Quarterly Report

Tertiary Minerals PLC
21 July 2003

                            www.tertiaryminerals.com


                              QUARTERLY REPORT ON
                             EXPLORATION ACTIVITIES
                       FOR THE PERIOD ENDED 30 JUNE 2003


INTRODUCTION

This report gives details and results of exploration work carried out during the
quarter ended 30 June 2003 and up to the date of this report.

CORPORATE

During the quarter the Company raised £250,000 (before expenses) for working
capital through the issue of 3,125,000 new ordinary shares of 1p each at a price
of 8p per share to clients of W.H.Ireland.

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

NOTTRASK PROJECT (Sweden) - Tertiary Minerals - 100%

During the quarter Tertiary carried out a electromagnetic geophysical survey to
relocate an untested electrical anomaly originally detected by Rio Tinto during
a previous exploration campaign.

The anomaly was interpreted to be a zone of sulphide mineralisation within the
Nottrask gabbro intrusion and was therefore considered prospective for
nickel-copper (+/- PGM) mineralisation.

The anomaly was successfully relocated and drill tested following the end of the
quarter with one diamond drill hole. This hole intersected significant sulphide
mineralisation (dominantly pyrrhotite with minor pentlandite and chalcopyrite)
in the target zone, from 78.1m to 96.6m down hole. Within this zone sulphide
content averages approximately 15% over a 4 m interval with narrower zones of up
to 30% sulphides.

Assay results are expected in mid-August.

FINNMARK (Norway) - Tertiary Minerals 100%

Results from the Spring drilling programme were announced during the quarter.

Anomalous PGE intersections were made in each of the three holes drilled with
broad intersections of anomalous PGM values in composite samples and higher
anomalous values in narrow sections.

The programme was designed to investigate the discovery of PGE mineralisation
made by Tertiary in its recent summer field programmes which identified a small
outcrop within a North-South striking ultramafic intrusion where two grab
samples averaged 2.5 grammes per tonne platinum (Pt) + palladium (Pd) + gold
(Au) with a Pt-Pd ratio of approximately 1:1. Subsequent geophysical exploration
identified a Induced Polarisation (IP) anomaly associated with the PGE bearing
outcrop and extending for several hundred metres north-south along strike.

Two drill holes (03GD001 and 2) tested the IP anomaly beneath the outcropping
PGE mineralisation. Hole 03GD002 was drilled 80m behind 03GD001 on approximately
the same Easting. The third hole (03GD003) tested the same anomalous zone 700m
to the south. All holes were drilled at -45 degrees west.

Significant results were as follows (all intervals assaying >0.1g/t
platinum+palladium+gold):

Hole No.    From     Intersection     Pt+Pd+Au    Pt      Pd      Au
            (m)      Width (m)             g/t     g/t     g/t     g/t

03GD001     12.35    0.55                 0.69    0.27    0.38    0.04
            52.40    1.00                 0.12    0.05    0.06    0.01

03GD002     26.90    4.00                 0.26    0.03    0.03    0.20
                     Composite
            30.90    4.00                 0.11    0.05    0.04    0.02
                     Composite
            39.00    4.00                 0.15    0.05    0.06    0.04
                     Composite
            43.00    0.55                 0.12    0.05    0.06    0.01
            117.2    1.80                 0.11    0.04    0.06    0.01
                     Composite

03GD003      48.4    2.00                 0.10    0.05    0.04    0.01
                     Composite
             58.1    4.00                 0.16    0.06    0.07    0.03
                     Composite

The majority of anomalous samples contain only low levels (approx. 1%) of
sulphide minerals (the likely cause of the IP anomaly) and there is not a direct
correlation between higher sulphide content and higher anomalous PGE values.

Consequently the controlling factors on the location of PGE mineralisation are
not yet established and further assaying and mineralogical work is therefore
required before concluding if this small programme has effectively tested the
economic potential of this PGE bearing intrusion.

TANTALUM PROJECTS

TANTALUM MARKET

Recent releases by leading tantalum producer Sons of Gwalia provide further
evidence of a continuing recovery in the tantalum market.

In its latest quarterly report, Sons of Gwalia announced record sales levels for
its tantalum concentrates and a reduction of inventory to very low levels.

Sons of Gwalia also reported that inventory reductions were taking place across
the supply chain and that there was some evidence of tightening supply of
material sold on spot.

GHURAYYAH (Saudi Arabia) - Tertiary Minerals 100%

Following the completion of the positive Scoping Study for development of the
Ghurayyah tantalum-niobium deposit in Saudi Arabia last quarter work
concentrated on planning future work programmes, including a Preliminary
Feasibility Study.

ROSENDAL (Finland) - Tertiary Minerals 100%

No work was carried out during the quarter.

GOLD & BASE METAL PROJECTS

IOCG PROJECT (Sweden & Finland) - Tertiary Minerals 100%

The Company has purchased several additional data sets covering its
iron-oxide-copper gold (IOCG) targets in Sweden and Finland and is planning
ground follow up at the Palokiimanselka prospect as a matter of priority before
committing to drilling.

PALOKIIMANSELKA (N.E Finland)

This project is located just east of the village of Vuotso which lies on the
sealed highway linking Finland to the Norwegian and Russian borders north and
east of Sodankyla.

Extensive alluvial gold deposits are known in NE Lapland and have been the focus
for small scale and recreational mining and panning activity. The sources of the
alluvial gold are unknown.

At Palokiimanselka known mineralisation comprises N-S striking quartz magnetite
veins within sericite altered gneiss. The veins are N-S trending and contain
quartz, hematite, albite and magnetite. Palokiimanselka was originally
discovered by boulder tracing and trenching in the 1950's. At that time five
200kg samples assayed 1.2- 4.1 grammes per tonne (g/t) gold. Smaller samples
assayed up to 10 g/t gold.

Aerial magnetic data shows that mineralisation occurs within a N-S trending, 2km
long magnetic anomaly suggesting that Palokiimanselka may be a part of a much
larger zone of mineralisation.



Patrick L. Cheetham       21 July 2003
Executive Chairman

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