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

Montello is pleased to announce it has entered into an agreement with Pennine Petroleum Corporation ("Pennine") (TSXV: PNN) to settle all claims against Pennine and Desmond Smith brought by Montello. This settlement agreement includes non-disclosure and confidentiality provisions and does not reflect any admission by either Pennine or Montello, their affiliates, directors or officers. The settlement has been entered into on the basis that it best serves the interests of both companies and their shareholders.

Montello is also pleased to announce that it has now filed its outstanding interim (quarterly) financial statements 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 each of the aforementioned periods, but the interim filings were pushed forward awaiting completion of the annual filing. The cease trade order ("CTO") issued by the Alberta Securities Commission ("ASC") on 29 January 2010 will be revoked once the interim reports are filed.

Upon revocation of the cease trade order by the ASC, Montello will then 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.

Montello appreciates the patience shown by its shareholders during this period.

ON BEHALF OF THE BOARD OF DIRECTORS

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