Thursday May 06 2010 - News Release

Mr. Peter Brown reports

MONTELLO RESOURCES LTD. PINCHER CREEK UPDATE

Montello Resources Ltd. would like to take this opportunity to give its shareholders an update on the status of its lawsuit against Pennine Petroleum Corp., related to the Pincher Creek property.

Montello is aware that an April 14, 2010, news release (see Stockwatch) was circulated by Pennine to the public and would like to highlight some details related to this news release.

Montello has in fact earned its rights to 25 per cent of the Pincher Creek under the 1990 CAPL Operating Procedure (CAPL) by participating in its share of the capital costs related to recompleting the well and bringing the well to the point of production. Montello has paid well over $1-million in both capital and operating costs related to this well as will be illustrated in the upcoming filing of its financials. Until novation occurs, Montello's working interest is held in trust by the operator. Under clause 2401-A of CAPL, the sale of a working interest in the lands requires that the disposing party provide notice of the proposed disposition in writing to all parties subject to the agreement, and obtain their consent to such disposition. Pennine, as trustee of Montello's interest, has a fiduciary obligation to Montello to notify it of any such disposition and to obtain its consent to such. Montello has repeatedly asked Pennine to perform under CAPL and assign Montello its previously earned rights, even when Pennine was in arrears to Montello. Despite frequent requests, Montello and to Montello's knowledge a number of the other working interest partners have not received any information related to the transfer of Pennine's assets and operatorship in the well. It is Montello's opinion that Montello's claim against Pennine is far from frivolous and that Pennine's apparent lack of fiduciary responsibility only strengthens the company's resolve. Although Montello has subsequently been charged monthly operating costs it has never been novated into the well although all of its commitments under CAPL have been met. To date Pennine continues to refuse to novate Montello into the well although all conditions to earn have been met. Montello acknowledges a recent operating cost invoice of approximately $3,300 which bears no relationship under CAPL to earning rights and no hindrance to novation. For the benefit of Pennine, Montello is prepared to put these moneys in trust to be released when and if Pennine honours its obligations.