Montello Resources acquires additional leases in Tennessee

Montello Resources Ltd. announced that it has entered into an agreement with Capital East Ventures on additional Oil and Gas Leases in Eastern Tennessee, whereby Montello can earn a 66.6% interest. The terms of the agreement state that Montello will fund a 3D seismic program on the leases and pending successful results commence and fund a drill program.

Currently 3-D seismic has commenced on the optioned property announced May 1, 2001. Once the survey is complete seismic crews will mobilize to Montello's newly optioned property and commence a 3-D seismic survey.

Direct location technologies and advanced analytic techniques have allowed Capital East Ventures to effectively identify highly prospective hydrocarbon anomalies.

Promising prospects were found initially using the National Uranium Resource Exploration (NURE) airborne data acquired through the US Department of Energy's (DOE) ten-year comprehensive survey of uranium values. Subsequently, charts from high quality 2D seismic work performed under a DOE contract verified two areas of significant potential gas reserves in East Tennessee.

Further evidence of the potential of this area is seen in the results of radon and potassium isotope anomalies that were identified through radiometric measurements along with telluric analysis. This data will be used to design an efficient 3D seismic shoot.

Both of Montello's Land packages are proximal to a new natural gas pipeline being constructed, which is scheduled to be completed approximately September 2001.

A finders fee is payable in connection with this transaction. For further information regarding this project please call Montello at 604-689-1799.

Source: Montello