Annual Report 2007 8e46

capturing value
through discovery
Quaterra Resources Inc. 2007 Annual Report

Cu Au Ag U Mo
Quaterra Resources Inc.

(AMEX: QMM, TSX-V: QTA) 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.
Contents
Forward-looking statements Securing exploration upside 1
S tatements contained in this annual

report that are not historical fact,
such as statements regarding the
where the Company operates, techno-
logical and operational difficulties or
inability to obtain permits encountered
President’s letter to shareholders
Quaterra commences trading on Amex
Milestones
2
4
6
economic prospects of the Company’s in connection with exploration and Portfolio of diversified properties 7
projects, the Company’s future plans or development activities, labor relations Yerington-MacArthur copper district, Nevada 8
future revenues, timing of development matters, and changing foreign ex- Other copper projects 12
or potential expansion or improve- change rates, which are described more Arizona Strip uranium project 14
ments, are forward-looking statements fully in the Company’s filings with the Duke Island Cu-Ni-PGE project, Alaska 18
as that term is defined in the Private Securities and Exchange Commission. Herbert Glacier gold project, Alaska 19
Securities Litigation Reform Act of 1995. The Company does not undertake to Nieves silver project, Mexico 22
Such forward-looking statements are update any forward-looking statement Mirasol-Americas gold-silver project, Mexico 23
subject to risks and uncertainties which that may be made from time to time
Crestones-Inde gold-silver project, Mexico 26
could cause actual results to differ except in accordance with applicable
Jaboncillo gold-silver project, Mexico 27
materially from estimated results. Such securities laws.
Directors and management 28
risks and uncertainties include, but are
Corporate and shareholder information 32
not limited to, the Company’s ability to References may be made in this annual
raise sufficient capital to fund develop- report to historic mineral resource MD&A and financial statements Insert
ment, changes in general economic estimates. None of these are NI43-101
conditions or financial markets, changes compliant and a qualified person has Annual General Meeting of Shareholders
in prices for the Company’s mineral not done sufficient work to classify The annual general meeting of the shareholders
products or increases in input costs, these historic estimates as a current
of the Company will take place at 10:00 am on
litigation, legislative, environmental and mineral resource. They should not be
Wednesday, June 18, 2008, in the Company’s
other judicial, regulatory, political and relied upon and Quaterra does not treat
competitive developments in countries them as current mineral resources. offices located at Suite 1100, 1199 West Hastings
Street, Vancouver, British Columbia.
Cover photo: Geotech Ltd flies a VTEM survey for Quaterra

on the Arizona Strip uranium project.
Securing exploration upside
through 100% control of a
diversified minerals portfolio
A spectacular outcrop
of the Kanab North
pipe resulted in one of
two uranium deposits
found in a single day
during the early history
of exploration on the
Arizona Strip. In 2008
Quaterra discovered the
second “hidden” pipe
ever found in the district.
»» Quaterra Resources Inc. is a mineral

exploration company focused on making
significant discoveries in North America
»» Its exploration efforts are directed at
acquiring highly prospective properties
with the potential to host large and/or
high-grade base metal, precious metal and
uranium deposits
»» It is focused on acquiring a 100% interest in
properties in mining-friendly locations on
reasonable terms
»» It has one of the industry’s most talented
and successful exploration teams
»» The Company emphasizes developing a
pipeline of opportunities using in-house
expertise, prospectors and an extensive
network of industry contacts
»» Metals markets remain strong because of
declining inventories, long lead times for
new production and quality-of-life demand
for key resources in the developing world
Quaterra Resources Inc. 2007 Annual Report 1

1
President’s Letter to Shareholders
“ Property and commodity

diversification, and 100%
ownership will capture the full
value of a major discovery.”
When
preparedness
meets
opportunity
T
oday’s seemingly incongruous juxtaposition of buoyant
commodity prices and a fragile junior resource sector
presents opportunities and challenges. Although strong
metal prices and a relatively empty development pipeline assure
that new discoveries will be major wealth creators, the more
selective availability of equity funding for junior companies puts
a premium on performance and growth.
In this environment we need to be prepared to work hard to seize

opportunity when it presents itself. And with our ongoing strategy
of building a portfolio of diversified mineral properties which
we control in mining-friendly locations we believe we are ideally
positioning ourselves to capture value for our shareholders.
2 Quaterra Resources Inc.

“I’m a great believer in luck, and I find the
harder I work, the more I have of it.”
Thomas Jefferson
On the corporate side, we achieved a major milestone tion and development also provides significant option
in the past year with our listing on the American value in the current environment of mergers, spin-offs
Stock Exchange in March 2008. The AMEX listing will and corporate acquisitions.
provide a more convenient trading market for U.S.
shareholders, facilitate trading liquidity and raise the This is a great time to be looking for new mines and I
Company’s profile with U.S.-based institutional inves- am excited about the year ahead. We will be complet-
tors. Also during the year, Tracy Stevenson was ap- ing a resource estimate at MacArthur and initiating
pointed Chairman of the Company’s Board of Direc- one at Nieves; aggressively drilling on the Arizona
tors, adding depth at the executive level. In April 2008, Strip to try to capitalize on our initial success; ini-
we completed a non-brokered US$11 million financing tiating work at SW Tintic and Herbert Glacier; and
which will allow us to continue aggressive exploration expanding our reconnaissance program in central
of our properties, in particular the MacArthur copper Mexico. And we will continue to evaluate other oppor-
and Arizona Strip uranium projects. tunities, both on the project and corporate level.
On the exploration front, we validated our technical The real strength of any company is its people. I would
approach at the Arizona Strip with the discovery of a like to thank all the members of the Quaterra team –
blind uranium pipe; expanded the zone of acid-soluble directors, officers, staff, consultants and shareholders
copper mineralization at MacArthur, Nevada; fur- – for their hard work and loyalty during the past year.
ther delineated both high-grade and potential bulk- Exploration is a difficult and demanding business with
mineable silver mineralization at the Nieves property frequent highs and lows. The commitment, enthusiasm
in Zacatecas, Mexico; and acquired the SW Tintic and competence of our team is always appreciated and
porphyry copper prospect in Utah and the Herbert never taken for granted.
Glacier gold prospect in Alaska. The due diligence
process at Yerington, Nevada has been slow, which we It is likewise not easy being a shareholder, particularly
expected, but I remain optimistic that we will achieve in today’s volatile environment. Our shareholders are
a favorable outcome. second to none, a fact brought home once again by the
large turn-out in October for our MacArthur field trip
Our focus remains squarely on discovering large or and in New York on March 28, when our contingent
high-grade precious metal, base metal and uranium was one of the largest groups ever to attend an AMEX
deposits in North America. I want to emphasize that we bell ringing ceremony. We appreciate your support of
will continue to evaluate and in some cases acquire new the Company’s activities and will work hard to justify
prospects if they meet our geologic, environmental and your continued confidence.
infrastructure criteria; and if we can obtain a 100% in-
terest on reasonable terms. We will do this not because As the year unfolds, we have some great opportunities
of dissatisfaction with existing properties, but because and are well-positioned to capitalize on them. I look
the merging of good people with good properties and forward to sharing results with you as they become
cutting edge technology gives us the best chance to available.
make discoveries. Our recent exploration success on
the Arizona Strip is a good example of this approach.
The successful execution of our strategy provides

Quaterra with property and commodity diversifica-
tion, and 100% ownership will capture the full value of T. C. Patton
a major discovery for our company and shareholders. May 6, 2008
A portfolio of properties at various stages of explora- President and CEO
2007 Annual Report 3

Cu Au Ag U Mo
Cu Au Ag U Mo
Quaterra commences
trading on the AMEX
Quaterra achieved a key

milestone when it listed
on the American Stock
Exchange on March 3, 2008.
The Company’s shares trade
under the symbol QMM.
The listing will raise the
Company’s profile in the
United States, offer a broader
market database to target
new investors, better facilitate
trading with existing U.S.-
based shareholders and assist
in increasing institutional
investment.
A total of 25 shareholders
from across the continent
accompanied the Company’s
officers, directors and
employees at the bell ringing
ceremony on the exchange
floor in New York on March
28, 2008. President and CEO,
Thomas Patton made a short
address to the trading floor
and then rang the opening
bell with Chairman of the
Board, Tracy Stevenson. The
strong contingent of company
attendees set a record for the
highest number of guests
ever to attend a bell ringing
ceremony at the exchange
and is a testament to the
Company’s loyal shareholder
base.
Left to right: Robert Wotczak (AMEX), Wayne Booth (shareholder), Tracy Stevenson (Chairman),
Gerald Prosalendis (advisor), Larry Page (director), Thomas Patton (CEO & President), Rick Riley
(shareholder), Wade Black (joint venture partner) at the bell ringing platform.

