Quarterly Exploration Report

Tertiary Minerals PLC
04 November 2002


QUARTERLY REPORT ON EXPLORATION ACTIVITIES
FOR THE PERIOD ENDED 30 SEPTEMBER 2002


HIGHLIGHTS


NEW EXPLORATION INITIATIVES

FINLAND IOCG PROJECT                      New search initiated for Copper-Gold in Olympic Dam
                                          (iron-oxide-copper-gold targets)

                                          Eight targets include past producing copper-gold-iron mine

                                          Large mineralised systems to be explored

AHMAVUOMA                                 New target for copper-gold-cobalt. Massive and disseminated sulphide
                                          mineralisation with previous drilling results up to 41m grading 0.69%
                                          copper and 0.3% cobalt.

INTRODUCTION

This report gives details of exploration work carried out during the quarter
ended 30 September 2002 and up to the date of this report, and the results for
the period.



TANTALUM PROJECTS

In October 2002 the Company's Executive Chairman, Patrick Cheetham attended the
Tantalum-Niobium International Study Centre ('TIC') Annual General Assembly in
Kyoto, Japan where the Company's application for membership was accepted.

It is clear from presentations made in Kyoto, from discussion held with various
tantalum industry participants and from releases recently made by the world's
largest tantalum miner Sons of Gwalia Ltd that the current downturn in tantalum
demand - a result of the recession in consumer electronics sales - is deeper and
may be more prolonged than was originally projected.

The consequences of the current downturn are two-fold. It is difficult to
predict when tantalum demand will increase and there is considerable uncertainty
as to prices that might be achieved for future production.

GHURAYYAH (Saudi Arabia) - Tertiary Minerals 100%

The Ghurayyah exploration licence hosts the World's single largest deposit of
tantalum with an estimated Inferred Mineral Resource of 385 million tonnes
grading 245 grammes per tonne (g/t) tantalum pentoxide (Ta205), 2,840 g/t
niobium pentoxide (Nb205) and 8,915 g/t zirconium oxide (Zr02).

Lakefield Research has advised that the planned programme of metallurgical
testwork has now been completed, and the final results are awaited.

ROSENDAL (Finland) - Tertiary Minerals 100%

Following the completion of Phase 1 drilling last quarter, the preliminary
feasibility study was awarded to Cornwall based CSMA Consultants Limited with
resource modelling contracted to SRK Consulting.

Phase 1 drilling results have been incorporated into a block model by SRK
Consulting and a preliminary Inferred Mineral Resource has been estimated at
1,050,000 tonnes grading 255 grammes per tonne tantalum pentoxide.

Further drilling was then carried out with fifteen holes drilled for a total of
951m with the objectives of refining the block model and testing outlying
pegmatites discovered and sampled during previous prospecting campaigns.

Two 375m-spaced drill traverses, each of four shallow holes (02RD016-19 and
02RD020-23) were drilled to test dykes occurring immediately to the north of the
main dyke. These holes intersected multiple narrow dykes with moderate grades of
tantalum and a best result of:

 • 1.98m grading 840g/t Ta2o5. from 24.8m depth down hole (in Hole No. 02RD017)

Three 50m spaced holes were drilled to test Dyke 10 (1.8km east-northeast of the
main dyke) over a 100m strike-length. The most easterly of these holes returned
the best result:

 • 4.75m grading 240 g/t Ta2o5. from 40.7m depth down hole (in Hole No. 02RD024)

Three infill holes (02RD028-30) were drilled in the main dyke returning results
in line with expectations. A fourth hole (02RD015) sought to extend the main
dyke 50m further east but, where intersected, the dyke was thin and low grade.

All drilling results are summarised in Table 1.

A further five pegmatite dykes were also channel sampled during the quarter with
the results shown in Table 2. These dykes were generally narrow and of moderate
grade.

For the main dyke CSMA has carried out preliminary pit optimisation based on
various assumptions of mining, processing and administration costs. CSMA is also
completing metallurgical testwork using spirals and MGS separators to
investigate the recovery of tantalum using this commercial gravity separation
equipment. This work will be completed shortly and will provide the basis for
more reliable plant capital and operating cost estimates and revised pit
optimisations.

