NEWS RELEASE TRANSMITTED BY Marketwire

FOR: MONTELLO RESOURCES LTD.

TSX VENTURE SYMBOL: MEO

DECEMBER 18, 2008

Montello Provides Updates on Highpoint, Tennessee & Pincher
Creek, Alberta

CALGARY, ALBERTA--(Marketwire - Dec. 18, 2008) - Montello Resources Ltd.
(TSX VENTURE:MEO) ("Montello") is pleased to provide a brief update on the
work programs for the Chattanooga Shale, the John Bowen #2 Well Deep Test,
and Pincher Creek.

The Chattanooga Shale: Montello continues to be committed to the testing of
the shallow gas Chattanooga Shale in Tennessee as well as the oil zones in
the John Bowen #1 and Morgan Highpoint #3 test wells, with programs being
developed for both projects in the new year. The overview below on the
"Chattanooga Shale Play" will provide additional background.

The John Bowen #2 Well Deep Gas Test: Montello has been monitoring the deep
gas zone which has flowed mud filtrate and drilling fluid into the wellbore
with an associated gas blow. In an attempt to facilitate hydrocarbon inflow
into the wellbore, Montello has just completed a Nitrogen gas fracturing
operation on the deep gas zone. Subsequent to the Nitrogen frac, inert gas
was recorded at surface. The well will be shut-in for a period of three to
four weeks to allow a pressure build-up prior to re-opening the wellbore.
Montello believes that the well bore sustained skin damage at the deep gas
interval and will be investigating remedial options.

Pincher Creek: Montello announces that the Alberta Energy Utilities Board
hearing into the construction of the Pincher Creek pipeline which was to be
held on December 6, 2008, has been re-scheduled to January 22, 2009. The
hearing will review the issues surrounding the proposed pipeline tie-in of
the Pincher Creek well located at 1-11-4-29 W4M. It has been reported in
prior press releases that the said well has been production tested in both
of the Cadomin and Brown Sand formations. Both formations have produced
light gravity oil/condensate on test.

The Chattanooga Shale Play: is in its infancy with such companies as Atlas
Energy (ATN), CNX Gas Company (CNX), Chesapeake Energy (CHK), Range
Resources (RRC), GeoMet Inc. (GMET) actively pursuing mineral rights
(drilling rights). The methodology is to drill vertical wells followed by
new stimulation techniques such as fracturing and horizontal drilling. Given
competition amongst participants, there is not a lot of public information
available at this time, however, Atlas Energy who has a strong presence, has
announced that it has accumulated 105,000 acres in Eastern Tennessee, with a
large number of potential horizontal drilling locations and capability for
significant production. CNX Gas Corporation (NYSE:CXG), Pittsburgh, PA (July
30, 2008), a leading gas producer by revenue in the Appalachian Basin, in a
recent news release confirmed that they have drilled four additional
Chattanooga Shale wells after a successful test well. Their release goes on
to state as per the link below, that the first two wells are producing with
two additional ones in various stages of clean up with "encouraging initial
results". CNX have added an additional 100,000 net acres to bring their
total net acreage to 235,000.

The Chattanooga Shale Field is an organic, hydrocarbon rich shale found
throughout Eastern Tennessee. It is an extension of the Appalachian Basin
Devonian Shale, which is known to most as the Marcellus Shale and is
believed to hold rich areas of natural gas. It is located in Eastern
Tennessee, Northern Alabama, Southern Kentucky and Northeast Georgia. It is
thought to be a source rock for the hydro-carbons produced from many of the
conventional reservoirs in Tennessee. The shale thickness can vary to in
excess of 200 feet. The following links on the Chattanooga Shale are the
source for the overview above. They are independent 3rd party sources, which
are believed to be reliable, but cannot be guaranteed for completeness or
accuracy.

http://oilshalegas.com/chattanoogash...

http://phx.corporate-ir.net/phoenix....
1175&highlight=)

http://www.rigzone.com/NEWS/article....

http://www.scandoil.com/moxie-bm2/ne... -
horizontal-we.shtml

ON BEHALF OF THE BOARD OF DIRECTORS

Peter C. Brown, President-CEO