Quaterra Announces Initial Resource Estimate for the Nieves Silver Deposit

• Press Release
• Source: Quaterra Resources Inc.
• On 9:14 am EST, Monday March 2, 2009

Quaterra Resources Inc. (TSX-V: QTA)(AMEX: QMM) and 50% joint-venture partner Blackberry Ventures 1, LLC, today announced that Caracle Creek International Consulting Inc. of Toronto, Canada, has completed a NI43-101 compliant independent resource estimate for its Nieves silver property in northern Zacatecas, Mexico.

�

Estimated mineral resources(1)
Concordia vein system, Nieves Property
-------------------------------------------------------------
Category     Tonnes  Ag (g/t) Au (g/t)  Ag (oz)(2)  Au (oz)(2)
-------------------------------------------------------------
Indicated 2,897,571  110.231    0.126  10,269,203      11,701
-------------------------------------------------------------
Inferred  2,256,596   96.562    0.115   7,005,797       8,373
-------------------------------------------------------------

1) Prepared by Michelle Stone, P.Geo., Caracle Creek International
   Consulting Inc., an independent Qualified Person within the meaning of
   NI 43-101, using a reporting cut-off grade of 60 g/t Ag.
2) 1 troy ounce equals 31.103 grams.

Nieves' initial indicated resource of 2.9 million tons averaging 110.2 g/t silver contains 10.26 million ounces of silver. An inferred resource of 2.3 million tons averaging 96.6 g/t silver contains an additional 7.0 million ounces of silver. A summary of indicated and inferred resources at various cutoff grades is shown in Table 1-1 at the end of this news release.

The Caracle Creek report concludes that the resource displays strong continuity along strike and down dip and that mineralization continues beyond the extent of current drilling. The report recommends additional drilling to the west and east along the Concordia vein at a drill spacing of 100 metres or less to expand the mineralization and closer spaced drilling on 10-20 metre centres to define the extent of high grade mineralization (+500 g/t silver).

"The initial Nieves resource estimate is very encouraging," says Tom Patton, Quaterra's CEO. "We have completed grid drilling on only one third of the Concordia vein so the opportunity to expand the resource is excellent. I am also confident that closer-spaced drilling within the currently defined resource will demonstrate continuity of high-grade zones that were difficult to constrain in the current model."

Mineral Resource Estimate

The mineral resource estimate for the Nieves Property was completed by independent consultant Michelle Stone, P.Geo., Caracle Creek International Consulting Inc., using accepted, industry standard methods that conform with National Instrument 43-101. The resource model was been developed using Gemcom Surpac (v6.1).

Drilling completed in 2008 has been successful in defining a large proportion of the resource at Nieves as an indicated mineral resource category. This drilling shows that the mineral resource displays strong continuity along strike and down dip and that mineralization continues outside of the current drilling extents.

Resource Estimation Methodology

The data and methodology utilized for the resource estimate is as follows:

The resource model has been generated from a database containing a total of 44 diamond drill and 2 reverse circulation holes collared from the surface. Drill holes have been oriented to intersect the mineralized zone at a spacing of 50-60m down to approximately 250m depth. Below this depth drill hole spacing is irregular. All drilling has been conducted from the hangingwall side of the Property and planned to intersect perpendicular to the orientation of the mineralized domain.

Drill hole samples have been analyzed for silver and gold at ALS Chemex in Vancouver. All sample results are monitored with an appropriate QA/QC program. Bulk density was measured on core and pulp samples through the mineralized zone by ALS Chemex.

The zone which hosts the mineralization at Nieves has been interpreted using a combination of geological information and sample grade results in the drilling data. This "mineralized domain" includes thin, discrete hangingwall and footwall veins in addition to the Concordia vein and strikes approximately 250 degrees for a distance of approximately 835m, dips -65 degrees to the south and extends to a depth of at least 900m. The thickness of the mineralized domain ranges from several metres to approximately 80m, with an average thickness of about 20m (true). The mineralized domain is open to the east, west and down dip.

