MAY 8, 2001

TERTIARY GAINS CONTROL OF HIGH POTENTIAL PALLADIUM-PLATINUM AREAS IN FINNMARK, NORTHERN NORWAY

	· Agreement Wraps Up Key Ultramafic Intrusions · Porsvann Shows Broad Mineralised Zone Including 43m Of 1.2g/t Pd+Pt · Surface Grab Samples Up To 15g/t Pd+Pt Over Wide Area At Karenhaugen · Known Mineralisation Characterised By High Palladium : Platinum Ratio
Click map for detail view of area

AIM-listed Tertiary Minerals Plc has reached agreement with the Finnmark County Council to acquire 12 pre-claims (the Norwegian equivalent of exploration permits) in two blocks which cover the Porsvann and Karenhaugen platinum group metals (PGM) prospects in the Porsanger district of Finnmark in northern Norway. The company has built up land holdings in the surrounding area which contain PGM prospective ultramafic intrusions.

Tertiary's chairman, Mr Patrick Cheetham, commented: "This is an exciting acquisition for the company. The two prospects have high potential and were previously drilled by the Norwegian Geological Survey (NGU) in the early 1990s. Broad zones of palladium-platinum were encountered but as the mineralisation is characterised by a high (up to 3:1) palladium (Pd) to platinum (Pt) ratio they were given relatively low exploration priority because PGM prices then, particularly palladium, were a fraction of what they are today."

Mr Cheetham added: "The drilling results at Porsvann and Karenhaugen, where significant PGM mineralisation has been encountered in every hole assayed, highlight the potential of the several other ultramafic intrusions which occur within the company's pre-claims, none of which have been evaluated for their PGM potential."

MINERALISED INTERSECTIONS OF 43M-93M AT PORSVANN

At the Porsvann prospect, the NGU drilling outlined a broad zone of low-grade palladium-platinum mineralisation with a best intersection of 43m grading 1.2g/t combined Pd+Pt from a downhole depth of 67m. This included a 15.2m section which averaged 2.1g/t.

In three of the four holes drilled, the entire thickness of the assayed sections contain significant levels of PGMs, including 67m averaging 0.9g/t Pd+Pt and 93m grading 0.7g/t Pd+Pt. Drilling to date has tested the mineralised zone over a strike length of only 100m but the mineralisation remains open in all directions.

Some 9km to the east of Porsvann, the NGU completed 12 holes on the Karenhaugen prospect over a strike length of just 150m. Only five of these holes appear to have been assayed for PGMs and all returned PGM values, although the intersections to date have been narrower that at Porsvann. They include 5.1m grading 1.2g/t Pd+Pt from 30.9m, 5.6m of 1.1g/t from 6.1m, and 7m of 1.2g/t from 36m (including 1.1m which averaged 3.6g/t). However, surface grab samples are anomalous throughout the 350m by 100m area sampled, returning values of up to 15g/t Pd+Pt.

Since the end of December 2000, Tertiary has been gradually accumulating a significant landholding in the Porsanger district. In its most recent quarterly report the company announced that it had been granted 179 pre-claims in ten blocks. Two of these blocks overlap and surround the pre-claims held by Finnmark County Council which will be surrendered to give first priority to the company's pre-claims.

NICKEL-COPPER PROSPECT YIELDS PGM MINERALISATION AT SURFACE

Other targets include the 5km long Gallujavrri intrusion in which low-grade nickel-copper mineralisation was drilled some 20 years ago. Grab samples collected from surface outcrops by the NGU have assayed up to 0.5g/t Pd+Pt.

The pre-claims are all located in areas of established infrastructure. Porsvann and Karenhaugen lie within 10km of the coastal town of Lakselv whilst other pre-claim blocks occur within 6km of the main road between Lakselv and Karasjok.

The purchase agreement with the Finnmark County Council requires Tertiary to pay 180,000 Norwegian Krona (approx £14,000) and a net smelter returns royalty of 1.25p.c. on any production from the 45 pre-claims (Blocks A and B) that cover and surround the Porsvann and Karenahugen prospects.

Further Information:

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

Ron Marshman or Ken Gooding, City of London PR, Tel: 020-7628-5518