Montello Resources Ltd.
TSX VENTURE : MEO

Montello Resources Ltd.

December 19, 2006 13:30 ET

Montello Resources Update

CALGARY, ALBERTA--(CCNMatthews - Dec. 19, 2006) -

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

MONTELLO RESOURCES LTD. ("Montello") (TSX VENTURE:MEO) is pleased to announce that it intends to complete a drilling program on its Northwestern Alberta "Mulligan" properties where it has working interests on 6,720 acres of land. Financing for this project is proposed by way of a private placement (the "Private Placement") of up to 7,000,000 units (the "Units") at $0.14 per Unit for gross proceeds of up to $980,000.00. Each Unit shall consist of one common share (the "Common Share") issued on a "flow-through" basis under the Income Tax Act (Canada) and one warrant (the "Warrant"), with each full Warrant exercisable into one non flow-through Common Share at a price of $0.20 for a period of 15 months from the date of issuance.

The private placement is subject to the approval of the TSX Venture Exchange Inc.

For further information please visit the Montello Resources website at www.montello.com.

ON BEHALF OF THE BOARD OF DIRECTORS

Bill Cawker CEO - Chairman

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

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