MONTELLO RESOURCES LTD.

P.O. Box 1757 Station M

Calgary, Alberta

T2P 2L8

Northern Alberta Update: Grouard and Mulligan;

Two Successful Wells Drilled at Grouard

Calgary, Alberta, March 31 , 2008: Montello Resources Ltd. (TSX Venture Exchange Symbol “MEO”) (“Montello”) is pleased to provide an overview on our Grouard and Mulligan Properties in Northwest Alberta. The Company will provide an update on our deep projects in Southern Alberta Projects at Sarcee and Pincher Creek shortly.

Montello’s Board of Directors are pleased to announce that two successful wells have been drilled at Grouard. The 10-3 and the 1-15 wells are tested and deemed successful with estimated production of 25 to 35 boepd per well. They will be tied into a gathering system that is currently being negotiated between the Company and the Operator whereby it is proposed Montello will be able to move forward as a joint Venture partner in the play on all wells to be drilled going forward with a 30 to 35% working interest. Offset wells in the area have produced 1 to 1.5 bcf. The planned infrastructure project will also create third party water disposal revenue and substantially reduce operating costs for the existing stranded gas wells and at least the six follow up exploration and development wells that have already been identified.

On December 4, 2007, Montello announced farming in on two gas exploration wells in the Grouard region of Alberta, 325 km northwest of the City of Edmonton. The Company paid 50% of all costs to earn a 35% working interest in the wells. Montello farmed in on these two wells pursuant to a November, 2007, farm-in agreement per above subject to minor overrides. Our operator, Northern Sun Exploration already operates production in the area. Montello also has the right to participate in other contingent offset wells. Both wells drilled, the 10-3 and 1-15, are multi-zone targets with total depths of approximately 850 meters and drilling commenced on the first of these drilling locations to the Debolt formation.

On December 6, 2007, our operator announced that it had drilled and logged the two multi-zone gas wells and the logs for the wells were being reviewed for imminent testing. The 1-15 gas well subsequently tested at 4.4 decs per day of gas (26 boe / day ) un-stimulated. Given that the pipeline infrastructure and facility are not yet 100% complete, the 1-15 was only tested out of one zone and one set of perforations, but it does show gas production that would warrant a tie in. The 10-3 well was tested as a gas/oil well and it is producing minor amounts of gas and oil from the first zone perforated. We think this well has decent potential but we have some mechanical issues with the pump, which we are working on presently. There are other zones of interest (by-pass pay) that look good on logs in both the 10-3 and 1-15 wells that are not yet evaluated ; the game-plan is to further test them after the initial zones deplete.

Grouard represents a lower risk play given the multi-zone oil and gas potential, and provides Montello with a good mix of production. A new royalty framework will not affect the economics given that we will be able to produce the wells longer at a marginal less productive rate thus avoid the increased royalty rate especially with the recent gas price deck increases as the market firms up. Our operating partner has defined an opportunity to Montello to participate in a stepped up multi well program that could commence in the latter half of 2008 through 2009 per funding commitments.

Mulligan: The Company owns various working interests in 6,720 acres of land in the Mulligan area in Northern Alberta. This asset contains four producing oil wells, one producing gas well, four shut-in gas wells; one shut-in oil well and two identified drilling locations with water-flood possibilities and voidage replacement enhancement opportunities.. The Company continues to work on enhancing the Mulligan properties and successfully demonstrated upside from “water flood / voidage replacement” with pressure maintenance techniques to increase production in the Charlie Lake Oil Zone in Section -81-8 W6M. With summer 2007 approval of a water-flood enhancement scheme by the “AEUB” (Alberta Energy & Utility Board) in place, re-work of the injection well 6-23-81-8W6M well was completed to enhance oil production in the Charlie Lake Oil Formation at Mulligan was commenced. Up to two potential re-completions and two new drilling locations are being reviewed to develop the proved non-producing and probable reserves in 2008 provided successful negotiation with Joint Venture Partners.

We are looking to focus our efforts on our larger interest ownership at Mulligan commencing with additional water-flood opportunities. Economics have been poor on our smaller interest properties due to overhead, so we are looking to relinquish operatorship on them to better focus on our larger opportunities in Township 82-8-W6 at Mulligan.