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

Pincher Creek

Montello is pleased to announce it anticipates finalizing its sale of a 5% working interest in its Pincher Creek Oil and Gas asset for $250,000 with Tosca Capital in the next 45 days, and is also assisting in final negotiations with the landowners with a view to obtaining the required right of entry to proceed with production from its 1-11-4-29W4 well, in which it will retain a 20% working interest post-sale.

Montello reports there has been progress in the negotiations and, with the absence of government or regulatory body obstacles, anticipates having the pipeline license filed by the new operating group within 30 days. Operations to bring the well online are expected to commence shortly thereafter.

The partners will also be applying to the ERCB to be allowed to produce the well over a short period to release the pressure build up currently being experienced at the wellhead.

Reinstatement for trading

As previously announced, Montello has filed the three quarters for the 2010 year and is in the process of finalizing its audited year-end for July 31, 2010. In conjunction with its annual filings, the company is in the process of reviewing its engineering report due to changes made in its ownerships during the past fiscal year. These transfers have now been completed and the company anticipates that the amended engineering report and associated forms will be filed in the coming week. In addition Montello is taking the steps required to ensure the Company is in good standing as part of the reinstatement process.

The company will then await any additional requirements or queries from the regulatory bodies prior to its application for reinstatement. In turn, we will provide an update to shareholders upon reply from the regulatory bodies.
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