Oct 23, 2003, Eric Leslie co-founds Vanguard Exploration, and serves as President from Oct 23, 2003 to July 2007. From then until the referenced SEC Filing, April 15, 2008, he served as President and CEO.

Sept 5, 2007, "Montello further announces that Mr. Eric M. Leslie of Calgary Alberta has agreed to provide consultancy advisory services to Bill Cawker, President and CEO of Montello... Mr. Leslie is the C.E.O. of Vanguard Exploration Corp...Mr. Leslie a total of 200,000 options with a 5 year term and an exercise price of $0.14 for his services. " Nothing hidden.

Nov 1, 2007, "Montello has agreed to purchase the Said Interests from Vanguard Exploration Corp...Said Interests of $3,499,000 will be paid in full by Montello issuing to Vanguard 11,663,333 common shares, valued at $0.30 per share, from treasury, which will be subject to a 4 month hold period... common shares at a 38% premium to the last 10 days average closing price of our stock"

This is not what I would call an arms-length transaction.

Yes, the deal was based upon a quantity of reserves that an independent engineering firm prepared for Year-end reporting, dated January 1, 2007.

What I am concerned about is what they use a price unit of reserves. Jan 07 the price of oil as about $55 per barrel, and by Sept 07 was over $70. When doing Economic forecasts, your pricing forecasts for the remaining life of the well make a huge difference in the Net Present Value of those reserves. Need I say it, there is room for unethical behaviour in the calculation of the price associated with those reserves.

Is there an independent evaluation of that has a current value for those reserves? Saying that the MEO shares were priced at $0.30 is meaningless compared to the fact that MEO had already hit the Copper Ridge formation, and dished out:

• Sept 5, 2007 - 2,900,000 options
• Oct 2-07 - 3,529,686 options
• Oct 15-07 - 20,000,000 PP shares =1 share + 1 warrant
• Oct 19-07 - 16,404,332 PP shares =1 share + 1 warrant
• Oct 30-07 - 9,900,000 options

Nov 1-08 - MEO shares were trading at about $0.20, on a steep incline, making the previous 10 days average price is rather misleading. Within a week it was at $0.24.

What is the extent of the dealings with MEO mgmt and the private company, Vanguard? We know that they have 11,663,333 common shares, and MEO is sitting on Elephant sized reserves.