Bari Trontz (AMEX) and Thomas
Patton (CEO &
President) during At the Exchang
e interview.
an (specialist)
President), Brendan Cry or.
Thomas Patton (CEO & tra din g flo “Mineral exploration is part
airman) at the
and Tracy Stevenson (Ch
science, part hard work,
and part luck. But as they
say: you make your own
luck. The Chinese word for
luck is a combination of
two symbols and represents
where opportunity and
preparedness meet. At
Read Northen (shareholder), Ron Stack Quaterra we understand
(shareholder) and David Backer (trader) at the
trading booth. this concept. Yes, there is
opportunity. Yes, we are
prepared. And yes, we will
work hard to realize the kind
of returns for shareholders
that discovering a new mine
in North America can bring.”
Excerpt from Thomas Patton’s
address to the AMEX trading floor.
n), Tom
(advisor), Trac y Stevenson (Chairma
Left to right: Gerald Prosalendis (em ploy ee), Sco tt Hea n (CFO),
Rizg alla
Belaustegui (shareholder), Nicole Stack
mas Patton (CEO & President), Ron
Read Nor then (shareholder), Tho part ner) , Rob ert Tho mas (sha reholder),
venture
(shareholder), Wade Black (joint X trad ing floo r.
y Page (director) at AME
Rick Scruggs (shareholder), Larr

Cu Au Ag U Mo
2008 Milestones
Quaterra believes that significant goals, or milestones, provide the
market with a tool with which to track its progress towards its longer-
term objectives. Milestones are formulated to show the progress the
Company is making in systematically acquiring and exploring its
properties, reducing overall risk and strengthening the Company.
In the next 12 months Quaterra plans to:

»» Complete a NI43-101 resource estimate at the MacArthur copper project, Nevada
»» Test the most prospective breccia-pipe targets on the Arizona Strip for uranium
»» Complete a core drilling program on the Concordia-Arroyo-San Gregorio vein

systems and their junctions at Nieves, Mexico
»» Advance its other central Mexican gold-silver properties and continue aggressive
reconnaissance
»» Complete initial evaluation of the SW Tintic copper project in Utah and the
Herbert Glacier gold property in Alaska
»» Continue to evaluate other high value opportunities
Achievements
In the past 12 months, Quaterra:
Copper oxide
mineralization »» Obtained a listing on the American Stock »» Completed an environmental assessment
at MacArthur Exchange under the symbol QMM at the Yerington project in Nevada as
is hosted in part of due diligence towards acquiring
medium-grained, »» Discovered the A-1 “blind” breccia pipe ownership
biotite quartz on the Arizona Strip uranium property
monzonite. validating the company’s technical approach »» Acquired the SW Tintic porphyry copper
prospect in Utah and the Herbert Glacier
»» Enlarged the zone of acid-soluble copper gold prospect in Alaska
mineralization at the MacArthur project in
Nevada »» Drilled two Mexican properties and
through reconnaissance staked five
»» Delineated both high-grade and potential additional claim blocks in central Mexico
bulk-mineable silver mineralization at the
Nieves property in Zacatecas, Mexico

A portfolio of diversified North American properties
Arctic Ocean
Chukchi Bay
Queen
Bering Sea Elizabeth
Islands
Big Bar Beaufort Sea Ellesmere Reykjavik
Island
A l a s k a
Parry Island
Banks
Island
Baffin Bay
Fairbanks
Victoria Baffin Island

Island
Kodiak Yukon
Island Territory
Gulf
of N u n a v u t
N o r t h w e s t
Alaska T e r r i t o r i e s
Herbert Glacier
Labrador Sea
Duke Island
Newfoundland
Queen Hudson Bay &
Charlotte Labrador
Islands Alberta
Newfoundland
British
Columbia
Edmonton Saskatchewan
Q u e b e c
Vancouver Manitoba
Vancouver Calgary O n t a r i o Miquelon
Seattle New
P.E.I.
Washington Brunswick
Portland
North Dakota Montreal Maine Nova
Oregon Montana
Scotia
Minnesota Ottawa New
VT
York NH
Idaho South Dakota
Michigan Toronto Boston
Massachusetts
Wisconsin Buffalo
CT
Wyoming RI
Milwaukee London
Iowa Pennsylvania
Sacramento MacArthur/ Yerington Nebraska
Atlantic
Pittsburgh NJ
San Francisco Nevada
Utah SW Tintic
Denver Illinois
Indiana
Columbus MD
DE
Ocean
Ohio West
Kansas City Missouri Indianapolis Virginia
Washington
Colorado
Kansas
Cincinnati Virginia
California Arizona Strip Wichita Saint Louis Virginia Beach
Kentucky
Nashville
Tennessee North Carolina
Albuquerque Charlotte
San Diego Phoenix Arizona Oklahoma City Memphis
South
New Mexico
Atlanta Carolina
Tucson
Oklahoma Birmingham
Ensenada Arkansas
Fort Worth Dallas Alabama Georgia
El Paso
Louisiana
Texas
Mississippi Jacksonville
Pacific
Guadalupe
Austin
Hermosillo San Antonio
Ocean
New Orleans
Chihuahua Florida
Mirasol Nassau
Nieves Gulf of Mexico
Miami
Culiacan Saltillo Turks & Caicos
Islands
Havana
Santo
Domingo
Puerto
Rico
Mexico City Kingston Port-au

Toluca De Lerdo -Prince
Belmopan
Acapulco De Juarez Caribbean Sea Netherlands
Antilles
Aruba
Cartagena

San Jose 2007 Annual Report 7
Panama
City
Cu Au Ag U Mo

Yerington-MacArthur
Consolidating a
copper district
Quaterra’s 2007 drilling program substantially enlarged the
acid-soluble copper deposit at MacArthur. And continued
exploration may define a resource that is comparable in size
and more favorable in economics than many of its neighbors
in the Yerington district. Meanwhile, due diligence continues in
order to complete the acquisition of the nearby Yerington mine.
Q
uaterra continues to expand its land copper and include the MacArthur copper
position in the Yerington Copper oxide deposit, the Yerington, Ann Mason
district of northwestern Nevada. and Bear-Lagomarsino porphyry copper
With world class potential only 50 miles deposits and the Pumpkin Hollow copper
southeast of Reno, the district has the ideal skarn deposit. The resource potential of the
combination of resources and infrastructure district dwarfs past production and presents
to make Quaterra a major copper producer. an attractive target for the Company’s grow-
The global geologic resources of the Yering- ing land acquisition and copper exploration
ton district exceed 2.1 billion tons of 0.4% programs.
The historic MacArthur mine resource of 29 million tons grading 0.28% copper, including 13
million tons of +0.40% copper was substantially enlarged by the Company’s 2007 drilling program.

Cu Au Ag U Mo
Quaterra entered the Yerington district in

2005, with the acquisition of a 100% inter-
est in the MacArthur mine, a fully stripped
copper oxide deposit with an historic
resource of 29 million tons grading 0.28%
copper, including 13 million tons of +0.40%
copper (this historic resource estimate,
or those that follow, are not NI43-101
compliant and should be read in conjunc-
tion with the note on historic resources
in the forward-looking statements in the
cover of this annual report). The Company
subsequently enlarged its land position by
staking an area of 9.5 square miles around
the existing open pit and initiated a drilling
program to expand the deposit. The drill-
ing results began to define a much larger
area of copper oxide mineralization in 2006
and provided encouragement to pursue
opportunities for further consolidation. Geologists Todd Bonsall (center) and Daniel Skillman discuss mineral occurrences
In May 2007, Quaterra received approval of the district with Dave Heatwole (left) at Quaterra’s core shed at Yerington.
from the U.S. bankruptcy court to acquire
all the assets of Arimetco Inc. in the Yerington mining district, deposit at MacArthur, an option to acquire the Arimetco assets
including the historic Yerington open-pit mine and the Bear around the Yerington mine and a large land position to explore
prospect. The Company is currently conducting due diligence, for new copper porphyry deposits, Quaterra is fast becoming
that if successful, will result in 100% ownership. The momen- an important player in the revival of a major copper district
tum of these acquisitions increased the Company’s capacity that has been dormant for almost 30 years.
for growth and motivated the completion of a 2,600 line-mile
airborne magnetic survey that resulted in acquisition of the
Wassuk copper project in early 2008.
MacArthur Copper Mine
Quaterra has completed approximately 43,000 feet of drilling
Quaterra’s rapidly growing presence in the Yerington district in 74 reverse circulation holes and 43 core holes at MacArthur
is giving the Company a strategic position to create value from since drilling began in 2006. The program initially targeted the
opportunity. With a drilling program to expand its copper oxide area in and around the pit and an area north of the pit where a
Drill hole cross section A-A’ showing acid soluble copper mineralization at MacArthur
5500
QMT-6 QM-17 QMC-23R

Existing pit boundaries 0.25% / 95 ft.
0.18% / 15 ft.
0.19% / 25 ft.
0.30% / 55 ft.
0.20% / 10 ft.
1.25 % / 25 ft.
A’
5000 0.28% / 65 ft.
Upper Cu
Oxide Zone
A
Approximate
4500 depth of historic
drilling Grade (% T Cu)
< .10
QMCC-2 Lower
QMT-16aR QMT-11aR QMT-8aR Chalcocite 0.10 - 0.15
0.21% / 81 ft. Zone 0.15 - 0.20
0.16% / 135 ft. 0.19% / 120 ft. 0.51% / 20 ft. 0.24% / 96 ft.
0.16% / 35 ft. 0.16% / 60 ft. 0.22% / 45 ft. 0.17% / 19 ft.
0.20 - 0.25
4000 0.14% / 20 ft. 0.52% / 20 ft.
0.21% / 60 ft. 0.18% / 66 ft. >0.25
Elevation 0.23% / 95 ft. 0.24% / 175 ft.
(feet)

few historic holes intersected Grade-thickness isopach map of copper
copper mineralization
mineralization in
in MacArthur
MacArthurdrill
drillholes
holes
chalcocite mineralization. The
drilling data defines two min- 27
1 3
30
PEN
eralized zones with a combined A’
O 33 16
average thickness of over 100 6 11 2
feet that merge and now cover 40

34 53 36 35
20 55 14
an area of 7,000 feet by 4,000 56
89
65
13 40 65 174
feet. This zone of secondary, 18

