Montello Resources Ltd.
TSX VENTURE : MEO

Montello Resources Ltd.

August 15, 2007 14:59 ET

Montello Resources Ltd. (TSX VENTURE:MEO) Spuds the John Bowen #2 Well in Tennessee

CALGARY, ALBERTA--(Marketwire - Aug. 15, 2007) - Montello Resources Ltd. (TSX VENTURE:MEO) proudly announces the "SPUD" of the John Bowen #2 Well (Morgan Highpoint #1) this morning at 2 AM EST August 15th, 2007. Montello is the Operator and has a 55% Net Working Interest (WI), Austin Developments Corp. net 40% WI, and Great Northern Oilsands Inc. net 5%. The project is fully funded for the $3 Million AFE.

Montello is drilling the John Bowen # 2 Test Well in Tennessee 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. The services of an independent Geologist and Geophysicist will be used 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.

Mobilization of over 50 truckloads of equipment including our drill rig came from as far as 700 miles away. Our Triple Rig from Nabors Drilling USA was assembled and pressure tested this past week. A CanRig Top Drive was subsequently installed in order to make drilling much more efficient in the deep portion of this well. Initial delays were at no cost to Montello. Well-site improvements and construction commenced in early June were completed just prior to commencement - completion of the Conductor and Rat-Hole early last weekend. Final banking and credit facilities were completed in mid July. Our Drilling Contractor Nabors Drilling USA, a business unit of Nabors Industries Inc. (NYSE:NBR) www.nabors.com, is one of the biggest drilling contractors in the world. Nabors worked expeditiously to ensure "spud" this morning.

Montello has received full payment of US $325,000 from Great Northern Oilsands Inc. as per the Announcement on August 9th, 2007 to earn its 5% net WI in this High Impact Drilling Program at Highpoint, Morgan County, North-Eastern Tennessee. If expenditures on the John Bowen # 2 exceed US $3 Million, then the JV Partners will pay as per their proportionate earned interest of any additional costs. Presently Montello's Exploration Team is evaluating choices for a proposed second well-site location on the Morgan Highpoint Project Lands.

ON BEHALF OF THE BOARD OF DIRECTORS

William R. (Bill) Cawker, President-CEO

Montello Resources Ltd.

For further information please contact: Larry Myles at lmyles@montello.com weekdays from 7:00 am PST (8 am MST / 10 am EST) at 604-408-7600 until 3:00 pm PST). Also cc: Bill Cawker at bcawker@montello.com. Please refer to more than 15 pages of photos under the Section entitled "MEDIA CENTRE" in the "Photo Gallery" at www.montello.com. Montello plans more web-site updates going forward especially in our Alberta Projects Section. Please enter your name and/or update your contact information as we are going through a systems upgrade. We wish to ensure that all interested parties once again are included on our Preferred Mailing List. Thank you.

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

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