Unaudited Financial Statement

Tertiary Minerals PLC
05 December 2003


                              Tertiary Minerals plc
                 Announcement of Unaudited Financial statements
                        for the ended 30 September 2003
                                    

 Tertiary Minerals plc - Chairman's Statement - Year ended 30th September 2003

During 2003 the prices of a number of metals have increased substantially with
copper and nickel recently reaching 5-year highs and gold regaining its lustre
with a price around $400 per ounce today. This has improved sentiment towards
the mining and exploration sector and enabled the Company to raise further funds
and increase the tempo of its exploration for gold and base-metal projects in
politically stable Scandinavia.

Progress has been made in acquiring new and exciting exploration projects and
advancing these to the stage where the Company is able to focus on a limited
number of drill-stage projects to maximise the opportunity for discovery and
delineation of mineral resources and the creation of shareholder value. Drilling
at NottrTM?sk in 2003 resulted in the discovery of a new zone of nickel
mineralisation and although of low nickel tenor, this discovery underlines the
abilities of our exploration team and the high prospectivity of the project and
has encouraged us to drill test a number of new targets at NottrTM?sk this 
coming winter.

In last year's Annual Report we highlighted a programme to acquire and explore
for 'Olympic Dam' style iron oxide-copper-gold (IOCG) deposits in Sweden and
Finland. This project has gathered pace with new project acquisitions and the
definition of drill targets. The first IOCG target to be drill tested this
winter is Ahmavuoma in Sweden. Drilling is planned to extend and better define a
known zone of copper-gold-cobalt mineralisation and to test other high priority
targets within a broader mineralised area.

More recently we announced the acquisition of the KaaresselkTM? gold project in
Finland by claim application, after two years patient monitoring of previous
tenement holdings which have now lapsed. This acquisition illustrates the
benefits of the Company's long-term commitment to Scandinavia and its ability to
cost-effectively acquire advanced exploration projects. A number of significant
zones of gold mineralisation have been outlined at Kaaresselka in previous work
done by the Geological Survey of Finland. We are now in the process of
evaluating the data from that work in order to plan drilling programmes to
define resources and test for extensions.

This past year the Company's share price has suffered as stock overhangs in the
tantalum market have undermined our solid, value-adding progress on the
Ghurayyah tantalum project in Saudi Arabia. Notwithstanding regional political
uncertainties, however, I am confident that recent improvements in the tantalum
market will see this trend reversed. Tantalum is not traded on terminal markets
and market trends are not transparent to the investing public, who would not
necessarily be aware that the tantalum market is, in fact, recovering strongly
and stocks levels have returned to normal at end-user level. Demand growth is
being led by the more widely appreciated growth in the sales of consumer
electronics which account for 80% of world tantalum consumption in the form of
capacitors, an essential component in DVD's, mobile phones, laptop computers,
games consoles and digital cameras.

The Company's world-class Ghurayyah tantalum project is well positioned to take
advantage of this market recovery. During the year a detailed economic and
technical scoping study was completed, confirming the potential of Ghurayyah to
profitably supply substantial amounts of tantalum and niobium over many decades.
The Company intends to seek external funding for feasibility studies and the
future development of Ghurayyah. In this way shareholders can participate in the
valuable upside of this project with little further financial exposure whilst
the Company focuses future expenditure on its exciting exploration projects in
Scandinavia.

To fund its exploration expenditure the Company has announced today that it has
raised £438,750 (before expenses) through a private placement of 4,875,000 new
ordinary 1 pence shares at a price of 9 pence per share.

The loss associated with the Group's exploration activities for the year ended
30 September 2003 was £397,037 after interest of £7,992, administration expenses
of £225,577 and £179,452 written off for expenditure on abandoned exploration
projects.

I would like to thank my fellow shareholders and our hardworking and
enthusiastic staff for their support during the past year. As we move forward
with further financial resources in place I believe that the Company is now
firmly established as an attractive vehicle for investment in the expanding
resource sector and the Directors look forward to delivering a year of progress
and growth.


Patrick L. Cheetham
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




Tertiary Minerals plc
Unaudited
Consolidated Profit and Loss Account
for the year ended 30 September 2003
                                                    2003          2002
                                                       £             £

Exploration costs written off                    179,452        15,923
Administrative expenses                          225,577       266,903
                                               ---------     ---------

Operating loss                                  (405,029)     (282,826)
Interest receivable                                7,992         9,604
                                               ---------     ---------

Loss on ordinary activities before taxation     (397,037)     (273,222)
Tax on profit on ordinary activities                   -             -
                                               ---------     ---------

Loss for the financial year                     (397,037)     (273,222)
                                               ---------     ---------

Loss per share - basic (pence)                      (1.3)         (1.1)
                                               ---------     ---------

All amounts relate to continuing activities.




