Montello Resources Ltd.

Montello Resources Ltd.

August 09, 2007 13:36 ET

Montello Brings On New Partner "Great Northern Oilsands Inc." (PINK SHEETS:GNNS) Into The Morgan Highpoint Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 9, 2007) - Montello Resources Ltd. (TSX VENTURE:MEO) is pleased to announce that its Board of Directors have approved bringing on Great Northern Oilsands Inc. (PINK SHEETS:GNNS) of Vancouver B.C., as a partner in Montello's high impact Morgan Highpoint Project in Northeastern Tennessee.

Montello previously entered into a Farm-out Agreement with Austin Developments Ltd. who have advanced 80% of the A.F.E.'ed estimated gross cost of US $3,000,000 to drill and complete the John Bowen #2 Test Well to earn an undivided Net 40% Working Interest ("W.I.") in the Morgan Highpoint Project Lands. Great Northern has agreed to pay 10% of the AFE'ed costs to earn an undivided 5% Working Interest in the Morgan Highpoint Project Lands along with an undivided 5% interest in the John Bowen #1 Well. In addition Great Northern will pay Montello US $25,000 as a reimbursement of prior expenditures. Any and all costs incurred over and above the US $3,000,000 AFE will be shared on an after earned basis in the Morgan Highpoint Project Lands being; 55% Montello, 40% Austin and 5% Great Northern.

The Drill Rig is now assembled on the John Bowen # 2 Test Well location and is being pressure tested. Drilling operations are anticipated to commence imminently. Please see updated photos on under the Media Centre section in the "Photo Gallery".

Montello is engaged in drilling high impact oil and gas exploration plays both in the United Sates as well as in Canada. Montello has initiated a multiple well program "hunting for elephants" in North-eastern Tennessee. The Company is also engaged in exploration and secondary recovery operations in Alberta. Montello and its partners are drilling the John Bowen # 2 Test Well tentatively to the PreCambrian/Granite-Basement. The total depth of the Test Well is estimated to be between 7,000 to 9,500 feet. Montello is and will be testing and evaluating the various formations while it drills the Test Well under-balanced. We will be using the services of an independent Geologist and Geophysicist to evaluate and analyze the logging data. The Morgan Highpoint Project is located in a part of the State of Tennessee where a limited number of deep tests have been drilled from the late 1960's through to the early 1980's.

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