January 27, 2004

TERTIARY ADDS KARELIAN CRATON DIAMOND TARGET TO FINNISH EXPLORATION PORTFOLIO

• Previous Operator Intersected Kimberlite In Shallow Drilling
• Re-interpretation Of Results Shows Main Magnetic Anomaly Not Tested
• Company Plans To Better Define Kimberlite Pipe-Like Target Before Drilling

AIM-listed Tertiary Minerals plc says it has added diamond exploration to its project portfolio in Finland after becoming aware of a kimberlite target during its ongoing programme to generate new gold exploration projects. Whilst initial testing of this new target in an undisclosed locality in Finland can be carried out quickly and at low cost, Tertiary comments that its main focus in the region remains the drilling of its gold, gold-copper and nickel projects in Finland and Sweden.

The new target was originally discovered by a previous diamond explorer who encountered kimberlite over intervals of 9m and 19m in two shallow, closely spaced holes drilled to test an airborne magnetic anomaly. The kimberlite was then considered to be a small dyke-like occurrence and deemed to be of no further interest.

Executive chairman Mr Patrick Cheetham says: “We were reviewing exploration data as part of our gold target generation programme when we came across this opportunity that was just too exciting to ignore. The company which previously owned the area looked at nearly 100 anomalies in Finland but this is the only one where kimberlite was reportedly found.”

Tertiary has now re-interpreted the airborne geophysical data and concluded that the previously drilled holes may have been located off target. Even though they intersected kimberlite, the company believes the holes are unlikely to have tested the main magnetic anomaly whose expression is consistent with a kimberlite pipe.

A ground magnetic survey is now planned to confirm Tertiary’s interpretation and better define the pipe-like target and the kimberlite dyke prior to drill testing in the June 2004 quarter.

The new project lies within the Karelian Craton, a block of ancient crustal rocks which dominates Finland’s geological make up. The Karelian Craton is considered to exhibit all the characteristics necessary to host and preserve diamondiferous kimberlites and extends across the border into Russia where its hosts the world-class Arkhangelsk diamond deposits (www.gsf.fi/explor/eco_diamond_frame.htm).

In Finland, that part of the Karelian Craton which is diamond prospective extends over an area similar in size to the Slave Craton in Canada. Separate diamondiferous kimberlite clusters are being evaluated elsewhere in Finland by AIM-traded European Diamonds and Canadian-listed Poplar Resources.

Further info: Patrick Cheetham, Executive Chairman, Tertiary Minerals plc. Tel: 01625-626203
Ron Marshman/John Greenhalgh, City of London PR Limited. Tel: 020-7628-5518