The current depressed market and low prices for tantalum do not favour
development of the Rosendal project for its tantalum content alone. The company
is continuing to investigate the by-production of sodium feldspar as this could
enhance project revenues significantly. It will also investigate ways to advance
the permitting process so that the project can be brought into production at
relatively short notice when market conditions improve.


PLATINUM GROUP METAL ('PGM) & NICKEL-COPPER PROJECTS

FINNMARK PROJECT (Norway) - Tertiary Minerals 100%

During the quarter the results of an ethnographic survey over the proposed drill
sites at Gallujavri were received from the Sami Cultural Authority. Whilst a
number of protected sites were identified in the general area, the proposed
drill sites were cleared.

Discussions with the Sami Parliament and the Karasjok Municipality have
continued during the quarter and the company is continuing to evaluate the level
of public and political support for its proposed drilling programme.


GOLD & BASE METAL PROJECTS

*NEW PROJECT - FINLAND IOCG PROJECT (Sweden) - 100% Tertiary

Tertiary recently announced a major initiative to explore for Olympic Dam style
Iron-Oxide-Copper-Gold ('IOCG') deposits in Finland.

IOCG deposits are typically large, and have become one of the most sought after
deposits in the world today. In the Norbotten district of northern Sweden two
major IOCG deposits have been recognized (Kiruna with over 1 billion tones of
iron ore and Aitik with over 300mt grading 0.4% copper and 0.2g/t gold) and a
number of companies, including Rio Tinto, Anglo American, BHP-Billiton, Phelps
Dodge, Equinox, and South Atlantic Natural Resources, are actively exploring for
new IOCG deposits.

The prospective geology of the Norbotten district extends into large areas of
northern Finland but, to-date, Finland has not received the same exploration
effort. Both Sweden and Finland have, courtesy of their respective Geological
Surveys organisations, well-developed geological, geophysical and geochemical
databases that the Company is using for exploration targeting in conjunction
with the Geological Survey of Finland as one of its exploration consultants.

The company's initial efforts have focused on known large iron-oxide mineralised
systems where it believes there is potential for the discovery of significant
IOCG deposits. Historically, iron exploration and development in Finland has
been very focused, with deposits often evaluated and mined by single-purpose
state-owned companies. Furthermore, past exploration for iron in Finland has
targeted airborne magnetic anomalies for magnetite iron ore. The hematite
dominated parts of the IOCG systems would not be discovered in this way and
magnetite dominated IOCG systems are commonly zoned - the most intense magnetic
anomalies (the previous focus of iron exploration) may not represent the most
prospective zones for copper and gold mineralisation and these could easily
remain hidden under the extensive till cover that blankets much of Finland.

Five of the company's existing targets are located in the Kolari iron district
200km NW of Rovaniemi, adjacent to the Swedish border. These targets are:

Rautavaara where over 13 million tonnes of iron ore was produced between 1975
and 1988 and several million tonnes of open ended low grade copper
mineralisation was discovered along strike from the magnetite deposits.

Hannukainen where several near surface contiguous stratbound ore bodies have
resources of several tens of millions of tonnes of iron ore and where open-pit
mining operations produced 4.6 million tonnes of ore grading 43% iron, 0.9%
copper and almost 1g/t gold from the adjoining Keuervaara and Laurinoja ore
bodies. 

Taparova, a zone of hematite mineralisation with IOCG characteristics estimated
to contain 20 million tonnes of near surface iron mineralisation (43% iron)

Sivakkalehto, the largest mineralised zone in the area with an estimated 200
million tonnes of magnetite mineralisation with under-evaluated copper and gold
potential.

Lauttaselka a poorly explored zone of copper-gold-iron mineralisation with
multiple down hole drill intersections of typical IOCG grade copper-gold
mineralisation.

Other targets in Northern Finland include the Vahajoki, Palokiimanselka
and Raajarvi deposits.

Vahajoki comprises multiple deposits (total 10 million tonnes to 100m) of
magnetite breccia with associated but under-evaluated copper-gold and cobalt
mineralisation.

At Palokiimanselka trenches dug and sampled in the 1950' returned gold values
to 10g/t in north-south trending magnetite altered metavolcanics. A later
airborne magnetic survey shows these trenches to be located within a 2km long
north-south striking magnetic anomaly, now a priority for follow up exploration.

