Drilling Report

Tertiary Minerals PLC
01 June 2004


                             TERTIARY MINERALS PLC

                            www.tertiaryminerals.com

1 June 2004

                  TERTIARY'S WINTER DRILLING CONFIRMS PRESENCE

                    OF SIGNIFICANT IOCG SYSTEM AT AHMAVUOMA


   • Encouraging Copper, Gold And Cobalt Values Intersected In Discovery Zone

   • Down-Hole Survey Suggests Deeper Location For Northwest Zone Conductor

Tertiary Minerals plc is pleased to report that its winter/spring 2004 drilling
programme at Ahmavuoma project in the Norbotten district of Northern Sweden has
confirmed the existence of a significant IOCG (iron-oxide copper gold)
mineralised system. IOCG style mineralisation encompasses some of the largest
copper deposits in the world.
In the Discovery Zone the best results include 5m, grading 1.37% copper and 0.3g
/t gold in hole 04AH003 and 18.05m grading 0.4% cobalt and 0.15% copper in hole
04AH001. Both of these intersections occur in a broader zone of lower grade
copper mineralisation with a width between 33-68m and grading between 0.25-0.40%
copper.

The winter drilling programme was originally designed to include 7-10 diamond
drill holes to test electrical conductors and for mineralisation in the
Discovery, Central and Northwest Zones (see release 29/1/04). However, due to
the slow drill penetration rates (necessary for good core recovery), only 5
holes could be completed before the spring thaw as access depends on a good snow
and ice layer for drill rig movement across marshy ground.

Discovery Zone

Three drill holes 04AH001-3 were completed at 50m intervals along the strike of
the Discovery Zone from south to north. The results are shown in the table
below. Hole 04AH001 was drilled in the centre of a weak electrical conductor
whilst the most northerly hole 04AH003 was drilled on its extreme north end.

Hole 04AH001 intersected a 57m thick zone of sulphide mineralisation dominated
by the iron sulphide mineral pyrite, with an 18m thick zone of semi-massive
pyrite at its centre containing very high levels of cobalt.

Hole 04AH002 encountered a similar thickness of sulphide mineralisation with a
lower percentage of iron sulphides but similar copper levels to 04AH001.
Hole 04AH003 intersected lower levels again of iron sulphide mineralisation,
consistent with the end of the electrical anomaly, but significantly, this hole
contained a higher percentage of copper sulphide minerals and, correspondingly,
the highest copper grades.

The results of the drilling on the Discovery Zone indicate that :

   • the intensity of copper mineralisation is not directly related to the
    electromagnetic anomaly and is more widespread;

   • the weak electromagnetic anomaly defines a zone of massive iron-sulphide
    mineralisation of limited strike length containing high levels of cobalt;
    and

   • copper mineralisation remains open in all directions.

Core logging indicates that the copper mineralisation in the Discovery zone has
features consistent with the IOCG style of mineralisation. In IOCG deposits it
is commonly the case that the highest copper grades are not always directly
associated with the highest concentrations of sulphide minerals.

Central Zone.

The Central Zone is a 1km long coincident magnetic and electromagnetic anomaly
and was tested by hole 04AH004 at its southern end, where base-of-till samples
were anomalous in copper.

This 192m long drill hole intersected altered and pervasively fractured volcanic
rocks with abundant magnetite (an iron-oxide mineral) veining and magnetite
breccias throughout. Massive magnetite occurs in two intervals: a 2 meter wide
section between 46 - 48 meters and a second, 7 meter wide section between 106 -
113 meters.

Magnetite can be electrically conductive in certain circumstances and it is
considered that the target electrical conductor is explained by the massive
magnetite. Only limited sulphide mineralisation is present in this hole and no
significant assays were returned.
Weather constraints did not permit the drilling of the second planned hole in
the Central Zone to test a possible demagnetised zone further to the north along
the axis of the electrical conductor where magnetite may have been replaced by
more prospective sulphide mineralisation.

Northwest Zone

The Northwest Zone comprises a 2 km long electrical conductor with a weak
magnetic signature.

Hole 04AH005 was drilled to test the conductor at its southern end in a zone of
possible enhanced dilation prospective for sulphide mineralisation. The hole
intersected a broad zone of IOCG style rock alteration but nothing that would
explain the electrical conductor. A follow up down-hole electromagetic survey
suggests that the target conductor was not tested by the hole and lies some 10's
of meters below the drill string and could be tested by a new hole wedged off
the existing drill hole.

A second hole, which planned to test the Northwest Zone further to the north at
its point of maximum conductance, was not drilled due to the weather constraints
and will now be included in a further programme of drilling to be carried out
next winter.

(table follows)

DISCOVERY ZONE DRILL INTERSECTIONS
MAY 2004

                                           Down Hole
                  From           To        Intersection    Cu     Co     Au
                  m              m         m                  %      %   g/t

Hole   04AD001           32.95     89.90           56.95   0.26   0.19   0.07
       Inc.              33.75     43.50            9.75   0.50   0.09   0.06
       and               46.75     55.00            8.25   0.43   0.13   0.09
       and               56.80     74.85           18.05   0.15   0.40   0.08
       and               82.15     89.90            7.75   0.34   0.12   0.05
                  End of Hole      162.6

Hole   04AD002           47.40    115.60           68.20   0.25   0.02   0.06
       Inc.              50.40     71.65           21.25   0.50   0.03   0.18
       Inc.              54.25     54.90            0.65   2.00   0.07   0.35
                         58.95     59.70            0.75   1.03   0.13   0.09
                         65.30     65.70            0.40   1.44   0.01   2.88
                  End of Hole      166.3

Hole   04AD003           32.35     65.35           33.00   0.40   0.02   0.09
                         35.75     36.35             0.6   1.16   0.00   0.01
                         44.65     49.75            5.10   1.37   0.06   0.30
                         63.15     65.35             2.2   0.77   0.00   0.28
                         75.15      75.7            0.55   1.53   0.01   0.38
                         115.7    117.35            1.65   0.87   0.00   0.34
                  End of Hole     143.15


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