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

The Company has tested the first 2 wells out of 49 on its Tompkins property and is pleased to provide the following results. The first well tested, Tompkins number 3, is averaging 72.6 mcf per day. The second well tested, the Tompkins number 23 is averaging 57.3 mcf per day. To date no remedial work has been done on either of these in order to establish the existing non stimulated formation pressure. Montello intends to re-enter these wells in order to determine if they are receptive to further stimulation to increase production. Modern techniques of well stimulation such as acid fracing, water/gas flooding, etc. has rarely been done in this area. This technique of re-entering previous wells that have produced primarily only flush production and stimulating the wells with modern techniques has proven extremely successful in more well-known fields through areas like Texas, Alberta, etc. These 2 wells are part of a network of a total of 10 wells that previously connected at a gathering yard. The Company is currently in the process of re-connecting these wells and initiating production from the gathering point into the inter-state gas line.

Montello is also pleased to announce that it has acquired an additional 432 acres in the same area of Northern Tennessee. This new property currently has 3 wells. The 3 wells were drilled during the period of 1991 - 1993. Only 1 well was brought into production, however, not until June 1998. This well is still producing gas and the Company will be re-entering it to determine if receptive to further stimulation to increase production and to identify offset drill targets.

In addition, Montello has 1 well on its lease that was initially drilled to 1500 feet in the late 1970's and was re-entered and drilled deeper to the Knox formation approximately 3600 feet in the late 1980's ( Our Knox Prospect ). The Knox prospect is an exciting opportunity. It was successfully drilled and both the drilling report and logs done after the well was completed showed oil. We are pleased to announce that the weather has improved and work will be commencing the week of February 21 on this location.