Montello Resources Ltd.
TSX VENTURE : MEO

Montello Resources Ltd.

January 18, 2007 16:27 ET

Montello Resources Ltd. Update

CALGARY, ALBERTA--(CCNMatthews - Jan. 18, 2007) - Montello Resources Ltd. ("the Company") (TSX VENTURE:MEO) is pleased to announce that together with its joint venture partner, Austin Developments Corp. ("Austin") (TSX VENTURE:AUL), the companies are commencing an exploration drill program at the Blowout Project in Tennessee.

Initially, the partners had planned a January spud date. However, it has since been determined that a larger drill rig was required due to a new strategic focus on directional drilling. Furthermore, this development has precipitated a greater need for specialised drilling technology and equipment, as well as meticulous site preparation, due to the technically challenging nature of this prospectively high-impact exploration well.

In the interim, Montello has been successful in negotiating further land agreements in the immediate area. Additionally, funds are now in place to initiate the mobilization of the required crew and rig. A final spud date will be announced shortly.

In this project, Austin is required to spend US$3,000,000 in order to earn a 50% working interest.

Montello has been funding on a timely basis in advance of 2007. Since November the company has raised funds in excess of $2,750,000, is debt free, and ready to execute its business plan. Recent monies have been used to also advance the Company's other Tennessee projects as well commence pre-drilling arrangements at the Company's Peace River Arch Project in Alberta. Details with regards to Alberta will be announced accordingly.

We thank shareholders for their feedback, patience, and continuing support going forward.

ON BEHALF OF THE BOARD OF DIRECTORS

Bill Cawker - CEO and Chairman

Dwayne Tyrkalo - President, COO

For further information including 3rd party links, detailed project background(s), previous news releases, photos, etc. please periodically review our web site at www.montello.com.

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

Contact Information