CALGARY, ALBERTA - Montello is pleased to provide an update to its shareholders of its agreement with a private company that will assist Montello in finally bringing on production in the Pincher Creek area. This agreement will provide the company with the necessary funds to participate in follow-up projects in its focus area.

The transaction is expected to close within the next 30 days, subject to regulatory approval. This transaction has been delayed due to the length of time required by third party participants to sign documents related to the chain of title. The company is pleased to announce that these documents have now been submitted to the necessary authorities and closing can now proceed.

The major delay was due to the work involved and time taken in confirming the chain of title, specifically for the interest earned by Montello. Since many changes have occurred over almost 20 years, Montello's potential new partners in the Pincher Creek property have taken much longer than anticipated in unraveling the history of title. This has led to a delay in the company's ability to submit its business plan and necessary filings that were due to be filed by February 29, 2012 at the request of the TSXV. By not meeting this deadline, the company was placed on the NEX exchange as a result. Upon the anticipated completion of this transaction, the company will complete its filings and submissions to be re-instated for trading.

In addition, Montello is please to announce that the company has been working on obtaining additional operational capital for the Pincher Creek asset and will inform its shareholders when this transaction has been completed.

Montello once again thanks its shareholders for their patience and support through these difficult times.

ON BEHALF OF THE BOARD OF DIRECTORS

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

For further information about this announcement and about Montello, please contact Corporate Communications' Greg Tweed at info@montello.com. Please go to www.sedar.com for a detailed list of all filings. Visit www.montello.com for ongoing updates & have your name included on our mailing list.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

About Montello
Management's goal is to pursue opportunities for high impact oil and gas exploration and recompletion projects in the Appalachian Basin in Tennessee as well as search for potential high impact exploration drilling opportunities back home in the Province of Alberta, Canada's oil and gas heartland.

Forward-Looking Information
This document may contain "forward-looking information" within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking statements"). These forward-looking statements are made as of the date of this document and Montello Resources Ltd. (the "Company") does not intend, and does not assume any obligation, to update these forward-looking statements, except as required under applicable securities legislation.

Forward-looking statements relate to future events or future performance and reflect Company management's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Company's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

Accordingly, readers should not place undue reliance on forward looking statements.