Quarterly Report

Tertiary Minerals PLC
31 July 2001

                            Tertiary Minerals plc

QUARTERLY REPORT ON EXPLORATION ACTIVITIES FOR THE PERIOD ENDED 30 JUNE 2001

HIGHLIGHTS



  * Field Work In Progress To Define Drill Targets At Finnmark PGM Prospects
  * New Ni-Cu-PGM Project At Nottrask In Sweden
  * Metallurgical Testing In Progress On Rosendal Tantalum Deposit
  * Search For Source Of Zinc-Rich Boulders Started At Djuragruvan

___________________________________________________________________

INTRODUCTION

This report gives details of exploration work carried out during the quarter
ended 30 June 2001 and up to the date of this report and the results for the
period.



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

FINNMARK PROJECT (Norway) - Tertiary Minerals 100%

The Company has commenced two months of fieldwork with the objective of
defining drill targets on its Finnmark PGM project in Northern Norway. This
follows an extensive geological and data review of the northern Karasjok
greenstone belt where previous drilling by the Norwegian Geological Survey
(NGU) returned wide intersections of PGM mineralisation from ultramafic
intrusions on the Porsvann and Karenhaugen prospects.

The Karasjok review has included re-sampling of earlier drill core to verify
previous assay results which include a reported intersection of 15.2m
(approximate true width) grading 2.1g/t combined palladium and platinum
(Pd+Pt) within a 43m intersection grading 1.2 g/t Pd+Pt from a down hole depth
of 67m in hole PV1 at Porsvann. Selected mineralised intervals were submitted
to Chemex Laboratories in Vancouver Canada for PGM analysis. The results of
this re-sampling showed an excellent correlation with earlier assays reported
by the NGU as shown in the following table.


               HOLE          DRILL        FROM           NGU       TERTIARY
                             CORE        (DEPTH                    ASSAYS
               COORDINATES               DOWN            ASSAYS
                             INTERVAL    HOLE)                     (July 2001)
HOLE NUMBER    (LOCAL GRID)                              (1991-3)
                                                                   Pt+Pd (ppm)
                                                         Pt+Pd
                                                         (ppm)

PORSVANN       (Porsvann
PROSPECT       Grid)


PV 1           1278E, 1852N  43.15m      67.00m          1.20      1.29

includes                     15.20m      90.00m          2.06      2.23



PV 2           1208N, 1843E  51.85m      5.95m           1.08      1.04

includes                     5.60m       5.95m           1.91      1.43

includes                     4.00m       18.00m          1.02      1.33

includes                     5.00m       32.40m          1.20      2.10

includes                     11.80m      44.00m          1.97      1.73



PV 4           1218E, 1789N  33.00m      16.00m          1.24      1.11

includes                     10.00m      16.00m          1.57      1.21

includes                     17.00m      32.00m          1.25      1.27


KARENHAUGEN    (Karenhaug.Grid)
PROSPECT


KH 1           205E, 599N    5.10m       30.90m          1.21      2.09


KH 2           222E, 564N    5.60m       6.10m           1.06      0.95


KH 3           185E, 632N    11.00m      36.00m          0.94      0.96

includes                     1.10m       39.95m          3.63      3.75



KH 5           180E, 580N    0.80m       13.32m          1.35      1.13

and                          2.00m       47.00m          0.93      0.95


The review has drawn together, for the first time, the results of previous
base and precious metal exploration in the Northern Karasjok greenstone belt
and unpublished NGU geological mapping and sampling. It has highlighted the
potential for strike extensions to the mineralised pyroxenite at Porsvann and
for the occurrence of PGM mineralisation within other as yet untested rock
types.

The prospective pyroxenite horizon at Porsvann has been mapped over a
discontinuous strike length of more than 800m and it may extend further to the
south beneath a lake. Drilling to date has tested only 100m of strike
immediately north of the lake, but mineralisation remains open in all
directions. A previously unreported NGU grab sample contained 1.4g/t Pd+Pt in
pyroxenite 150m north of the most northerly drill hole whilst a sample of
gabbro from Porsvann also returned a value of 1.1g/t Pd+Pt. In the Karasjok
belt, gabbro is closely associated with pyroxenite in composite intrusions.
The occurrence of PGM in gabbro may prove significant, as previous exploration
has identified a number of untested Induced Polarisation (IP) geophysical
anomalies within the more extensive gabbros at Porsvann. Similar IP anomalies
in the pyroxenite are believed to be coincident with shear zones carrying
higher levels of PGM's and sulphides within the broad zone of lower grade PGM
mineralisation.

