Quaterra Resources Inc. (the “Company”) has today given notice to the holders (“Holders”) of non-transferable common share purchase warrants of the Company dated September 27, 2005 (the “Warrants”) of the acceleration of the Expiry Date of the Warrants from September 27, 2007 to May 29, 2006 .The terms under which the Warrants were issued provide that:

Each Warrant…will entitle the Purchaser to acquire one common share…of the Company (…a “Warrant Share”) at a price of $0.50 per Warrant Share at any time on or before 4:00 p.m. (Vancouver time) on the “Expiry Date”, being the earlier of i) the first business day that is two years after the Closing Date…and ii) if the Company’s shares trade at a closing price of greater than $1.00 per share for a period of 20 consecutive trading days at any time after six months from the Closing Date and the Company accelerates the date upon which the Warrants will expire by providing notice to the holders thereof, the first business day that is 30 days after the date on which such notice is given by the Company.The Company’s shares have traded at a closing price of greater than $1.00 per share for a period of 20 consecutive trading days for the period beginning March 27, 2006 (six months after the Closing Date) and ending 20 consecutive trading days thereafter, namely April 25, 2006. The first business day that is 30 days after the date on which this Notice is given is May 29, 2006.

Notice has been given, therefore, that the Company accelerates the date upon which the Warrants will expire from September 27, 2007 to May 29, 2006 , after which time the Warrants will be void and of no value.

Holders of Warrants are advised to attach the Notice to the Certificates representing their Warrants. If a Holder wishes to exercise a Warrant on or before 4:00 p.m. (Vancouver time) on May 29, 2006, such Holder should refer to the Certificate representing such Holder’s Warrants and comply with the exercise procedure therein provided for.

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

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.

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.