Montello Resources Ltd.

Montello Resources Ltd.

November 28, 2008 19:38 ET

Montello Provides Tennessee Update

CALGARY, ALBERTA--(Marketwire - Nov. 28, 2008) - Montello Resources Ltd. ("Montello") (TSX VENTURE:MEO) -

Further to Montello's press release of May 6, 2008 regarding a proposed equalization arrangement, to be entered into between Montello and Nexgen Petroleum Corporation, with respect to the Bowen Block (the "Bowen Lands and Accompanying Assets") in Tennessee, Montello announces that it has revised the equalization arrangement with Nexgen by virtue of an amending agreement dated November 9, 2008 (the "Amended Agreement").

Prior to the Amended Agreement, and in accordance with contracts entered into between Montello and Nexgen Petroleum Corporation, Nexgen had been granted an option to acquire an undivided 15% working interest share of Montello's working interest in the Bowen Block by paying Montello up to $1.25 Million (USD), to be applied towards Montello's expenditures in the Highpoint Project.

The Amended Agreement confirms that Nexgen has earned an undivided 7.5% working interest in the Bowen Block and provides the opportunity for Nexgen with an option to earn an additional undivided 7.5% working interest from Montello, by making a onetime cash payment of USD $400,000 (the "Option Amount") to Montello. The Option Amount must be paid on or before that date which is 90 days from the service rig release date (the"Option Period"). The service rig is currently being utilized to test and complete the Rome formation deep gas zone, in the John Bowen No. 2 well.

Any portion of the Option Amount which is paid by Nexgen during the Option Period shall be applied to the pro-rata earning of the Bowen block working interest from Montello. Where Nexgen elects to pay the entire Option Amount, Nexgen shall own an undivided 15% working interest and Montello shall retain an undivided 40% working interest in the Bowen Block. In the event that Nexgen does not exercise its right, then its working interest shall remain fixed at an undivided 7.5% working interest.

On another matter, the Company has been advised by its legal counsel that litigation is pending in the Morgan County, Circuit Court whereby Nabors Drilling USA, LP (the "Plaintiff") is suing Montello Resources Ltd. USA, the Company's wholly-owned subsidiary. The Plaintiff alleges that the sum of $151,554.44 remains unpaid on an oil and gas well drilling contract. The Company contends that all obligations with respect to the John Bowen #2 Well contract being disputed were met in April, 2008. The Company intends to vigorously defend itself against this allegation and action.


Montello Resources Ltd.

Peter C. Brown, President-CEO

All prospective and current shareholders of Montello Resources are invited to join the company's official investment forum exclusively at Pinnacle Digest: The forum allows for investor controlled discussion, questions and progressive feedback from other shareholders and investors. Third party reports on the company are also available at Please also go to for a detailed list of all Montello's filings and to our web site for articles, photos, previous news releases, financials, etc.

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 Harbour.

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

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