Montello Resources Ltd.
TSX VENTURE : MEO

Montello Resources Ltd.

November 02, 2007 16:53 ET

CORRECTION FROM SOURCE: Montello Clarifies Acquisition of Additional Interest in Sarcee Project

CALGARY, ALBERTA--(Marketwire - Nov. 2, 2007) - Montello Resources Ltd. (TSX VENTURE:MEO) -

A correction from source is issued with respect to the news release published at 20:57 ET, on November 1, 2007. "Gross Marketable Gas of 13.757 BCF and 10.41 BCF..." has been changed to read: "Gross Probable Developed Non-producing Marketable Gas reserves of 13.757 BCF and Probable Undeveloped Marketable Gas reserves of 10.41 BCF..." and where the term "Test Well" was used "Test" has been removed. The complete and corrected release follows:

Montello Resources Ltd. ("Montello") announces that it has entered into an agreement to purchase an undivided 6% working interest from the base of the Mannville Formation to basement underlying Sections 12, 13, 14 and 23 in Twp. 23 Rge. 4 W5M (2,560 acres), hereinafter referred to as "the Sale Lands". The Sale Lands are located on the T'suu Tina Reserve which is located approximately 15 miles west of Calgary Alberta. Included in the acquisition of the Sale Lands is a 6% interest in the suspended 10,957 foot 12-13-23-4 W5M cased potential Rundle Gas Well ("12-13 Well"). The mineral rights underlying the Sale Lands and the 12-13 Well are hereinafter collectively referred to as the "Said Interests".

After conducting a detailed analysis of the 12-13 Well logs as well as logs from other wells in the area Chapman Petroleum Engineering Ltd. ("Chapman"), an independent petroleum engineering firm, prepared a Reserve and Economic Evaluation Report dated as of January 1, 2007 and assigned 190.3 feet of net pay to the 12-13 Well and 144 feet of net pay to the 7-23-23-04 W5M location ("7-23 Well Location") which is included in the Sale Lands. Chapman assigned gross Probable Developed Non-producing Marketable Gas reserves of 13.757 BCF and Probable Undeveloped Marketable Gas reserves of 10.41 BCF attributable to the 12-13 Well and the 7-23 Well Location respectively. Montello participated in the drilling and completion of the 12-13 Well by paying 5% of the costs to earn an undivided 2.5% working interest in the Sale Lands and 12-13 Well. The operator, Arapahoe Energy Corporation is preparing to re-complete the 12-13 Well.

Montello has agreed to purchase the Said Interests from Vanguard Exploration Corp. based on the 10% discount factor value attributed to the Probable Developed Non-Producing gas reserves in the 12-13 Well and the 15% discount factor value attributed to the Probable Undeveloped gas reserves of the 7-23 Well Location as assigned by Chapman pursuant to their Reserve and Economic Evaluation Report, dated as of January 1, 2007 and updated as of November 1, 2007. The entire purchase price for the 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. This transaction is subject to approval by the applicable regulatory authorities.

Montello's President and CEO, Bill Cawker stated, "This acquisition is beneficial to Montello in that it provides us with a net 8.5% interest versus our existing 2.5% interest in the upcoming recompletion of the 12-13 Well as well as in the follow-up 7-23 Well Location that Montello has the right to participate in on a straight up basis as to an undivided 8.5% working interest. We are pleased that we were able to negotiate the acquisition of the Said Interests from Vanguard for no cash consideration and the issuance of common shares at a 38% premium to the last 10 days average closing price of our stock."

About Montello Resources Ltd.

Montello Resources Ltd. (TSX VENTURE:MEO), www.montello.com, is an emerging, publicly traded company listed on the TSX Venture Exchange in Canada. Montello is engaged in high impact oil and gas exploration "hunting for elephants" in the Tennessee Appalachians and Alberta. Montello commenced drilling The John Bowen #2 Test Well on August 15th, 2007. The partners earned interests in the Test Well are Montello as to 55%, Austin Developments Corp. (AUL on the TSXV) as to 40% and Great Northern Oilsands Inc. (OTC: Pink Symbol "GNNS:PK") as to 5%. The Morgan Highpoint Project is located in a part of the State of Tennessee where only a limited number of deep tests have been drilled. Montello is also active in the Pincher Creek Area in Alberta where Montello recently participated as to a 25% interest in a successful Recompletion of the Brown Sand and the Cadomin / Kootenay sections in the 1-11-4-29W4 well location. The Pincher Creek Field has been one of the most prolific fields in Alberta having produced some 600 BCF of gas and over 1 million barrels of associated liquids.

ON BEHALF OF THE BOARD OF DIRECTORS

William R. (Bill) Cawker, President-CEO

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Reader Advisory: This news release contains certain forward-looking statements, including management's operations and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Corporation's control. The Corporation's actual results, performance or achievements could differ materially from those expressed in, or implied. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially. There can be no assurances that future developments affecting Montello will be those anticipated by management. Furthermore any forward-looking statements contained in this news release are made as at the date of this news release and the Corporation does not undertake any obligation to update publicly or to revise them whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. We Seek Safe Harbor.

"BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead."

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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