Montello Resources Ltd.
TSX VENTURE : MEO

Montello Resources Ltd.

August 21, 2007 12:12 ET

Montello Resources Ltd. Update

Montello prepping to set Surface Casing; Contracts Strata Energy Services Inc. of Alberta to provide Under-Balanced Drilling Services; Announces utilization of Pason Systems Inc.'s Real Time Drill Monitoring Services

CALGARY, ALBERTA--(Marketwire - Aug. 21, 2007) - Montello Resources Ltd. (TSX VENTURE:MEO), Operator for the Morgan Highpoint Project, is pleased to announce preparations to set surface casing at approximately 1200 Feet. Intermediate drilling is underway. Strata Energy Services Inc. of Alberta Canada have been contracted to provide Under-balanced Drilling Services for the High Impact Drilling Program at Highpoint, Morgan County, Tennessee. Strata's equipment and crew is arriving on location presently and will be prepping for rig up. Montello is also pleased to announce that it is "up and running" with the real time drilling monitoring services of Pason Systems Inc.

About Strata Energy Services Inc.

STRATA Energy Services Inc. (www.strataenergy.net) is a Canadian Oilfield Service Company offering innovative equipment and solutions to the Energy Sector Worldwide such as for Managed Pressure and Under-balanced Drilling Services and Equipment. Its management and engineering team has been involved in over 500 wells drilled under-balanced. The Company has a strong background in all aspects of Managed Pressure and Under-balanced Drilling Operations including compression, nitrogen, surface recovery, and rotating flow diverters, to mention a few. For a more detailed overview of Strata Energy Services Inc. and details of their Pressure Controlled Drilling Services, see their website at: www.strataenergy.net.

About Pason Systems Inc.

Pason Systems Inc. is a Canadian industrial technology company headquartered out of Calgary, Alberta, providing design, manufacturing and rental of specialized drilling instrumentation systems for use on land-based drilling rigs. Pason's industry leading Internet DataHub allows the Operator to manage their current drilling activities via the Internet and more. It provides a convenient and inexpensive mechanism to store data and documents in a true electronic well file, which are then disseminated and retrieved from any location through the Internet. Pason's products and services include data acquisition, well-site reporting software, remote communications and Internet information management tools. The information pushed is extensive and includes Drilling Curves, Well Logs, and Electronic Tour Sheets and can be accessed with a standard browser from the Operator's desktop. Pason has a dominant Canadian well-site presence, a strong position in the United States and an emergence in Mexico and Argentina. It has other offices located in Denver, Houston, Mexico and Argentina. For a more detailed overview on Pason, see: www.pason.com.

About Montello Resources Ltd.

Montello Resources Ltd. (TSX VENTURE:MEO), www.montello.com, a publicly traded company listed on the TSX Venture Exchange, is engaged in high impact oil and gas exploration "hunting for elephant(s)" in the Tennessee Appalachians. It is looking for opportunities also in Alberta, Canada. On August 15th, Montello with its JV Partners, initiated drilling of 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.

ON BEHALF OF THE BOARD OF DIRECTORS

William R. (Bill) Cawker, President-CEO

For further information please contact: Larry Myles at lmyles@montello.com weekdays at 604-408-7600 from (10 am EST / 8 am MST) until (6 pm EST / 4 pm MST). Please refer to our web site www.montello.com for ongoing updates and have your name included on our preferred mailing list. Please also cc your email to bcawker@montello.com re: questions.

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

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