Quaterra Resources Inc. reported today that the company has granted 2,010,000 incentive stock options to directors, officers, employees, consultants each exercisable at $1.55 per share and for a period of five years.The TSX.Venture Exchange has accepted the yearly filing of the company’s Stock Option Pl an, which was re-approved by the company’s shareholders at the Annual General Meeting that was held on July 12th, 2006. The company has implemented a rolling stock option plan whereby a maximum of 10% of the issued shares will be reserved for issuance under the plan.

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.