CALGARY, ALBERTA - Montello is pleased to update its shareholders on the progress since its last news release of July 7th, 2011 where the Company disclosed that it was in discussions with a party that was interested in making a significant strategic investment in the Pincher Creek field.

This party performed its due diligence and negotiated with the operator, another partner, as well as Montello, to purchase their interests, over a three-month period ending July 2011, had signed letters of intent with each party, and was waiting on funding for an additional month. Unfortunately the funding was not forthcoming and Montello moved forward with hiring the services of a marketing company to assist in either the sale of its Pincher Creek assets or to encourage a farm-in partner.

Over the last month there have been several interested parties; however the company is not at liberty to disclose its discussions with the potential partners until a signed agreement is in place.

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.

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.

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.