Quarterly Report

Tertiary Minerals PLC
01 November 2004



                             TERTIARY MINERALS PLC
                                1 November 2004

                   QUARTERLY REPORT ON EXPLORATION ACTIVITIES
                     FOR THE PERIOD ENDED 30 SEPTEMBER 2004

• Report On Diamond Potential Of New Finnish Kimberlite Cluster Expected Soon

• Second Mineralised Boulder Train With Visible Gold Located At Pitkajarvi

• Drilling To Resume On All Three Mineralised Zones At Kaaresselka

• Tantalum: Newly Introduced Saudi Mining Law Favours Explorers
_____________________________________________________________________

INTRODUCTION

This report gives details and results of exploration work carried out during the
quarter ended
30 September 2004 and up to the date of this report.

FINNISH DIAMOND PROJECT
Tertiary Minerals 100%

The Company has previously announced the discovery of three kimberlites in two
separate areas in Northern Finland.

In July, drilling at Kalettomanpuro identified two kimberlites and in August it
was reported that the first drill hole at Kattaisenvaara, some 20km away, had
also intersected kimberlite. Since then three further holes were attempted at
Kattaisenvaara. Only one successfully tested the kimberlite, the other two holes
being abandoned in deep overburden. The successful hole collared in kimberlite
at the same location as the first reported hole but was drilled in the opposite
direction proving the total width of the kimberlite in the plane of drilling to
be 48m. The kimberlite appears to have faulted contacts at both its northern and
southern margins and a well developed breccia at the southern margin. The strike
length of the kimberlite is not yet known.

Samples of the Kattaisenvaara kimberlite have been sent for microdiamond
analysis and indicator mineral extraction. Results are expected shortly.

Not all kimberlites in a given cluster contain diamonds, but the potential of a
cluster to host diamonds can be evaluated by detailed mineralogical studies of
the kimberlites in that cluster. The company has therefore commissioned GTK to
undertake mineralogical studies on the Kalletomanpuro and Kataisenvaara
kimberlites. The preliminary report will be delivered soon and is keenly
awaited. This will enable the company to evaluate diamond potential of the
numerous other kimberlite targets within its claim holdings.

GOLD PROJECTS

Kaaresselka Gold Project
Finland - Tertiary Minerals 100%

Following the receipt of encouraging results from the Company's first drill
programme earlier this year the Company has completed a drill-hole collar survey
to accurately locate all previous GTK drilling. This has enabled the compilation
of an accurate database for further drill planning.

A second drill program is scheduled to start in late November and will focus on
the Lampi zone where an intersection of 10.3m grading 3.88 g/t gold was made
from near surface, the central part of the Vanha zone high-grade gold
mineralisation and the SE extension of the Tienvarssi zone where gold
mineralisation remains open along strike.

Pitkajarvi Gold Project
Finland - Tertiary Minerals 100% (subject to 6% NPI royalty)

The acquisition of the Pitkajarvi high-grade gold prospect was announced in
August. The prospect was discovered in May this year when an independent
prospector 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 preliminary field visit by Tertiary 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.

A subsequent field visit has resulted in the discovery of more mineralised
boulders at Pitkajarvi. In addition a second, previously documented, boulder
train some 2km NW of Pitkajarvi, at Tiaskuru, was relocated and a number of
boulders with visible gold and copper mineralisation were sampled. Assay results
are awaited.

An interpretation of available airborne geophysical data covering the Pitkajarvi
and Tiaskuru areas has identified a number of possible source areas for
the mineralised boulders. A ground geophysical survey has now started to
identify drilling targets.

BASE METAL PROJECTS

Djuragruvan Zinc-Silver Project
Sweden - Tertiary Minerals 100%

The Company has recently completed a drilling programme to test for zinc-silver
mineralisation at its Djuragruvan project in the Bergslagen district of
south-central Sweden

Three holes were drilled to target down-dip and along the strike extensions to
zinc-lead-silver mineralisation at the Gruvberget open-pit where, in 1989, a
small, privately-managed mining campaign produced 40,000t of custom-milling ore
grading 7% zinc-lead and 90g/t silver from a 30m deep open-pit. No significant
mineralisation was intersected.

A programme of trenching will take place in November to test an area to the
south of Gruvberget where Tertiary discovered a field of zinc and silver rich
boulders in an earlier exploration campaign.

Other Base-Metal Projects

No work was carried out on the Company's IOCG projects this last quarter.

A programme of trenching will start in two weeks time on the Vehkavaara
copper-gold project to investigate the source of base-of-till copper anomalies.

Further drilling is also planned for the winter of 2004/5 on the Ahmavuoma
copper-gold-cobalt project to follow up encouraging grades of mineralisation
intersected during the last drill programme.

TANTALUM PROJECTS

During the quarter the Company's Chairman attended the annual Tantalum & Niobium
International Study Centre (TIC) annual meeting.

A major focus for discussion was the current situation of the world's largest
tantalum producer Sons of Gwalia now in Voluntary Administration following its
failure to re-negotiate the terms of its gold division hedge commitments. The
possibility that there may be a change in control of the majority of the world's
tantalum production has thrown the spotlight onto alternative sources of supply
for tantalum, including the Company's world-class Ghurayyah tantalum project.

Ghurayyah - Tantalum
Saudi Arabia - Tertiary Minerals 100%

The long-awaited revision of the Mining Law in Saudi Arabia has now passed
through the Legislative Council and received Royal Assent. The purpose of the
new law is to update the Mining Code & Regulations in Saudi Arabia in line with
international best-practice and thereby make exploration in Saudi Arabia more
attractive to foreign investment.

The changes will simplify the retention of the Ghurayyah project and reduce the
Company's holding costs in Saudi Arabia.

During the Quarter the Company commissioned St. Barbara Consulting, to prepare a
proposal and obtain quotes for the metallurgical testwork component of the
Preliminary Feasibility Study.

Patrick Cheetham
Executive Chairman

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]

Maps illustrating some of the features referred to in this report can be found
on the Company's website www.tertiaryminerals.com



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