Kalkkinen PGM Project - Finland

Tertiary carried out reconnaissance exploration at Kalkkinen in Finland in 2004-5 which resulted in the discovery of a zone of outcropping massive sulphide mineralisation where chip sampling returned results which include 2.3% copper with 3.4 g/t palladium-platinum-gold over 0.75m and 0.3% copper with 3.2 g/t palladium-platinum-gold over 1m.

Mineralisation at Kalkkinen occurs as massive sulphides and interstitial sulphides in pyroxenite. Chalcopyrite and several small grains of gold were found associated with michenerite (a palladium-bismuth telluride) and other bismuth and lead tellurides were also identified.

Tertiary Minerals has sold its data and other intellectual property to unlisted explorer Element-46 Ltd (E46) for the Kalkkinen Platinum Group Metal (PGM) Prospect in Finland. Under its agreement with E46, E46 has granted Tertiary a 2% Net Smelter Return Royalty interest in the area of E46’s licence reservation application covering the Kalkkinen Prospect.

E46 may purchase the NSR Royalty interest and all other rights granted to the Company in exchange for US$1,000,000 at any time before commencing construction of a mine on the area of the licence reservation.

In consideration of the transfer of project data to E46, Tertiary will be issued with 200,000 ordinary shares in E46 at a deemed issue price of 12 pence per share upon the grant of the licence reservation.

E46 is a private mineral exploration and development company with projects in Norway and Finland, with a focus on PGMs and other high-tech environmental metals used in industrial applications (palladium is element number 46 on the periodic table of elements).