Montero announces $1,000,000 Best Efforts Non-Brokered Private Placement & Debt Settlement

Toronto, Ontario (December 18th, 2012): Montero Mining and Exploration Ltd. (TSX.V: MON) (“Montero” or the “Company”) is pleased to announce that it intends to complete a best efforts non-brokered private placement financing of up to 8,000,000 units (“Units”) at a price of %msg%.125 per Unit for gross proceeds of up to $1,000,000 (the “Offering”).

Each Unit will be comprised of one common share (“Common Share”) and one common share purchase warrant (“Warrant”). Each Warrant will entitle the holder to acquire one common share for %msg%.25 for a period of 24 months following the closing date of the financing. Where the closing price of the common shares equals or exceeds %msg%.30 for 20 consecutive trading days following the date that is four months and one day after the date of issuance of the Warrants, the Corporation shall have the right to require conversion of the Warrants at the exercise price therefore upon 30 days’ notice.

The proceeds of the Offering will be used for exploration and general working capital purposes. The securities issued pursuant to the Offering will be subject to a statutory four month and one day hold period. The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and applicable securities regulatory authorities.

The Company announces that it has reached an agreement to settle up to $700,000 in debt with arm’s length and non-arm’s length parties subject to regulatory approval. The indebtedness relates to the provision of services and consulting. The creditors will be issued Common shares on the same terms as the Offering but with no warrant attached being a total of up to 5,600,000 shares in settlement of up to $700,000 of debt.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons as defined under applicable securities laws unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About Montero Mining & Exploration Ltd.

Montero Mining and Exploration Ltd. is a mineral exploration and development company focused on achieving production of fine rare earth chemicals and metals primarily from at its flagship Wigu Hill project in Tanzania and the establishment of a rare earth refinery. With China's control over export quotas, it is becoming imperative that the rest of the world develops new rare earth resources to meet the increasing demand from “green” technology and high-tech applications. Montero has a highly experienced Board and Management team that has built and operated mines and refineries which brings significant credibility to our strategy of becoming a rare earth chemical producer. In addition to rare earths, Montero has phosphate assets in South Africa and uranium assets in Tanzania and Quebec, Canada for sale or joint venture.

Signed. Dr. Tony Harwood - President and CEO