May 04, 2005

QUARTERLY UPDATE TO 31 MARCH 2005

• Directors Elect To Issue An Additional 10,000,000 Sunrise Shares
• Drill Testing Of New Targets At Notträsk Nickel Project Scheduled For Next Month
• Pre-Feasibility Planning Progressing At Ghurayyah Tantalum Project

AIM-listed Tertiary Minerals plc says the directors of its Sunrise Diamonds subsidiary have elected to utilise the over-subscription facility included in the recent Sunrise offer of up to 30,000,000 new shares at 1p each, which closed over-subscribed, to and issue an additional 10,000,000 ordinary Sunrise shares. As a result, there will now be 60,000,000 ordinary Sunrise shares in issue, of which Tertiary holds 20,000,000. Shareholders will be informed of their Sunrise allocations by May 5.

In its end-March quarterly, Tertiary says the Sunrise offer was structured to offer Tertiary shareholders a more direct and entry-level participation in the company’s diamond exploration assets in Finland and is consistent with the company’s stated objective to build on the value inherent in the company to the benefit of its shareholders.

Sunrise now holds the rights to the diamond interests in Finland previously held by Tertiary, including three kimberlites discovered last year in a previously unknown cluster (the Kuusamo cluster) and an exciting portfolio of 45 untested kimberlite targets in the same general area of the Karelian Craton of central Finland.

The primary objective of the Sunrise offer was to raise funds to meet the cost of listing the company’s shares on AIM. The company previously indicated it also intended to carry out further fund raising after the offer closed and prior to AIM listing in order to support the company’s planned diamond exploration programme in Finland. Sunrise has appointed Ruegg & Co as its nominated adviser (Nomad) and WH Ireland will be its broker.

Turning to its own exploration projects, Tertiary says that focus at its Notträsk nickel project in Sweden has switched from the Marginal zone of the intrusive to the Central zone following additional work in conjunction with its consultant Professor Anthony Naldrett of the University of Toronto, an internationally acknowledged authority on nickel sulphide mineralisation.

A transient electromagnetic (TEM) geophysical survey across the Central zone has confirmed nine, closely-spaced, near-surface conductors and one deeper conductor. These are interpreted to indicate massive sulphide mineralisation, states Tertiary. The near-surface conductors are located in three distinct horizons within a strike length of 750m, and an additional zone of low-resistivity extends for a further 3km. Drill testing of these targets is scheduled for mid-June.

Tertiary has previously identified massive sulphides in the Marginal zone at Notträsk, but these were found to be of low nickel tenor. Subsequent work with Professor Naldrett has highlighted the Central zone as having the potential to host higher-tenor nickel mineralisation.

The Notträsk intrusion is interpreted to lie in the north-west extension of Finland’s Kotalahti nickel belt, says Tertiary executive chairman, Mr Patrick Cheetham. “ This belt hosts numerous past and current producing nickel mines, and we consider that the targets defined in the recent survey represent an exciting opportunity to advance Tertiary’s main nickel-copper project at a time when the market for these commodities is particularly strong.”

KAARESSELKÄ HIGH-GRADE GOLD MINERALISATION EXTENDED AT DEPTH

Commenting on its Kaaresselkä gold project in Finland, Tertiary says it is encouraged by the results of the second phase drilling programme, particularly the results from the Vanha prospect which confirmed that high-grade mineralisation continues at depth and remains open over a strike length of at least 200m. The structure hosting the Vanha mineralisation is at least 600m long and up to 60m wide, it adds.

Elsewhere, the Pitkajarvi gold project in Finland has been downgraded after drilling of a number of possible sources for the mineralised boulder trains found on surface gave disappointing results. Although drilling returned several gold anomalous intersections consistent with the mineralised boulder geology and alteration style, the size and extent of mineralisation in bedrock is considered to be limited, Tertiary states.

OUTLOOK FOR TANTALUM CONTINUES TO IMPROVE

Commenting on the outlook for tantalum, Mr Cheetham says stocks were further depleted during the quarter and the spot price for concentrates continues to improve following the resurgence in consumer spending on electronics. On the production front, the possible change of control of the world’s largest producer, Australia’s Sons of Gwalia, has turned spotlight on to alternative sources, including Tertiary’s world-class Ghurayyah project.

The company is now seeking quotes for the detailed metallurgical testwork required for the project’s preliminary feasibility study as recommended by St Barbara Consulting Services. The objective of this testwork is to optimise a commercial treatment process for the beneficiation of Ghurayyah ore.

Mr Cheetham also welcomes the revision of the Saudi Arabian Mining Law early in 2005 and says the changes are clearly aimed at making the country more attractive to foreign investment. “These changes will have a positive impact on the company’s development plans”, he adds.

COPIES OF QUARTERLY REPORT AVAILABLE ON REQUEST

Further info: Patrick Cheetham, Executive Chairman, Tertiary Minerals plc.
Tel: 01625-626203

John Greenhalgh/Ron Marshman, City of London PR Ltd.
Tel: 0207-628 5518