The aim of the field program is to define drill targets through a better
understanding of the controls on PGM mineralisation at Porsvann and
Karenhaugen and the evaluation and sampling of several other PGM prospective
intrusions within the Company's extensive exploration permits. It is being
carried out by SRK Consulting (Toronto) under the supervision of SRK geologist
Mike Michaud who was formerly Chief Geologist for North American Palladium's
Lac des Iles PGM mine in Ontario.



NEW PROJECT - NOTTRASK, SWEDEN - Tertiary Minerals 100%

The Company has applied for an exploration permit of approximately 70 sq.km.
to cover the Nottrask layered mafic complex, which is considered prospective
for nickel-copper-PGM- bearing massive and disseminated sulphide
mineralisation.

Nottrask is a 10 x 5 km funnel shaped mafic complex intruded into gneisses of
meta-sedimentary origin. It is layered with a core of anorthositic-troctolitic
rocks surrounded by ferrogabbro and a marginal zone of norite.

The Marginal Series rocks show evidence of assimilation of sulphide and
graphite bearing metasediments and are host to discontinuous zones of massive
sulphides of Sudbury type containing approx 1% nickel and 0.2% copper,
originally discovered in a road cutting.

Work reported by previous explorers has been limited to ground geophysics and
shallow drilling. Ground geophysics has tested only 1km of the 12.5km strike
of the Marginal Series, and only to a depth of 100m, but within this area, has
defined a number of shallow conductors, one of which is coincident with the
'road-cut' mineralisation. Nine shallow holes were drilled by earlier
explorers to test this and other geophysical targets.

Drilling showed the massive 'road-cut' mineralisation to be of relatively
limited strike-length but disseminated mineralisation was found to be
widespread, in places carrying significant grades of nickel and copper (e.g.
13.4m grading 0.8% copper and 0.6% nickel in drill hole K-Not 1). No follow up
exploration was carried out.

Within the Marginal Series there are mineralised breccias, gabbroic pegmatite
and shear hosted mineralisations which have yet to be explored but which are
considered prospective for Lac des Iles PGM style mineralisation.

In the central part of the intrusion, the Geological Survey of Sweden has
drilled 4 stratigraphic drill holes. One hole encountered anomalous PGM
mineralisation (0.5m @ 1.4 g/t Pt +Pd in hole 89002). This was not followed
up.



LAKE HILL PROJECT (Sweden) - Tertiary Minerals 100%

As anticipated, assays carried out on drill core from a programme to test a
discrete geophysical anomaly in the Lake Hill project for nickel-copper-PGM
were not encouraging.

This project has therefore been terminated.



TANTLALUM PROJECTS

ROSENDAL (Finland) - Tertiary Minerals 100%

A programme of metallurgical testwork has commenced. This will evaluate
processing options for the extraction of tantalum and by-product feldspar and
quartz from the 1.3 million tonne tantalum-bearing pegmatite discovered by the
Geological Survey of Finland. The work will include mineralogical
characterisation, gravity and flotation testwork and is being carried out by
Lakefield Research in Canada, one of the World's premier metallurgical
laboratories. Results should be available in early September.

VIITANIEMI (Finland) - Tertiary Minerals 100%

A review of project data and an initial evaluation of the Sepalanranta area
has downgraded the potential of this project and consequently the project has
been terminated to allow the company to concentrate on its Rosendal tantalum
project and new tantalum project acquisitions.

The Company has decided not to apply for claims within its claim reservation
area.



BASE-METAL PROJECTS

DJURAGRUVAN PROJECT (Sweden) - Tertiary Minerals 75% - 100%

The Company has commenced a programme to locate the source of zinc-rich
boulders (18 boulders average 10.6% zinc, 3.9% lead and 0.3% copper in 3km
long boulder train) believed to have originated within the Company's
exploration permits.

A total of 304 geochemical samples of surface till have been collected and
analytical results are expected within three weeks. An orientation geophysical
programme has started over areas of known bedrock mineralisation in order to
characterise its 'signature'. The geophysical testing will then be extended to
any prospective areas outlined by the till sampling with the objective of
identifying a similar geophysical signature. This would enable the Company to
define targets for follow-up drilling.



WINDFALL PROJECT (Sweden) - Tertiary Minerals 75% - 100%

Integration of the Boliden and Tertiary Minerals drill databases has been
completed and a thorough re-evaluation of the project is continuing.



GOLD PROJECTS

No work was carried out on the company's gold exploration projects during the
quarter as the Company has concentrated activity on its PGM and tantalum
interests.

Patrick L Cheetham          31 July 2001

Executive Chairman



For further information contact :

Patrick Cheetham, Executive Chairman, Tertiary Minerals

Tel: + 44 (0)1625 626203 or visit the Company's website :
www.tertiaryminerals.com