3
28 31
16 29
20
30 0
acid-soluble copper mineraliza- 29 4 46 16 20
23
38 17
3
10
8
tion is now approximately five
25
28
20 22
8 2
times the size of the original pit 19 63

113
21 0
7 43 101 3
area that contains a 29 million 36
0
10
75 58
2 12
ton historic resource and re- 10 7
53 73 46
20 27
29
mains open to the north, south 6 15

39 74
73 4
and west. Copper mineraliza- 41
30
Grade Thickness
tion parallels current topog- 93
67 (ft. % TCu)
Existing Pit Outline 47
40
23 13 33
raphy and contains predomi- Gallagher
Prospect
<10
nately green and black copper Area 10 - 20
A
40
oxides grading downward into 22 20 - 30
chalcocite, a secondary copper N 30 - 40

OPE
0 1,000 2,000
> 40
mineral that is also acid-solu- feet
ble. Mineralization appears to
represent a partially oxidized
secondary enrichment blanket.
The most likely source of the secondary copper mineral-

ization, based on results to date, is about 3,000 feet west
of the pit in the Gallagher area. The Company’s recently
completed drill hole QM-10 targeted this area and discov-
ered new porphyry copper-type mineralization below a
large area of iron oxides and phyllic alteration. From 470
to 530 feet, the hole cut 60 feet of 0.73% copper including
15 feet of 2.46% copper. A second mineralized zone at 575
feet assayed 0.40% copper over 50 feet, including 20 feet of
0.79% copper. The mineralization in both intercepts occurs
as disseminations and veins of chalcopyrite in quartz mon-
zonite. The copper zone includes scattered anomalous gold
values up to 370 ppb. The intercepts may represent “fringe”
mineralization related to a large porphyry copper system
that could be the source of the secondary copper mineral-
ization in the MacArthur pit.
The Company’s 2007 drilling program has substantially

enlarged the MacArthur deposit. Continued exploration has
the potential to define a resource comparable in size to oth-
er deposits in the Yerington district. During 2008, Quaterra
will complete detailed geologic mapping and completely
define the zone of shallow acid-soluble copper by grid drill-
ing holes on 500 foot centers. The drill data will be used to
complete a NI43-101-compliant resource estimate during
the second half of 2008. Concurrent with the shallow drill- Quaterra’s Yerington District exploration manager Dave
ing, deep drill-holes will explore for primary sulfide copper Heatwole examines mineralized core from the drilling program
mineralization in the Gallagher area and north of the pit. on the MacArthur copper oxide deposit.

Cu Au Ag U Mo
Yerington Copper Mine, Nevada
The Yerington mine, which produced 1.75 billion

pounds of copper, is part of Arimetco’s assets that
Quaterra received court approval to acquire.
T
he Company’s review of the ronmental clearances for past mining-
Arimetco assets in the Yer- related activities.
ington Mining District has The original 180-day review period

progressed slowly but steadily. The which began on July 13, 2007, has
been extended for an additional 120-
Chambers Group Inc. and Golder
day period to May 8, 2008, and may Wassuk Project, Nevada
Q
Associates Inc. completed a Phase be extended for additional 120-day uaterra enlarged its stake in
1 Environmental Site Assessment periods if necessary. the Yerington District in early
Report (ESA) in April 2008 as part 2008 following the completion of a
On May 1, 2007, Quaterra received the 2,600 line-mile airborne magnetic
of the Company’s due diligence. approval of the appropriate U.S. court survey conducted by EDCON-PRJ
for the acquisition by a subsidiary of of Tucson, Arizona. The geophysical
The purpose of this Phase 1 ESA is to Quaterra of all Arimetco assets in survey covered approximately 140
identify conditions indicative of releases the Yerington Mining District. As- square miles over most of the historic
or threatened releases of hazardous suming successful completion of mines and included detailed surveys
substances so that the Company may due diligence, the Company plans of the MacArthur and Bear deposits.
establish liability protection as a bona to explore the property as part of its The new data was then digitized and
fide prospective purchaser. This report ongoing exploration drilling program merged with older surveys to provide
is essential to obtain requested envi- at MacArthur.

Other Copper Projects
SW Tintic-Treasure Hill Prospect, Utah
I
n July 2007, Quaterra acquired system four miles to the south of the
the Southwest Tintic porphyry Tintic silver mines. The deposit is
hidden 1,100 feet below surface under
copper deposit located in the three square miles of barren quartz-
prolific Tintic mining district in sericite-pyrite alteration. The system
west-central Utah, about 60 miles was cut by six widely spaced core holes
which form the basis for Krahulec
south of Salt Lake City. The ac- and Briggs’ (2006) rough estimate of a
quisition provides an opportunity global geologic resource – which is not G
NI43-101 compliant – of more than s
to investigate the porphyry cop-
400 million tons of 0.33% copper, 0.01% o
per mineralization in an under- molybdenum and 0.002 oz/ton gold at H
explored area that represents the a 0.3% copper cutoff. The system could t
c
second most important mining contain several large zones of high
a
grade, structurally controlled copper m
district in Utah. mineralization that may not have been
identified in the earlier drilling.
Geologist Jim Vroman studies altered
The project includes approximately
andesites on Quaterra’s Treasure Hill
five square miles of mineral rights that prospect for clues to the location of a Wide-spaced drill holes in Diamond
were acquired by optioning and staking possible copper porphyry system at Gulch, less than a mile to the north,
85 unpatented U.S. lode claims and depth in the SW Tintic mining district. have shown the presence of a low grade
purchasing 1,511 acres of patented chalcocite blanket presumably derived
mining claims. The district ranks third mentary rocks. Much of the miner- from enargite-rich veins peripheral to
in a list of the top ten historic silver alization may be related to a major the SW Tintic or another deep por-
producing districts in the U.S. Approx- porphyry copper system at depth that phyry copper center in the Treasure
imately 285 million ounces of silver, has not yet been found. Hill area located two miles farther
2.8 million ounces of gold and lesser north. Exxon explored Treasure Hill
amounts of base metals were mined In the early 1970s, Bear Creek Min- for high-grade bonanza copper, gold,
from carbonate replacement deposits ing Company discovered the deep and silver veins in the early 1980s. The
and mantos hosted by Paleozoic sedi- Southwest Tintic porphyry copper area represents yet another possible
porphyry system at depth with three
northeast trending zones of copper-
gold mineralization in propylitized
andesitic volcanics. The primary vein
a detailed magnetic map of almost the ping granodiorite with quartz mon- minerals are quartz-alunite, pyrite and
entire district. zonite porphyry dikes displays both enargite with lesser amounts of galena
alteration and copper oxide mineral- and sphalerite.
The survey defined an interesting ization with a close similarity to the
magnetic anomaly five miles east of MacArthur deposit. The alteration The large amount of metal and wide-
Yerington that became the subject of and mineralization is characteristic spread alteration in the southwest
Quaterra’s newly acquired Wassuk of what might be expected peripheral Tintic-Treasure Hill prospect areas are
Prospect. The property consists of 77 to a porphyry system that may lie at compelling reasons to systematically
leased claims and 205 newly staked depth below the valley to the east. explore a number of attractive explora-
claims over a broad valley covered by The Wassuk anomaly presents an at- tion targets. Quaterra is planning an
alluvium. Along the western margin tractive target for copper exploration extensive program of mapping, data
of the Wassuk anomaly, an outcrop- in 2008. compilation, geophysics and approxi-
mately 5,000 feet of drilling in 2008.

Cu Au Ag U Mo
Arizona Strip Uranium District
Proof of principle
The discovery of a “blind” pipe using a VTEM geophysical system validated
Quaterra’s innovative approach to exploring for uranium on the Arizona
Strip. And the success of Quaterra’s geophysical approach has opened up
new possibilities for discovering a mineable resource.
T
he Arizona Strip should certainly be at the Cross section of hidden breccia pipe
top of a list of U.S. uranium districts with
the greatest possibility of creating signifi-
0 Moenkopi Fm.
Depth
cant wealth through new discoveries. The breccia (feet)
pipe mines of northwestern Arizona represent Kaibab Fm.

some of the highest grade and most profitable per (At Hack 2 and A-1 the
pipe formation stops
pound uranium production in the country. Prior 500 before reaching the
to the uranium price decline in the late 1980s and upper Kaibab horizon)
early 1990s, they were some of the country’s last Toroweap Fm.
hard rock uranium producers. These attributes
made the Arizona Strip a prime location for explo- Coconino Ss.
(Acts as conduit and
ration to achieve the Company’s goal to create val- 1000 Pyrite
host rock for the
cap
ue through discovery. In Q1 2008, Quaterra made uranium mineralization
in the breccia pipe)
a discovery that could not only make Quaterra the
Uranium
major player in the Arizona Strip, but also redefine orebody
the future potential of this prolific district. 1500 Hermit Shale
From 1980 to 1990, the Arizona Strip produced in (Forms the trap for
the mineralization)
excess of 19 million pounds of uranium from seven
mines, averaging 0.65% U3O8. The total amount of
mineable uranium discovered to date in breccia pipes
in northern Arizona is estimated to be in the range of 2000 Esplanade Ss.
35 million pounds. One fifth of this total (seven mil-
lion pounds of U3O8) was mined from a single blind or
“hidden” breccia pipe discovered by tracing alteration
exposed in Hack Canyon by Western Nuclear in 1979. (Roof collapse in caverns of the Redwall Ls. and subsequent
Until Quaterra’s discovery of the A-1 pipe, Hack 2 rep- collapse of overlying sediments forms a vertical column of breccia
resented the only hidden pipe ever found in the district. that can extend vertically over 3,000 feet)

Geotech Ltd. conducted Quaterra’s airborne time-domain
electromagnetic (VTEM) survey that identified most of the
known breccia pipes in the northern Arizona Strip district and
more than 200 targets with similar geophysical signatures.

