Montello Resources Ltd. signed a letter of intent to sell 5% working interest in the Pincher Creek oil and gas assets for CAD 0.25 million on June 8, 2010. As on October 19, 2010, the deal is expected to be finalized in the next 45 days. During the year ended July 31, 2010, the buyer paid CAD 0.1 million by way of promissory note. The buyer paid CAD 0.01 million during the three months ended October 31, 2010 and CAD 0.06 million was received subsequent to October 31, 2010 with the balance expected in January 2011, at which time a full agreement on the same terms as the Letter of Intent will be executed. Montello Resources Ltd. completed the sale of 5% working interest in the Pincher Creek oil and gas assets for CAD 0.29 million on July 11, 2012. Post acquisition, Montello Resources will retain at least 15% stake in Pincher Creek oil and gas assets. Th transaction is expected to allow Montello Resources to begin the relisting process on the TSX Venture Exchange.