Montello Negotiating Alberta Assets

Montello announced that negotiations are proceeding with respect to the acquisition of various shallow oil and gas assets / leases in Central and Northwestern Alberta from a private Alberta oil and gas company. This acquisition is being negotiated on a 100% equity basis by issuing shares from treasury at a deemed value of $0.13 per share. Closing is subject to Montello obtaining an independent 3rd party evaluation and TSX Venture Exchange approval. Negotiations may be terminated at any time by either party.

Montello has elected not to extend approximately 5,515,429 warrants currently priced at $0.20 per share which are scheduled to expire on March 21, 2008. The Company is issuing 1 million options at $0.10 to two new executives that are subject to regulatory approval.