Montello Resources Ltd.
TSX VENTURE : MEO

Montello Resources Ltd.

December 27, 2007 17:07 ET

Montello Acquires Additional Land in Tennessee; Pincher Creek 1-11 Well Comes on Production; First Well at Grouard Completed as a Gas Well; Financing Cancelled

CALGARY, ALBERTA--(Marketwire - Dec. 27, 2007) - Montello Resources Ltd. ("Montello") (TSX VENTURE:MEO) is pleased to announce that it has acquired additional leases totaling 190 acres to add to its land holdings within the Morgan Highpoint Area. The Company is in the final stages of surveying the site for a proposed follow-up second test well to the John Bowen #2 Well which is cased and scheduled to be logged in the New Year.

Our Pincher Creek Operating JV Partner, Pennine Petroleum Corporation, has brought the 1-11 Well on production. Condensates are currently being trucked to market and gas production is being flared pending stable rates and tie in.

Our Operating JV Partner, Northern Sun Exploration Inc., has drilled and cased both wells at Grouard, Alberta. They informed us today that the first well 1-15-76-14-W5 has been completed as a gas well with testing ongoing, while the service rig will be onsite tomorrow to commence completion on the second well 10-3-76-14-W5. There have been discussions with Northern Sun with regards to potentially furthering our joint ventures in the area.

Montello has chosen to cancel the previously announced CDN $1.2 million Non Flow Through Non-Brokered Private Placement of up to 10 million Units at the price of $0.12 per Unit. Each Unit was to consist of one Common Share at $0.12 and one Common Share Purchase Warrant ("Warrant") priced at $0.25.

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.

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

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