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Montero Evaluates Extensive Off-Shore Phosphate Deposits in South Africa

December 1, 2015
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TORONTO, ONTARIO--(Marketwired - Dec 1, 2015) - Montero Mining and Exploration Ltd. (TSX VENTURE:MON) ("Montero") has completed an initial review of geological data relating to extensive off-shore sedimentary phosphate deposits within the Greenflash Project area in South Africa. The Greenflash Project is the second phosphate asset being advanced with funding partner Ovation Capital ("Ovation") in South Africa. Ovation has committed to expenditures of roughly CDN $2.7 million to acquire a 10% interest in Montero's Duyker Eiland project. At the Greenflash Project, Ovation has agreed to co-fund due diligence with Montero, where, upon receiving a positive review, may elect to provide Montero 100% of the funding to outline a resource for equity participation in the project (see press release September 10, 2015). The Greenflash Project could potentially provide additional feedstock to a Fertilizer Plant envisaged to be developed in Saldanha Bay by Montero and Ovation.

Montero and Ovation have until March 10, 2016, to complete the due diligence on the Greenflash Project after which the parties may elect to immediately earn a 49% interest by committing to complete a resource estimate which may then increase to a 75% interest by completing a feasibility study.

Dr. Tony Harwood, President and Chief Executive Officer of Montero commented, "The Greenflash Project area is located 30km from Saldanha Bay port where prior drilling was completed to investigate its diamond potential, and covers ~10% of the Greenflash project area. Our initial review of data confirms that an extensive area of phosphate-rich sediment has been outlined and warrants further investigation. The acquisition fits with Montero and Ovations strategy of developing multiple phosphate rock assets to support a fertilizer plant in the Saldanha Bay area."

The Greenflash Project area contains extensive phosphorite-rich sediment accumulation located on the sea bed of the continental shelf off the western coastline of South Africa. At its nearest point the project area is 30km from Saldanha Bay and Montero's Duyker Eiland phosphate project (now fully funded by Ovation to Pre-feasibility stage). Within the Greenflash licence area (Figure 1), concentrations of phosphorite occur over an area of about 200km2 off the coast of Saldanha Bay on the continental shelf at depths of between 100m to 400m below sea level. Phosphorite rock is the principal resource for phosphate (P2O5). The phosphorite is concentrated with glauconite in sediments that are referred to as greensands.

The phosphorite deposits have been concentrated over many millions of years by repeated cycles of deposition and reworking on the middle to outer continental shelf. Although greensand deposits occur over much of the outer continental shelf, the highest concentrations of greensand occur 50 km off-shore of Cape Columbine (just north of Saldana Bay) between 200m and 260m water depth and form a sedimentary layer on the sea bed between 2m and 4m thick.

Exploration in the Greenflash Project area started in the 1980's for off-shore diamonds. A major drilling program was carried out in the 1990's in a 200km2 target area located 50km from Saldanha Bay. In this target area a total of 412 diamond drillholes were drilled of which 359 returned core lengths of greater than 1m (locations shown in Figure 2). The drill core was given to the University of Cape Town ("UCT") for research purposes. Various research studies on the off-shore geology and drill core samples were advanced by South Africa's Council for Geoscience and UCT's Marine Geoscience Group. An extensive area of phosphorite-rich sediment has been identified in these studies and this forms the principal evaluation target in Montero's investigation.

Montero is assessing the core and existing geological information to better understand the phosphate potential of the Greenflash Project. This information will then be reviewed with Ovation in order to determine if Ovation will fund a phosphate resource study.

To view detailed maps associated with this release (Fig 1. Location of the Greenflash Licence area and phosphorite concentrations >5P2O5 and Fig 2. Location of the off shore drillhole collars in the Greenflash Licence area and Duyker Eiland) click here:http://monteromining.com/downloads/Greenflash-Maps.pdf.

Qualified Person's Statement

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 has prepared, reviewed and approved the scientific and technical disclosure in this news release.

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. These include phosphates in South Africa and rare earth elements (REE) in Tanzania. Montero has entered into agreement to develop its portfolio of phosphate properties with Ovation Capital in South Africa. Montero remains focused on attracting a strategic investor for the further development of the Wigu Hill Rare Earth Element Project in Tanzania. Montero trades on the TSX Venture Exchange under the symbol MON.

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