Quaterra Signs Earn-In Agreement With Freeport-McMoRan Exploration Corporation for Peg Leg Copper Project in Arizona

VANCOUVER, BRITISH COLUMBIA, Aug 27 (MARKET WIRE) --
Quaterra Resources Inc. (TSX VENTURE: QTA)(NYSE Amex: QMM) today
announced it has signed an earn-in agreement with Freeport-McMoRan
Exploration Corporation of Phoenix, Arizona (FMEC), for the Company's Peg
Leg copper project in Arizona.

In the terms of the agreement, FMEC has the exclusive right and option to
acquire a 70% ownership interest in the Peg Leg project by paying the
2009 BLM claim maintenance fees and spending US$3 million on exploration
by December 31, 2012. Except for the 2009 claim maintenance fees, which
are a firm commitment, all other exploration expenditures are optional.

Upon FMEC earning a 70% interest in the Peg Leg project, the parties have
agreed to joint venture the further exploration and, if warranted,
development of the Project on a 70/30 basis. The joint venture will be on
standard terms including dilution for failure to contribute a party's
share of costs. FMEC will be the initial operator under the joint venture.

The Peg Leg porphyry copper prospect is located in south-central Arizona
along the western flank of the Tortilla Mountains, 20 miles east of the
Poston Butte copper deposit and 12 miles south of the Ray porphyry copper
deposit. This region has the highest density of known porphyry copper
deposits in the world. The primary target is a classic San
Manuel-Kalamazoo type deposit with the possibility of higher copper
grades associated with either a classic chalcocite blanket, or with
abundant diabase as at Ray.

Quaterra controls approximately 11 square miles of mineral rights over
the prospect, including 247 unpatented U.S. lode claims and three Arizona
State prospecting permits. A prominent feature of the prospect is a large
IP (chargeability high, resistivity low) geophysical anomaly that extends
over an area of 10 square miles, a major part of which has not been
drill-tested.

Five core drill holes totalling 11,726 feet were drilled by Exxon
Minerals in the early 1980s. They ranged in depth from 1,948 to 3,283
feet and targeted a small part of the anomaly where they encountered
alteration and low grade copper mineralization interpreted to represent
the margins of a large porphyry copper system. The large size of the
target and the structural complexity of the area suggest that shallower
oxide and/or sulfide mineralization also may be present.

FMEC's parent company, Freeport-McMoRan Copper & Gold Inc. (FCX), is the
world's largest publicly-traded copper company.

Quaterra Resources Inc. 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 Chief Executive Officer, 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.quaterra.com.

The TSX Venture Exchange and 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.

Contacts:
Quaterra Resources Inc.
Corporate Development
604-681-9059
604-688-4670 (FAX)
corpdev@quaterra.com
www.quaterra.com

Copyright 2009, Market Wire, All rights reserved.

-0-