Quarterly Report

Tertiary Minerals PLC
29 January 2001


                            TERTIARY MINERALS PLC

                               QUARTERLY REPORT

                          ON EXPLORATION ACTIVITIES

                    FOR THE PERIOD ENDED 31 DECEMBER 2000

_____________________________________________


 HIGHLIGHTS


FINNMARK (Norway)

(NEW PROJECT ) 167 Pre-Claim applications made over 9 separate targets for
platinum group metals ('PGM's') in mineralised ultramafic intrusions in the
Karasjok greenstone belt. PGM's dominated by high value palladium.


JUNIPER RIDGE (Sweden)

Drill testing of combined MMI and surface till geochemical targets at Enasen
discovers bedrock mineralisation with wide intersections of anomalous gold at
bedrock surface.


DJURAGRUVAN (Sweden)

Analyses of 18 mineralised boulders from 3km long boulder train strike length
average 10.6% zinc, 3.9% lead 0.3% copper. Ground geophysics is planned to
define bedrock target for drill testing.


VIITANIEMI (Finland)

Nine drill holes completed to test tantalum content of the Viitaniemi
pegmatite with assays up to 1,065 ppm Ta2O5 and a best drill intersection of
9.3m grading 299ppm Ta2O5.


INTRODUCTION

This report gives details of exploration work carried out and results received
during the quarter ended 31 December 2001 and up to the date of this report.

The Company's exploration strategy is to generate new projects at low cost,
and to advance these quickly and cost effectively to the drilling stage such
that the Company always has a number of projects at or close to the drilling
stage and thus the opportunity for discovery of commercial ore-bodies.

In line with this policy the Company maintained a high level of exploration
activity during the quarter with drill programmes carried out on 3 projects,
new projects being acquired and others being advanced towards the drilling
stage.



PLATINUM GROUP METAL ('PGM') & NICKEL-COPPER PROJECTS

* NEW PROJECT - FINNMARK, NORWAY - Tertiary Minerals 100%

The Company has applied for 167 Pre-Claims (the Norwegian equivalent of an
exploration permit) in the northern part of the Karasjok greenstone belt of
Finnmark in Northern Norway. Despite a high northern latitude, all of the
Company's Pre-Claims are located in areas of established infrastructure, the
majority close to the coastal town of Lakselv, which is served by a public
airport.

In the Karasjok greenstone belt platinum group metal ('PGM') mineralisation is
known to exist in a number of zoned mafic-ultramafic intrusions. PGM
mineralisation is characterised by a high palladium to platinum ratio (up to
3:1) and is found disseminated in pyroxenite zones in association with weak
copper and nickel mineralisation.

In the past, exploration of these intrusions has been a low priority as the
then prevailing price of palladium was significantly lower than today. With
current higher palladium prices these intrusions are attractive exploration
targets.

The Company's Pre-Claims are in 9 separate groups totalling 41.75 sq. km. All
Pre-Claim blocks cover areas of prospective pyroxenite, some of which area
already known to contain PGM mineralisation.

Whilst many of the intrusions within the Company's Pre-Claims do not appear to
have been previously explored, the potential of the Company's holdings is
demonstrated by its Pre-Claims over the 5km long Gallujavrri intrusion where
low-grade nickel-copper mineralisation was encountered in exploration drilling
some 20 years ago. At that time low levels of PGM's, of potential interest
today, could not be reliably detected and were not routinely assayed. However,
more recent reconnaissance sampling by the Norwegian Geological Survey has
identified potentially widespread PGM mineralisation at Gallujavrri in
sulphide minerals separated from outcropping samples of pyroxenite.

Of the 167 Pre-Claim applications made by the Company 12 cover existing
Pre-Claims held by another party. Norwegian Mining law allows Pre-Claims to be
granted one on top of another to establish successor rights in the event
underlying Pre-Claims are withdrawn or expire. 54 of the Company's other
Pre-Claims occur within Norwegian military training areas and the extent to
which this will affect exploration activities has yet to be established.

The Company's claim applications over the Gallujavrri intrusion are not
affected by existing Pre-Claims nor the Norwegian military area.

KUKKOLA PROJECT (Sweden) - Tertiary Minerals 100%

The Company has recently completed a 140m deep diamond hole to test a
geophysical anomaly associated with the Kukkola layered mafic-ultramafic
complex for PGM's, nickel and copper.

The hole failed to intersect any features that readily explain the geophysical
anomaly. Additional geophysical investigations will be made to decide if
further drilling is warranted.

LAKE HILL PROJECT (Sweden) - Tertiary Minerals 100%

Previous work by the Company has identified a geophysical anomaly comprising a
coincident magnetic and electromagnetic anomaly associated with the margin of
a large gabbroic intrusion in the Company's Lake Hill exploration permit.

Interpretation of this anomaly has been carried out by Geovista AB on behalf
of the Company and a ground geophysical survey is planned to position and
evaluate the anomaly for drill testing.

* NEW PROJECT - ANNEHILL (Sweden) - Tertiary Minerals 100%

The Company has applied for an exploration permit at Annehill in south-central
Sweden to cover an area considered prospective for nickel copper and PGM's.

Nickel mineralisation is found in old mine workings, in fault zones and in
breccias associated with intrusive gabbro.

A preliminary prospecting and sampling programme has been carried out. Assays
of grab samples indicated anomalous PGM contents.



BASE-METAL PROJECTS

DJURAGRUVAN PROJECT (Sweden) - Tertiary Minerals 100%

During the quarter the Company received the results of assays carried out on
18 boulders from the recently discovered 3km long boulder train. These
boulders average grades of 10.6% zinc, 3.9% lead and 0.3% copper. Many of
these boulders are large, over 2m across, suggesting a local source.

