Final Results

Tertiary Minerals PLC
09 December 2004


                             Tertiary Minerals plc

                  Announcement of audited Financial statements 
                      for the year ended 30 September 2004

Chairman's Statement

During 2004 the Company achieved solid progress and reported exciting
exploration results for gold, copper and diamonds, whilst the potential of
Ghurayyah as a new world-class source of tantalum was enhanced by the recovery
in the tantalum market.

Gold
Three separate zones of gold mineralisation within a one square kilometre area
have been confirmed by initial drilling at the Kaaresselka project in northern
Finland, acquired late last year. The results included a number of high-grade
and near-surface intersections, and a follow up drilling programme is now in
progress. This is focused on high-grade mineralisation in the Vanha zone, and
results are eagerly awaited.

More recently, the Company's gold portfolio was boosted by the acquisition of
the Pitkajarvi gold project in west-central Finland where high-grade
mineralisation is present in surface boulders containing visible gold. We have
moved quickly to carry out a programme of geophysics to trace the source of
these boulders and expect to drill-test bedrock targets shortly.

Copper
Drilling of a large iron oxide-related copper-cobalt-gold mineralised system at
Ahmavuoma in northern Sweden returned positive results, including an extension
of mineralisation in the Discovery Zone. The programme was curtailed by an early
Spring thaw, which meant we were unable to drill other larger targets on the
property. These targets will be investigated when drilling resumes this Winter,
once the swampy ground has frozen and access is re-established.

Diamonds
Perhaps the most exciting development this year has been the success of our
diamond exploration initiative near Kuusamo in the Karelian craton of northern
Finland. In Spring, a speculative drill hole to test a possible kimberlite
resulted in the discovery of two separate kimberlites on the Kalettomanpuro
prospect. Subsequent testing of a magnetic anomaly at Kattaisenvaara, 20km away,
resulted in the discovery of a third kimberlite.

Analysis of small samples of the kimberlites did not yield any diamonds, but 
independent geological investigations on these new discoveries have confirmed
that the geological conditions at Kuusamo are ideal for the occurrence of
diamondiferous kimberlites. We are also encouraged by the possibility that there
may be a geological link between our discoveries and the Arkhangelsk kimberlites
in the Russian half of the Karelian craton that includes the Lomonosov diamond
project run by Alrosa and the highly diamondiferous Grib pipe.

In order to capitalise on these discoveries, we have carried out further
targeting work and acquired additional ground. We have now identified over fifty
targets for further investigation, and existing data strongly suggests that
more, potentially diamondiferous, kimberlites will be discovered on this ground.

Tantalum

Last year, I highlighted the potential for a significant recovery in the
tantalum market and it is pleasing to note that those 'green-shoots' have since
flourished. Inventories have been depleted, the spot price has recovered and the
market is growing once again, led by the resurgence in consumer electronics
spending. Current annual demand growth is estimated at 7-8% and may be further
enhanced by the delivery of 3G mobile phone technology.
Work planned for Ghurayyah this year was delayed by the last-minute breakdown of
negotiations with a potential joint venture partner that otherwise would have
provided funding for preliminary and bankable feasibility studies. Renewed
efforts are currently being made to secure alternative funding, and we are
hopeful of a positive outcome.

The tantalum industry was thrown into sharp focus in October 2004 by the move
into Voluntary Administration by the world's largest producer, Australia's Sons
of Gwalia group, following its failure to re-negotiate the terms of its gold
division hedge commitments. The possibility that there may be a change in
control of the majority of world tantalum production has turned the spotlight on
to alternative sources of supply, including the Company's world-class Ghurayyah
project.

Annual Results

Inevitably, for an exploration company, we remain loss-making, reporting a loss
of £861,081 for the year (2003 £397,037). This comprises interest receipts of
£20,663, administration expenses of £245,030 and £636,714 of written-off
expenditure on projects where the Board has decided that further exploration is
not a priority.

In Conclusion

2004 has been a year of mixed fortunes for mineral exploration companies. Whilst
commodity prices have gone from strength to strength to the benefit of some
producers, market sentiment towards explorers has been generally less positive.

The Company has an exciting portfolio of exploration assets, diversified by
commodity and country although our exploration successes have, in my opinion,
yet to be reflected in the Company's share price. I hope to improve this
important measure of performance during 2005 by building on this inherent value.

