Interim Results

Tertiary Minerals PLC
17 May 2004


TERTIARY MINERALS PLC

INTERIM STATEMENT 2004

Chairman's Statement

I am pleased to report the Company's progress and interim results for the
six-month period to 31st March 2004.

Review of Activities

Since the publication of the last annual report in December 2003 prices of
several precious and industrial metals peaked during March 2004 and retreated in
late April 2004 as fund managers took profits following the strengthening of the
US dollar and the prospect of Chinese government curbs on industrial growth.
Despite this, stocks of most metals are at relatively low levels and the outlook
for demand remains strong. The recent fall in prices is considered to be a
healthy correction to a market that was in danger of overheating.

The Company's current exploration programme in Scandinavia has started at a
strong pace with the completion of winter drilling programmes at the Ahmavuoma
copper-cobalt-gold project in Sweden and the KaaresselkTM gold project in
Finland. Some assay results have already been reported and final results are
expected shortly. Drilling is also planned in the near future for the Gruvberget
zinc-silver-gold project in Sweden, the Company's diamond project in Finland and
later this summer on the NottrTMsk nickel project in Sweden.

In Saudi Arabia the prospects for development of the Ghurayyah tantalum project
are being enhanced by the continuing strong recovery in the tantalum market.
Spot prices have increased by over 50% since this time last year and demand is
reportedly strong from the recovering electronics industry, which accounts for
80% of tantalum use. The Company continues to work closely with specialist
merchant bank, Merchant Bridge & Co. Ltd., financial adviser to the British
Offset Office, to secure an external source of funding for further development
of the Ghurayyah project. This has included some 12 months of protracted
negotiations with a large Saudi company where agreement was anticipated, but
where negotiations have recently been terminated. The Company continues to
monitor the security situation in Saudi Arabia which has not had any adverse
affect on the Company's activities to-date.

The Company is sufficiently well funded to meet its budgeted exploration
programmes for the remainder of this year and we look forward to reporting
further progress on a regular basis.


Results

The Group loss for the period was £190,672. This loss comprises administration
costs of £138,005 and exploration costs written-off amounting to £60,132 and is
after crediting bank interest income of £7,465.

Full details of the Company's progress can be found in the various press
releases and quarterly reports published on the Company's website at
www.tertiaryminerals.com.



Patrick L Cheetham 17 May 2004
Executive Chairman

Consolidated Profit and Loss Account
for the six months to 31 March 2004



                       Six months to         Six months to         Twelve months
                       31 March 2004         31 March 2003       to 30 September
                           Unaudited             Unaudited                  2003
                                   £                   £                     £
                            ----------          ----------             ---------

Administrative
expenses                    (138,005)           (113,895)             (225,577)

Exploration
costs written
off                          (60,132)            (24,558)             (179,452)
                            ----------          ----------             ---------

Operating loss              (198,137)           (138,453)             (405,029)

Interest
receivable                     7,465               4,368                 7,992
                            ----------          ----------             ---------

Loss on
ordinary
activities                  (190,672)           (134,085)             (397,037)
before taxation

Taxation                           -                   -                     -
                            ----------          ----------             ---------

Loss for the
financial
period (note
2)                          (190,672)           (134,085)             (397,037)
                            ----------          ----------             ---------

Loss per share
- basic
(pence)                         (0.5)               (0.5)                 (1.3)
                            ----------          ----------             ---------


All the above amounts are derived from continuing activities


Consolidated Statement of Total
Recognised Gains and Losses
for the six months to 31 March 2004

                      Six months to        Six months to           Twelve months
                      31 March 2004        31 March 2003         to 30 September
                        Unaudited            Unaudited
                                                                          2003
                                £                    £                       £
                         ----------           ----------               ---------


Loss for the
financial year           (190,672)            (134,085)               (397,037)

Foreign
exchange
translation
differences on
foreign
currency net
investments in
subsidiaries              (26,289)              27,701                  48,483
                         ----------           ----------               ---------

Total
recognised
losses since
last accounts            (216,961)            (106,384)               (348,554)
                         ----------           ----------               ---------

Consolidated Balance Sheet
as at 31 March 2004

                            As at 31 March     As at 31 March             As at
                                      2004               2003      30 September
                                 Unaudited         Unaudited               2003
                                        £                 £                 £
                                 ----------        ----------         ---------


Fixed assets

Intangible Assets               1,314,661         1,200,367         1,180,396

Tangible Assets                     5,691             6,704             3,879
                                 ----------        ----------         ---------

                                1,320,352         1,207,071         1,184,275

Current assets
Debtors                            35,230            67,697            28,392
Cash at bank and in hand          971,212           200,305           227,505
                                 ----------        ----------         ---------

                                1,006,442           268,002           255,897
                                 ----------        ----------         ---------

Creditors: amounts falling        144,747            65,582            37,851
due within one year
                                 ----------        ----------         ---------

