Freeport McMoRan to extend earn in option at Quaterra Tintic copper project

Monday, 03 Aug 2009

Quaterra Resources Inc announced that it has received notification from Freeport-McMoRan Exploration Corporation of Phoenix, Arizona that it will extend its earn in option at the Company's Southwest Tintic copper project in Utah.

The notice commits FMEC to make a USD 275,000 property payment and 2009 claim maintenance fees on behalf of the Company. FMEC has an option to earn a 70% interest by making staged payments totalling USD 4.725 million over a 4 year period including a minimum expenditure of USD 750,000 by August 29th 2010.

FMEC recently completed a 7 line 37.2 kilometer magnetotelluric induced polarization ground geophysical survey at the Tintic property. The survey was performed by Quantec Geophysical Limited using its Titan 24 deep penetrating geophysical system.

Upon FMEC earning a 70% interest in the Tintic project, both parties have agreed to JV the further exploration and, if warranted, development of the Project on a 70/30 basis with FMEC either funding Quaterra's share of costs through the delivery of a bankable feasibility study or converting its interest to a 1% net smelter return royalty if it determines not to deliver such a feasibility study. The JV will be on standard terms including dilution for failure to contribute a party's share of costs. FMEC will be the initial operator under the JV.

Mr Thomas Patton president and CEO of Quaterra said that "We are delighted that Freeport McMoRan Exploration Corporation will continue to explore for high grade porphyry copper mineralization at Tintic. We have been advised that plans include a drilling program in 2010."

Quaterra's Southwest Tintic porphyry copper project which includes the Treasure Hill target consists of approximately five square miles of mineral rights that were acquired by optioning and staking 85 unpatented US lode claims and purchasing 1,511 acres of patented mining claims in July 2007. The acquisition includes the Southwest Tintic copper deposit discovered in the early 1970's by Bear Creek Mining Company. The porphyry copper system is 4 miles south of the Tintic silver mines and at a depth of 1,100 feet.

FMEC's parent company, Freeport McMoRan Copper Gold Inc is the world's largest publicly traded copper company.

Quaterra Resources Inc is a junior exploration company focused on making significant mineral discoveries in North America.