Cu Au Ag U Mo
Northern Arizona Strip The first VTEM target tested by

Uranium Project Quaterra resulted in the discovery
The discovery of new deposits in a mature district requires a
determined and innovative approach combined with the latest of the first new mineralized
exploration technology. In early 2007, Quaterra contracted
Geotech Ltd. to conduct the first extensive test of an airborne breccia pipe found on the Arizona
time-domain electromagnetic system on the Arizona Strip.
The VTEM system identified most of the known breccia pipes Strip in 18 years
and more than 200 moderate- to high-priority targets with
similar geophysical signatures but with little or no outcrop-
ping evidence of a collapse feature. The acquisition of the
mineral rights to cover the new anomalies increased the Com-
pany’s mineral rights to a total area of 85 square miles.
unique advantage in the search for uranium deposits in the
The first VTEM target tested by Quaterra resulted in the district.
discovery of the first new mineralized breccia pipe found on
the Arizona Strip in 18 years. Discovery Hole A-01-31 inter- The A-1 discovery represents the only hidden pipe discovered
cepted a thickness of 57 feet averaging 0.33% U3O8 at a depth in 28 years. Most of the breccia pipes with structures visible
of 1,034 feet. The intercept includes a higher grade interval at the surface have been found by past exploration. Many of
of 28 feet averaging 0.58% U3O8. The drill-hole data indicate the future discoveries in the district will probably be hid-
that the A-1 structure is a hidden breccia pipe. Upward col- den breccia pipes and they could also be some of the most
lapse of the A-1 pipe stopped more than 400 feet below the important. Hack 2, the largest and one of the highest grade
surface. The A-1 discovery proved the concept of airborne uranium deposits ever discovered on the Arizona Strip, may
geophysical detection of hidden pipes and gives Quaterra a have this status precisely because it is a hidden pipe. When
SW CARBONIFEROUS PERMIAN
32.3 pipes /100 sq mi 5.1 pipes /100 sq mi
Diagrammatic Hack 2 Mine

Arizona 1 Mine
Cross Section of the A-1
Ollie
Northern Arizona Kaibab Limestone
Strip Uranium District Coconino

Sandstone
Showing the approximate frequency

and relative distribution of solution
collapse breccia pipes at various
stratigraphic horizons
Collapsed Breccia Pipe
Uranium Mineralization

internal collapse causing the upward growth of breccia pipes 50,000 feet of drilling to test at least 12 new targets with
continues after ore deposition, the uranium deposit can be both shallow and deep holes. The program is planned to
destroyed as mineralization is displaced and disseminated follow-up with the definition of high-grade mineralization
downward through the structure. in the A-1 pipe and includes ground geophysical surveys
to more precisely define drill targets within the airborne
Hidden pipes may also be the most numerous type of min- anomalies. With continued exploration, the Arizona Strip
eralized structure in the district. The U.S. Geological Survey may soon become one of the more significant producing
Open File Report (OFR-89-550) shows the mapped loca- uranium districts in the United States.
tions of 1,296 pipes in northwestern Arizona. The number
of outcropping pipes decreases dramatically below the cover
of successive layers of younger sediments until fewer than
Other uranium projects
two pipes are evident over a surface area of 500 square miles Quaterra’s early entry into uranium exploration in the west-
in the younger rocks. Clearly the upper level of stoping by ern U.S. allowed the acquisition of several key land positions
collapse varies and many pipes may occur at depth and lie over and immediately adjacent to the formerly producing
hidden with no surface evidence of a pipe throat. If these Snow, Probe, and Sinbad uranium mines in southern Utah
structures penetrate the Coconino Sandstone in a favorable and the Shirley Basin mine in central Wyoming. Most of the
area of the district, an orebody can exist at depth with no properties were acquired from North Exploration, which
pipe structure at the surface. The number of pipes identified staked claims simply on the basis of high drill-hole densities
to date could represent only a small fraction of the number in close proximity to old mines. Some of the properties rep-
of mineralized hidden pipes that lie waiting to be discovered resent the drilled out and defined “reserves” for uranium op-
at depth. erations that were shut down in the 1980s due to low prices.
Although nearly all of the Company’s mineral rights are now
Quaterra is planning an active program of exploration drill- surrounded by claims of competing companies, the Wyoming
ing in 2008 to investigate the Company’s many high-priority and Utah assets present a portfolio of opportunities that will
VTEM targets. The program anticipates approximately continue to be evaluated.
TRIASSIC JURASSIC NE
0.3 pipes /100 sq mi No Outcropping pipes
EZ 1&2 Run Vertical

Kanab N Mine Scale (ft)
Hermit Mine 4000
Rim
Moenave Fm JURASSIC 3000
Chinle Fm
2000
Moenkopi Fm TRIASSIC
1000
Toroweap Fm
0
PERMIAN
Hermit Shale
Esplanade Sandstone
Supai Sandstone CARBONIFEROUS
Redwall Limestone

Cu Au Ag U Mo
Senior geologist Christopher Van Treeck

examines an outcrop of ultramafic
rocks that host disseminated Cu-Ni-PGE
sulfide mineralization at Quaterra’s
Duke Island project.
Alaska exploration
Duke Island Cu-Ni-PGE Project
Q
uaterra’s 100%-owned Duke Island Cu-Ni- Nine occurrences of Cu-Ni-PGE sulfide mineralization have
PGE prospect is located in southeast Alaska been identified in outcrops within an area of four square
miles at Duke Island. Drilling has encountered large zones of
about 30 miles south of Ketchikan. The project sulfide mineralization including up to 387 feet of 0.2% copper,
consists of 129 unpatented Federal lode mining claims but with low nickel tenors. Grab rock samples returned values
and 11 state of Alaska mining claims that cover an area of up to 1.95% copper, 0.25% nickel and 1 g/t combined plati-
num and palladium. The rock outcrops and subcrops char-
of six square miles of multiple-use lands open to mineral acteristically occur in low boggy areas with heavy red-brown
development within the Tongass National Forest. clay suggestive of acid weathering of sulfides.
The Duke Island complex appears to have all the principal In early 2008, Quaterra contracted Fugro Airborne Surveys
ingredients necessary to host a large Cu-Ni-PGE deposit. Inc. to fly a deep-looking airborne time domain EM survey
Consisting of two separate areas of well-exposed zoned (TDEM) to identify new drilling targets within these a reas
ultramafics, the complex shows compositional layering due and at depth below previously investigated targets. The
to changes in magma chemistry and subsequent fractionation geophysical survey covered 20 square miles with 240 miles
and precipitation of mineral crystals settling through the of flight lines. A review of the TDEM data is currently in
lighter melt. Flow textures, graded bedding and dislodged progress to determine if any of the identified anomalies have
xenolith fragments observable in outcrop and drill core potential for massive copper-nickel mineralization.
indicate the presence of sill-like intrusions that form magma
conduits for large volumes of mafic magmas. Net textured Quaterra has discovered a dynamic ultramafic intrusive com-
sulfides visible in the rock are thought to have accumulated plex at Duke Island. Extensive areas of outcropping sulfide
by gravity separation from the ultramafic magma. A detailed mineralization have been identified and sampled. Shallow
review of the Duke Island data in 2007 suggested that sulfide diamond drilling has intersected thick zones of low-grade
mineralization may be related to an elongate sill complex, copper mineralization. If the geophysical data suggest that
not a typical Ural Alaska ultramafic intrusive. Similar layered higher sulfide concentrations may exist below the depth of
intrusive complexes host some of the world’s largest copper- previous exploration, the Company is planning a 10,000-foot
nickel systems. drilling program during the summer field season of 2008.

Herbert Glacier Gold Project
I
n October 2007, Quaterra acquired the Herbert Gla- in 2007 shows that all four structures locally have high-grade
cier gold property in the historic Juneau Gold Belt of gold-quartz mineralization and should be drill tested.
southeast Alaska. Located 20 miles north of Juneau, The Herbert Glacier vein systems are strongly enriched in
the prospect presents an attractive opportunity for the gold. Of 199 rock chip samples collected during a recon-
discovery of a high-grade gold deposit in a district that naissance mapping and sampling program in the summer
of 2007, almost half (94 samples) contained more than one
has produced nearly seven million ounces of gold since g/t gold; 33 samples contained more than 10 g/t; and 12
discovery in 1880. contained more than one ounce of gold per ton. One 1.5 ft
(about 46 cm) banded quartz vein with visible gold assayed
The Herbert Glacier property consists of 91 unpatented 81.9 g/t (about 2.39 oz/ton) gold. Veins typically pinch and
Federal lode mining claims that host four main composite swell, but individual veins are as much as 14 feet thick and
vein-fault structures with ribbon structure quartz-sulfide composite veins are up to more than 20 feet across. The veins
veins. Although the southernmost of the four vein systems are competent, but occur within halos of altered quartz di-
was known in the early days of the Juneau district, the orite, and are generally marked on surface by deep trenches
receding Herbert Glacier exposed a succession of parallel eroded from the incompetent altered host rocks. Gold is
gold mineralized structures that strike east-west and dip accompanied, in approximate decreasing order by arse-
steeply to the north. One of the four known vein systems nopyrite, pyrite and galena with lesser amounts of scheelite,
was drilled in 1986 and 1988 by Tenneco Minerals and its chalcopyrite and sphalerite. Trace elements are typical of the
successor Echo Bay Mining Co. The Main Herbert structure Juneau Gold Belt and the mesothermal aspect of the rib-
was explored on 200 foot intervals along a 2,000 foot strike boned quartz veins suggest that the mineralized structures
length with 5,272 feet of drilling in 19 core holes. Shallow of the Herbert Glacier property could be persistent in strike
angle holes established continuity of gold mineralization in and depth over a range of thousands of feet. A metallurgical
the vein system and over a distance of 1,500 feet found inter- study on a 240 pound composite sample by the U.S. Bureau
cepts of up to 14 feet averaging 0.98 oz/ton gold. Sampling of Mines indicated that 88% of the gold was free milling
and could be recovered by gravity
methods (Herbert Glacier – No.
JU097, ARDF file, Juneau Quad-
rangle, U.S. Geological Survey).
Quaterra is planning a 4,500 foot

