Quarterly Report

Tertiary Minerals PLC
30 January 2002


                      TERTIARY MINERALS PLC

QUARTERLY REPORT ON EXPLORATION ACTIVITIES FOR THE PERIOD ENDED 31 DECEMBER 2001

HIGHLIGHTS

ROSENDAL TANTALUM PROJECT

  • Independent Scoping Study Estimates IRR Of 33%
  • Payback In Little More Than Two Years
  • Capital Cost Estimate Of US$12.5 Million Assumes All-New Process Plant
  • Annual Output Of 66,000lb Tantalum Pentoxide And 84,000 Tonnes Feldspar

DJURAGRUVAN BASE METAL PROJECT


  • 30 line km magnetic survey indicates extensions to mineralisation at
    Gruvberget

  • Follow up induced polarisation survey identifies priority drill targets

LOGARDEN BASE METAL PROJECT (NEW PROJECT)


  • Surface sampling returns over 23% combined zinc-lead copper over 2.5m in
    outcrop
  • Induced Polarisation survey results awaited

INTRODUCTION

This report gives details of exploration work carried out during the quarter
ended 31 December 2001 and up to the date of this report, and the results for
the period.

TANTLALUM PROJECTS

ROSENDAL (Finland) - Tertiary Minerals 100%

During the quarter an economic and technical scoping study for development of
the Rosendal pegmatite was completed by the Geological Survey of Finland which
has estimated the pegmatite to contain 1.3m tonnes of material grading 289
grammes/tonne ('g/t') of tantalum pentoxide ('Ta2O5') and 70% feldspar from
surface to a depth of 100m.

The study builds on the results of previously reported metallurgical testwork
carried out by independent Canadian laboratory Lakefield Research Inc. This
indicated that commercial grades of tantalum, feldspar quartz and mica
concentrate could be produced from Rosendal ore with acceptable recoveries.

The scoping study has evaluated an open-pit mining operation producing 150,000
tonnes of ore per annum over 11 years with 10% dilution and an overall
waste-to-ore strip ratio of 3.5 to 1. It assumes that an all-new process plant
will be constructed on site to process 150,000 tonnes per annum of ore for the
recovery of an average of 66,000lbs Ta2O5 and 84,000 tonnes of feldspar
concentrate per annum.

On this basis, the study makes the following estimates for the project :


  • Capital cost: US$12.5million

  • Average annual revenues: US$ 8.1 million *

  • Average annual pre-tax operating profit: US$5.0 million (before interest)

  • Internal Rate of Return: 33%

(* based on a recently published contract price of US$75/lb Ta2O5 in
concentrates, and a price of US$37/tonne of feldspar concentrate).

The Company is of the opinion that, whilst the scoping study is of necessity
based on estimated figures for grade, tonnage, capital and operating costs,
these already attractive project economics can be improved further as:

1. There is potential to increase the known tonnage of mineralisation.

Mineralisation is open in all directions and there is the possibility that
further drilling will increase available resources.

2. The grade of the mineralisation could be higher than initially indicated.

The tantalum grade considered during the study, 289 g/t Ta2O5, is an average of
the grades of surface channel samples and smaller samples from narrow diameter
diamond drill holes.

Drill samples may not be sufficiently large to be representative of grade as the
larger surface channel samples average 436 g/t Ta2O5 and the largest sample
taken to date, the metallurgical sample, had a grade of 620g/t Ta2O5.

3. The project is located adjacent to an existing feldspar production plant and
considerable capital and operating costs savings are likely if plant and/or
infrastructure can be shared.

4. The scoping study has not considered recovery of potentially valuable
by-products quartz and mica.

The study notes that the Rosendal project lies within an established mining area
where pegmatites have been mined for more than 300 years, and mining operations
are continuing. The area has a sparse population with the nearest house some
1.4km away. There are no special or protected natural habitats in this
particular area nor or there any endangered species, historic sites, area of
groundwater significance or areas of special landscape, topography or
geomorphology.

