Quaterra Resources Inc.
TSX VENTURE : QTA
NYSE Amex : QMM

Quaterra Resources Inc.

April 21, 2010 09:37 ET

Quaterra Drilling Significantly Expands Acid-Soluble Copper Zone at Macarthur

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 21, 2010) - Quaterra Resources Inc. (TSX VENTURE:QTA)(NYSE Amex:QMM) today announced that recent drilling has significantly expanded the extent of copper mineralization at its 100%-owned MacArthur copper project in the Yerington district, Nevada. A total of 19,110 feet have been drilled in 32 reverse circulation holes and three deep core holes since the program recommenced in December 2009.

The Company's 2009-2010 reverse circulation drilling program is targeting locations on a 500 feet by 500 feet grid to extend the known resources of the project while investigating the open margins of the higher grade intercepts in undrilled areas around the MacArthur pit. The program has tested undrilled areas north and west of the pit; expanded the partially explored Gallagher area; and, has begun to delineate the extent of mineralization in the Northwest Target area located 2,500 feet northwest of the pit. An update of drill-hole intercepts through April 15, 2010, is shown in Table 1.

In-fill area

Assay results from the recent round of drilling have demonstrated the continuity of both chalcocite and primary chalcopyrite mineralization in a previously undrilled terrain north and west of the oxide resource at the MacArthur Pit. Drill holes QM-94, 95, 96, 97 and 98, located along an east west section approximately 1,000 feet north of the pit, intersected copper over a strike length of 2,000 feet with chalcocite mineralization ranging from 0.16% copper over a thickness of 70 feet to 0.50% copper over a thickness of 45 feet. This zone is underlain by chalcopyrite mineralization averaging about 0.25% copper over a thickness of 20 to 105 feet.

Gallagher area

In the Gallagher area, 2,000 feet west of the MacArthur Pit, drilling has identified new oxide and chalcocite mineralization in six shallow holes over an area of 1,500 feet by 1,000 feet (holes QM-90, 91, 105, 106, 112 and 113). The zone remains open to the west, south and northwest. Drill hole QM-90 intersected 290 feet averaging 0.22% copper from the surface as oxide and mixed oxide with chalcocite. QM-106, the southernmost of the Gallagher holes, intersected copper oxide, chalcocite and chalcopyrite over a thickness of 20 feet averaging 0.77% copper at a depth of 185 feet and a thickness of 70 feet averaging 0.40% copper at a depth of 220 feet.

Northwest Target area

Drill hole QM-120 located 2,500 feet northwest of the pit, intercepted a thickness of 100 feet averaging 0.47% copper at a depth of 285 feet. The mineralization consists of chalcocite coatings on chalcopyrite. The zone remains open to the west, north and to depth. QM-120 is located approximately 1,000 feet southwest of QM-60 which intercepted similar chalcocite and chalcopyrite mineralization grading 0.38% copper over 260 feet starting at a depth of 140 feet. Mineralization and alteration at the Northwest Target is characteristic of both secondary and porphyry-style primary copper mineralization within a zone that has been recognized in four widely-spaced historical holes that returned up to 0.5% copper over 50 feet starting at a depth of 600 feet.

"We are expecting a significant increase in MacArthur's inferred copper resources as a result of this program," says Eugene Spiering, Quaterra's VP Exploration. "The strength and areal extent of mineralization in the Gallagher and Northwest Target areas present compelling cases for a continuation of step-out drilling in both areas."

North Porphyry Target

Quaterra's recent drilling program also included a test of the North Porphyry Target at an undrilled location 2,500 feet north of the MacArthur pit. The North Porphyry Target was identified by three earlier Quaterra drill holes that intersected porphyry copper style sulfide mineralization below the low-angle MacArthur fault zone over a strike length of 1,000 feet along the northernmost drill fence at that time:

QM-68: 1.19% copper over a thickness of 110 feet at a depth of 485 feet.

QM-70: 0.82% copper over a thickness of 60 feet at a depth of 420 feet.

QM-72: 1.20% copper over a thickness of 15 feet at a depth of 770 feet.