Patrick L. Cheetham 8 December 2004
Executive Chairman

Further Information:

Patrick Cheetham, Tertiary Minerals Plc. Tel: [phone].
Ron Marshman/John Greenhalgh, City of London PR Ltd. Tel: [phone]

Web-site: www.tertiaryminerals.com

Consolidated Profit and Loss Account
for the year ended 30 September 2004

                                                           2004          2003
                                                              £             £

Exploration costs written off                           636,714       179,452
Administrative expenses                                 245,030       225,577
                                                        ---------     ---------
Operating loss                                         (881,744)     (405,029)
Interest receivable                                      20,663         7,992
                                                        ---------     ---------
Loss on ordinary activities before taxation            (861,081)     (397,037)
Tax on profit on ordinary activities                          -             -
                                                        ---------     ---------
Loss for the financial year                            (861,081)     (397,037)
                                                        ---------     ---------
Loss per share - basic (pence)                             (2.3)         (1.3)
                                                        ---------     ---------

All amounts relate to continuing activities.

Balance sheets
for the year ended 30 September 2004

                                      Group                     Company
                                 2004         2003          2004          2003
                                    £            £             £             £
Fixed assets
Intangible assets             959,260    1,180,396             -             -
Tangible assets                 5,036        3,879             -           101
Investments                         -            -       224,889       224,889
                            -----------     --------     ---------     ---------
                              964,296    1,184,275       224,889       224,990
                            -----------     --------     ---------     ---------
Current assets
Debtors                        70,583       28,392     2,051,199     1,552,762
Cash at bank and in hand      557,666      227,505       554,239       220,863
                            -----------     --------     ---------     ---------
                              628,249      255,897     2,605,438     1,773,625
Creditors: amounts falling
due within one year            62,448       37,851        26,584        21,137
                            -----------     --------     ---------     ---------
Net current assets            565,801      218,046     2,578,854     1,752,488
                            -----------     --------     ---------     ---------
Total assets less current
liabilities                 1,530,097    1,402,321     2,803,743     1,977,478
                            -----------     --------     ---------     ---------
Capital and reserves
Called up share capital       404,210      315,460       404,210       315,460
Share premium account       2,961,665    2,053,728     2,961,665     2,053,728
Merger reserve                131,096      131,096       131,096       131,096
Profit and loss account    (1,966,874)  (1,097,963)     (693,228)     (522,806)
                            -----------     --------     ---------     ---------
Shareholders funds          1,530,097    1,402,321     2,803,743     1,977,478
                            -----------     --------     ---------     ---------

Consolidated Cash Flow Statement
for the year ended 30 September 2004
                                                               2004       2003
                                                                  £          £
Net cash outflow from operating activities                 (289,450)  (272,464)

Returns on investment and servicing of finance
Interest received                                            20,663      7,994
                                                            ---------  ---------
Net cash outflow from operating activities after returns
on investments and servicing of finance                    (268,787)  (264,470)
                                                            ---------  ---------
Capital expenditure and financial investment
Purchase of intangible fixed assets                        (397,630)  (230,933)
Purchase of tangible fixed assets                            (5,021)      (139)
Sale of tangible fixed assets                                     -          -
                                                            ---------  ---------
Net cash outflow from capital expenditure and financial
investment                                                 (402,651)  (231,072)
                                                            ---------  ---------
Financing
                                                            ---------  ---------
Issue of share capital (net of expenses)                    996,687    325,700
Exchange differences                                          4,912      3,587
                                                            ---------  ---------
Net cash inflow from financing                            1,001,599    329,287
                                                            ---------  ---------
Increase/(Decrease) in cash                                 330,161   (166,255)
                                                            ---------  ---------

Notes:

1 Publication of Non-Statutory Accounts

The financial information set out in this announcement does not constitute the
Company's Statutory Accounts for the period ended 30 September 2004 or 2003. The
financial information for 2003 is derived from the Statutory Accounts for 2003,
which have been delivered to the Registrar of Companies. The auditors have
reported on the 2003 and 2004 accounts; their reports were unqualified and did
not contain statements under section 237 of the Companies Act 1985. The
Statutory Accounts for 2004 will be delivered to the Registrar of Companies
following the Company's Annual General Meeting.

2 Accounting policies

The following accounting policies have been applied consistently in dealing with
items which are considered material in relation to the Group's financial
statements.

Basis of Preparation

The financial statements have been prepared in accordance with applicable
accounting standards and under the historical cost accounting rules.

Basis of consolidation

The Group financial statements consolidate the financial statements of Tertiary
Minerals plc and its subsidiary undertakings using the acquisition method.

In accordance with section 230 (4) of the Companies Act 1985, Tertiary Minerals
plc is exempt from the requirement to present its own profit and loss account.
The amount of the loss for the financial year recorded within the financial
statements of Tertiary Minerals plc is £170,357 (2003: £150,571) as shown in
note 15.