Given the Rosendal project's favourable coastal location, at the heart of
European markets, and Finland's political stability, the Company intends to fast
track the further evaluation and development of the Rosendal deposit.

Pre-feasibility studies have commenced and a programme of trenching and drilling
will begin in February. The trenching programme is designed to test for
extensions of the tantalum bearing pegmatite dyke under cover, where there is
potential to increase resources.

Drilling will be carried out using larger diameter holes to infill between
existing drill holes to enable more accurate resource grade and tonnage
estimation and also to test for extensions to the mineralisation.

The Company has made application for several additional claims and a claim
reservation to cover new tantalum exploration targets close to Rosendal.



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

FINNMARK PROJECT (Norway) - Tertiary Minerals 100%

Previously reported exploration during the summer of 2001 identified the
Gallujavri prospect as the highest priority prospect for further exploration.

Work during the quarter has involved detailed planning of the follow-up winter
exploration programme. This will comprise geophysical exploration and drilling
which are scheduled to commence at the end of February/early March and to last
2-3 months.

The Company has applied for further pre-claims to cover the extension to the
Gallujavri prospect and it has surrendered those pre-claims which were
downgraded by the 2001 reconnaissance programme. This has resulted in an overall
reduction in the number of pre-claims held from 236 to 142.

PGM PROJECTS - SWEDEN - Tertiary Minerals 100%

The Company, working with and SRK Consulting of Toronto, has completed
preliminary mapping and sampling on each of the Nottrask, Flinten and Annehill
projects.

Nottrask, is a 10 x 5 km funnel shaped mafic intrusion, 6km north-west of the
city of Boden in Northern Sweden. Mapping has confirmed that the intrusion
comprises layered gabbros, norites and troctolites and is prospective for Ni-Cu
and PGM's, in particular for accumulations of Voisey Bay style mineralisation
where troctolite feeders and intrusions host 150 million tonnes of
nickel-copper-cobalt massive sulphide.

Mapping and sampling at Annehill indicates it to be a low priority target.

At Flinten, mapping and sampling of PGM prospective areas resulted in the
unexpected 're-discovery' of a showing of zinc-rich massive sulphide
mineralisation. This prospect has been named Logarden and is discussed below.



BASE-METAL PROJECTS

DJURAGRUVAN PROJECT (Sweden) - Tertiary Minerals 100%

During the quarter the results of a 30 line-km magnetic survey were received.
These results indicate significant extensions to both the Gruvberget South and
North mineralisations and a number of new target areas.

A programme of follow-up induced polarisation geophysics has been completed and
results are awaited.

LOGARDEN PROJECT (Sweden) - Tertiary Minerals 100%

During exploration for PGM's at Flinten an outcrop of zinc-rich massive sulphide
was located within the Flinten exploration licence.

The showing comprises a 25m long exposure of massive to semi-massive pyrite
containing lenses of massive sphalerite and galena in a quartz-biotite schist.

A subsequent review of available records suggest that the prospect was last
investigated by the Boliden mining company who are recorded as having drilled 5
holes which intersected open ended mineralisation averaging 6.5% zinc, 3% lead,
0.8% copper , 75g/t silver and 1.4 g/t gold.

The grade of gold is unusually high for Bergslagen district base-metal
mineralisation.

During the quarter Tertiary completed surface chip sampling and a preliminary
induced polarisation geophysical survey to determine if the mineralisation was
responsive to this exploration method and, if so, to determine the extent of the
mineralisation.

A chip sample over the outcrop returned an average grade of over 23% combined
zinc-lead-copper over 2.5m, together with over 100 g/t of silver. The results of
the induced polarisation survey are awaited.

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

The company's re-logging and interpretation programme was initiated during the
quarter and work 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, tantalum and base
metal interests.

Patrick L Cheetham          30 January 2002

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



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