Quaterra Acquires Cave Peak Molybdenum Prospect in Texas

VANCOUVER, BRITISH COLUMBIA, Jul 22 (MARKET WIRE) --
Quaterra Resources Inc. (TSX VENTURE: QTA)(AMEX: QMM) today announced
that it has finalized a Mining Lease with the General Land Office, State
of Texas, on 523.746 acres in Culberson County, Texas covering all or
parts of three breccia pipes, one of which was drilled in the 1960s and
contains significant molybdenum mineralization.

The Cave Peak molybdenum prospect, based on a preliminary review of all
available data, has excellent geologic potential to contain an economic
molybdenum deposit. Historic drilling at the Main pipe has identified a
large mineralized system with high grade molybdenum mineralization that
is open at depth; two other breccia pipes in the immediate vicinity have
not been evaluated. The understanding of molybdenum systems has increased
markedly since Union Carbide's work 40 years ago and should sharpen
interpretation of both historic and current data.

Terms with the State of Texas include: 1) a bonus of $104,750 ($15,000
due on signing lease, $35,000 due on submittal of exploration plan and
balance of $54,750 due on approval of mining plan); 2) delay rental
payments for each year production does not occur starting at $50 per acre
for the first five years and increasing to a maximum of $200 per acre
from 2024-2028; and 3) a production royalty equal to 6.25% of the market
value (gross proceeds less certain qualified processing costs but
excluding mining costs). Subject to regulatory approval, a Finder's Fee
of 10,000 Quaterra shares is payable in connection with this transaction.

The Company initially acquired rights to the property through a
lease-option agreement with the holders of two prospecting permits. The
agreement allows Quaterra to purchase their entire interest by making
staged payments totalling US$600,000 over a five year period.
Additionally, an agreement to use the Marble mine road for access has
been finalized with the surface owners of the property between the
highway and the prospect.

The Company's work program for the remainder of 2008 will include
possible additional land acquisition, mapping, sampling, relogging of
available drill core and preparation of an exploration plan. Drilling is
tentatively scheduled for Q1 2009.

HISTORIC INFORMATION

All of the information in this release comes from published and private
reports thought to be reliable and accurate. None of the data comes from
Quaterra's own investigations and the company warrants neither the
accuracy nor completeness of the information presented in this release.

The Cave Peak prospect is located about two miles west of Highway 54 in
the Sierra Diablo Mountains of west Texas, about 100 miles east of El
Paso and 35 miles north of Van Horn. Union Carbide Corporation began a
core drilling program in 1965 and completed over 40,000 feet of diamond
drilling in 26 holes before selling the property to Draco Mines in 1975.
Draco Mines and related companies drilled a few more holes and performed
metallurgical test work on the oxidized molybdenum mineralization before
relinquishing the property in 2001. All drilling was completed prior to
1980.

The only published description of the geology and mineralization at Cave
Peak was written by James E. Sharpe in 1979 (Econ. Geol v.74, p.
517-534). Three rhyolite breccia pipes of Tertiary age, with cores of
partially brecciated igneous rock, crop out in the prospect area along a
north-south line about a mile long and intrude a flat-lying sequence of
Paleozoic limestone, sandstone and shale. The Main pipe is the largest
and northernmost of the three pipes, with a diameter of 2,500 feet. About
two-thirds of the pipe is on Quaterra's Mining Lease, with the remainder
extending onto contiguous ground to the north. Efforts to acquire this
ground are ongoing, but when or if acquisition will occur is uncertain.

Union Carbide's core drilling program identified a large stockwork
molybdenum system in the Main pipe, the extent and configuration of which
has not yet been fully defined. The upper mineralized zone is exposed at
surface and is variably oxidized to depths of up to 1000 feet. The table
below shows the mineralized intervals from ten holes that tested the Main
pipe on Quaterra ground. Holes collared to the north and east in areas
outside the Company's Mining Lease are not included. Of particular
interest are holes CP-7, CP-26, B-25 and B-30 drilled in the southwest
quadrant of the pipe, all of which intersected thick intervals of
mineralization. Hole B-30 contains 425 feet of 0.77% molybdenum beginning
at a depth of 145 feet.