Net current assets                861,695           202,420           218,046
                                 ----------        ----------         ---------
                                 ----------        ----------         ---------
Total assets less current       2,182,047         1,409,491         1,402,321
liabilities
                                 ----------        ----------         ---------

Capital and reserves

Called up share capital           404,210           284,210           315,460

Share premium                   2,961,665         1,849,978         2,053,728

Merger reserve                    131,096           131,096           131,096

Profit and loss account        (1,314,924)         (855,793)       (1,097,963)
                                 ----------        ----------         ---------

Shareholders' funds             2,182,047         1,409,491         1,402,321
                                 ----------        ----------         ---------

Consolidated Cash Flow Statement
for the six months to 31 March 2004


                            Six months to      Six months to       Twelve months
                            31 March 2004      31 March 2003     to 30 September
                                Unaudited          Unaudited               2003
                                      £                  £                  £
                               ----------         ----------          ---------


Net cash
outflow from
operating
activities
(note 3)                        (49,142)          (165,016)          (272,464)

Return on
investments
and servicing
of finance                        7,465              4,368              7,994

Capital
expenditure
and financial
investment                     (210,546)          (123,507)          (231,072)

Acquisition and disposals             -                  -                  -
                               ----------         ----------          ---------

Net cash
outflow before
financing                      (252,223)          (284,155)          (495,542)

Financing                       995,930             90,700            329,287
                               ----------         ----------          ---------

Increase/(Decr
ease) in cash
in the period
(note 4)                        743,707           (193,455)          (166,255)
                               ----------         ----------          ---------



Notes to the Interim Statement

1. Basis of preparation
The interim report has been prepared on the basis of the accounting policies set
out in the Company's financial statements for the period ended 30 September
2003. The financial information set out in this statement relating to the period
ended 30 September 2003 does not constitute statutory accounts for that period.
Full audited accounts in respect of that financial period (which received an
unqualified audit opinion and did not contain a statement under Section 237(2)
or (3) of the Companies Act 1985) have been delivered to the Registrar of
Companies.

The Directors are satisfied that the Group has adequate resources to continue to
operate for the foreseeable future. For this reason they continue to adopt the
'going concern' basis for preparing the accounts. The interim report has been
approved by the Directors and is unaudited.

Comparative figures for the six months ended 31 March 2003 are extracts from the
interim report for that period and are also unaudited.



2. Loss per share
Loss per share has been calculated on the attributable loss for the period and
the weighted average number of shares in issue during the period.

                      Six months to          Six months to         Twelve months
                      31 March 2004          31 March 2003       to 30 September
                          Unaudited              Unaudited                  2003
                          ---------              ---------              --------

Loss for the
period (£)               (190,672)              (134,085)             (397,037)

Weighted
average shares
in issue                35,796,093             28,253,871            29,639,565
Basic loss per
share (pence)                (0.5)                  (0.5)                 (1.3)
                          ---------              ---------              --------

The loss attributable to ordinary shareholders and the weighted average number
of ordinary shares used for the purpose of calculating diluted earnings per
share, are identical to those used to calculate the basic earnings per ordinary
share. This is because the exercise of share warrants would have the effect of
reducing the loss per ordinary share and is therefore not dilutive under the
terms of FRS 14.

3. Reconciliation of operating loss to net cash outflow from operating
activities

                        Six months to        Six months to         Twelve months
                        31 March 2004        31 March 2003       to 30 September 
                            Unaudited            Unaudited                  2003
                                  £                    £                     £
                            ---------            ---------              --------

Operating loss             (198,137)            (138,453)             (405,029)

Depreciation
charge                        2,353                2,976                 5,802
Intangible
fixed assets
written off                  46,585               16,427               161,157
(Increase)/Dec
rease in
debtors                      (6,838)                  75                39,378
Increase/(Decr
ease) in
creditors                   106,895              (46,041)              (73,772)
                            ---------            ---------              --------

Net cash
outflow from
operating
activities                  (49,142)            (165,016)             (272,464)
                            ---------            ---------              --------

4.       Reconciliation of net cash outflow to movement in net funds

                         Six months to         Six months to    Twelve months to
                         31 March 2004         31 March 2003     to 30 September
                             Unaudited             Unaudited                2003
                                   £                     £                   £
                            ----------            ----------           ---------

Increase/(Decr
ease) in net                 743,707              (193,455)           (166,255)
cash in the period
Opening net
funds                        227,505               393,760             393,760
                            ----------            ----------           ---------

Closing net
funds                        971,212               200,305             227,505
                            ----------            ----------           ---------

5.       Interim report

Copies of this interim report will be sent to all shareholders and are available
from Tertiary Minerals plc, Sunrise House, Hulley Road, Macclesfield, Cheshire,
SK10 2LP, United Kingdom.




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