Quaterra Resources Inc.

Quaterra Resources Inc.

December 21, 2006 14:47 ET

Quaterra Receives Exchange Approval/Closes $9.2 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 21, 2006) - Quaterra Resources Inc. (TSX VENTURE:QTA) reported today that the company has received TSX Venture Exchange approval and has now closed the previously reported $9,183,746 non-brokered private placement (November 14th, 2006) and (December 14th, 2006) of 5,247,855 common shares at a price of $1.75 per unit. All the common shares issued pursuant to this unit offering, including share purchase warrants and warrants issued as finders fees, carry a legend restricting the shares from trading for a period of four months to April 21st, 2007.

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

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 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.

We seek safe harbour.

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.

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