Union Carbide calculated an historic indicated and inferred reserve of
19.36 million tons of 0.225% Mo at a cut-off of 0.10% Mo from surface to
a depth of 1,530 feet which coincides with the 3000 foot elevation
(Coryell, 1966, unpublished company report). Coryell's report was based
on about 16,000 feet of core drilling. His work was done carefully and
conservatively and in accordance with best practices of major mining
companies at that time. He used 200 foot vertical sections in his
calculations, with each drill intercept weighted according to the
percentage of the block penetrated. An estimated tonnage factor of 12
cubic feet per ton was used in the calculations. His use of the terms
indicated and inferred reserves are not in accordance with NI 43-101
because no studies had been completed at that time to demonstrate the
economic viability of the deposit.

A later resource estimate by Union Carbide in 1970 (Younger, unpublished
company report) incorporating additional drill results shows an indicated
reserve of 18.6 million tons of 0.18% Mo at a 0.1% cut-off, to an
elevation of 2800 feet; (31 million tons of 0.13% Mo at a 0.06 Mo
cut-off). Younger employed a polygonal block method using plan maps at
100 foot intervals throughout the vertical extent of the deposit to
calculate tonnages. This work also is not in compliance with NI 43-101
because the no studies had been completed at that time to demonstrate the
economic viability of the deposit. Younger's work is considered reliable
and was completed using the geologic interpretation of James E. Sharpe.
Approximately 40% of this tonnage is listed as oxide and 60% as sulfide.
Up to 40% of this tonnage occurs off the Company's land to the north.
Sampling shows that the area also contains significant amounts of copper,
tungsten, silver, beryllium and niobium, one or more of which might
represent a by-product credit.

These drill hole intercepts and tonnage estimates by Coryell and Younger
of Union Carbide Corporation were deemed sufficiently relevant and
reliable by Quaterra to initiate land acquisition.

Excellent potential exists to find additional mineralization in nearby
targets. The Central pipe, located 400 feet south of the Main pipe, is
800 feet in diameter; the South pipe, 1,200 feet south of the Central
pipe, is 550 feet in diameter. Both of these pipes are entirely within
Quaterra's lease. Surface sampling has identified anomalous base metal
values in both pipes that may represent high level haloes around a blind
molybdenum ore shell. One hole drilled by Draco in the Central pipe
intersected significant lead-zinc-silver-manganese over an interval of
500 feet that may signal molybdenum mineralization below.

Cave Peak Historic Drill Results

TD
Hole No. Azimuth Inclination (ft) From To Int. (ft) Mo(%)

CP-4 S51W -45 110 0 50 50 0.43
includes 27 45 18 0.77
CP-5 S86.5W -40 585 0 163 163 0.09
163 177 14 1.11
CP-7 S48.5W -43.5 1300 185 555 370 0.29
includes 362 392 30 1.21
CP-26 90 3540 9.5 60 50.5 0.28
300 1395 1095 0.19
A-13 S65E -89 1415 50 235 185 0.17
675 745 70 0.24
A-17 S85W -88 1497 1100 1135 35 0.51
A-18 90 674 420 480 60 0.11
B-25 S45W -89 1925 395 1530 1135 0.21
includes 930 1110 180 0.38
B-26 90 612 195 320 125 0.13
B-30 90 974 0 645 645 0.58
includes 140 565 425 0.77
775 910 135 0.30

Samples represent five foot intervals, assayed by Development Lab,
Union Carbide Corporation
Assay method unknown

Dr. Thomas Patton, President and CEO, is the qualified person
responsible for this news release. Please note, neither Quaterra nor the
qualified person has done sufficient work to classify the historical
estimate as a current mineral resource as defined by section 1.2 of NI
43-101. The issuer is not treating the historical estimate as current
mineral resources and the historical estimates should not be relied upon.

Quaterra Resources Inc. (TSX VENTURE: QTA)(AMEX: QMM) is a junior
exploration company focused on making significant mineral discoveries in
North America. The Company uses in-house expertise and its extensive
network of consultants, prospectors and industry contacts to identify,
acquire and evaluate prospects in mining-friendly jurisdictions with the
potential to host large base metal, precious metal or uranium deposits.
The company's preference is to acquire a 100% interest in properties on
reasonable terms and maintain this interest through initial evaluation.
On behalf of the Board of Directors,

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 press releases 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.

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

The TSX Venture Exchange and
the American Stock Exchange 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.

Contacts:
Quaterra Resources Inc.
Nicole Rizgalla
(604) 641-2746
Email: nrizgalla@quaterra.com
Website: www.quaterraresources.com

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