Quaterra Resources Inc.

Quaterra Resources Inc.

September 23, 2005 15:26 ET

Quaterra Closes $2.275 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 23, 2005) - Quaterra Resources Inc. (TSX VENTURE:QTA) reported that the company has filed closing documents on its previously reported non-brokered private placement (August 25/2005). The company said it has received subscriptions for 6,500,000 units aggregating $2.275 million. The non-brokered private placement was priced at $0.35 per unit with each unit consisting of one common share and one-half of one common share purchase warrant.

Quaterra initially reported on July 22nd that it planned to raise $1.75 million and subsequently announced on August 25th that it was increasing the offering to accommodate over-subscriptions. Proceeds of the offering will be used to fund exploration/drilling programs on four separate projects over the next 90 days and for general working capital.

The placement and payable finders fees are subject to formal regulatory approval.

On behalf of the Board of Directors,

Thomas Patton, President

Quaterra Resources Inc.

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

We seek safe harbour.

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