core drilling program to explore
the Herbert Glacier project in the
late summer field season of 2008.
The helicopter-assisted program is
designed to test the Main Herbert
and Deep Trench veins over a
vertical extent of 300 to 400 feet.
Past drilling and sampling pro-
grams have demonstrated a system
of high-grade gold mineralization
with near surface continuity in one
structure on the property. If this
year’s program can define similar
grades and tonnages at depth and
in the other parallel veins, the Her-
bert Glacier project could become
Dale Henkins and Floyd Branson examine the Deep Trench vein area with geologist an important gold discovery for
Carl Hale at Quaterra’s Herbert Glacier gold project in Alaska. the Company.

Cu Au Ag U Mo
Mirasol claim post, called a Mojonera.

Mexico
Staking rush
Quaterra stepped up the pace of exploration in Mexico this past year.
Seven geologists are now working in the country under the supervision of
Tom Turner, Quaterra’s Manager of Mexican Exploration.
Q
uaterra drilled a total of 16,602 meters on Peñasquito, La Pitarilla and Camino Rojo. Quaterra
three projects in Mexico in 2007. A 16-hole has staked five new prospects in San Luis Potosi
core drilling program at Nieves brought covering 69,034 hectares (266.54 square miles) and
new life into the project. While drilling at Crestones has added claims at Mirasol and Las Americas in
and Mirasol did not intersect significant mineraliza- Durango. Reconnaissance work continues. Quaterra
tion, it did provide valuable geologic information now has a 100% interest in claims covering 631.03
that will be useful in identifying new targets that the square miles in Durango and San Luis Potosi and a
Company still considers prospective. 50% interest in an additional 23.36 square miles at
Competition for land in central Mexico has Nieves in Zacatecas. Details of these programs are
intensified as a result of major new discoveries at discussed below.
UNITED STATES
Quaterra’s Mexico projects

Sonora
Chihuahua
Baja Coahuila
California
Crestones Jaboncillo
Sinaloa Nuevo
Leon
Mirasol Gulf of Mexico
Inde Durango
Americas Carolina
Tamaulipas
Nieves
Zacatecas Azifran
Lupita
Pacific Ocean Nayarit
San Luis
Aguascalientes
Tian Yucatan
o
ar
et
Guanajuato
er
Hidalgo
Qu
Jalisco Quintana
Estado
de Tlaxcala Roo
Col Michoacan Mexico
im a Campeche
Puebla Veracruz
Morelos Tabasco
BELIZE
Guerrero
Oaxaca
0 400 Chiapa
Kilometres
GUATEMALA

Cu Au Ag U Mo
Nieves
T
he Company owns a 50% inter-
est in the Nieves silver property
located in northern Zacatecas
State, Mexico, about 90 kilometers
north of Penoles’ world-class Fresnillo
silver mine. The project occurs within a
northwest trending mineral belt known
Parque Central in Nieves viewed from corner entrance to Abarotes Diana on the
as the Faja de Plata, which hosts many right towards the iglesia (church) in the background.
of the world’s premier silver deposits
including San Martin, Fresnillo, Za-
catecas and Real de Angeles. The land A 16-hole, 5,388.8-meter drilling of the Concordia vein. Highlights are
block consists of 16 mineral concessions program, consisting primarily of infill as follows, with key holes referenced
covering an area of approximately 60 holes on the Concordia vein, was on the geologic map:
completed between September and
square kilometers (23.3 square miles). December 2007. The program was Concordia vein: Twelve holes tested the
Mineralization is related to a low tem- successful in extending the Concordia Concordia vein system, one of three
perature silver-gold-lead-zinc epither- high-grade silver vein mineraliza- east-west striking veins systems on the
mal vein system similar to the world- tion and intersected significant new Nieves property. The best mineralized
mineralization in the adjacent Arroyo interval is in hole QTA-48 with 47.48
class Fresnillo and Zacatecas Districts fault, which may be a new mineralized meters averaging 142 g/t silver, 0.13 g/t
in central Zacatecas. structure or host the faulted extension gold, 0.37% lead and 0.37% zinc, includ-
Geologic map of the Nieves prospect

showing drill-hole locations
N
Explanation Abbreviations
Tertiary Rhyolite Flow AF: Arroyo Fault KV
GF: Gregorio Fault Target
Quartz-Sulfide Vein
RF: Rosario Fault Covered Area Covered Area MV
Ferroan Carbonate Vein Target
CV: Concordia Vein 654,000 N
PC-Alteration GV: Gregorio Vein Target
Silification DV: Delores Vein AF Cerro
Fault KV: California Vein OW GV
Chicharron
MV: Majada Vein OE GF
Exploration Target
RV: Rosario Vein DJ CV
Diamond Drill Hole Jasper Field QTA-55
QTA-48
SV: Santa Rita Vein BJ
OE: Orion East Prospect DV QTA-48
OW: Orion West Prospect QTA-53 AF
SH
BJ: Big Jasper Prospect 652,000 N
Magnetic Low Covered Area

Buried Tertiary Intrusive Stock
RV
SV
650,000 N
Target
696,000 E
698,000 E
700,000 E
702,000 E

Mirasol-Americas
ing a 4.67 meter interval with 777 g/t
silver (22.7 oz/ton), 0.53 g/t gold, 2.45%
lead and 2.20% zinc. Hole QTA-53 cut
the highest grade intercept with a 1.22
meter interval averaging 1.8 kg/t silver
(52.6 oz/ton), 0.32 g/t gold, 2.06% lead
and 0.69% zinc.
The Concordia vein hosts moderate- to

high-grade silver-gold-lead-zinc miner-
alization at shallow depth proximal to
its intercept with the Arroyo fault. The
best mineralized segment of the vein
currently extends for at least 400 meters
along strike and over a vertical distance
of 300 meters. It has a gentle rake to the
southwest where it remains open.
Arroyo fault: Hole QTA-55 was col-

lared 120 meters northeast of hole
QTA-48 and tested the junction of the
Concordia vein with the Arroyo fault.
The mineralized intercept starts at 62 Tom Patton and Sergio Razo Nuñez at a skarn showing, Real de las Minas, Coahulia, Mexico.
meters and includes 37.6 meters of 108
g/t silver, 0.15 g/t gold, 0.10% lead and
T
0.14% zinc. Within this zone is a 3.3 he Mirasol and Americas projects Most of the operators were small min-
meter interval that averages 331 g/t are located in the Municipality of ers who hand sorted the ores and sold
silver (9.6 oz/ton), 0.29 g/t gold, 0.17% Simon Bolivar, Durango, Mexico, them to concentrate buyers in Monter-
lead and 0.28% zinc. Mineralization about midway between the cities of rey, Mexico. Most mining was termi-
consists of sheeted veinlets, and be- Durango and Torreon in the central nated by the early 1970s. More recently,
cause of its shallow depth and relatively part of the Mexico Silver Belt or Faja de Hecla produced gold and silver from
uniform grade has open pit potential. Plata. The property is adjacent to the its adjacent San Sebastián property.
The Arroyo vein-fault system appears east boundary of Hecla Mining’s San The Francine and Don Sergio veins
to strike northwest with a moderate Sebastián Project. The project initially produced 11.2 million ounces of silver
southwest dip. Additional drilling will consisted of two separate land blocks and 155,937 ounces of gold from 2001
be necessary to determine the extent until mapping suggested that the open to 2005. Hecla continues to actively
and significance of this mineralization. area between Americas and Mirasol was explore its property and maintains a
also prospective. The intervening area working mill at Valardeña, Durango.
2008 exploration plans: Additional core was staked to form one large land block
drilling will start during the second consisting of 13 concessions totaling A 1:5,000-scale geologic map of the
quarter of 2008, concentrating on the 82,926 hectares (320.18 square miles), original Mirasol and Cerro Conces-
Concordia-Arroyo-San Gregorio vein which are 100%-owned by Quaterra sions completed in 2007 identified a
systems and their junctions. Any new through its Mexico subsidiary Agua seven by five kilometer area of si-
prospects identified by mapping will Tierra SA de CV. licified and brecciated limestone with
also be tested. All work plans are made quartz-calcite veinlets and accessory
in consultation with the U.S.-based Both Mirasol and Americas were past fluorite-alunite-stibnite-cinnabar. A
Blackberry Ventures 1, LLC, invest- producers of mercury and antimony 5,050-meter, 38-hole RC “scout” drill
ment partnership, which will continue during the 1940s and 1950s as evi- program was completed late in 2007 to
to contribute its share of ongoing denced by hundreds of small mines and test the large alteration area at depth
exploration costs. prospects spread across the property. and probe for potential feeder zones.

