Quaterra Acquires Butte Valley Copper Prospect in Nevada  

VANCOUVER, BC - Quaterra Resources Inc. reported the acquisition of the Butte Valley porphyry copper prospect, located in eastern Nevada about 40 miles north of Ely in north-central White Pine County. The Company has acquired approximately forty-five square miles of mineral rights by optioning and staking a total of 1,483 unpatented U.S. lode claims.

Butte Valley was discovered in the 1960s through the drilling of a large magnetic anomaly. The sulfide system, which covers an area of at least two square miles, is totally blind and is buried below approximately 2,000 feet of gravels and a gravity slide block. Seventeen widely spaced holes were drilled, the last in 1980. Multiple targets exist, but one of the most compelling is a high-grade copper-magnetite skarn that could be present in reactive rocks below the level of historic drilling. Quaterra plans a comprehensive program of data compilation and geophysics to define targets for several deep drill holes, both within and adjacent to the area of historic drilling. "The Butte Valley prospect fits our acquisition profile," says Quaterra's President and CEO Tom Patton. "It is a large, partially explored porphyry copper system in a mining-friendly state with well-developed infrastructure, and we have the opportunity to gain 100% ownership. The property is prospective for both high-grade skarn and chalcocite-enriched porphyry copper mineralization." Quaterra initially acquired 41 unpatented lode mining claims covering the core of known mineralization from a prospecting syndicate and staked additional claims. The Company can earn a 100% interest in the claims by making annual payments totaling US$1 million over a 10-year period and paying a 2.5% NSR royalty on production from these claims and contiguous claims staked by Quaterra. One per cent of the royalty may be purchased at any time by paying $1 million to the syndicate. The company's address is Suite 1100, 1199 West Hastings Street, Vancouver, BC V6E 3T5, (604) 681-9059, fax: (604) 641-2740.