Montello Resources Ltd.
TSX VENTURE : MEO

Montello Resources Ltd.

September 28, 2007 15:31 ET

Montello Encounters High Permeability Zone in John Bowen #2 Test Well in Morgan County, Tennessee

CALGARY, ALBERTA--(Marketwire - Sept. 28, 2007) - Montello Resources Ltd. ("Montello") (TSX VENTURE:MEO) announces that the John Bowen #2 Well ("Test Well") in Morgan County Tennessee is currently drilled to a depth of 5,670 feet. Montello has encountered at approximately 5,300 feet the Upper Cambrian Copper Ridge formation ("Copper Ridge") that was not anticipated to be hydrocarbon-bearing. Circulation was lost while drilling through the Copper Ridge between 5,300 feet and 5,670 feet. The fact that large volumes of fluids were lost into the Copper Ridge and then were quickly recovered along with traces of light oil, gas and major water suggest that the zone has very good porosity and excellent permeability in a completely dolomitized host strata. From samples, this 370-foot gross interval (net porous zone of approximately 100+ feet) has exhibited very good inter-crystalline porosity, good vuggy stringers and open permeable fractures. Montello, as operator, is in the process of running a cement plug over the lost circulation portion of the Copper Ridge so as to be able to continue to drill the Test Well ahead to basement which is anticipated to occur at between 7,000 to 9,500 feet. Montello continues to search for the over-pressured zone which caused Pryor Oil's Howard-White #1 Well (www.pryoroil.com) to blow out at an estimated initial flow rate of over 400 barrels of light gravity crude per hour. The theory continues to be that a major over-pressured hydrocarbon reservoir exists under the Test Well which is feeding the fractures which caused the Pryor Oil blow-out as well as the initial large production volumes in the John Bowen #1 Well. The Copper Ridge formation will be further evaluated after the Test Well reaches total depth and logs are run and analyzed.

Montello as to a 55% earned interest, Austin Developments Corp., as to a 40% earned interest (TSX VENTURE:AUL) and Great Northern Oilsands Inc., as to a 5% earned interest (PINK SHEETS:GNNS) anticipate being in a position later today to commence drilling the Test Well ahead underbalanced, tentatively to the basement. Montello's President and CEO, Bill Cawker said: "It is important to note that at this point in time we are unable to definitively announce that we will have a commercial well however we are encouraged with the results encountered so far."

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. Montello commenced drilling The John Bowen #2 Test Well on August 15th, 2007. 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. These stimulations resulted in the discovery of two condensate zones with associated gas. The condensate is currently testing in a range of 40 degrees to 46 degrees API but is subject to final evaluation. 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."

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