Montello Resources Ltd. (the "Company") (TSX Symbol "MEO") is pleased to provide the following update on its Oil & Gas Leases located in north central Tennessee.

The Company has negotiated the acquisition of a tie-in to an existing interstate gas pipeline which would allow nine of the company's shut-in natural gas wells in the area to be put on-line after volume testing has been completed. As stated in a previous news release, Montello has acquired 49 shut-in oil & gas wells and approximately 1,200 acres of oil & gas leases located in northern Tennessee. These leases are situated in a part of the state where the majority of wells were drilled in the early 1980's. These wells were shut-in during the mid 1980's due to low oil prices and lack of transmission lines for natural gas. The Company intends to case and cement each well as we progress in order to isolate and treat specific formations. Modern techniques of well stimulation are more effective in cased holes versus open holes. Montello has begun to re-enter both oil & gas wells to test formations that have produced in the past. This also includes ones suggested by geophysical logs to be positive for potential hydrocarbon production that has yet to be exploited.

Most wells in this region are 1,150 to 1,600 feet deep. As was the case during the time when these wells were drilled, the majority of them have only been cased from surface down to 800 feet with the remaining wells still open from 800 feet to total depth. The technique of re-entering past-producing wells and stimulating past-producing formations, as well as formations that have yet to be exploited, has proven successful in more well-known fields through well-established hydrocarbon basins in Texas and Alberta. Additionally, further acreage is also being negotiated in the vicinity of the nine wells. Due to unseasonable wet weather in Tennessee, the Company has encountered difficulties in moving service rigs, trucks and piping onto its lease locations. It is expected that volume testing of three wells will be available in approximately two weeks. Video footage of primary pressure testing of three of the first nine natural gas wells to be re-entered can be viewed on Montello's web site at www.montello.com/