Montana Exploration Corp. announced that it has entered into an unsecured loan agreement with one of its creditors, Rioco Partners, Ltd, which is controlled by the company's largest shareholder and director James Collins. The company has received $372,000 to use for general corporate purposes. A 1% origination fee is payable on the loan, or $3,720, bringing the loan total to $375,720. Pursuant to the Loan Agreement, the company intends to issue bonus shares having an aggregate value of 20% of the loan total, or $75,144 to Mr. Collins, subject to the approval of the TSX Venture Exchange. Based on the estimated Canadian/US exchange rate of 1.2701 and a share price of $0.08, an estimated 1,193,000 bonus shares are anticipated to be issued. After this Loan Agreement is complete and the bonus shares are issued, the total number of common shares outstanding would increase from 59,053,455 to about 60,246,455. All common shares issued in connection with the Loan Agreement will be subject to the approval of the TSX Venture Exchange and will be subject to a four-month statutory hold period, in accordance with applicable securities legislation. The board of directors and management of the company believe that the proposed Loan Agreement is in the best interests of the company in order to move the company forward. The Loan Agreement will not create a new control person of the company.