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

Montello advises that further to Montello's corporate update disseminated April 13, 2010, while the audit of the consolidated annual audited financial statements is in the final stages, the process is not as yet complete. The audit being conducted by The Saturna Group is expected to be completed this week.

Upon completion and filing of the annual audited financial statements, annual management's discussion and analysis for the year ended July 31, 2009, Montello will be prepared to file its now outstanding interim (quarterly) financial statements and management discussion and analysis for the periods ended October 31, 2009, January 31, 2010 and April 30, 2010. The required interim reports were due to be filed 60 days after the end of the period, but the interim filings have been pushed forward due to the 2009 annual financial statement filing deficiency. The procedure is moving as expeditiously as possible but until both the annual reporting requirements and the interim reporting requirements are filed and accepted, the cease trade order ("CTO") issued by the Alberta Securities Commission ("ASC") on 29 January 2010 will remain in effect.

Upon revocation of the cease trade order by the ASC, Montello is then allowed to apply for reinstatement of trading to the TSX Venture Exchange ("TSX-V"), which as a result of the ASC cease trade order, halted trading in Montello's common shares on 29 January, 2010. The process of seeking reinstatement by the TSX-V will begin as soon as possible but the timing as to actual reinstatement is at the discretion of the TSX-V. Consequently, Montello is unable at this time to make a definite determination as to when Montello shares will resume trading. All efforts will of course be made to expedite the trading reinstatement process so that the quest to generate sustainable capital gains for investors can be resumed.

OPERATIONAL UPDATE

Tennessee

Montello is pleased to announce that it is close to finalizing a farm out of some of its Tennessee properties that will result in at least 2 wells being drilled on Montello's lands. The company will also be selling various oilfield equipment to the new operator.

Pincher Creek

The company has new information pertaining to the operation of the 1-11 well and the status of the pipeline. Pennine was unsuccessful in its application for the pipeline extension; in turn, a new license will be applied for. The company will advise its shareholders of any new developments as soon as it has information.



ON BEHALF OF THE BOARD OF DIRECTORS


"Peter C. Brown"
Peter C .Brown
President-CEO-Chairman