Cu Au Ag U Mo
Old open-pit mercury mine, Americas Project, Durango, Mexico. The rock is advanced oxide argillic altered rhyodacite tuff with
some late acid leaching. The tunnels in the pit walls follow hematite-limonite veins with native mercury.

Americas appears to be the top of an
epithermal system with a possible
gold-silver zone interpreted to be closest to
surface below the north stockwork veining.
Holes drilled to an average depth of 150 There are numerous old mercury mines
meters demonstrated that the silicified with ruins, dumps and open pits up to
and brecciated limestone is restricted to 40 meters wide, 75 meters long and 25
a 20 to 40 meter thick horizontal band to 35 meters deep. The mercury occurs
that formed along the unconformable in both the oxidized altered rhyolite as
contact between the limestone and the native mercury and in the white silica as
overlying conglomerate. The conglom- finely disseminated cinnabar.
erate has since been largely eroded
away, exposing the silicified limestone. An 800-meter diameter rhyodacite brec-
cia that appears to be an eruptive vent
Drilling shows that in some areas the outcrops in the center of the property.
silicified limestone is cut by a complex Hydrothermal breccia dikes are common
series of faults, altered quartz porphyry peripheral to the large breccia. Mapping
dikes and silicified breccia dikes that and sampling has identified a two by
served as hydrothermal feeders for the six kilometer area of stockwork veining
alteration system. These feeders are along the north margin of the hydro-
strongly anomalous in indicator ele- thermal alteration shell that is open to
ments arsenic, antimony and mercury the northeast. Grab samples of the vein
but do not contain detectable amounts material are anomalous in gold and
of gold or silver. Mirasol appears to be silver, with values ranging from 0.025 to
the top of an epithermal hydrothermal 0.91 g/t gold and 1.4 to 86 g/t silver.
system. The gold-silver mineral zone,
if present, could be up to 300 meters Large parts of the Americas project are
below the present erosion surface. covered by alluvium and thin, post-min-
eral basalt flows. The size of the Ameri-
The Americas prospect is in the far west cas hydrothermal system is presently not
portion of the Mirasol concessions and is defined, but may be as large as 15 by four
part of Hecla’s San Sebastian hydrother- kilometers. As with Mirasol, Americas
mal system. It is underlain by Cretaceous appears to be the top of an epithermal
limestone and flysch unconformably system with a possible gold-silver zone
overlain by Tertiary rhyododacite tuff and interpreted to be closest to surface below
post-mineral Late-Tertiary basalt flows. the north stockwork veining.
The property encompasses an elongate, The work plan for Americas is to extend
northeasterly-trending zone of hydro- the geologic mapping survey east towards
thermally altered rhyodacite and several Mirasol and cover the identified targets
large white silica “crestones” or veins with a grid IP-magnetic geophysical sur-
that are up to 30 meters in width and vey. With positive results, the best targets
outcrop up to a kilometer along strike. will be tested with a core drill program.

Cu Au Ag U Mo
Crestones-Inde
C
restones is composed of three
concessions totaling 5,485.63
hectares (21.2 square miles)
that abut the Inde concessions at their
west end. Title is still pending on two
Inde concessions that total 3,151.37
hectares (12.2 square miles).
Geologic mapping at a 1:5,000 scale identi-

fied a large hydrothermal system consist-
ing of an eight square kilometer area of
silicified limestone cut by three elongate
siliceous hydrothermal silica breccia bod-
ies. Rock samples from the siliceous hydro-
thermal breccia contain elevated antimo-
ny-arsenic-mercury values and anomalous
gold-silver values with occasional spikes
up to ore grade. The presence of hot spring
bedded siliceous sinter indicates that the
outcropping alteration-mineralization is
high level and formed close to surface.
The Company completed a 13-hole,

6,163.4-meter core drilling program
during 2007. Six holes totalling 3,043.4
meters were completed during the second
quarter. An additional seven holes total-
ling 3,120 meters were completed during
the third quarter. The first six drill-holes
of the program did not intersect the
targeted breccia feeder vents; the second
phase of the program produced similar Diamond core drilling
results with a few narrow low-grade inter- at Crestones Project,
cepts of silver-gold-lead-zinc mineraliza- Inde, Durango.
tion within the hydrothermal breccia.
Numerous drill holes passed through the

silicified limestone and siliceous breccias With encouraging results, an IP survey
and bottomed in fresh limestone provid-
ing evidence that the outcropping altera- may be carried out in the alluvium-filled
tion, brecciation and porphyry stocks are
displaced by a series of listric faults that valley between Crestones and Inde to look
have offset the entire hydrothermal sys-
tem to the northeast for an undetermined
for the downward continuation of the
distance. The faults outcrop on the west
side of the Crestones alteration system,
Crestones mineral system.
strike northwest, and have a moderate to
flat northeast dip with normal offset. This

Jaboncillo
J
aboncillo consists of a single 1,689
hectare (6.5 square miles) concession
located on the north edge of a series
of concessions controlled by Excellon Min-
erals about 12 kilometers north-northwest
of its Platosa Mine at the northern termi-
nus of the Sierra Bermajillo.
Geologic mapping at a scale of 1:5,000 was

completed in the first quarter of 2008. The
prospect is centered on an eruptive quartz
porphyry that intrudes limestone. Two types
of rhyolite have been identified: an older
quartz-eye rhyolite porphyry with up to
20% one to three millimeter clear partially
terminated quartz-eyes; and a very fine-
grained rhyolite which is locally flow banded.
The quartz-eye rhyolite appears to be the
initial explosive eruptive and the fine-grained
rhyolite is the younger rhyolite that intrudes
as dikes and flow-domes along the vent rim.
The Jaboncillo prospect has two exploration

targets. The first is a Peñasquito type gold-
silver-lead-zinc sulfide deposit at depth in
the eruptive breccia. The second target is an
oxide gold deposit hosted in the silicified and
brecciated late rhyolite dikes and small flow
domes. Grab samples show localized anoma-
lous arsenic and mercury. The geologic report
with map and sections is not yet finalized.
An IP survey is planned later in the year to

define possible drill targets.
fault system greatly complicates further exploration at

Crestones as the presumed source area to the south- Reconnaissance Program
west is covered by post-mineral volcanics and alluvium.
Five 100%-owned new concessions – the Carolina, Caro-
lina 2, Los Azafranes, Tian and Lupita – covering a total
Possible additional exploration at Crestones will be
dependent on results at Inde. As soon as title is re- of 69,034 hectares (266.54 square miles) have been staked
ceived, the concessions will be mapped. With encour- in San Luis Potosi. These are all early-stage precious
aging results, an IP survey may be carried out in the metal prospects that Quaterra hopes to advance through
alluvium-filled valley between Crestones and Inde to geologic mapping and sampling followed by geophysics if
look for the downward continuation of the Crestones warranted.
mineral system.

Cu Au Ag U Mo
Biographies
Eugene Spiering, B.Sc.

Board of Directors
VP Exploration, Director
Mr. Spiering has over 30 years of experience in the min-
Tracy Stevenson, B.S. Accounting magna cum laude ing and exploration industries. He most recently held the
Chairman of the Board position of Vice President, Exploration at Rio Narcea Mines
Ltd., where he managed a team that discovered two gold
Mr. Stevenson is a senior mining deposits and completed the final definition of one nickel
industry executive with international deposit in Spain. Prior to his tenure at Rio Narcea, Mr.
experience in finance, mergers and Spiering held the position of senior geologist with Energy
acquisitions, strategic planning, Fuels Nuclear, Inc. where his responsibilities included drill-
corporate governance, auditing, ing supervision, geologic mapping, and ore reserve calcula-
administration and information tions related to uranium exploration in northern Arizona
systems and technology. He worked and gold exploration in the western U.S. and Venezuela. He
for Rio Tinto plc, the world’s second received his Bachelor of Science-Geology degree from the
largest mining company, and related University of Utah.
companies for 26 years. He held
a number of senior leadership positions and was involved Robert J. Gayton, Ph.D., FCA
with many major exploration, development and financing Director
projects. During the past five years, Mr. Stevenson was the
Robert J. Gayton graduated from the University of British
global head of information systems and shared services for
Columbia in 1962 with a Bachelor of Commerce and in 1964
Rio Tinto. He previously served for four years as Execu-
earned the chartered accountant (CA) designation while at
tive Vice President, CFO and a director of Comalco Ltd., an
Peat Marwick Mitchell. Mr. Gayton joined the Faculty of
Australia-based international aluminum company partially
Business Administration at the University of British Columbia
owned by Rio Tinto, and a further four years as CFO and a
in 1965, beginning 10 years in the academic world, including
director of Kennecott Corporation, a $3.5 billion diversified
time at the University of California, Berkeley, earning a Ph.D.
North American mining company owned by Rio Tinto. He
in Business. Mr. Gayton rejoined Peat Marwick Mitchell in
also has “Big 5” public accounting experience with Coopers &
1974 and became a partner in 1976 where he provided audit
Lybrand (now PriceWaterhouseCoopers). Mr. Stevenson was
and consulting services to private and public company clients
appointed to the Quaterra Board of Directors by shareholder
for 11 years. Mr. Gayton has directed the accounting and
vote in July 2007. He is also a director of Vista Gold Com-
financial matters of public companies in the resource and
pany (VGZ; TSX, AMEX). He has a B.S. Accounting Magna
non-resource fields since 1987. He currently serves as a direc-
Cum Laude from the University of Utah and is a member of
tor for five public companies.
the Advisory Board of the University of Utah David Eccles
School Of Business.
John R. Kerr, B.Sc.
Director
Thomas C. Patton, B.Sc., M.Sc., Ph.D.
President & CEO, Director Mr. Kerr holds bachelor degrees in applied science and geo-
logical engineering from the University of British Columbia.
Dr. Patton graduated from the University of Washington in
Over the course of a career of more than 30 years he has been
1971 (Ph.D.) and has worked in the exploration industry for
continuously engaged in mineral exploration and has exten-
thirty-five years as a field geologist, consultant and executive
sive field experience throughout North America. Mr. Kerr has
officer of both junior and senior mining companies. His work
been a geological consulting engineer since 1970 and has held
has been primarily in North America, where he and his teams
senior positions with a number of public companies, both as
have played major roles in several significant discoveries and
an officer and director. He has been involved with the discov-
reserve expansions of existing operations. Before joining
ery of a number of significant mineral deposits, including two
Quaterra on a full-time basis, Tom was President and COO
producing mines and two additional projects currently await-
of Western Silver Corporation from 1998 to May 2006. The
ing production decisions.
highlights of this period were the discovery and delineation
of the world-class Peñasquito silver-gold-lead-zinc deposit in
Zacatecas, Mexico, and the subsequent sale of the company to
Glamis Gold Ltd.

