======================================================================= News Release - Tuesday, October 19, 2010 Montello Pincher Creek and Reinstatement Update ======================================================================= 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 For further information about this announcement and about Montello, please contact Corporate Communications Greg Tweed at .

Prospective and current shareholders are invited to join the companys official investment forum at www.pinnacledigest.com/company/meo:ca The online forum allows for investor controlled discussion, questions, third party reports and articles, as well as feedback.

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 Managements 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, Canadas 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 managements 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 Companys interim and annual financial statements and managements 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. ======================================================================= Copyright (c) 2010 MONTELLO RESOURCES LTD.

(MEO) All rights reserved.

For more information visit our website at http://www.montello.com/ or send mailto: =======================================================================