Alkane Inc (ALKN)

[the_informer]

News Releases - Fri Apr 16, 1999


Montello Resources Ltd. "Montello" wishes to take this opportunity to update its shareholders. It is Montello's long term strategy to continue to build its relationship with Kennecott Canada Exploration Inc. "Kennecott". In this regard Montello is pleased to announce that it has signed a letter of intent with Kennecott for diamond reconnaissance in the province of Manitoba, Canada. Under the terms of the Letter Agreement Kennecott and Montello shall form a joint venture with the initial participating interests being Kennecott - 60%, and Montello - 40%. Kennecott shall be the manager of the joint venture. Execution of the final Joint Venture Agreement shall be subject to approval by the Alberta Stock Exchange.

Also, Montello remains committed to the Alberta diamond play. Six kimberlite cores are still to undergo caustic fusion at Kennecott's Thunder Bay Laboratory. As soon as it is complete results will be announced. Due to caribou calving and "spring break-up" drilling cannot resume until June. At that time Montello and Kennecott will meet to reassess priorities.

Montello is committed to maximising shareholder value and as such is considering all investment opportunities. As soon as there is a development on any of these fronts news will be released.