Quaterra Resources Inc.

Quaterra Resources Inc.

November 03, 2005 15:06 ET

Quaterra Resumes Drilling at Nieves

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 3, 2005) - Quaterra Resources Inc. (TSX VENTURE:QTA) reported today that a Phase III diamond drilling program has commenced at the company's Nieves high-grade silver property in Northern Zacatecas, Mexico. The 3,000 metre program is a 50/50 joint venture between Quaterra and US-based Blackberry Ventures I, LLC investment partnership and follows up on nearly 10,500 metres of drilling in 24 prior core holes.

Quaterra said the Phase III program is designed to test the down dip grade and thickness of three silver-bearing veins intersected in prior programs, particularly an intercept of bonanza grade mineralization of 4 kg silver over 1.5 metres in drill hole QTA-19. Subsequently, QTA-30, drilled on section, intersected five narrow high-grade hanging and foot wall splays within a 100 metre section of alteration and indicate that the vein system is prospective for high-grade silver over a vertical range of 300 metres. A CSAMT anomaly has a minimum strike length of 1600 metres of which only 800 metres has been tested to date, and only to shallow depths.

Previous drill results, geophysics and petrography indicate that the exposure level at Nieves is extremely high and that the veins exhibit characteristics similar to the historic Fresnillo silver mine, located about 100 miles to the south. Boiling textures observable in drill core at depths of 150-200 metres below surface mark the top of the mineralized vein zone that geophysics and hole QTA-30 suggest extends downward for at least 300 metres. The Concordia-San Gregorio vein is prospective over a strike length of at least 1000 metres. The California and Santa Rita veins have similar orientations, geophysical signatures and size potential.

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.

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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