Drilling Report

Tertiary Minerals PLC
23 August 2004


                                TERTIARY MINERALS PLC

                    TERTIARY FINDS MORE KIMBERLITE IN FINLAND

                   -LAB RESULTS RELEASED ON FIRST TARGET AREA

   • 44m Kimberlite Intersection In First Hole At Kattaisenvaara 20km Away
   • G9/10 Garnets Recovered From Earlier Discovery At Kalettomanpuro
   • Gold Prospect Acquired In Finland - Boulders Averaging 8.6g/t Gold
________________________________________________________________________________

Tertiary Minerals plc ('the Company') is pleased to provide the following update
on recent exploration in Finland and Sweden.

Diamond Exploration, Finland

Drill testing at the Company's second target area, Kattaisenvaara, some 20km
away from Kalettomanpuro where the discovery of two kimberlites was announced in
July, has discovered a third kimberlite body.

The first drill-hole at Kattaisenvaara intersected kimberlite from 23.9m
(directly beneath a glacial esker) to 67.7m down hole. A second hole is now
underway to test the thickness of this kimberlite and to collect additional
material for characterisation and analysis.

At Kalettomanpuro, samples from the Group I kimberlite and the Group II
kimberlite intersected in the July drill programme have now been examined for
microdiamonds and diamond indicator minerals. Although no microdiamonds were
found, a large suite of diamond indicator minerals were recovered from the Group
II kimberlite including visually distinctive G10 and/or G9 pyrope-garnets which
have now been submitted for microprobe analysis. Any G10 garnets compositionally
confirmed to be from the diamond window would be highly significant showing that
this kimberlite has sampled parts of the earth's mantle where diamonds are
stable and establishing the potential of the kimberlites in this cluster to be
diamond bearing.

So far only two small samples (25kg and 50kg approx.) have been evaluated.
Different parts of the same kimberlite can have significantly different diamond
contents (large samples are required from various parts of the same kimberlite
as diamond distribution in kimberlites is not homogenous) and some kimberlites
in one cluster can have no diamonds where others have economic concentrations.
More work, therefore, is clearly justified at Kalletomapuro to further test the
known kimberlites and to explore for additional kimberlites in this cluster.

The newly discovered Kattaisenvaara kimberlite may be part of a separate cluster
and needs to be evaluated on its own merits.

The Company is very encouraged by its high rate of kimberlite discovery at such
an early stage and has strong expectations for the future success of its diamond
exploration efforts in this under-explored part of Finland where it has a
further 19 targets under claim or claim reservation.

New Gold Project - Pitkajarvi, Finland

Tertiary is pleased to announce that it has entered into an agreement to acquire
the Pitkajarvi high-grade gold prospect in south-central Finland from a
private prospector.

Pitkajarvi was discovered in May this year when prospector Eero Kuona
discovered a train of boulders on the ground surface containing visible native
gold.

The boulders occur in an area roughly 150m long by 70m wide although the full
extent of the boulder train is thought to be hidden beneath surrounding
marshland.

A field visit by Tertiary has confirmed significant gold grades in surface
boulders of probable local origin. Visible free gold in hand-specimen was seen
to be associated with quartz veining, silicification and weak sulphide
mineralisation in a moderately altered granodiorite. Nine samples from different
mineralised boulders, up to 1m across, assayed up to 16.6 grammes per tonne gold
and averaged 8.5 grammes per tonne gold.

Mineralisation at Pitkajarvi is considered to be similar in style to the
nearby Kopsa gold deposit, currently being explored by Belvedere Resources.

Tertiary plans a programme of ground geophysics to delineate the source of the
gold-rich boulders, with a view to drill testing targets as soon as possible.

The principal terms of the agreement are based on a 6% net profit royalty
payment to Mr. Kuona, should Tertiary develop a commercial mining operation at
Pitkajarvi and provided all capital costs of the project have been
recovered.

Djuragruvan Project, Sweden

Three drill holes have been completed to test for zinc-silver mineralisation
down dip and along strike from the Gruvberget mine. No significant
mineralisation was intersected.

For further information please contact:

Patrick Cheetham, Executive Chairman, Tertiary Minerals plc. Tel: [phone]
Ron Marshman/John Greenhalgh, City of London PR Limited. Tel: [phone]



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