Montello Resources Ltd.

Montello Resources Ltd.

December 17, 2007 15:00 ET

Montello to Log/Evaluate John Bowen #2 Well in New Year & Conduct Financing

CALGARY, ALBERTA--(Marketwire - Dec. 17, 2007) - Montello Resources Ltd. ("Montello") (TSX VENTURE:MEO) announces that logging and evaluation of the John Bowen #2 Well has been deferred until at least mid January, 2008.

Logistical issues have made the delay the only practical choice. Scheduling after US Thanksgiving with travel time to and from the location; length of time to complete drilling, casing and cementing; initial aborted efforts to run open hole logs when open hole logging tools got stuck twice (following recommendations by Halliburton and our own geo-scientists to run cased hole logs); release of the rig to accommodate logging and evaluation; the December 14th acquisition by Park Place Energy of Great Northern Oilsands Inc.'s 5% interest; and the requirement to issue the last Supplemental AFE all contributed to the delay.

Montello's President and CEO, Bill Cawker, states: "We have worked hard to get this drilling completed without incident, mindful of the fact that this historically represents one of the deepest test wells in the state of Tennessee that has been cased and geologically evaluated with sampling from surface to total depth. I remain optimistic and look forward to getting the logging evaluation process completed as early as possible in the New Year. To that end, Montello recently forwarded over US $1 million to the Morgan Highpoint AFE Account and we continue to consolidate and build upon our land package, while striving to finalize a lease agreement that has been worked on for some time now. We are additionally encouraged by recent information relating to an apparent blow out turned successful well that occurred in Morgan County by a regional operator."

Montello further announces that it is in the process of conducting to accredited investors, a CDN $3.51 million non-brokered Flow Through Private Placement Unit Financing consisting of 1,800,000 Units priced at CDN $1.95 per Unit. Each Unit is comprised of 10 Flow Through Common Shares and 5 Non-flow Through Common Shares all of which are priced at $0.13.

In addition Montello is in the process of conducting, to accredited investors, a CDN $1.2 million non-brokered Private Placement of up to 10 million Units at the price of $0.12 per Unit. Each Unit consists of one Common Share at $0.12 and one Common Share Purchase Warrant ("Warrant") priced at $0.25. Each Warrant entitles the holder to purchase one additional Common Share at $0.25 for a period of one year from the completion of the Private Placement.

Proceeds received prior to December 31, 2007 from the flow-through portion of the Private Placements will be used by Montello to incur qualifying expenditures, which will be renounced in favour of purchasers for the 2007 taxation year. Finder's fees of 7% in cash and 7% in Warrants will be payable on certain portions of the Private Placements. The Private Placements are subject to the approval of the TSX Venture Exchange.

Proceeds from the Private Placements will be used by Montello to: develop its oil and natural gas prospects in Morgan County, Tennessee; advance exploratory activities on joint venture properties, including Pincher Creek, Sarcee, Grouard, Mulligan as well as to explore lands that Montello may acquire or farm-in to, as well as for general working capital purposes.

About Montello Resources Ltd.

Montello Resources Ltd. (TSX VENTURE:MEO),, is an emerging, publicly traded company listed on the TSX Venture Exchange in Canada. Montello is engaged in high impact oil and gas exploration "hunting for elephants" in the Tennessee Appalachians as well as in Alberta. Montello is also active in the Pincher Creek Area in Alberta where Montello recently participated, as to a 25% interest, in a successful re-completion of the Brown Sand and the Cadomin / Kootenay sections in the 1-11-4-29W4 well location. The Pincher Creek Field has been one of the most prolific fields in Alberta having produced some 600 BCF of gas and over 1 million barrels of associated liquids.


William R. (Bill) Cawker, President-CEO

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Reader Advisory: This news release contains certain forward-looking statements, including management's operations and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Corporation's control. The Corporation's actual results, performance or achievements could differ materially from those expressed in, or implied. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially. There can be no assurances that future developments affecting Montello will be those anticipated by management. Furthermore any forward-looking statements contained in this news release are made as at the date of this news release and the Corporation does not undertake any obligation to update publicly or to revise them whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. We Seek Safe Harbor.

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

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