Tertiary Minerals Regulatory News (TYM)

26 May 2016

TERTIARY MINERALS PLC

(the "Company")

HALF-YEARLY REPORT 2016

Tertiary Minerals plc, the AIM-traded company building a strategic position in the fluorspar sector, announces its unaudited interim results for the six months ended 31 March 2016.

Operational Highlights

MB Fluorspar Project, Nevada, USA:

· Phase 4 drilling programme completed - 4 holes for a total of 1,553 metres drilled

· Thick intersections of fluorspar mineralisation encountered in step-out drilling - remains open at depth and along strike

· Hole 15TMBRC036 located west of the Western Area:

o 89.91m grading 12.02% CaF2 from 120.40m depth (total of 8 significant fluorspar intersections), including 31.99m grading 16.74% CaF2 from 150.88m (total of 6 higher grade intersections above 15% CaF2)

· Hole 15TMBRC038 located to the north of the Western Area:

o 22.86m grading 11.47% CaF2 from 74.68m depth

· Hole 15TMBRC039 located to the north of the Western Area:

o 137.16m grading 11.54% CaF2 from 53.34m depth (total of 16 significant fluorspar intersections), including 32.00m grading 15.81% CaF2 from 185.93m (total of 5 higher grade intersections above 15% CaF2)

· Ore-grade molybdenum (Mo) encountered in the base of hole 15TMBRC036 provides future exploration target

Storuman Fluorspar Project, Sweden:

· Exploitation (Mining) Permit approved by the Swedish Mining Inspectorate

· The Exploitation Permit is valid for 25 years from 18 February 2016

· Two appeals have been lodged against the Exploitation (Mine) Permit:

o Sami Reindeer Husbandry Community

o Urbergsgruppen, a Swedish environmental action group who oppose all mining activities throughout Sweden

· The appeals will be decided by the Swedish Government

Financial Results - Summary:

· Operating Loss for the six month period of £219,962 (six months to 31 March 2015: £223,050) comprises:

o Revenue of £84,568; less

o Administration costs of £297,169 (which includes non-cash share based payments of £17,188), and

o Pre-licence and reconnaissance exploration costs totalling £7,361

· Total Group Loss of £300,136 is after charging:

o Impairment of available for sale investment of £81,142

o Interest income of £968

· 28,986,059 Ordinary Shares were issued during the reporting period as follows:

o Placing of 28,888,889 shares at 2.25p per share on 6 October 2015 to raise £650,000 before expenses

o Issue of 97,170 shares to a non-executive director in lieu of fees at a price of 1.4p per share

Chairman's Statement

I am pleased to present our Interim Report for the six month period ended 31 March 2016.

A major milestone was reached in this reporting period when, in February this year, the Swedish Mining Inspectorate granted the Exploitation (Mine) Concession for our advanced Storuman Fluorspar Deposit. The Exploitation Concession secures our rights to the Storuman deposit for the next 25 years and was granted after consideration of numerous stakeholder submissions. All but one of these submissions were supportive of the project. Unfortunately, and despite the Mining Inspectorate having stated that reindeer herding and mining activity can sensibly coexist in the concession area, the local Sami Reindeer Husbandry Community has appealed the Mining Inspectorate's decision to the Government alongside Urbergsgruppen, a Swedish environmental action group which opposes all mining activities in Sweden. Because of the overwhelming local stakeholder support, the potential economic benefits and the 'National Interest' status given to the project by the Government, we expect the appeals to be rejected but it is nevertheless frustrating that the time frame in which the Swedish government must deal with the appeals is not fixed.

In Nevada, our MB Fluorspar Project continues to deliver outstanding results with the completion of a further phase of drilling (Phase 4). This has further expanded the known area of mineralisation and suggests that the already large Mineral Resource Estimate - some 86 million tonnes grading 10.7% fluorspar (CaF2) - can be significantly increased. Notable thick intersections of fluorspar mineralisation were announced as extensions of the Western Area of the deposit - for example an aggregate 89.91m grading 12.02% CaF2 from 120.40m depth in hole 15TMBRC036. Intriguingly, potential ore-grade molybdenum values were encountered at the base of the same hole indicating a future exploration target. The Company is now moving on to development studies for the MB Project to include metallurgical testing, economic modelling and scoping studies as well as mine permit planning.

