CALGARY, ALBERTA - Montello is pleased to update its shareholders on the progress since its last news release of April 27, 2011 where the Company disclosed that it was in discussions with several financially strong groups interested in becoming a strategic partner with Montello.

Strategic partner

Montello has identified a party that is interested in making a significant strategic investment in the Pincher Creek field including acquiring majority ownership and taking on operatorship. In order to accomplish this, the interested party must complete transactions with other partners in the Pincher Creek field. Montello has not completed a definitive agreement for its portion, but when that occurs, the Company will announce the transaction along with the material terms.

Montello is looking forward to completing this transaction, because not only will it allow the Company to begin the re-instatement process, but it will also bring the Pincher Creek well into production and accelerate further joint development in the field.

Reinstatement Update

The Company is current with its continuous disclosure, having filed its April 30, 2011 Q3 interim financial statements, MDA and officer certifications. Annual sustaining fees have been paid in full and the Company is in good standing with its transfer agent. A pre-filing conference with the TSX Venture Exchange has taken place setting out the steps required for re-instatement for trading.

Having completed this conference, the company is now in a position to submit its revocation application which includes, among other things, putting forward a business plan and setting a date for the company's Annual General Meeting (AGM). Since the AGM has not been held within the prescribed time, the company is required to petition the court for an extension. Management has begun the process of petitioning the court and will complete this step in conjunction with the finalization of its business plan, the main component of which is the transaction with a strategic partner.

Management is extremely anxious to move forward with its AGM and the re-instatement process, but must first have a business plan and funding plan in place before doing so. That business plan and funding plan are contingent upon the successful completion of a definitive agreement with a new strategic partner estimated to be completed in the next 30 days.

Montello appreciates the patience shown by its shareholders during this period.

ON BEHALF OF THE BOARD OF DIRECTORS

"Peter C. Brown"
Peter C. Brown
President-CEO-Chairman

For further information about this announcement and about Montello, please contact Corporate Communications' Greg Tweed at info@montello.com. Please go to www.sedar.com for a detailed list of all filings. Visit www.montello.com for ongoing updates & have your name included on our mailing list.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

About Montello

Management's goal is to pursue opportunities for high impact oil and gas exploration and recompletion projects in the Appalachian Basin in Tennessee as well as search for potential high impact exploration drilling opportunities back home in the Province of Alberta, Canada's oil and gas heartland.

Forward-Looking Information

This document may contain "forward-looking information" within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking statements"). These forward-looking statements are made as of the date of this document and Montello Resources Ltd. (the "Company") does not intend, and does not assume any obligation, to update these forward-looking statements, except as required under applicable securities legislation.

Forward-looking statements relate to future events or future performance and reflect Company management's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Company's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

Accordingly, readers should not place undue reliance on forward looking statements.