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Montero's NI 43-101 Resource Estimate on the Wigu Hill Rare Earth Project in Tanzania filed on SEDAR

TORONTO, ONTARIO--(Marketwire - Oct. 24, 2011) - Montero Mining and Exploration Ltd. (TSX VENTURE:MON) ("Montero") has filed its NI 43-101 resource estimate for the Wigu Hill Rare Earth Project (see news release dated 12-09-11)(http://monteromining.com/news/archive/2011/MON-NR16-120911.pdf) on SEDAR and posted to the Company's website (http://www.monteromining.com/). The Wigu Hill Rare Earth Project is located in Tanzania and is a large carbonatite complex with bastnaesite mineralization. The independent estimate was prepared by AMEC Earth & Environmental Services Limited (AMEC).

The NI 43-101Resource Estimate is based on the preliminary drilling program of 21 boreholes (2,225m) at the Tembo and Twiga deposits on the eastern ridge of the Wigu Hill carbonatite complex. A total inferred mineral resource of 3.3 million tonnes at 2.6% LREO5 (Light Rare Earth Oxide) with a higher-grade portion of 510,000 tonnes averaging 4.4% LREO5. The inferred mineral resource estimate at Wigu Hill is encouraging as it confirms the presence of a significant quantity of Rare Earth Oxide material that is amenable to extraction.

Dr. Tony Harwood, President and Chief Executive Officer of Montero commented, "Our initial resource represents only a fraction of the large carbonatite complex at Wigu Hill and numerous mineralized structures remain to be tested. We are confident that through further exploration drilling, in-fill drilling and metallurgical test-work, currently underway, we will expand the tonnage at Wigu Hill and upgrade our resource from the inferred to the indicated category. Montero's initial resource estimate combined with the results from other mineralized targets, indicate the potential for a sizeable Light Rare Earth deposit."

The report details the following Inferred resources

Zone Ton-
nage
Mt
Resource
grades
(REEs)
Corresponding
oxide
grades
(REOs)
LREE5 La Ce Pr Nd Sm LREO5 La2O3 CeO2 Pr6O11 Nd2O3 Sm2O3
% % % % % % % % % % % %
Twiga - NE 1.6 2.2 0.84 1.03 0.08 0.19 0.01 2.6 0.98 1.26 0.10 0.23 0.01
Twiga - SW 0.5 2.9 1.13 1.40 0.11 0.26 0.02 3.6 1.33 1.71 0.13 0.30 0.02
Tembo - NW 0.9 1.8 0.67 0.89 0.07 0.20 0.01 2.2 0.78 1.09 0.09 0.23 0.02
Tembo - SE 0.2 1.8 0.59 0.90 0.08 0.23 0.01 2.2 0.69 1.10 0.10 0.27 0.01
TOTAL 3.3 2.2 0.82 1.04 0.08 0.21 0.01 2.6 0.96 1.27 0.10 0.24 0.02
Notes:   1   The effective date for this resource estimate is 25 August 2011. The Qualified Person responsible for this resource estimate is Edmund Sides, EurGeol, P.Geo. The resource is reported according to CIM Definition Standards (2010).
    2   A selective mining unit (SMU) size of 3m by 3m by 3m was assumed when creating the block model.
    3   Reported grades are based on consideration of the grades of mineralised material and weakly to non-mineralised wallrock material estimated to fall inside each SMU.
    4   The reported Mineral Resource is based on a grade cut-off of 1.0% LREO5 (sum of estimated grades of La2O3, CeO2, Pr6O11, Nd2O3 and Sm2O3).
    5   The Mineral Resources for the Twiga and Tembo deposits have been constrained by an optimised pit shell defined by the following assumptions; slope angles of 50º; a mining recovery of 100% and mining dilution of 0% (already incorporated in the SMUs); a mining cost of USD2.85/t; process operating costs of USD12.0/t; G&A costs of USD 3.0/t of resource, with 90% recovery of REOs to a 45% LREO5 bastnaesite concentrate; and a concentrate price of USD10/kg.
Table 1: Wigu Hill Inferred Mineral Resource Statement (Cut-off of 1% LREO5)


