CALGARY, ALBERTA - Montello Resources Ltd (TSX Venture Exchange: MEO) is pleased to provide the following President’s Message.

President’s Message

I hope everyone has had an enjoyable and productive summer.

As you can imagine we receive numerous questions and comments from shareholders and other interested investors with regard to the operations of Montello. The prevailing comment is that it appears nothing is happening. The purpose of this message is to relay to everyone that the situation is quite the opposite.

As we reorganize the Company the current directors and officers continue to define the new direction going forward. We are doing this by giving consideration to market conditions, the available skills, the remaining assets and by identifying existing and emerging opportunities.

Corporate and Administrative Matters

In order to build a successful company and create value for our shareholders we must first establish a solid foundation. Junior public companies typically have few staff and thus require an efficient and lean infrastructure.

The Company will maintain a small operations office in Calgary where the CEO will manage operations and a small corporate office in Vancouver where the CFO will manage all aspects of corporate administration and financial as well as regulatory reporting. We are currently developing an efficient financial reporting system to ensure timely disclosure.

In order to maintain the requirements of a public company, we will update and maintain all Corporate Governance policies that are suitable for an organization of this size. We also continue to develop our shareholder communication system.

As we work through the year-end audit we are re-designing our accounting and financial reporting systems.

Regulatory Matters

A great deal of time has been spent these past months addressing queries raised by the Alberta Securities Commission (ASC) with regard to the operations in Tennessee and the flow of information and related correspondence. This has finally been completed. The company submitted its last collection of documents to the ASC on the 1st of September 2009.

This was in addition to the time spent addressing the “Continuous Disclosure” matter with the ASC. As announced on 29 July 2009, following a lengthy process of getting the Company re-instated for trading, meeting the disclosure requirements and providing responses to the ASC queries, the matter was closed.

Oil and Gas Operations – Alberta

The company has now succeeded in selling both its non-operated and operated properties in the Mulligan area of northwest Alberta, thus removing more liabilities and cleaning up the balance sheet for a fresh start.

Pincher Creek is an exciting play with significant income producing potential. Unfortunately, there has been a serious lack of communication among the partners, especially by those in the control position. Previously Montello had reported that it was close to production, but since then many factors have been at work to prevent that from happening. I can report the following facts:

I went to see ranchers close to the proposed pipeline location in late July and early August and was told by them that no one has spoken to the land owners “since the ERCB hearing in January”. In a discussion with the operator of the Pincher Creek plant I was told that no one from the operating group had any communication with them whatsoever for over a year. I found this all to be quite surprising.

Subsequent to these visits, it was reported that Pennine (the Operator) had entered into an agreement with a private company to sell its Pincher Creek assets essentially for the same amount as the related debt. None of the major partners were ever formally notified that this deal was pending. In the past few weeks we have discovered that an individual involved in the partnership group has been negotiating with Pennine privately while the rest of the partners have been waiting for news from the operator. The company has not received an AFE from the operator nor does it believe a “Right of Entry” document has been signed with the land owners.

The company is extremely concerned that all the partners may have been subjected to an enormous loss of potential revenue due to the lack of activity and the lack of communication to the partners from the operator.

After consultation with company counsel Montello will be calling a partners’ meeting as soon as possible.

Oil and Gas Operations – Tennessee

Montello was successful in disposing of the John Bowen “Farm” and surface lands while maintaining all of the mineral rights. In fact, the mineral rights for the John Bowen area have just been extended for a further year.

Montello has also closed its office in Tennessee, while maintaining the services of a local operator.

In addition, Montello has been performing some investigative work on the Morgan Highpoint #3 well with the intention of bringing it into production. The company intends to “skid” the pumpjack, lay down the rods and tubing and examine for paraffin build up. A camera will then be run into the wellbore to ascertain exactly where the oil is potentially coming from and match it to the logs. The pumping assembly will then be put back in place and an inhibitor added to the wellbore and production attempted.

The Road Ahead

We all know we are still in a difficult market, so to preserve cash and maximize revenue we intend to post a farm-out package on the website before the end of September for some of our holdings in Tennessee. This farm-out package will be available to the general public.

As we continue to reorganize the Company and determine its direction, we have been evaluating our options with regard to financing and capital structure. We expect to finalize our plans in this regard in the coming months and at the upcoming Annual General Meeting.

We all want Montello to be successful so that we may realize value on our investment. To do so we would like to see existing and future investors work together to move the company forward in a positive manner.

Looking forward to the future!

Peter Brown, President

ON BEHALF OF THE BOARD OF DIRECTORS

“Peter C. Brown”
Peter C .Brown
President-CEO-Chairman