Raajarvi is a poorly documented iron ore deposit that produced 5mt of
magnetite iron ore from 1962-1975.

The company intends to seek the involvement of a major mining company to fund
the further evaluation of its IOCG projects in Finland. Work will start with
further detailed data evaluation and re-logging and sampling of extensive drill
core that still exists for many of the projects.


*NEW PROJECT - AHMAVUOMA (Sweden) - 100% Tertiary

The company has applied for a 28 sq.km. exploration permit 80km east of Kiruna
in the Norbotten district of Northern Sweden.

The licence covers the Ahmavuoma target, which was preciously explored by LKAB,
the Swedish iron-ore producer, and North Atlantic Natural Resources (NAN).

Previous LKAB exploration has targeted a number of electromagnetic anomalies,
which, on drilling were found to be caused by magnetite-associated copper-cobalt
-gold bearing massive and disseminated sulphide mineralisation.

The massive sulphides were weathered to considerable depths and previous
drilling programmes were hampered by very poor core recovery. Nevertheless
numerous intersections of economic interest were made which warrant follow up
including:

KAHM 4: 41m intersection from 60m grading 0.69% copper, 0.29% cobalt
        Including 8m from 71m grading 0.76% copper, 0.58% cobalt and 1.1g/t gold

KAHM 7: 5.2M intersection from 71m grading 2.06% copper, 0.72 % cobalt and 0.7g
        /t gold

NAN carried out further geophysical and geochemical exploration but no diamond
drilling. The open-ended mineralisation discovered by LKAB remains to be
followed up.

The mineralisation at Ahmavuoma is strongly anomalous in molybdenum (assays to
0.8%) and barium and may be of volcanogenic massive sulphide or Olympic Dam
type.


NOTTRASK NICKEL/PGM(Sweden) - Tertiary Minerals 100%

The Company has contracted Williams Geophysics to carry out a review of
geophysical data collected by RTZ during previous exploration for nickel in the
Nottrask layered intrusion.

This work has identified a number of strong conductors, which are now being
evaluated as drill targets.


FLINTEN (Logarden Zinc) (Sweden) - Tertiary Minerals 100%

A programme of trenching was carried out during the quarter to further
investigate high-grade zinc mineralisation in a forest road-cutting at the
Logarden prospect.

This programme exposed the zinc-rich massive sulphide mineralisation over a
strike length of 38m. The mineralisation is narrow (approximately 1-1.5m) but
high-grade. It remains open to the NW.



TABLE 1. ROSENDAL - SEPTEMBER 2002 DRILLING RESULTS


                              Drill Hole Intersection       Approx. True   Local Grid                    Azimuth    Hole
     Hole Number   From      To    Thickness     Ta2O5       Thickness      Northing   Easting   Dip  (local grid) Depth
                    (m)     (m)       (m)      grammes/    (as % of int.)      (m)        (m)                        (m)
                                                 tonne
Drilling on Main 
Dyke

SECTION 10,550           No surface trench

       02RD015     5.50    5.86      0.36          160         75%           20271      10550   -50.0   180.0    119.35
             and   9.50   11.40      1.90          100
             and  12.20   13.15      0.95          130
             and  67.40   69.35      1.95           70
             and  94.00   95.40      1.40          210


SECTION 10,500           No surface trench

       02RD030    21.85   22.30      0.45          220         70%           20272      10500   -50.0   180.0     83.40
             and  37.10   37.80      0.70          110
             and  66.25   72.60      6.35          230


SECTION 10,450           Trench RT9 - 5m@455g/t Ta205

       02RD029     9.75   13.70      3.95           90         80%           20312      10450   -50.0   180.0    113.55
             and  14.20   14.55      0.35          150
             and  15.50   16.30      0.80           70
             and  25.55   26.40      0.85          120
             and  34.55   36.00      1.45          100
             and  47.60   53.25      5.65          150
             and  58.20   58.65      0.45          130
             and  76.00   76.55      0.55          210
             and  98.65   98.90      0.25          200
             and 100.65   107.90     7.25          330
            inc. 105.45   107.45     2.00          505