Sample data has been composited to 2m intervals. The presence of potential outlier sample data has been evaluated and appropriate top cuts have been applied for silver (371.2 g/t) and gold (0.4175 g/t). The grade of blocks measuring 10m by 5m by 2m were estimated using inverse distance squared.

A technical report on the Nieves Property will be filed with SEDAR within 45 days.

On behalf of the Board of Directors,

Thomas Patton, President and CEO, Quaterra Resources Inc.

Disclosure note

The results of the Caracle Creek International Consulting Inc. of Toronto resource estimate have been reviewed by Quaterra technical staff. The Company believes that the Caracle Creek resource estimate for the Nieves Silver Project was conducted in a professional and competent manner. Inferred resources are resources that have not been defined in sufficient detail to be characterized as Measured or Indicated resources. Mineral resources have not had economic considerations applied to them and are therefore not characterized as Reserves.

The mining terms "indicated resource" and "inferred resource" are used in this news release in accordance with Canadian regulations but are not recognized by the United States Securities and Exchange Commission. For clarification, the Company has no properties that contain "reserves" as defined by the SEC and is providing the forgoing, in part, in order to meet its requirements under National Instrument 43-101 adopted by the BC Securities Commission and the Canadian Securities Administrators.

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 this press release 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.

�

Table 1-1
Estimated mineral resources(1)
Concordia vein system, Nieves Property
-------------------------------------------------------------------------
Ag range                                     Ag     Au         Ag      Au
(g/t)           Classification  Tonnes     (g/t)  (g/t)    (oz)(2) (oz)(2)
-------------------------------------------------------------------------
0.0 - greater
 than 15.0      Indicated      133,189    8.348  0.046     35,749     198
-------------------------------------------------------------------------
                Inferred     1,477,235    8.074  0.050    383,484   2,365
-------------------------------------------------------------------------
15.0 - greater
 than 30.0      Indicated      326,164   22.400  0.071    234,901     748
-------------------------------------------------------------------------
                Inferred     2,988,093   22.790  0.049  2,189,450   4,714
-------------------------------------------------------------------------
30.0 - greater
 than 60.0      Indicated      863,267   46.909  0.082  1,301,973   2,270
-------------------------------------------------------------------------
                Inferred     4,587,616   44.857  0.063  6,616,366   9,240
-------------------------------------------------------------------------
60.0 - greater
 than 90.0      Indicated    1,258,964   74.543  0.101  3,017,304   4,084
-------------------------------------------------------------------------
                Inferred     1,275,489   72.304  0.100  2,965,086   4,102
-------------------------------------------------------------------------
90.0 - greater
 than 120.0     Indicated      754,187  103.125  0.123  2,500,575   2,990
-------------------------------------------------------------------------
                Inferred       507,865  103.329  0.122  1,687,208   1,998
-------------------------------------------------------------------------
120.0 - greater
 than 150.0     Indicated      388,788  134.132  0.144  1,676,647   1,799
-------------------------------------------------------------------------
                Inferred       250,484  134.991  0.136  1,087,134   1,092
-------------------------------------------------------------------------
150.0 - greater
 than 300.0     Indicated      480,704  188.975  0.175  2,920,646   2,709
-------------------------------------------------------------------------
                Inferred       221,639  176.033  0.164  1,254,409   1,171
-------------------------------------------------------------------------
300.0 - greater
 than 500.0     Indicated       14,927  320.946  0.258    154,029     124
-------------------------------------------------------------------------
                Inferred         1,117  332.728  0.280     11,949      10
-------------------------------------------------------------------------

1) Prepared by Michelle Stone, P.Geo., Caracle Creek International
   Consulting Inc., an independent Qualified Person within the meaning of
   NI 43-101, showing tonnes in various Ag ranges.
2) 1 troy ounce equals 31.103 grams.

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
Corporate Communications
(604) 641-2746
Email: nrizgalla@quaterra.com
Website: www.quaterraresources.com