To outline a higher-grade zone within the above resource, AMEC looked at the grade-tonnage distribution with respect to the 'mineralised indicator' value. AMEC considers that applying a mineralised indicator cut-off of 0.7 (>=70% mineralised material within a SMU) would define a subset of the Mineral Resource that contains higher-grade areas, which may be amenable to selective mining and economic extraction. (see Table 2)

Zone Ton-
nage
Mt
Resource
grades
(REEs)
Corresponding
oxide
grades
(REOs)
LREE5 La Ce Pr Nd Sm LREO5 La2O3 CeO2 Pr6O11 Nd2O3 Sm2O3
% % % % % % % % % % % %
Twiga - NE 0.21 4.3 1.68 2.05 0.16 0.38 0.02 5.2 1.97 2.52 0.19 0.44 0.03
Twiga - SW 0.09 5.4 2.12 2.59 0.19 0.47 0.03 6.5 2.48 3.18 0.23 0.55 0.03
Tembo - NW 0.21 2.2 0.82 1.08 0.09 0.24 0.02 2.7 0.96 1.32 0.11 0.28 0.02
TOTAL 0.51 3.7 1.41 1.76 0.14 0.34 0.02 4.4 1.66 2.16 0.17 0.39 0.02
Notes:   1   The tonnages and grades quoted above are for a high-grade sensitivity sub-set of the total Inferred Mineral Resource and are not additive to it. The tonnages and grades given above are based on selection of only those blocks (SMUs) with >70% mineralised material. Isolated SMUs which could not realistically be mined separately have been excluded from the tonnage reported in this table.
    2   The effective date for the resource estimate on which these figures are based is 25 August 2011. The Qualified Person responsible for this resource estimate is Edmund Sides, EurGeol, P.Geo. The resource is reported according to CIM Definition Standards (2010).
    3   Reported grades are based on consideration of the grades of mineralised material and weakly to non-mineralised wallrock material estimated to fall inside each SMU.
    4   The reported Mineral Resource is based on a grade cut-off of 1.0% LREO5 (sum of estimated grades of La2O3, CeO2, Pr6O11, Nd2O3 and Sm2O3).
    5   The Mineral Resources for the Twiga and Tembo deposits have been constrained by an optimised pit shell defined by the following assumptions; slope angles of 50º; a mining recovery of 100% and mining dilution of 0% (already incorporated in the SMUs); a mining cost of USD2.85/t; process operating costs of USD12.0/t; G&A costs of USD 3.0/t of resource, with 90% recovery of REOs to a 45% LREO5 bastnaesite concentrate; and a concentrate price of USD10/kg.
Table 2: Wigu Hill – Sensitivity Case Subset of Mineral Resources (Reported at a 0.7 mineralised indicator cut-off)


A copy of the full resource estimate report is available on the SEDAR website and by clicking this link on Montero's Website: http://www.monteromining.com/projects/pdf/MONWiguHill-43101.pdf

Metallurgical test work on samples from the property, in-fill drilling at the Twiga and Tembo targets and further drilling on other identified targets is currently underway. These results will form the basis for an updated resource estimate. The tonnage stated in the initial resource estimate may appear to be limited, however the resource reflects the potential of only a fraction of the Wigu Hill Carbonatite Complex. Greater potential for a larger tonnage exists in the central portion of the carbonatite complex where more extensive occurrences of mineralized carbonatite have been located.

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. The independent estimate was prepared by AMEC Earth & Environmental Services Limited and is reported according to CIM Definition Standards (2010). The Qualified Person responsible for the resource estimate is Edmund Sides, EurGeol, P.Geo. an AMEC employee.

About Montero Mining & 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. 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 further exploration drilling to add to our initial NI 43-101 Mineral Resource Estimate. 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 for all stakeholders 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
(514) 939-3989 or (416) 644-2020
pmahzari@renmarkfinancial.com

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