Calgary, Alberta August 12th, 2008, Montello Resources Ltd. ("Montello") (TSX Venture Exchange Symbol "MEO") wishes to provide the following update on the status of operations in Tennessee and Alberta.

Montello Resources USA Ltd., the Operator, has been diligently making arrangements with Service Contractors for the proposed stimulation of the Morgan Highpoint Wells and for the testing-completion of the John Bowen #2 gas zone. The goal has been to commence these operations once "Services" were organized and the AFE signed. Montello apologizes for the lack of information pertaining to the project prior to July 31st, as this was prior to all of the JV Partners having signed the AFE for the first project to proceed. Peter Brown recently commented," I have been reviewing previous work and data since coming aboard and would like to determine the extent of the potential at Highpoint and elsewhere in Tennessee so it is important to commence this next stage of operations imminently."

Elsewhere, Montello continues to participate in the condensate discovery in Pincher Creek, where it has a 25% working interest in a well that tested significantly from 2 zones. (Please see our news releases of September 27th and October 4th, 2007 and our Quarterly MD&A's filed on www.sedar.com.) The final work to bring on the condensate is anticipated to commence following a successful "Right of Way Hearing " - posted August 7th by the ERCB (Energy Resources Conservation Board) and scheduled for Tuesday, September 30th, 2008. An application was submitted by our operator for approval to construct and operate a pipeline that would be approximately 0.26 kilometres in length. Montello anticipates participating in further activities in the Pincher Creek area along the discovered condensate trend once this step is completed.

To assist Montello with such matters going forward on either side of the border, the Company is pleased to announce the advisory assistance of Mr. Darrell Davidson of Calgary, Alberta. Darrell has 30 years of business management experience that encompasses " Pipeline and Power Line Right of Way Management", as well as Land Brokerage for the resource industry for surface, freehold and crown mineral and oil and gas leases in British Columbia, Alberta, and Saskatchewan. He also has extensive experience in sales, marketing, and business development including private sector joint ventures as well as with First Nations. Montello welcomes his participation as the Company attempts to solidify its foundations.

Montello is in discussions with its Sarcee, Alberta JV Partners, regarding the timetable for commencement of work on the potentially high impact, currently suspended 10,957 foot 12-13-23-4 W5M cased potential Rundle Gas Well ("12-13 Well") on the T'suu T'ina Reserve approximately 18 miles west of the city of Calgary near Bragg Creek, Alberta. Montello holds an 8.5% working interest, net to the Company, in this potential large gas play.

Additionally, Montello has entered talks to acquire up to a further 10,000 acres of land in its focus areas in Alberta associated with current production.

Peter Brown stated, "my mandate in assuming the role of President of Montello quite simply is to bring on our various projects that I feel have solid merit and add to them. The goal is therefore to raise the necessary monies to get the work done in as expeditious a manner as possible and if the Company takes on a bigger piece of any particular project then so be it."

In order to be in a position to participate in all of the above projects with the anticipated follow up work, Montello is pleased to announce that it intends to make a non-brokered, no minimum amount, private placement of non-flow through units (the "Non-Flow Through Units") and flow through units (the "Flow Through Units") to accredited investors in the Provinces of British Columbia, Alberta, Saskatchewan, Manitoba and Ontario, and subject to qualification, in the United States an aggregate offering to raise up to CDN $2,655,000, before the exercise of warrants ("the Private Placement Unit Offering").

The Non-Flow Through Unit portion of the offering will consist of up to 3,250,000 units priced at CDN $0.51 per unit and will be comprised of ten (10) Common Shares and ten (10) Common Share Purchase Warrants (the "Common Share Warrants"). Each Common Share Warrant will entitle the holder to purchase one additional Common Share at CDN $0.10 per share if exercised within a period of nine months from the first closing of the offering. If fully subscribed, the sale of the Non-Flow Through Units will provide the Company with gross proceeds of CDN $1,657,500.00, and if all Common Share Warrants are exercised will provide the Company with gross proceeds of an additional CDN $3,250,000.00. The purchase price of the Non-Flow Through Units will be allocated as to CDN $0.05 per Common Share and CDN $0.001 per Common Share Warrant.

The Flow Through Unit portion of the financing will consist of up to 1,750,000 units priced at CDN $0.57 per unit and will be comprised of four (4) Common Shares, six (6) flow through Common Shares and ten (10) Common Share Warrants. If fully subscribed, the sale of the Flow Through Units will provide the Company with gross proceeds of CDN $997,500.00 and if all Common Share Warrants are exercised will provide the Company with gross proceeds of an additional CDN $1,750,000.00. Sixty percent of the proceeds received from the sale of the Flow Through Units will be used by Montello to incur qualifying Canadian exploration expenses, which will be renounced in favour of purchasers for the 2008 taxation year. The purchase price of the Flow Through Units will be allocated as to CDN $0.05 per Common Share, CDN $0.06 per flow through Common Share, CDN $0.001 per Common Share Warrant.

Finder's fees of 8% of the purchase amount of Non-Flow Through Units or Flow Through Units, as applicable, sold as a result of introductions of subscribers to the Company, in cash, plus a number of Common Share Warrants equal to 8% of the number of such units sold as a result of such introductions may be paid on those portions of the Private Placement Unit Offering to persons qualified to receive such fees. The Private Placement Unit Offering is subject to the approval of the TSX Venture Exchange.

The Private Placement Unit Offering may close in one or more closings. Proceeds will be used by Montello to pay for the costs of the offering, and in management's discretion, to: develop its oil and natural gas prospects in Morgan County, Tennessee; advance exploratory activities on joint venture properties, including Pincher Creek, Sarcee, Grouard, Mulligan as well as to explore lands that Montello may acquire or farm-in to, and for general working capital purposes.

About Montello Resources Ltd.

Montello Resources Ltd. (TSX-V: MEO), www.montello.com, is an emerging, publicly traded company listed on the TSX Venture Exchange in Canada. Montello is engaged in high impact oil and gas exploration in the Tennessee Appalachians as well as in Alberta.

ON BEHALF OF THE BOARD OF DIRECTORS

Montello Resources Ltd.

"Peter C. Brown"

Peter C. Brown, President

For further information contact: Larry Myles lmyles@montello.com / (604)-408-7600, Chairman Bill Cawker at bill_cawker@montello.com / (604) 649-0080. Qualified Financing Inquiries can contact President, Peter Brown at peterbrown@montello.com / (403)-852-1921. Prospective and current shareholders of Montello Resources are invited to join the company's official investment forum exclusively at : http://www.pinnacledigest.com/company/meo:ca. The forum allows for investor controlled discussion, questions and progressive feedback from other shareholders and investors. Third party reports and articles on the company are available at www.pinnacledigest.com and www.montello.com. Please also 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.

Reader Advisory: This news release contains certain forward-looking statements, including management's operations and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Corporation's control. The Corporation's actual results, performance or achievements could differ materially from those expressed in, or implied. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially. There can be no assurances that future developments affecting Montello will be those anticipated by management. Furthermore any forward-looking statements contained in this news release are made as at the date of this news release and the Corporation does not undertake any obligation to update publicly or to revise them whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. We Seek Safe Harbour.

"BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead."

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.