Quaterra Resources Inc. reported that the company’s previously reported $5.25 million private placement (Nov.14th, 2006) of 3.0 million units at a price of $1.75 per unit has been fully subscribed. Oversubscriptions received to date in the amount of $4.03 million have resulted in an additional placement, subject to regulatory approval, of additional units at the same price and on the same terms resulting in a total aggregate offering of up to 5.3 million Units. The company will, accordingly, issue up to 5.3 million Units on the closing of the offerings.Each unit offering will include one common share and one half share purchase warrant, with one full warrant exercisable to purchase one additional common share at $2.25 per share for a period of eighteen months. In the event that the company’s shares trade at a closing price of greater than $3.00 per share for a period of 20 consecutive days at any time after six months from closing, the company may accelerate the expiry date of the Warrants by providing notice to the shareholders thereof and in such case the Warrants will expire on the 30th day after the date on which such notice is given by the Corporation. Finders fees may be payable.

Proceeds of the offering will be used primarily to fund three separate exploration/drilling programs during the first half of 2007. These programs will include Northern Arizona breccia pipe targets; the MacArthur, Nevada copper prospect; and the Crestones gold prospect in Durango, Mexico.

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

On behalf of the Board of Directors,
“Thomas Patton”
Thomas Patton, President Quaterra Resources Inc.

Expanded information on the company’s projects is described on our website at www.quaterraresources.com or 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.