STATES

SECURITIES AND EXCHANGE COMMISSION,

Washington, D.C. 20549

FORM 10-KSB/A

(X)   Annual Report under Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Fiscal Year Ended September 30, 2006.

(  )   Transaction Report under Section 13 or 15(d) of Securities Exchange Act of 1934

For the transition period from ______ to ______

TIMBERLINE RESOURCES CORPORATION

(Name of Small Business Issuer in its Charter)

Idaho	000-51549	82-0291227
(State or other jurisdiction of incorporation)	(Commission File  Number)	(IRS Employer Identification No.)

1100 East Lakeshore Drive, Suite 301, Coeur d’Alene, ID	83814
(Address of principal executive offices)	(Zip Code)

Issuer’s Telephone Number: (208) 664-4859

Copies of Communications to:

Thomas E. Boccieri, Attorney at Law

561 Schaefer Avenue

Oradell, New Jersey 07649-2517

Telephone: 201-983-2024

Fax: 201-265-6069

Securities registered under Section 12(b) of the Exchange Act: None

Securities registered under Section 12(g) of the Exchange Act:

Common Stock, $0.001 par value.

(Title of Class)

Check whether the issuer: (1)  filed all reports to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   YES [X]     No [   ]   The Company has not yet been subject to filing requirements for 90 days.

Check if there is no disclosure of delinquent filers in response to Item 405 of Regulation S-B is not contained in this form, and no disclosure  will be contained, to the  best  of registrant's knowledge, in definitive  proxy or  information  statements incorporated by reference in Part III of this Form 10-KSB or any amendment to this Form 10-KSB.    [X]

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act.)  [  ] Yes [X] No

State issuer's revenues for its most recent fiscal year: $6,469,546

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was sold, or the average bid and asked prices of such common equity, as of a specified date within the past 60 days:    $11,392,052 on January 8, 2007.

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: 18,371,921 shares of common stock on January 8, 2007.

EXPLANATORY NOTE

This amendment is being filed for the purpose of including the:

(1)

December 29, 2006, report of the Registrant’s independent registered public accounting firm (DeCoria Maichel Teague, P.S.)issued in connection with the Registrant’s financial statements as of and for the year ended September 30, 2006;

(2)

December 5, 2005 (except as to note 13, which is dated April 26, 2006), report of the Registrant’s independent registered public accounting firm (Williams & Webster, P.S.) issued in connection with the Registrant’s financial statements as of and for the year ended September 30, 2005; and

(3)

November 3, 2006, report of World Wide Exploration S.A. de C.V.’s independent auditors (KPMG) issued in connection with World Wide Exploration S.A. de C.V.’s financial statements as of September 30, 2006 and for the period from inception (December 16, 2005)to September 30, 2006. World Wide Exploration S.A. de C.V. is the wholly owned, Mexican subsidiary of Kettle Drilling, Inc., which is the Registrant’s wholly owned subsidiary.

These reports were inadvertently omitted from the financial statements contained Item 7 of Part II of the Registrant’s Annual Report on Form 10KSB filed on January 16, 2007.

SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this amended report to be signed on its behalf by the undersigned, thereunto duly authorized.

Timberline Resources Corporation

(Registrant)

/s/  John Swallow

__________________________________________

John Swallow

(Chief Executive Officer and Chairman of the board of Directors)

/s/  Michael P. Wilson

__________________________________________

Michael P. Wilson

(Chief Financial Officer)

Date:  January 24, 2007

INDEX TO ATTACHED EXHIBITS

Exhibit 31.1 -  Certification Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-

                        14(a), Swallow

Exhibit 31.2 -  Certification Principal Financial  Officer required by Rule 13a-14(a) or Rule 15d-

                        14(a), Wilson

Exhibit 32.1 -  Certification Required by Rule 13a-14(b) or Rule 15d-14(b) and section

                         906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, Swallow

Exhibit 32.2 -  Certification Required by Rule 13a-14(b) or Rule 15d-14(b) and section

                        906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, Wilson