Montello Resources Ltd.
TSX VENTURE : MEO

Montello Resources Ltd.

December 22, 2006 15:42 ET

Montello Resources Update

CALGARY, ALBERTA--(CCNMatthews - Dec. 22, 2006) - MONTELLO RESOURCES LTD. ("Montello") (TSX VENTURE:MEO) is pleased to announce that it has closed its previously announced private placement of 6,419,000 units (the "Units") at $0.14 per Unit for gross proceeds of $898,600 Each Unit consists of one common share issued on a "flow-through" basis under the Income Tax Act (Canada) and one warrant (the "Warrant"), with each 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 common shares issued pursuant to the private placement will be subject to a four-month hold period expiring April 23, 2006.

The proceeds from the Private Placement will be used to drill on the Company's Northwestern Alberta Properties.

MONTELLO RESOURCES LTD. (the "Company") also announces that it has granted 3,630,621 incentive stock options to directors, officers, and consultants at an exercise price of $0.11 per share until December 21, 2011, subject to the approval of the TSX Venture Exchange.

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.

Contact Information

  • Montello Resources Ltd.
    Bill Cawker
    Chief Executive Officer
    Weekdays: (604) 408-7600 from 7:30 am - 3:30 pm PST
    Email: bcawker@montello.com
    or
    Montello Resources Ltd.
    Larry Myles
    Weekdays: (604) 408-7600 from 7:30 am - 3:30 pm PST
    Email: lmyles@montello.com
    Website: www.montello.com