Montero Mining and Exploration Ltd

Montero Mining and Exploration Ltd

October 11, 2011 09:00 ET

Montero Establishes An Average of 10.43% TREO in 55 Grab Samples from the NE Zone of Nyati at the Wigu Hill Rare Earth Project, Tanzania

TORONTO, ONTARIO--(Marketwire - Oct. 11, 2011) - Montero Mining and Exploration Ltd. (TSX VENTURE:MON) ("Montero") is pleased to announce initial results from the newly located Nyati Target at the Wigu Hill Rare Earth Project in Tanzania. Mapping has defined an 800m by 400m mineralized zone where recent sampling returned values up to 18.21% TREO. Nyati has a larger mineralized footprint than any zone previously explored at Wigu Hill and is yet to be drill tested.

Dr. Tony Harwood, President and Chief Executive Officer of Montero commented, "Initial assay results obtained from the Nyati Target (upslope and north of the Tumbili Target) have defined a 800m by 400m mineralized surface area where larger dikes host similar high-grade bastnaesite bearing carbonatite as seen at the Twiga and Tembo targets. Exploration drilling at Tumbili and Nyati targets will build on our initial NI43-101 resource statement on the Twiga and Tembo Targets released in September. We remain focused on fast-tracking our world-class deposit to the mining and production phase."

The Nyati target lies up slope and to the north of the Tumbili target (See News Release dated 08/09/2011: High-grade bastnaesite mineralization occurs in later intrusive dikes with abundant burbankite crystals. These intrusives are all well mineralized with bastnaesite and associated minerals and occur as narrow stringers, narrow dikes from 5cm to 30cm wide and as broader dikes from 0.30m to 3m wide. These occur in a sheeted dike and stockwork complex at Nyati that provides considerable width to the mineralized zone.

To view a PDF of the Nyati target location relative to the Tumbili target click here:

The bastnaesite-rich carbonatite dikes at Nyati have returned anomalous to high REE assay values over a sampled area of 600mby300min width. The bastnaesite-rich carbonatite dikes occur along two main directional trends, north-easterly and north-westerly and occur in the form of a stockwork on both a small and large scale. Small amounts of carbonatite breccia's have been mapped, but these are very minor and not to the scale seen at the Tumbili Target.

Results within the Nyati Zone were returned as follows:

Nyati Target # of samples Range (% TREO) Average (% TREO)
North East Section 55 2.51% TREO to 18.21% TREO 10.43% TREO
South West Section 45 1.95% TREO to 13.03% TREO 5.85% TREO

Mineralization in the NE section of the sampled area returned positive values ranging from to 2.51% TREO to 18.21% TREO with the average value from 55 samples returning 10.43% TREO. The bastnaesite-rich dikes in the NE area carry abundant large burbankite crystals, which stand out on the weathered surfaces of the carbonatite dikes. The range of crystal sizes and concentrations varies from a few millimeters to over 10 centimeters in length.

Mineralization in the SW section of the sampled area retuned positive values ranging from 1.95% TREO to 13.03% TREO with an average value from 45 samples returning 5.85% TREO. The carbonatite material in the SW area is more dolomite-rich in places with lath shaped bastnaesite-rich burbankite crystals, and is more iron-rich in other localities.

To view a full-size PDF of the Nyati target geological plan showing sampling values (% TREO) click here:

Exploration mapping and reconnaissance sampling is ongoing to further define the full extent of the mineralized carbonatite dikes at the Nyati Target, however initial sampling results prove the potential extent of the mineralization at Wigu Hill.

QA/QC: Montero has used blanks, field duplicates and one analytical standard to monitor the sampling and analytical quality. Results to date for the blank and field duplicates show acceptable quality for the main REEs of interest. The standard used was prepared on behalf of Montero using material from Wigu Hill and has certified analytical values for Ce, La, Pr and Sm based on analyses from 16 different laboratories. A review of the results reported by ALS Chemex, indicates that these meet the required level of analytical quality.

Qualified Person's Statement

The technical information contained in this press release has been reviewed by Mr. Mike Evans, M.Sc. Pr.Sci.Nat. who is a qualified person for the purpose of National Instrument 43-101 and a consulting geologist to Montero. Grab samples are selective by nature and are unlikely to represent average grades on the property.

About Montero Mining & Exploration

Montero Mining and Exploration Limited is a mineral exploration and development company focused on the development of our flagship Wigu Hill Rare Earth Element Project in Tanzania. The Wigu Hill project is a high grade undeveloped Light Rare Earth Element deposit where the company's current focus is further exploration drilling to add to our initial NI 43-101 Mineral Resource Estimate.

Rare Earth Elements (a group of 15 metals) are critical in the advancement and development of emerging "green" technologies and high-tech applications. Currently China produces 97% of world supply of REEs and these are becoming increasingly critical to both 21stCentury technological progress and environmentally sustainable development. With the rising prices of REEs and China's control over export quotas, it is becoming imperative that the rest of the world develops new rare earth resources to meet the increasing demand from "green" technology.

Montero's growth strategy is to develop the Wigu Hill Rare Earth Element project and to bring this to account through eventual rare earth production and cash flow. Montero plans to operate in an environmentally and socially responsible manner, adding value to all stakeholders. Montero trades on the TSX Venture Exchange under the symbol MON.

Signed. Dr. Tony Harwood - President and CEO

CAUTIONARY STATEMENT: This News Release includes certain "forward-looking statements". These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company's mineral properties, and the Company's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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