Depreciation

Depreciation is provided by the Group on all tangible fixed assets, at rates
calculated to write off the cost, less estimated residual value, of each asset
evenly over its expected useful life, as follows:

Fixtures and fittings 25% to 33% per annum.

Intangible assets - exploration and development

Accumulated costs incurred in relation to separate areas of interest (which may
comprise more than one exploration licence or exploration licence applications)
are capitalised and carried forward where:

(a) such costs are expected to be recouped through successful exploration and
development of the area, or alternatively by its sale; or

(b) exploration and/or evaluation activities in the area have not yet reached a
stage which permits a reasonable assessment of the existence or otherwise of
economically recoverable reserves, and active and significant operations in, or
in relation to the areas are continuing.
An annual review is carried out by the Directors to consider whether any
exploration and development costs have suffered impairment in value and if
necessary provisions are made accordingly.

Accumulated costs in respect of areas of interest, which have been abandoned,
are written off to the profit and loss account in the year in which the area is
abandoned.

Costs in respect of reconnaissance exploration (where the Group has no licences
or licence applications) are written off to the profit and loss account in the
year in which the reconnaissance exploration took place.

Exploration and development costs are carried at the lower of cost and expected
net realisable value.

The costs capitalised on specific areas of interest will be amortised over the
useful economic life of the projects, once they become income generating, and
the costs can be recouped.

Deferred taxation

Deferred taxation, if applicable, is provided in full in respect of taxation
deferred by timing differences between the treatment of certain items for
taxation and accounting purposes.
Deferred tax assets are recognised to the extent that they are regarded as
recoverable. No deferred tax asset is recognised in the financial statements.

Foreign currencies

For consolidation purposes, the assets and liabilities and the profit and loss
accounts of overseas subsidiary undertakings and associated undertakings are
translated at the closing exchange rates. Exchange differences arising on these
translations are taken to reserves, net of exchange differences arising on
related foreign currency borrowings.

Leasing and hire purchase commitments

Rentals applicable to operating leases where substantially all the benefits and
risks of ownership remain with the lessor are charged to the profit and loss
account on a straight-line basis.

3. Segmental Analysis
                           Operating          Net       Operating         Net
                                loss       Assets            loss      Assets
                                2004         2004            2003        2003
                                   £            £               £           £
United Kingdom               163,958    2,578,854         150,571   1,752,589
Overseas                     697,123   (1,048,757)        246,466    (350,268)
                            --------   ----------       ---------   ---------
                             861,081    1,530,097         397,037   1,402,321
                            --------   ----------       ---------   ---------

In the opinion of the directors, the Group's activities represent one class of
business.

A split of overseas segmental information is not considered to be meaningful by
the directors.

4. Share capital                    2004        2004          2003        2003
                                     No.           £           No.           £
Authorised
Ordinary shares of 1p each   150,000,000   1,500,000   150,000,000   1,500,000
                              ----------   ---------    ----------    --------

                             150,000,000   1,500,000   150,000,000   1,500,000
                              ----------   ---------    ----------    --------
Allotted, called up and fully paid

Ordinary shares of 1p each    40,421,093     404,210    31,546,093     315,460
                              ----------   ---------    ----------    --------

                              40,421,093     404,210    31,546,093     315,460
                              ----------   ---------    ----------    --------

During the year the following share issues took place.

A placement of 4,875,000 1 penny ordinary shares for a total consideration of
£438,750.
A placement of 4,000,000 1 penny ordinary shares for a total consideration of
£600,000.

Warrants are issued for nil consideration and are exchangeable on a one for one
basis for each ordinary share of 1 penny at the exercise price on the date of
conversion.

5. Warrants granted

Unexercised warrants    Issue dates   Exercise price    Number    Expiry Dates
                        21/05/02      20p               300,000   20/05/05

6. Reconciliation of operating loss to net cash
outflow from operating activities
                                                          2004            2003
                                                             £               £
Operating loss                                        (881,744)       (405,029)
Depreciation and loss on disposal of fixed
assets                                                   3,864           5,802
Intangible fixed assets written off                    606,024         161,157
(Increase)/Decrease in debtors                         (42,191)         39,378
Increase/(Decrease) in creditors                        24,597         (73,772)
                                                     ---------       ---------
Net cash outflow from operating activities            (289,450)       (272,464)
                                                     ---------       ---------
7. Annual Report

The Company's 2004 Annual Report will be published and sent to shareholders in
due course and copies will be available to the public, free of charge, from the
Registered Office of the Company or from Tertiary Minerals plc, Sunrise House,
Hulley Road, Macclesfield, Cheshire, SK10 2LP for at least 30 days from the date
of publication.




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