Montello Resources Ltd.
TSX VENTURE : MEO

Montello Resources Ltd.

November 09, 2006 15:37 ET

Montello Announces Private Placement and Gives Update

CALGARY, ALBERTA--(CCNMatthews - Nov. 9, 2006) - Montello Resources Ltd. (the "Company") (TSX VENTURE:MEO) announces that subject to regulatory approval, it has arranged a non brokered private placement of up to 6,950,0000 units at a price of $0.10 per unit for total proceeds of up to $695,000 CDN. Each unit will consist of one common share of the Company and one non-transferable share purchase warrant. Each warrant will entitle the holder to purchase a further common share of the Company at a price of $0.13 per share for a period of 2 years. There is a 4 month hold applicable for the shares. Finder's fees will be payable on the placement pursuant to the policies of the TSX Venture Exchange. The proceeds of the private placement will be used for general working capital purposes and for property acquisitions.

Drilling on the Blowout Lease Project, announced October 10, 2006, is to be undertaken with our joint venture partner, Austin Developments Corp., and is scheduled to commence January, 2007. We are presently dealing with road access and site preparation for drilling location.

In late June/early July we re-completed the TexFlora (John Bowen # 1 Well) in the Sunnybrook/Nashville group formation. With this work-over we accomplished a cased and re-perforation of the zone of interest, an acid wash and squeeze. The well responded with encouraging pressures and initial flow rates prompting the Company to acquire the Blowout lease project. The TexFlora Well was subsequently shut in and remains shut in.

Please direct any questions on the private placement, Blowout Lease, or the TexFlora (John Bowen #1 Well) to Bill Cawker. We thank shareholders for their patience to date and their support and hope that you share our enthusiasm and optimism going forward.

ON BEHALF OF THE BOARD OF DIRECTORS

Bill Cawker CEO - Chairman

Dwayne Tyrkalo, President - COO

Randy Marshall, P.Eng. Vice President Production, Operations, and Engineering

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

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