Quaterra Resources Inc. reported today that the company has received TSX. Venture Exchange approval and has now closed the previously reported $2.275 million non-brokered private placement (July 22 nd , 2005) and (August 25 th , 2005) of 6,500,000 common shares at a price of $0.35 per unit. All the common shares issued pursuant to this unit offering, including share purchase warrants and warrants issued as finders fees, carry a legend restricting the shares from trading for a period of four months to January 26th, 2006.

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.