Dr. Tony Harwood reports

MONTERO CLOSES $800,000 NON-BROKERED PRIVATE PLACEMENT

Montero Mining and Exploration Ltd. has closed its previously announced non-brokered private placement of 5,332,997 common shares of the corporation at a price of 15 cents per common share, for gross proceeds of $799,949.55.

Dr. Tony Harwood, president and chief executive officer of Montero, commented, "We are pleased to have completed Montero's private placement and are delighted to welcome Mr. Jeremy Raper as a new strategic shareholder."

Montero intends to use the net proceeds from the offering for general corporate and working capital purposes. 708 Capital Pty. Ltd. and Haywood Securities Inc. acted as finders in connection with the offering, and were paid a cash commission by the corporation of $30,000 and $2,999.99, respectively. Closing of the offering is subject to the receipt of all necessary approvals, including the final approval of the TSX Venture Exchange.

Certain directors of the corporation (the insiders) subscribed for an aggregate of 296,667 common shares under the offering, with such participation being considered a related-party transaction within the meaning of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions (MI 61-101). The corporation is relying on the exemption from the requirement for a formal valuation and minority shareholder approval under MI 61-101 on the basis of the exemptions contained in Section 5.5(1)(a) and Section 5.7(1)(a) of MI 61-101, as the fair market value of the consideration of the shares to be issued to the insiders under the offering does not exceed 25 per cent of the corporation's market capitalization.

The securities to be issued pursuant to the offering are subject to a four-month-and-one-day statutory hold period from the date of issuance.

About Montero Mining and Exploration Ltd.

Montero is a junior exploration company focused on finding, exploring and advancing globally significant gold, silver and base metal deposits in Chile. Montero's board of directors and management have an impressive record of successfully discovering and advancing precious metal and copper projects. Montero is currently in arbitration proceedings against the United Republic of Tanzania over the expropriation of the Wigu Hill rare earth element project before the International Centre for Settlement of Investment Disputes.

We seek Safe Harbor.