SECTION 10,267           Trench RT10 - 9m@600g/t Ta205

       02RD028    25.30   50.65      25.35         240         45%           20271      10265   -50.0   180.0     59.05
            inc.  25.30   35.60      10.30         510



Drilling on dyke swarm 50-150m northwest of main dyke


SECTION 10,075           Trench 102 - 2.02m@79g/t Ta205

       02RD016    24.10   27.10      3.00           60         65%           20288      10075   -45.0   360.0     44.30

                         No surface trench

       02RD017    24.77   26.75      1.98          840         90%           20316      10073   -45.0   360.0     44.30
            inc.  24.77   25.75      0.98         1590
             and  32.26   33.38      1.12          110

                         No surface trench

       02RD018     5.30    6.50      1.20          150         90%           20342      10075   -45.0   360.0     50.25
             and  11.05   12.15      1.10          120
             and  21.70   22.95      1.25          160
             and  43.80   49.00      5.20          170

                         No surface trench

       02RD019    11.15   16.25      5.10           80         90%           20375      10078   -45.0   360.0     44.15



Drilling on dyke swarm 50-150m northeast of main dyke


SECTION 10,450           No surface trench

       02RD020     2.80    3.15      0.35          100         70%           20360      10450   -45.0   180.0     47.50
             and   4.30    5.00      0.70          200
             and  11.88   12.80      0.92          160
             and  22.30   22.80      0.50          180
             and  34.15   34.60      0.45          120
             and  38.50   39.00      0.50           70



                              Drill Hole Intersection        Approx. True  Local Grid                  Azimuth     Hole
     Hole Number  From      To     Thickness      Ta2O5       Thickness    Northing   Easting   Dip  (local grid) Depth
                   (m)     (m)        (m)     grammes/tonne (as % of int.)    (m)        (m)                        (m)


Drilling on dyke swarm 50-150m northeast of Main Dyke (cont.)


SECTION 10,450 (cont.)

                         No surface trench

       02RD021    34.40   36.20      1.80          210         80%           20390      10450   -45.0   180.0     44.30

                         No surface trench

       02RD022    10.05   11.00      0.95           90         80%           20420      10450   -45.0   180.0     48.95
             and  14.50   15.20      0.70          150
             and  24.85   25.50      0.65           80

                         No surface trench

       02RD023     2.80    4.90      2.10          170         80%           20450      10450   -45.0   180.0     45.10
             and  16.40   17.10      0.70          120
             and  29.70   31.25      1.55          370
             and  38.40   38.80      0.40          190
             and  43.20   43.53      0.33          100


                                                                           National Grid                         Hole
     Drilling on Dyke 10 , 1.8km east-northeast of Main Dyke               Northing   Easting   Dip   Azimuth    Depth
                                                                           (m)        (m)             (mag       (m)
                                                                                                      north)
                         No surface trench

       02RD024     3.80    5.00      1.20           40         80%          6670196    2421551  -50.0   335.0     55.30
             and  10.65   13.95      3.30           50
             and  40.70   45.45      4.75          240
            inc.  40.70   42.70      2.00          420
             and  45.85   48.35      2.50           30
             and  49.60   50.36      0.76           50

                         No surface trench

       02RD025    10.30   12.30      2.00           60         80%          6670217    2421588  -50.0   335.0     53.50
             and  42.25   45.40      3.15           40

                         No surface trench

       02RD026     1.40    8.55      7.15          160         80%          6670219    2421640  -50.0   335.0     56.40
             and  45.10   50.90      5.80           60





Table 2. Trench Sampling Results
Rosendal Project, Finland. September, 2002


      Locality                Dyke                Trench            Sample width  Ta2O5 (grammes per
                                                                        (metres)              tonne)

100m South of Main              8                      3                    1.50                 330
Dyke
                                8                      4                    2.50                 300

 400m East-Northeast          104                  1 & 2                    8.60                  75
of Rosendal Main Dyke         107                      1                    1.20                  90
                                                       2                    1.40                 500
                                                       3                    1.35                 200
                              105                      1                    1.60                 220
                              110                      1                    1.30                 100





Patrick L. Cheetham                                             1 November 2002
Executive Chairman



For further information contact the Company on : Tel: [phone], or
visit the company's website: www.tertiaryminerals.com


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