The following is a summary of property, mineral rights, and equipment and accumulated depreciation at December 31, 2019 and September 30, 2019, respectively:

	Expected Useful Lives (years)		December 31, 2019		September 30, 2019

Mineral rights – Eureka	-	$	13,671,546	$	13,703,651
Mineral rights – Elder Creek	-		1,218,715		1,218,715
Mineral rights – Other	-		50,000		50,000
Total mineral rights			14,940,261		14,972,366

Equipment and vehicles	2-5		53,678		53,678
Office equipment and furniture	3-7		70,150		70,150
Land	-		51,477		51,477
Total property and equipment			175,305		175,305
Less accumulated depreciation			(123,828)		(123,828)
Property, mineral rights, and equipment, net		$	14,991,738	$	15,023,843

Depreciation expense for the quarters ended December 31, 2019 and 2018, was nil and nil, respectively.

For the quarters ended December 31, 2019 and 2018, the Company received lease payments of $32,105 and $25,594, respectively, from a third party on two of the Company’s leases at the Company’s Eureka property. Monthly payments in the amount of approximately $8,500 are expected to continue to be received. These receipts are recorded as a reduction to property, mineral rights, and equipment.

The Company met the 2018 work commitment, and issued 5,000,000 Class G warrants during the quarter ended December 31, 2018 as required by the amended agreement, which were fair valued at $176,000 on the date the commitment was satisfied.

On June 28, 2019, the Company entered into a Limited Liability Company Agreement to form a Limited Liability Company (the “Agreement”) with PM&Gold Mines, Inc. (“PM&G”) for the advanced exploration, and if determined feasible, the development of the Company’s Lookout Mountain Gold project.

The LLC Agreement calls for PM&G to fund exploration and development activities in two stages for an earned equity in the project. Timberline contributed certain claims that constitute the Lookout Mountain project and adjacent historical Oswego Mine area (the “Project”) to the limited liability company in exchange for its ownership position. Timberline will manage the project at least through Stage I of investment. PM&G shall retain the right to manage all Stage II activities with or without Timberline’s participation.

Concurrent with completion of the Agreement, PM&G also participated in a private placement and acquired 3,367,441 shares, or 4.99%, of Timberline’s common shares. The placement includes the right of PM&G to maintain its position in Timberline by pro-rata participation in future financings. The initial interests in the LLC are 51% PM&G and 49% Timberline. The Company accounts for its investment in the LLC on the cost basis.

During the quarter ended December 31, 2019, the Company paid $19,963 for Stage I exploration costs incurred by the Company on behalf of Lookout Mountain LLC, predominantly consulting and related expenses paid to consultants employed by the Company. The reimbursable costs were included as an Account receivable on the Company’s balance sheet.