Quaterra followed up these intercepts with an Induced Potential-Resistivity (IPR) survey during the fall of 2009 that identified five prospective targets north and northwest of the mineralized QM-68, 70, and 72 drill fence.

Quaterra staff, assisted by consultant geologist John Proffett, a porphyry copper and Yerington district expert, then combined geology and geophysical data to select three targets for core drilling with rotary pre-collars. Hole QM-100, located 1,400 feet north of QM-68, intercepted porphyry-style chalcopyrite/biotite-chlorite veining at a depth 1,203 feet that assayed 0.58% copper over a thickness of 65 feet below the shallow-dipping MacArthur fault zone. QM-109, spotted on an IPR anomaly, failed to reach projected depth due to fractured, caving ground while QM-99 intersected massive pyrite impregnated breccia and scattered zones of secondary biotite and chlorite alteration; common elements of a porphyry system.

The North Porphyry target, now supported by significant intercepts in four drill holes over an area of 3000 feet by 1000 feet, remains open in three directions and to depth. Four IPR targets, located north or west of the existing drilling, have yet to be tested. Significant porphyry-style alteration including potassic feldspar flooding-pyrite veining, particularly around the ore intercept of hole QM-100, indicate that Quaterra's exploration program is penetrating the margins of a previously unrecognized porphyry center.

Exploration maps associated with this news release are posted on the Quaterra website. An update of drill-hole intercepts through April 15, 2010, is attached to this news release. A complete table of drill-hole intercepts is posted on the Company's website.

Eugene D. Spiering is the Qualified Person with Quaterra Resources responsible for the preparation of this news release.

Quaterra Resources Inc. (TSX VENTURE:QTA)(NYSE Amex:QMM) is a junior exploration company focused on making significant mineral discoveries in North America. The Company uses in-house expertise and its network of consultants, prospectors and industry contacts to identify, acquire and evaluate prospects in mining-friendly jurisdictions with the potential to host large and/or high-grade base and precious metal deposits.

On behalf of the Board of Directors,

Dr. Thomas Patton, President and CEO, Quaterra Resources Inc.

Some statements contained in this news release are forward-looking statements within the safe harbor of the Private Securities Litigation Reform Act of 1995. These statements generally are identified by words such as the Company "believes", "expects", and similar language, or convey estimates and statements that describe the Company's future plans, objectives or goals. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Further information regarding risks and uncertainties which may cause results to differ materially from those projected in forward-looking statements, are included in filings by the Company with securities regulatory authorities. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date thereof. The Company does not undertake to update any forward-looking statement that may be made from time to time except in accordance with applicable securities laws. References may be made in this press release to historic mineral resource estimates. None of these are NI 43-101 compliant and a qualified person has not done sufficient work to classify these historic estimates as a current mineral resource. They should not be relied upon and Quaterra does not treat them as current mineral resources.

Cautionary Note to U.S. Investors - The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on this website (or press release), such as "measured," "indicated," and "inferred" "resources," which the SEC guidelines generally prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 40-F which can be requested from us, and is available on our website at www.quaterra.com and at www.sec.gov/edgar.shtml.

Expanded information on the Company's projects is described on our website at www.quaterra.com or contact Nicole Rizgalla at ph: 1-888-456-1112, 604-681-9059 or email: corpdev@quaterra.com.

Table 1

  QUATERRA RESOURCES INC.        
  MacArthur Copper Project        
  Drill Hole intercepts          
  December 4, 2009 through April 16, 2010      
               
      Angle Total From To Thickness Total Cu
  Drill Hole Brg / Dip Depth feet feet feet %
               
  QM-086 0º/-90º 400.0   No assays above cut-off  
               
  QM-087 0º/-90º 500.0   No assays above cut-off  
               
  QM-088 180º/-60º 480.0 115 240 125 0.40
  including     150 175 25 1.18
        255 335 80 0.34
               
  QM-089 0º/-90º 800.00 145 155 10 0.10
        190 210 20 0.23
               
  QM-090 0º/-90º 430.00 20 70 50 0.29
        90 240 150 0.24
        270 290 20 0.18
               
