Montello Resources Ltd. Update

Montello Resources Ltd. (TSX VENTURE:MEO), Operator for the Morgan Highpoint
Project, is pleased to announce preparations to set surface casing at
approximately 1200 Feet. Intermediate drilling is underway. Strata Energy
Services Inc. of Alberta Canada have been contracted to provide Under-balanced
Drilling Services for the High Impact Drilling Program at Highpoint, Morgan
County, Tennessee. Strata's equipment and crew is arriving on location presently
and will be prepping for rig up. Montello is also pleased to announce that it is
"up and running" with the real time drilling monitoring services of Pason
Systems Inc. 


About Strata Energy Services Inc.

STRATA Energy Services Inc. (www.strataenergy.net) is a Canadian Oilfield
Service Company offering innovative equipment and solutions to the Energy Sector
Worldwide such as for Managed Pressure and Under-balanced Drilling Services and
Equipment. Its management and engineering team has been involved in over 500
wells drilled under-balanced. The Company has a strong background in all aspects
of Managed Pressure and Under-balanced Drilling Operations including
compression, nitrogen, surface recovery, and rotating flow diverters, to mention
a few. For a more detailed overview of Strata Energy Services Inc. and details
of their Pressure Controlled Drilling Services, see their website at:
www.strataenergy.net. 


About Pason Systems Inc. 

Pason Systems Inc. is a Canadian industrial technology company headquartered out
of Calgary, Alberta, providing design, manufacturing and rental of specialized
drilling instrumentation systems for use on land-based drilling rigs. Pason's
industry leading Internet DataHub allows the Operator to manage their current
drilling activities via the Internet and more. It provides a convenient and
inexpensive mechanism to store data and documents in a true electronic well
file, which are then disseminated and retrieved from any location through the
Internet. Pason's products and services include data acquisition, well-site
reporting software, remote communications and Internet information management
tools. The information pushed is extensive and includes Drilling Curves, Well
Logs, and Electronic Tour Sheets and can be accessed with a standard browser
from the Operator's desktop. Pason has a dominant Canadian well-site presence, a
strong position in the United States and an emergence in Mexico and Argentina.
It has other offices located in Denver, Houston, Mexico and Argentina. For a
more detailed overview on Pason, see: www.pason.com.


About Montello Resources Ltd.

Montello Resources Ltd. (TSX VENTURE:MEO), www.montello.com, a publicly traded
company listed on the TSX Venture Exchange, is engaged in high impact oil and
gas exploration "hunting for elephant(s)" in the Tennessee Appalachians. It is
looking for opportunities also in Alberta, Canada. On August 15th, Montello with
its JV Partners, initiated drilling of the John Bowen # 2 Test Well tentatively
to the Precambrian/Granite-Basement. The total depth of the Test Well is
estimated to be between 7,000 to 9,500 feet. Montello is and will be testing and
evaluating the various formations while it drills the Test Well under-balanced.
We will be using the services of an independent Geologist and Geophysicist to
evaluate and analyze the logging data. The Morgan Highpoint Project is located
in a part of the State of Tennessee where a limited number of deep tests have
been drilled from the late 1960's through to the early 1980's.


ON BEHALF OF THE BOARD OF DIRECTORS 

William R. (Bill) Cawker, President-CEO

For further information please contact: Larry Myles at [e-mail]
weekdays at 604-408-7600 from (10 am EST / 8 am MST) until (6 pm EST / 4 pm
MST). Please refer to our web site www.montello.com for ongoing updates and have
your name included on our preferred mailing list. Please also cc your email to
[e-mail] re: questions.