Lawrence Page, QC Thomas R. Turner, B.Sc., M.Sc.
Director Manager of Mexican Exploration
Lawrence Page obtained his law degree from the University of Brit- Mr. Turner graduated from Michigan Technological University and
ish Columbia in 1964 and was called to the Bar of British Columbia has worked as an exploration geologist in various technical and
in 1965. Thereafter he studied labor law and industrial relations in managerial capacities for 34 years. His work experience extends
Sydney, Australia, as a Commonwealth Scholar, returning to active from Alaska to Ecuador and includes management of exploration
practice in Vancouver in 1967. In 1970, he was a founding partner of projects for numerous types of precious and base metal mineral
Worrall and Page where he practiced until 1995. He currently practices systems, both for major mining companies and junior exploration
on his own in Vancouver. Mr. Page’s preferred areas of practice are companies. For the last eleven years, he has worked exclusively in
commercial litigation, native law, natural resource law and securities Mexico and Central America. He was a consultant to Western Silver
law. He has been admitted to the Bar of Ontario for the purpose of act- Corporation from 1998 to 2006 and managed its Mexican explora-
ing as counsel in specified litigation. Mr. Page was awarded the distinc- tion programs including its Peñasquito project, which culminated in
tion of Queen’s Counsel in 1988. Through his experience with natural the discovery of two world-class gold-silver-lead-zinc deposits and
resource companies and, in particular, precious metals development, the discovery of economic gold-silver mineralization at the nearby
Mr. Page has established a unique relationship with financiers, geolo- Noche Buena project, and the Company’s sale to Glamis Gold Ltd.
gists and consultants and has been counsel for and a director of Co- in May, 2006. Prior to joining Western Silver, Mr. Turner man-
rona Corporation (now Homestake) and Prime Resources Corporation aged Mar-West Resources Ltd.’s exploration projects in Guatemala
which have brought into production and operate Canadian gold mines. which resulted in the discovery of the Cerro Blanco hot spring gold
He currently serves as a director for nine public companies. deposit. Cerro Blanco is currently the subject of a feasibility study by
Glamis Gold Ltd., which acquired Mar-West in 1998.
Roy Wilkes, P.Eng
Director Hector J. Fernández, G. B.Sc.
Mr. Wilkes recently retired as president of Washington Group Interna- Consulting geologist
tional’s Mining Business Unit. As leader of this group he participated Mr. Fernández graduated from the University of San Luis Potosi,
in many developing mining projects throughout the world, including Mexico, in 1973 and has worked in exploration for 32 years as a field
Latin America, Canada, Europe and the United States. Mr. Wilkes was geologist, consultant and exploration manager for senior mining
also the Chief Operating Officer of Santa Fe Pacific Gold Corporation companies. Before joining Quaterra in 2003, he worked for Minera
during the expansion of its Nevada operations. He was also involved in Cuicuilco (Cyprus) from 1974 to 1986, and was directly responsible
the development of such projects as Greens Creek, Alaska; Stillwater, for the Cieneguita (Chihuahua, Mexico) gold-silver mine discovery
Montana; and Las Pelameres in Chile, while serving as Senior Vice that was sold to Glamis Gold Ltd. From 1990 to 1996, he worked as
President of Business Development for Anaconda Minerals. Mr. Wil- Mexico’s Exploration Manager for Minera San Bernardo (ASARCO).
kes is a graduate mining engineer from the Montana School of Mines. From 1999 to 2002, he worked for Quebec Iron and Titanium (RTZ)
in its Pluma Hidalgo (Oaxaca, Mexico) project. Mr. Fernández has
been responsible for Quaterra’s Nieves silver project in Zacatecas,
Management & consultants
Mexico, since the last quarter of 2003, and he is currently preparing to
begin drilling the Company’s Crestones project in Durango, Mexico.
Thomas C. Patton, B.Sc., M.Sc., Ph.D.
President & CEO, Director Curtis J. Freeman, B.A., M.A.
President of Avalon Development Corporation, a consulting mineral
Eugene Spiering, B.Sc. exploration firm, Fairbanks, Alaska
VP Exploration, Director Curt earned his Bachelor’s degree in Geology in 1978 from the College
of Wooster, Ohio, and his Master’s Degrees in Economic Geology in
Scott B. Hean, B.A., MBA, ICD.D 1980 from the University of Alaska. Curt has been employed in the
CFO minerals industry in Alaska, the Yukon, the western United States,
Mr. Hean has held senior management and executive positions with Central America, South America, New Zealand and Africa for the past
J.P. Morgan of New York, primarily financing junior oil and gas com- 25 years. Curt is a U.S. Certified Professional Geologist (CPG #6901)
panies and Bank of Montreal as Senior Vice President and Managing and is a licensed geologist in the State of Alaska (Lic. # AA 159). He is a
Director responsible for financing in the natural resources sectors member and past director of the Alaska Miners Association, Society of
in North America. Currently he serves as a director of Great Quest Economic Geologists, Geological Society of Nevada, British Columbia
Metals Inc., and is past Chair of the Audit Committee, Sabina Silver and Yukon Chamber of Mines and Prospectors and Developers Asso-
Corporation, both publicly-traded companies on the Toronto Ven- ciation of Canada. Curt also serves on the University of Alaska Depart-
ture Exchange. He is Chair of the Bill Reid Trust and has served on ment of Geology Advisory Board and the State Division of Geological
numerous not-for-profit Boards, including Outward Bound and B.C. and Geophysical Survey Geologic Mapping Board. Curt has worked for
Children’s Hospital. He graduated from Simon Fraser University, Brit- and consulted for numerous major and junior mining companies in ad-
ish Columbia, in 1973 and from the Ivey School of Business, London, dition to consulting for individuals. Curt and his team of professionals
Ontario, in 1975 with an MBA. Mr. Hean graduated in 2006 from the have been involved in a number of gold, silver, platinum group and base
Institute of Corporate Directors, Directors Education Program. metal discoveries in Alaska and other parts of the world.

Cu Au Ag U Mo
Biographies
Roman Friedrich III Nicole Rizgalla, B.A.