  QM-091 0º/-90º 600.00 70 110 40 0.21
        140 150 10 0.53
        230 240 10 0.36
               
  QM-092 0º/-90º 400.00 110 120 10 0.28
        235 250 15 0.16
               
  QM-093 0º/-90º 400.00 70 85 15 0.13
               
  QM-094 0º/-90º 500.00 20 30 10 0.15
        165 175 10 0.16
        310 335 25 0.32
        395 405 10 0.25
        430 440 10 0.45
               
  QM-095 0º/-90º 400.00 95 140 45 0.13
               
  QM-096 0º/-90º 440.00 165 210 45 0.50
        230 270 40 0.26
               
  QM-097 0º/-90º 580.00 190 210 20 0.45
        370 380 10 0.24
        405 510 105 0.28
               
               
  QM-098 0º/-90º 570.00 140 150 10 0.27
        250 320 70 0.16
        350 385 35 0.26
        425 500 75 0.23
               
* QM-099 0º/-90º 1529.00   No assays above cut-off  
               
* QM-100 0º/-90º 1965.00 195 225 30 0.15
        1203.5 1268.5 65 0.58
               
  QM-101 0º/-90º 625.00 225 235 10 0.12
        425 435 10 0.56
        465 495 30 0.11
        545 575 30 0.27
               
  QM-102 0º/-90º 700.00 275 295 20 0.15
        405 415 10 0.22
        445 460 15 0.33
               
  QM-103 0º/-90º 450.00 185 225 40 0.32
        250 265 15 0.22
               
  QM-104 0º/-90º 500.00 285 295 10 0.165
               
  QM-105 0º/-90º 405.00 170 180 10 0.45
        225 305 80 0.33
               
  QM-106 0º/-90º 400.00 0 30 30 0.52
        80 95 15 0.20
        125 135 10 0.36
        185 205 20 0.77
        220 290 70 0.40
               
  QM-107 0º/-90º 425.00 110 125 15 0.13
               
  QM-108 0º/-90º 355.00 95 105 10 0.32
               
* QM-109 180º/-60º 1056.00 0 10 10 0.29
        350 360 10 0.11
        400 410 10 0.20
               
  QM-110 0º/-90º 400.00 170 195 25 0.17
               
  QM-111 0º/-90º 400.00 165 180 15 0.25
        195 235 40 0.16
        250 265 15 0.16
               
  QM-112 0º/-90º 400.00 15 165 150 0.15
        180 195 15 0.14
        315 350 35 0.35
               
  QM-113 0º/-90º 350.00 0 25 25 0.10
        60 200 140 0.21
               
  QM-114 0º/-90º 400.00   No assays above cut-off
               
  QM-115 0º/-90º 600.00   No assays above cut-off
               
  QM-116 0º/-90º 600.00 60 70 10 0.13
        330 340 10 0.10
        385 400 15 0.16
               
  QM-117 0º/-90º 400.00   No assays above cut-off
               
  QM-118 0º/-90º 350.00 60 130 70 0.13
        165 175 10 0.14
        245 280 35 0.12
               
  QM-119 0º/-90º 550.00 30 80 50 0.15
        395 420 25 0.12
        440 450 10 0.16
               
  QM-120 0º/-90º 650.00 60 70 10 0.12
        85 130 45 0.12
        200 225 25 0.22
        285 385 100 0.47
  including     295 335 40 0.91
               
  * denotes core hole          
  All intervals calculated using 0.1% copper cutoff    
  REGULATORY NOTE:
  The samples from the MacArthur drilling program are prepared and assayed and by Skyline Assayers & Laboratories in Tucson, Arizona which is accredited by the American Association for Laboratory Accreditation (A2LA - certificate no. 2953.01) and by ISO17025 compliant ALS Chemex Laboratories in Sparks, Nevada.

Neither the TSX Venture Exchange nor its Regulation Services Provider or the NYSE Amex have not reviewed and do not accept responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management.

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