Dr. Tony Harwood reports

MONTERO SECURES CDN $2.7 MILLION INVESTMENT TO COMPLETE A PRE-FEASIBILITY STUDY ON DUYKER EILAND PHOSPHATE PROJECT

Montero Mining and Exploration Ltd.'s financing partner, Ovation Capital, has committed to expenditures of approximately $2.7-million (before VAT) to acquire a 10-per-cent interest in Montero's Duyker Eiland project. On March 2, 2015, Montero entered into an agreement whereby Ovation may earn a 10-per-cent interest in the Duyker Eiland phosphate project at asset level by completing a prefeasibility study and a further 20-per-cent interest by completing a bankable feasibility study.

Dr. Tony Harwood, president and chief executive officer of Montero, commented: "Ovation is providing approximately $2.7-million in funding to advance Montero's Duyker Eiland phosphate project. DRA, Outotec and the Sebata Group have been retained to complete prefeasibility, opportunity and environment studies with a view to establishing the costs of developing a rock phosphate mine and fertilizer operation. Ovation is also committed to funding other phosphate opportunities identified by Montero in the region."

Montero completed a technical report (National Instrument 43-101 compliant) prepared by AMEC (news release dated Dec. 14, 2011) and an independent preliminary economic assessment (PEA) report of the Duyker Eiland project prepared by Turgis Consultants (news release dated Feb. 28, 2012, filed on SEDAR April 13, 2012). The bulk of Ovation's project level financing is being used to complete engineering and environmental studies by DRA Global, Outotec (in conjunction with Sofreco) and the Sebata Group.

DRA completed a positive review and update of the information reported in the PEA on Duyker Eiland (news release dated July 7, 2015). DRA is utilizing this updated information to complete the prefeasibility study. The drilling and resource estimation is expected to be completed by another consulting group.

Outotec will complete an opportunity study report for the integrated sulphuric acid, phosphoric acid and diammonium phosphate (DAP)/monoammonium phosphate (MAP) fertilizer plants, inclusive of associated utilities, infrastructure and off-sites. Further to this, the possibility of producing a second phase lime ammonium nitrate (LAN), urea and other downstream products will be examined depending on market study results and natural gas feed possibilities. Outotec will work with the leading French fertilizer consulting company, Sofreco, on the study.

Sebata have been retained to conduct an environmental impact assessment for the development of the phosphate rock mine at Duyker Eiland and a fertilizer plant to be located in the Saldanha Bay industrial development zone.

Upon completion of a positive prefeasibility study, Ovation may elect to provide additional financing to earn a 20-per-cent interest in the Duyker Eiland project. The amount required to earn a 20-per-cent interest has yet to be determined.

Ovation is also financing the due diligence of Montero's Greenflash phosphate project. In the event the due diligence is positive and the parties elect to proceed with the acquisition, Greenflash will represent a second partner-financed phosphate asset in South Africa. These investments are being made to secure supplies of rock phosphate in order to establish a fertilizer plant at Saldanha Bay in South Africa.

Qualified person's statement

Turgis Consulting, now Royal Haskoning DHV Mining, is a Johannesburg-based engineering consultancy. The PEA team was headed by Sten Johansson (MSAIMM), a process engineer, and Andrew Pooley (FSAIMM), a mining engineer, who covered the mining aspects of the PEA. Both are qualified persons for the purpose of National Instrument 43-101. The technical information contained in the PEA and in this press release was reviewed by Mike Evans, MSc, PrSciNat, who is a qualified person for the purpose of National Instrument 43-101 and a consulting geologist to Montero.

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