Montana Exploration Corp. announced execution of an amended farm-in agreement with a major regional Utility to extend the time for performance of the 10 well Initial Drilling Program for approximately nine months to July 1, 2018 (the "Extension Date"). The Farm-in Agreement pertains to approximately 315,000 acres in Blaine and Hill Counties in the State of Montana much of which is "held by production" by shallow zones, where deeper targets have been significantly under-exploited. The Utility is a large producer and purchaser of natural gas for its power and distribution businesses. MTZ is required to drill a minimum of nine new wells on the farm-in acreage by the Extension Date of which at least six must be gas wells. MTZ has interpreted a 315 square mile 3D data set to define numerous prospects for both oil and natural gas. Under the Farm-in Agreement, MTZ pays 100% of the cost of drilling to earn a 100% working interest in each well subject to a 6.25% royalty which converts to a 25% working interest following payout. Low natural gas prices for the past year have created an opportunity for the Utility to purchase third party gas while thereturn on natural gas drilling activity by MTZ has been impaired. In consideration for the extension, MTZ will reduce its earning for each non-unitized well drilled by approximately half to a 75% working interest in between four and eight sections to encourage additional drilling activity by MTZ.