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Montero Infill Drilling Returns 14.51% TREO Over 3.03 Metres from the Twiga Zone at the Wigu Hill Rare Earth Project, Tanzania

TORONTO, ONTARIO--(Marketwire - Jan. 26, 2012) - Montero Mining and Exploration Ltd. (TSX VENTURE:MON) ("Montero") has received results of the remaining infill diamond drill holes completed on the Twiga Zone on the far eastern edge of the Wigu Hill Rare Earth Project in Tanzania. The Twiga Zone makes up a portion of the existing NI 43-101 3.3Mt Inferred Mineral Resource Estimate. None of the in-fill drill results in this release were included in the resource with the exception original near surface drill holes TW001, TW002 and TW003R. The in-fill drilling program consisted of 17 core boreholes (900 metres), which were drilled at approximately 25 metre spacings and down to an average inclined depth of 35 metres. The results of one hole, TW016 has already been reported (15th Nov 2011) and is very positive at 7.35% TREO over 11.5 metres.

Dr. Tony Harwood, President and Chief Executive Officer of Montero commented, "The additional infill drilling in the Twiga Zone confirms the continuity of the high-grade REE mineralization in this Zone. Results from the 900 metres of in-fill drilling completed will be used to update the existing NI 43-101 resource estimate to take the Twiga Zone to feasibility study targeting a small-scale mining operation. We remain focused on our fast track mine to market strategy while continuing to explore other high-grade areas of mineralization like the Nyati target to the North-West."

High grade TREO mineralization has been confirmed at the Twiga Zone at depth below the surface trenching data within the EW trending bastnaesite rich carbonatite dike zone. The highest grades can be found in the central section of the dike where the maximum thickness occurs. The overall thickness of the dike decreases from the central zone to the east and west, but the TREO grades are consistent. Additional parallel dikes were intersected in the hanging wall of the main dike and these returned encouraging TREO values that will add to the tonnage potential of this zone. The main graded intervals are listed in order from East to West in the table below:

Drill hole From
(metres
) To
(metres
) Apparent width
(metres
) True width
(metres
) Grade
TREO
%
East-West (EW) Trending Dike set
TW018 25.18 27.40 2.22 2.19 5.12
Including 15.50 16.65 1.15 1.13 8.93
TW029 8.50 9.50 1.00 0.99 8.15
15.50 20.25 4.75 4.69 6.80
TW019 0.70 8.00 7.30 7.01 6.17
Including 0.70 3.35 2.65 2.54 11.01
18.50 20.15 1.65 1.63 4.60
TW003R 8.35 10.77 2.42 2.41 8.51
18.56 39.40 20.84 20.74 6.23
Including 25.90 29.95 4.05 4.02 11.91
TW020 18.00 21.07 3.07 3.03 14.51
49.67 60.40 10.73 10.59 5.74
Including 49.67 55.40 5.73 5.65 8.89
TW017 27.30 39.70 12.40 12.23 3.88
Including 27.30 29.60 2.30 2.27 10.30
TW002 21.95 29.54 7.59 7.13 5.58
Including 26.80 29.54 2.74 2.58 10.68
TW016 16.75 28.40 11.65 11.49 7.35
Including 16.75 20.75 4.00 3.95 11.08
TW001 9.85 18.93 9.08 8.94 6.09
Including 14.2 17.4 3.20 3.16 9.78
TW022 16.45 25.00 8.55 8.44 3.90
Including 16.45 18.30 1.85 1.83 12.25
TW023 10.30 25.00 14.70 14.50 3.35
Including 10.30 12.27 1.97 1.94 13.19
North-South (NS) Trending Dike
TW021 18.6 33.4 14.80 13.84 5.15
Including 18.60 22.60 4.00 3.48 9.71
TW030 0.00 6.20 6.20 6.12 4.26
Including 3.60 6.20 2.60 2.57 5.03
19.00 23.40 4.40 4.34 4.12
Table 1. List of TREO graded assays for the Twiga Target infill drilling and including the original near surface drill holes namely TW001, TW002 and TW003R.

For a full table of results and a geological map please visit: http://www.monteromining.com/projects/pdf/twiga-infill.pdf.