Geophysical testing of boulder samples indicates strong electro-magnetic
properties that should be detectable by conventional geophysics. A subsequent
review of airborne geophysical data for the project area has already
identified a target that could be due to a body of mineralisation with similar
properties. A ground geophysical programme is planned to further evaluate this
and to define drill targets within the possible source area of the mineralised
boulders.


WINDFALL PROJECT (Sweden) - Tertiary Minerals 75% - 100%

The planned drilling programme has been delayed by unexpectedly mild weather
that has prevented the onset of the freezing conditions necessary to allow
drill rig access over swampy ground. Further drilling is now scheduled for
February.


MMI Geochemical Sampling

Infill sampling of MMI geochemical anomalies has been completed and results
received. Results confirm the two strongest anomalies from earlier sampling
but further analysis suggests these strong anomalies reflect dispersion from
known mineralisation.

However, other anomalies along strike from known mineralisation have also been
confirmed by infill sampling and indicate extensions to existing
mineralisation and potential for new zones of mineralisation. These anomalies
will be tested as a part of the forthcoming drilling programme.



TANTLALUM PROJECTS

VIITANIEMI (Finland) - Tertiary Minerals 100%

During December 2000 nine shallow diamond drill holes were completed as a
preliminary test of the tantalum and caesium content of the Viitaniemi
pegmatite.

All but one of the nine holes intersected pegmatite and preliminary
interpretation of drilling results suggests two separate bodies rather than
the one. Pegmatite drill intersections were sampled at approximately 1m
intervals for assay.

Samples from the Main pegmatite body contained tantalum values in the range
35-1,065 ppm, averaging 171 ppm tantalum oxide (Ta2O5).

Samples from the smaller N-E pegmatite body contained lower tantalum values in
the range 15-125 ppm Ta2O5, averaging 45 ppm Ta2O5.

The best pegmatite intersection was 9.3m (down hole length) grading 299ppm
Ta2O5 from 16.55m in hole DH7 in the Main pegmatite body. All pegmatite
intersections are tabled below. Ceasium was not found at significant levels.

Drilling suggests that the main body is flat lying and that it pinches and
swells in thickness. Drilling has tested the Main pegmatite on one N-S
traverse over a 200m strike length. It is open to the south, possibly open to
the north and its east and west extent has not yet been determined.

This drilling programme was carried out for the Company by the Geological
Survey of Finland and a detailed interpretation report is awaited.


Drill Hole      Coordinate Coordinate From       To         Intersection Grade
Number
                N          E          (Down      (Down      (Down Hole)* Ta205
                                      Hole)      Hole)
N.E.Pegmatite
DHI             6 830 919  2 535 953  41.25m     43.00m     1.75m        24 ppm
DH3             6 830 884  2 536 022  38.70m     39.75m     3.05m        70 ppm
DH4             6 830 920  2 536 996  16.80m     17.60m     10.80m       42 ppm
Main Pegmatite*
DH5             6 830 825  2 535 776  9.60m      14.35m     4.75m        89 ppm
DH6             6 830 782  2 535 761  16.50m     22.35m     5.85m        178ppm
DH7             6 830 728  2 535 748  16.55m     25.85m     9.30m        299ppm
DH8             6 830 683  2 535 733  18.00m     23.5m      5.50m        84 ppm
DH9             6 830 626  2 535 732  32.75m     34.95m     2.20m        85 ppm

* All holes drilled vertical and intersected thickness for Main pegmatite
approximate true thickness.

True thickness for N.E Pegmatite unknown



GOLD PROJECTS

JUNIPER RIDGE PROJECT (Sweden) - Tertiary Minerals 100%

Enasen

This target is adjacent to the closed Enasen mine in central Sweden from which
Boliden extracted 1.7m tonnes of gold-copper ore between 1984 and 1991.

Two drill holes were completed in December 2000, approximately 100m apart
along geological strike, to test a strong coincident gold and copper anomaly
in surface till and MMI soil samples. All drill-core was split at 1m intervals
and composited into 4m samples for assay.

Composite assays indicate broad intersections of strongly anomalous
gold-copper mineralisation as follows :


Hole Number Drill Hole        Gold          Copper        From       To

            Intersection      Grade (ppm)   Grade ppm     (m)        (m)
            (down hole width)
00ED 101    16.0m             0.31 ppm      904 ppm       6.9m       22.9m
Including   4.0m              0.50 ppm      423 ppm       6.9m       10.9m

00ED 102    37.0m             0.14 ppm      727 ppm       15.7m      47.7m

The gold mineralisation intersected in hole 00ED101 occurs immediately below
the till, at the bedrock surface.

It is considered that these anomalous values are not sufficient to explain the
high values of gold in surface till and that further drilling is warranted to
determine if higher gold grades are present.

Grundviksberget

A programme of follow-up geochemical till sampling was completed during the
quarter to better define gold and arsenic till geochemical anomalies generated
during an earlier sampling programme.

The programme confirmed the original anomaly, albeit at lower levels, and a
programme of bedrock sampling is proposed for later in the year.

BOLIDEN EAST PROJECT (Sweden) - Tertiary Minerals 100%

Results have been received for a geochemical till sampling programme carried
out last quarter to investigate a target to the east of the Boliden mine
which, up to 1965, produced 4 million ounces of gold.

A total of 56 till samples and 19 MMI samples were taken. Results are
currently being interpreted.



Patrick L Cheetham          29 January 2001

Executive Chairman