Financial advisor Corporate Communications Manager
Mr. Friedrich has been an investment banker to the mining and met- Ms. Rizgalla is communications specialist with over 12 years of
als industries for over twenty years. Immediately prior to establish- global experience working in corporate communications, inves-
ing Roman Friedrich & Company, he was the Managing Director at tor relations, public relations and marketing communications. She
TD Securities responsible for its global mining M&A business. Early held corporate communications roles with Western Copper Corp.
in his career he spent ten years at the Chase Manhattan Bank where and Western Silver Corp.; was the media advisor to the Minister for
among other positions he was Vice President for Latin America, Sustainability and Environment in Victoria, Australia; was market-
President of Chase Manhattan Canada Limited, and Managing ing communications manager for London Remade within the Mayor
Director responsible for North American investment banking. of London’s office (UK); and public relations manager for The Body
From 1979 to April 1991 he was a partner at Burns Fry, a Managing Shop’s Australasian headquarters. She has also consulted for leading
Director at First Chicago and a partner at Wood Gundy. In 1991 he communications firms including James Hoggan & Associates in
was a founding partner of the New York office of Lancaster Finan- Vancouver, Hill and Knowlton in London, UK and Porter Novelli
cial Corporation (a firm specializing in mergers and acquisitions). in Sydney and Melbourne. She holds a Bachelor of Arts in Manage-
TD Securities, a subsidiary of Toronto Dominion Bank, acquired ment Communication.
Lancaster in 1994. Leaving TD in April 1997, he started Roman
Friedrich & Company in July the same year. Over his career, he has Abelardo Garza Hernández, B.Sc.
provided numerous companies with advice on acquisitions, merg- Consulting geologist, registered surveyor, landman and
ers and divestitures, as well as providing valuations and fairness environmental consultant, México
opinions to companies in the mining, metals and other industries. Mr. Garza graduated from the University of Texas at Austin in 1975,
His investment banking activities have included the raising of equity and has worked in the mining and exploration industry for the last
and debt capital to the arranging of project finance. He holds a B.A. 30 years as a field and mine geologist, consultant, landman, legal
from Rutgers University and attended business school at New York representive and administrator of Mexican subsidiaries of both
University. Mr. Friedrich is on the Board of Directors of StrataGold junior and senior mining companies. His work has been in North
Corporation, Gateway Gold Corp., GFM Resources Ltd., and is America, where he has played major support roles in several suc-
Chairman of Dreman Claymore Dividend and Income Fund. Mr. cesful exploration projects, including the world-class Peñasquito
Friedrich is also President of GFM Resources Ltd. Mr. Friedrich is silver-gold-lead-zinc deposit in Zacatecas, Mexico, and the subse-
an independent director of a family of closed end mutual funds and quent sale of the company to Glamis Gold Ltd. Prior to becoming a
ETFs managed by Claymore Investments Inc. consultant, he worked for Exxon, Industrial Minera México, Grupo
Frisco up until 1984, and since then he has been an independent
Charles C. Hawley, B.A., Ph.D. consultant, having provided services to many different companies
VP Exploration, Alaska such as Quaterra and Southern Silver, among others. Mr. Garza is a
A director and Chairman of Piper Capital, Inc., Dr. Hawley gradu- member of the Asociación de Ingenieros de Minas, Metalurgistas y
ated from Hanover College, Indiana, with a B.A. in geology in 1951 Geólogos de México and the Society for Mining, Metallurgical and
and joined the U.S. Geological Survey in 1952 after graduate studies Exploration Inc. (SME), and a registered surveyor in México.
at the University of Wisconsin. He earned a Ph.D. in geology from
the University of Colorado in 1963. Dr. Hawley worked for the Geo- Patrick Hillard, B.Sc., M.Sc.
logical Survey until 1968. During his Survey years he specialized in Consulting exploration geologist
uranium, precious metals, and beryllium primarily in the Rocky Mr. Hillard graduated from the New Mexico School of Mines in
Mountain states. Since 1969, he has worked in the exploration in- 1969, and has worked in mining exploration for 37 years, with a
dustry as a field geologist, consultant and executive officer of junior significant portion of this time in supervisory positions. His work
mining companies, mainly in Alaska. Dr. Hawley has been instru- has been in North America, South America, Papua New Guinea
mental in developing coal resources in the Wishbone, Beluga, and and Spain. He has participated in the discovery of several uranium
Nenana fields and precious metals and copper in the Alaska Range, orebodies, and was in charge of exploration teams which discov-
Seward Peninsula and Brooks Range. In addition to his field studies, ered several breccia pipe orebodies which became profitable mines.
he served as Executive Director of the Alaska Miners Association He was Vice-President of Exploration for Arequipa Resources and
from 1976 to 1979 and on the National Advisory Committee to played a significant role in the discovery of the Pierina gold ore-
the U.S. Bureau of Land Management from 1989 to 1992 where he body in Peru, after which Arequipa was bought out by Barrick Gold
chaired the Mining Law Task Force. He is a member of SME and Corporation. Mr. Hillard was Chief Geologist for Western Nuclear,
Fellow of the Society of Economic Geologists. He is registered as a Phelps-Dodge subsidiary, and Manager of Exploration for Energy
a geologist in the State of Oregon and is a Certified Professional Fuels. He is a member of the American Institute of Mining and
Geologist in the AIPG. Metallurgical Engineers.

More than 30 people attended Quaterra’s investors’ field trip to the MacArthur copper oxide project on October 10, 2007.
Joseph R. Inman, B.Sc., M.Sc. Gerald Prosalendis

Consulting geophysicist, explorer Corporate advisor
Mr. Inman graduated from the University of Utah in 1973 (M.Sc.) Mr. Prosalendis is a corporate advisor who specializes in markets,
and has more than 30 years experience in mineral exploration and corporate development, shareholder relations and the media. He was
environmental studies. He has extensive experience and expertise in Vice President Corporate Development of Western Silver Corpora-
nearly all geophysical methods including magnetics, gravity, induced tion and was involved in the successful sale of the company in 2006
polarization/resistivity (IPR), electromagnetics including both time- to Glamis Gold Ltd. for $1.6 billion. He was Vice President Corpo-
domain EM and frequency-domain EM (CSAMT, MaxMin), and rate Development of Dia Met Minerals Ltd. and was a member of
radiometrics all in airborne, ground and downhole configurations. the team that developed the Ekati Diamond Mine. He was involved
Recent experience and areas of interest include the application of in initiating the marketing campaign for Ekati diamonds and the sale
seismic methods to mineral exploration as well as data inversion of Dia Met to BHP Billiton for $687 million in 2001. Mr. Prosalendis
techniques of all geophysical data sets, including integrated earth has been a consultant to Anderson & Schwab Inc., a mineral and
modeling. Mr. Inman has been involved in all aspects of applying business firm based in New York, a Senior Counselor for James
geophysics to exploration including survey design (technical speci- Hoggan & Associates of Vancouver, an advisor to public and private
fications), data acquisition, contractor evaluation and selection, data companies and Business Editor of The Vancouver Sun. He also
processing and interpretation. He was a key member of the explora- worked as a financial services analyst for a brokerage firm.
tion teams that discovered the Crandon, Wisconsin, VMS deposit;
and the A154 and Tli Kwi Cho kimberlite deposits, NWT, Canada.
Most recently he provided and managed geophysics programs for
the Western Silver team that explored and expanded the Peñasquito,
Mexico, discovery into a world-class silver-gold-lead-zinc deposit.
Prior to becoming a consulting geophysicist, he was Director of
Technical Support and Services at Kennecott Exploration, respon-
sible for ensuring Kennecott’s geologists, geophysicists and data
managers had knowledge of, access to and made best use of state-
of-the-art exploration methods including geophysics, geochemistry,
remote sensing and data/information management technologies. Mr.
Inman is a member of the Society of Exploration Geophysicists and
a registered professional geophysicist in the state of California.

Corporate Directory
Cu Au Ag U Mo
Board of Directors Shareholder Information

Tracy Stevenson (Chairman)
Listing: TSX-V: QTA, AMEX: QMM (listed as of Mar. 3, 2008)
Thomas C. Patton
Eugene Spiering Shares outstanding 83,167,005
Robert J. Gayton
Options outstanding 5,559,500
John R. Kerr
Lawrence Page, QC Warrants outstanding 0
Roy Wilkes
Fully diluted 88,726,505
Officers (As at Dec. 31, 2007)
Thomas C. Patton
President and CEO
Eugene Spiering
VP Exploration Share trading information (fiscal 2007)
Scott B. Hean
High Low
CFO
Q1 $2.75 close Mar. 31/07 $2.96 $2.29
Transfer Agent and Registrar
Q2 $3.77 close June 30/07 $4.18 $2.60
CIBC Mellon
Suite 1600, 1066 West Hastings Street Q3 $2.76 close Sept. 30/07 $3.84 $2.21
Vancouver, B.C., V6C 3X1 Q4 $3.15 close Dec. 31/07 $3.99 $2.66
Canada
Auditors
Smythe Ratcliffe
7th Floor, Marine Building
355 Burrard Street
Vancouver, B.C., V6C 2G8
Canada
Corporate Office
Suite 1100, 1199 West Hastings Street
Vancouver, B.C., V6E 3T5
Canada
Tel: 604-681-9059
Fax: 604-688-4670
Toll Free: 1-888-456-1112
Website: www.quaterra.com
Cusip No.
747952 109
Design: Pacific
Redwood Marketing

www.quaterra.com
AMEX: QMM, TSX-V: QTA
Suite 1100, 1199 West Hastings Street

Vancouver, B.C., V6E 3T5, Canada
Tel: 604-681-9059
Fax: 604-688-4670

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capturing value

Quaterra Resources Inc. 2007 Annual Report

Quaterra Resources Inc.

S tatements contained in this annual

Cover photo: Geotech Ltd flies a VTEM survey for Quaterra

»» Quaterra Resources Inc. is a mineral

Quaterra Resources Inc. 2007 Annual Report 1

“ Property and commodity

In this environment we need to be prepared to work hard to seize

2 Quaterra Resources Inc.

The successful execution of our strategy provides

2007 Annual Report 3

Quaterra achieved a key

4 Quaterra Resources Inc.

2007 Annual Report 5

In the next 12 months Quaterra plans to:

»» Complete a core drilling program on the Concordia-Arroyo-San Gregorio vein

»» Continue to evaluate other high value opportunities

6 Quaterra Resources Inc.

Victoria Baffin Island

Vancouver Calgary O n t a r i o Miquelon

Mexico City Kingston Port-au

8 Quaterra Resources Inc.

2007 Annual Report 9

Quaterra entered the Yerington district in

QMT-6 QM-17 QMC-23R

10 Quaterra Resources Inc.

feet that merge and now cover 40

feet. This zone of secondary, 18

times the size of the original pit 19 63

mains open to the north, south 6 15

chalcocite, a secondary copper N 30 - 40

The most likely source of the secondary copper mineral-

The Company’s 2007 drilling program has substantially

2007 Annual Report 11

Yerington Copper Mine, Nevada

The Yerington mine, which produced 1.75 billion

ington Mining District has The original 180-day review period

12 Quaterra Resources Inc.

SW Tintic-Treasure Hill Prospect, Utah

2007 Annual Report 13

Arizona Strip Uranium District

pipe mines of northwestern Arizona represent Kaibab Fm.

14 Quaterra Resources Inc.

2007 Annual Report 15

Northern Arizona Strip The first VTEM target tested by

Diagrammatic Hack 2 Mine

Strip Uranium District Coconino

Showing the approximate frequency

Collapsed Breccia Pipe

16 Quaterra Resources Inc.

EZ 1&2 Run Vertical

2007 Annual Report 17

Senior geologist Christopher Van Treeck

Duke Island Cu-Ni-PGE Project

18 Quaterra Resources Inc.

Quaterra is planning a 4,500 foot

2007 Annual Report 19

Mirasol claim post, called a Mojonera.