At the eastern end of the main "East-West" dike, north-west trending bastnaesite-rich dikes were intersected in Boreholes (BH) TW021 and TW030 in which very encouraging TREO mineralization was located. The tonnage potential is quite significant in this area from a number of sub-parallel mineralized carbonatite dikes, which have been cut by nearby trenches or boreholes drilled from the NE. The dike thicknesses increase from 2.19m in BH TW018 to 20.74m in BH TW003. Thicknesses are variable between 7.13m and 14.50m true thickness in a SW direction to BH TW028 where a near surface intersection is 3.08m at 11.36% TREO. The total strike length is over 230m where good mineralization has been established, with a number of narrower parallel and cross cutting dikes in the hanging wall. Thicker mineralized dike intersections are lower grade due to the occurrence of some included barren gneissic material. It will be possible to selectively separate the competent well-mineralized carbonatite dike material from the more friable altered gneiss wall rocks and hence recover a higher grade in a potential mining operation.

The drilling data and geological evaluation of the Twiga Zone is being modeled with a view to outlining an ore resource at an increased confidence level, which will provide an update to the NI 43-101 Resource Estimate released in September 2011 (see news release dated 12/09/2011). This is in line with Montero's objective to commence a small scale mining operation at the Twiga Zone to realize the strategy to fast-track to market the sale of rare earths while continuing to define a larger resource at Wigu Hill.

Plans are in place to take a bulk sample from the Twiga Zone in late Q1 2012 to continue further test-work on processing the material through an XRF sorter to significantly upgrade the bastnaesite-rich material and build on the initial test-work completed to date. Additionally, material for further metallurgical test-work will be collected.

QA/QC: Montero has used blanks, pulp duplicates and one analytical standard to monitor the sampling and analytical quality. Results to date for the blank and pulp duplicates show acceptable quality for the main REEs of interest. The standard used was prepared on behalf of Montero using material from Wigu Hill and has certified analytical values for Ce, La, Pr and Sm based on analyses from 16 different laboratories. A review of the results reported by ALS Chemex, indicates that these meet the required level of analytical quality.

Qualified Person's Statement

The technical information contained in this press release has been reviewed by Mr. Mike Evans, M.Sc. Pr.Sci.Nat., who is a qualified person for the purpose of National Instrument 43-101 and a consulting geologist to Montero.

About Montero Mining and Exploration

Montero Mining and Exploration Ltd. Is a mineral exploration and development company engaged in the identification, acquisition, evaluation and exploration of mineral properties primarily focused on rare earth elements (REE), phosphates and uranium in Tanzania, South Africa and Quebec, Canada respectively. Montero is focused on adding value for all shareholders through the acquisition and exploration on properties, which have the highest potential for future discoveries or development of existing mineral resources into mineable reserves. We remain engaged in the development of our flagship Wigu Hill Rare Earth Element Project in Tanzania, which is a high-grade, undeveloped Light Rare Earth Element deposit. The Company's current focus is on updating the initial NI 43-101 Mineral Resource Estimate and advancing the hydro-metallurgical testwork with Mintek. With the rising prices of REEs and China's control over export quotas, it is becoming imperative that the rest of the world develops new rare earth resources to meet the increasing demand from "green" technology and high-tech applications.

Montero's growth strategy is to develop the Wigu Hill Rare Earth Element project and to bring this to account through eventual rare earth production and cash flow, while operating in an environmentally and socially responsible manner. We will continue to add value through the development of our portfolio of properties. Montero trades on the TSX Venture Exchange under the symbol MON.

Dr. Tony Harwood - President and CEO

CAUTIONARY STATEMENT: This News Release includes certain "forward-looking statements". These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company's mineral properties, and the Company's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.

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.

For more information, contact:

Montero Mining and Exploration Ltd.
Richelle Chapman
IR Communications
+1 416 840 9197
+1 866 688 4671 (FAX)
ir@monteromining.com
www.monteromining.com

Renmark Financial Communications Inc.
Peter Mahzari: pmahzari@renmarkfinancial.com
Arash Shahi: ashahi@renmarkfinancial.com
(514) 939-3989 or (416) 644-2020
www.renmarkfinancial.com