ALBERTA SECURITIES COMMISSION

CEASE TRADE ORDER AND

REVOCATION OF MANAGEMENT CEASE TRADE ORDER

Montello Resources Ltd.

Background

Montello Resources Ltd. (the Issuer) is a reporting issuer under the Securities Act (Alberta) (the Act).

The Issuer failed to file the following periodic disclosure pursuant to section 146 of the Act:

Annual audited financial statements, annual management discussion and analysis, and certification of annual filings for the year ended 31 July 2009 (collectively, the Unfiled Documents).

The Executive Director of the Alberta Securities Commission (the Executive Director) may in the case of such a default, order that all trading in or purchasing cease in respect of the securities

of the Issuer. However, in November 2009, the Issuer requested instead the issuance of an order that certain named insiders cease trading in or purchasing securities of the Issuer pending the

Issuer filing the Unfiled Documents, it being represented that such filing could be expected to occur on or before 29 January 2010. The issuer also represented that it would comply with the

alternative information guidelines described in Part 4.4 of National Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults (NP 12-203) for the duration of the default.

The Issuer’s request was granted and it was ordered on 1 December 2009 that Peter C. Brown and Dennis Petke cease trading in or purchasing, directly or indirectly, securities of the Issuer (the MCTO).

The Issuer failed to comply with the alternative information guidelines described in Part 4.4 of NP 12-203. The Issuer remains in default of its obligation to file the Unfiled Documents and is

also in default of its obligation to file interim unaudited financial statements, interim management discussion and analysis, and certification of interim filings for the interim period ended 31 October 2009.

Pursuant to subsection 17(2) of the Act, the Executive Director has made an Authorization Order dated 23 November 2009 (the Authorization) authorizing the undersigned to revoke certain

orders issued under section 33.1 of the Act, which includes the MCTO, and to issue orders under section 33.1 of the Act.

Decision

The undersigned, being of the opinion that it would not be prejudicial to the public interest to do so, orders under the Authorization that:

(a) the MCTO is revoked; and

(b) trading in or purchasing, directly or indirectly, cease in respect of the securities of the Issuer until this order has been revoked or varied.

29 January 2010

“original signed by”

Jonathan Taylor

Manager, CD Compliance & Market Analysis