Montello Resources Ltd.

Montello Resources Ltd.

April 21, 2007 17:42 ET

Montello Receives Additional US $500,000 From JV Partner Austin; Drops TennAlta

CALGARY, ALBERTA--(CCNMatthews - April 21, 2007) - Montello Resources Ltd. (the "Company") (TSX VENTURE:MEO) is pleased to announce that it has received an additional US $500,000 cash from JV Partner Austin Developments (TSX VENTURE:AUL) for the Morgan Highpoint Project, in addition to their previous funding of US $1,600,000 cash received in Montello USA's Tennessee Corporate Bank Account on January 18th, 2007.

TennAlta Petroleum did not meet its best efforts obligation and is therefore no longer a candidate as a Joint Venture Partner; however other parties are showing interest as we get closer to finalizing permits.

The Company met with Lone Star Oil and Gas Inc. of Dallas, Texas registered owners of the mineral lease(s) where the blowout well occurred in 2002, and signed a Joint Venture Letter of Intent to re-drill a twin well. Due to outstanding issues which need resolution, drilling may commence here at a later date.

Management has made several trips to Tennessee in order to present the drilling program to land owners and key parties. Meetings are scheduled for month end with various involved parties including authorities from the State to review the project in order to obtain their approval and move ahead for a permit to drill.

Montello is focused on drilling the Montello Bowen/White Unit #2 well and is negotiating for a rig capable of drilling to a depth of 10,000 feet. The first objective is to drill a vertical well to the "basement" in search of the high pressure interval present in the original Bowen Unit #1 well and which may be the same high pressure interval associated with the original Howard/White Unit #1 well that blew out. Operations believes that relocating the original drilling location from the Howard/White lease to the Bowen Unit #1 lease, with a further pooling with White, is prudent in moving this high impact exploration play to the forefront without further delay.

The Company announces that it is granting up to 500,000 incentive stock options to directors, officers, employees and consultants at an exercise price of $0.11 per share until April 17th, 2011 subject to the approval of the TSX Venture Exchange.


Bill Cawker, CEO and Chairman

Montello Resources (TSX VENTURE:MEO) trades on the TSX Venture Exchange. For further information please review our web site at Interested parties please contact Larry Myles (604) 408-7600 if you wish to be on our mailing list or at

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

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