Tertiary Minerals plc
Unaudited Balance sheets
for the year ended 30 September 2003

                              Group                    Company
                           2003         2002         2003         2002
                              £            £            £            £
Fixed assets
Intangible assets     1,180,396    1,065,724            -            -
Tangible assets           3,879        9,542          101          865
Investments                   -            -      224,889      224,889
                      ---------     --------     --------     --------

                      1,184,275    1,075,266      224,990      225,754
                      ---------     --------     --------     --------
Current assets
Debtors                  28,392       67,772    1,552,762    1,220,258
Cash at bank and in     227,505      393,760      220,863      382,401
hand                  ---------     --------     --------     --------

                        255,897      461,532    1,773,625    1,602,659
Creditors: amounts
falling due              37,851      111,623       21,137       26,064
within one year       ---------     --------     --------     --------

Net current assets      218,046      349,909    1,752,488    1,576,595
                      ---------     --------     --------     --------

Total assets less
current               1,402,321    1,425,175    1,977,478    1,802,349
liabilities           ---------     --------     --------     --------

Capital and
reserves
Called up share         315,460      276,652      315,460      276,652
capital
Share premium         2,053,728    1,766,836    2,053,728    1,766,836
account
Merger reserve          131,096      131,096      131,096      131,096
Profit and loss      (1,097,963)    (749,409)    (522,806)    (372,235)
account               ---------     --------     --------     --------

Shareholders funds    1,402,321    1,425,175    1,977,478    1,802,349
                      ---------     --------     --------     --------





Tertiary Minerals plc
Unaudited
Consolidated Cash Flow Statement
for the year ended 30 September 2003

                                                      2003        2002
                                                         £           £

Net cash outflow from operating activities        (272,464)   (248,495)

Returns on investment and servicing of finance
Interest received                                    7,994       9,604
                                                  --------   ---------

Net cash outflow from operating activities after
returns                                           (264,470)   (238,891)
on investments and servicing of finance           --------   ---------

Capital expenditure and financial investment
Purchase of intangible fixed assets               (230,933)   (486,399)
Purchase of tangible fixed assets                     (139)     (4,802)
Sale of tangible fixed assets                            -       2,702
                                                  --------   ---------
Net cash outflow from capital expenditure and
financial                                         (231,072)   (488,499)
investment                                        --------   ---------

Financing
                                                  
Issue of share capital (net of expenses)           325,700     825,162
Exchange differences                                 3,587       2,253
                                                    --------   ---------

Net cash inflow from financing                     329,287     827,415
                                                    --------   ---------

Increase/(Decrease) in cash                       (166,255)    100,025
                                                    --------   ---------



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 2003 or
    2002. The financial information for 2002 is derived from the Statutory
    Accounts for 2002, which have been delivered to the Registrar of Companies.
    The auditors have reported on the 2002 accounts; their report was
    unqualified and did not contain statements under section 237 of the
    Companies Act 1985. The Statutory Accounts for 2003 will be finalised on the
    basis of the financial information presented by the directors in this
    announcement and 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
    Company'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 modified to include the revaluation of certain assets.
        
    Basis of consolidation
        
    The Group financial statements consolidate the financial statements of
    Tertiary Minerals plc and its subsidiary undertakings using the
    acquisition method.
     
    The results of subsidiaries acquired or sold during the year are
    consolidated from or to the date on which effective control passes.

    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 £150,572
    (2002: £194,081).
     
    Depreciation

    Depreciation is provided by the Group on all tangible fixed assets, at
    rates calculated to write off the cost or valuation, 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
        development and exploration 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.
       
    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. No provision for deferred
    taxation has been made in these accounts.

    Deferred tax assets are recognised to the extent that they are regarded
    as recoverable.

    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       Operating          Net     Operating          Net
    analysis             loss       assets          loss       assets
                         2003         2003          2002         2002
                            £            £             £            £

    United            150,571    1,752,589       194,081    1,577,460
    Kingdom

    Overseas          246,466     (350,268)       79,141     (152,285)
                       --------    ---------      --------     --------

                      397,037    1,402,321       273,222    1,425,175
                       --------    ---------      --------     --------

    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                2003         2003           2002         2002
    capital               No.            £            No.            £
  
    Authorised
    Ordinary      150,000,000    1,500,000    150,000,000    1,500,000
    shares of 1p   ----------    ---------     ----------     --------
    each

                  150,000,000    1,500,000    150,000,000    1,500,000
                   ----------    ---------     ----------     --------

    Allotted,
    called up
    and fully
    paid

    Ordinary       31,546,093      315,460     27,665,260      276,652
    shares of 1p   ----------    ---------     ----------     --------
    each

                   31,546,093      315,460     27,665,260      276,652
                   ----------    ---------     ----------     --------

    During the year the following share issues took place.

    755,833 12 pence warrants coverted to 1 penny ordinary shares for total
    consideration of £90,700.

    A placement of 3,125,000 1 penny ordinary shares for a total
    consideration of £250,000.

    All shares rank pari passu and are all 1 penny ordinary shares.
    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    Issue dates    Exercise price    Number    Expiry Dates
    warrants          21/05/02               20p   300,000        20/05/05

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

                                                          2003        2002
                                                             £           £

    Operating loss                                    (405,029)   (282,826)
    Depreciation and loss on disposal of fixed           5,802       5,615
    assets
    Intangible fixed assets written off                161,157      10,003
    Decrease/(Increase) in debtors                      39,378     (29,457)
    (Decrease)/Increase in creditors                   (73,772)     48,170
                                                      ---------   ---------

    Net cash outflow from operating activities        (272,464)   (248,495)
                                                      ---------   ---------

7.  Annual Report

    The Company's 2003 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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