Quaterra Resources today announced assay results (see Table-1, page-3) from eleven core holes totalling 5,171 meters completed during the fourth quarter of 2004 and first quarter of 2005 at its Nieves silver property in northern Zacatecas, Mexico.Four separate targets were tested, with best results produced from six holes drilled along the Concordia-Dolores-San Gregorio vein system. Highlights include:

• Holes QTA-33 and QTA-29 extend mineralization on the Concordia-San Gregorio vein system to the east and west respectively. Hole QTA-33 intersected 1.9 meters averaging 519 g/t silver (15.1 oz/ton) and QTA-29 intersected 1.1 meters averaging 297 g/t (8.67 oz/ton). Significant silver mineralization now has been intersected in drill holes over a strike length of one kilometre along the surface trace of the vein.
• Hole QTA-27 , drilled midway between QTA-29 and QTA-33, intersected 36.7 meters averaging 78 g/t silver (2.28 oz/ton), including a 1.2 meter intercept averaging 626 g/t silver (18.3 oz/ton)
•  Hole QTA-30 , drilled to hit the depth projection of high grade silver previously identified in hole QTA-19, intersected almost 100 meters of pervasive alteration and stockwork silver -lead- zinc mineralization that is coincident with a strong CSAMT anomaly. A 97.35 meter interval beginning at 592.15 meters averages 41 g/t silver, 0.38 % lead and 0.38 % zinc. Five narrow (0.1-0.25 meter) hanging and footwall splays within this alteration zone average between 584- 971 g/t silver (17.1-28.4 oz/ton) and indicate that the vein system is prospective for high-grade silver over a vertical range of more than 300 meters. The CSAMT anomaly has a minimum strike length of 1600 meters. QTA-30 is the only hole on the property drilled deep enough to intersect this conductive zone that begins at a depth of 375 meters below surface.

Drill results, geophysics and petrography indicate that the exposure level at Nieves is extremely high and that the veins exhibit characteristics similar to the historic Fresnillo silver mine, located about 100 miles to the south. Boiling textures observable in drill core at depths of 150-200 meters below surface mark the top of the mineralized vein zone that geophysics and hole QTA-30 suggest extends downward for at least 300 meters. The Concordia-San Gregorio vein is prospective over a strike length of at least 1000 meters. The California and Santa Rita veins have similar orientations, geophysical signatures and size potential.

The near surface mineralization exposed on San Gregorio Hill and along the Santa Rita vein on Santa Rita Hill is now interpreted as manto style (rootless) mineralization trapped in porous sediments at the base of Tertiary volcanic rocks. These zones may indicate the presence of high grade mineralization at depth in the adjacent veins.

Near term plans include the construction of a three dimensional drill model to interpret the vein geometry and a compilation of all surface and core geochemistry. Additional work thereafter, which may include additional deep drilling and shaft dewatering, will be made in consultation with the US-based Blackberry Ventures 1, LLC investment partnership, who have now earned a 50% interest in the property by spending US$1,500,000.

Core samples were prepped and analyzed by ALS Chemex in Guadalajara, Mexico and Vancouver, B.C. respectively. Samples were initially run using a conventional 41 element ICP analysis with an aqua regia digestion process. A 30 gram fire assay with gravimetric finish was run on all samples for gold and silver. Samples containing more than 1% lead, copper or zinc were analyzed using AA with aqua regia digestion.

Dr. Thomas Patton is the qualified person responsible for the preparation of this release.

On behalf of the Board of Directors,

“Thomas Patton”
Thomas Patton, President
Quaterra Resources Inc.

Contact Jay Oness at 1-888-456-1112, 604-681-9059 or email: corpdev@mnxltd.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management. Statements contained in this news release that are not historical facts are forward-looking statements as the term is defined in the private securities litigation reform act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated results. Quaterra relies upon litigation protection for forward looking statements.