We continue to maintain our interest in the Lassedalen Fluorspar Project in Norway where we have previously defined a modest higher-grade deposit of fluorspar. The project has good potential for future development if projected extensions to the known deposit can be confirmed. A programme of geophysics has recently been undertaken by the Norwegian Geological Survey on the western extensions with results expected to assist the placing of future drill holes.

Fluorspar markets and prices have continued to be negatively affected by slow demand during this reporting period. We consider that current low prices are not sustainable in the medium-term and in the past few years we have seen material taken off the market through mine closures and this should lead to improved prices. Indeed, increased demand and prices for acid-grade fluorspar in China have recently been reported.

Outside of fluorspar, we continue to hold two legacy gold projects and one tantalum project in Finland and have recently received third party expressions of interest which we are currently negotiating.

The cyclical mining share markets appear to have bottomed in the reporting period and we are now seeing a strengthening of some commodity prices and the share prices of many mining companies. This is being led by the gold sector but, based on historical patterns, we expect this to flow on more widely to the rest of the mining sector. We have continued to increase our interest in Sunrise Resources plc through the capitalisation of shared management costs and the Company's interest in Sunrise now stands at 11.8%.

I would like to thank shareholders for their patient support in these difficult markets. My personal view is that the worst may be behind us and we look forward to reporting on progress at our fluorspar projects as we advance these towards production.

Patrick L Cheetham

Executive Chairman

26 May 2016

Consolidated Income Statement

for the six months to 31 March 2016

Consolidated Statement of Comprehensive Income

for the six months to 31 March 2016

Company Registration Number 03821411

Consolidated Statement of Financial Position

at 31 March 2016

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

for the six months to 31 March 2016

Notes to the Interim Statement

1. Basis of preparation

The consolidated interim financial information has been prepared in accordance with the accounting policies that are expected to be adopted in the Group's full financial statements for the year ending 30 September 2016 which are not expected to be significantly different to those set out in Note 1 of the Group's audited financial statements for the year ended 30 September 2015. These are based on the recognition and measurement principles of IFRS in issue as adopted by the European Union (EU) or that are expected to be adopted and effective at 30 September 2016. The financial information has not been prepared (and is not required to be prepared) in accordance with IAS 34. The accounting policies have been applied consistently throughout the Group for the purposes of preparation of this financial information.

The financial information in this statement relating to the six months ended 31 March 2016 and the six months ended 31 March 2015 has neither been audited nor reviewed by the Auditors, pursuant to guidance issued by the Auditing Practices Board. The financial information presented for the year ended 30 September 2015 does not constitute the full statutory accounts for that period. The Annual Report and Financial Statements for the year ended 30 September 2015 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statement for the year ended 30 September 2015 was unqualified, although did draw attention to matters by way of emphasis in relation to going concern, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

The directors prepare annual budgets and cash flow projections that extend beyond 12 months from the date of this report. These projections include the proceeds of future fundraising necessary within the next 12 months to meet the Company's and Group's planned discretionary project expenditures and to maintain the Company and Group as a going concern. Although the Company has been successful in raising finance in the past, there is no assurance that it will obtain adequate finance in the future. This represents a material uncertainty related to events or conditions which may cast significant doubt on the entity's ability to continue as a going concern and, therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of business. However, the directors have a reasonable expectation that they will secure additional funding when required to continue meeting corporate overheads and exploration costs for the foreseeable future and therefore believe that the going concern basis is appropriate for the preparation of the financial statements.

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.

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 IAS33.

3. Share capital

During the six months to 31 March 2016 the following share issues took place:

An issue of 28,888,889 1.0p ordinary shares at 2.25p per share, by way of placing, for a total consideration of £592,412 net of expenses (6 October 2015).

An issue of 97,170 1.0p ordinary shares at 1.4p per share to a director, in satisfaction of directors fees, for a total consideration of £1,361 (11 March 2016).

4. Interim report

Copies of this interim report are available from Tertiary Minerals plc, Silk Point, Queens Avenue, Macclesfield, Cheshire SK10 2BB, United Kingdom.  It is also available on the Company's website at www.tertiaryminerals.com.