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Storuman Scoping Study Update

Thursday, August 6th, 2009

Tertiary Minerals plc is pleased to provide the following update on the status of the scoping study for development of its large Storuman Fluorspar deposit in Sweden and to advise on the progress of metallurgical testwork.
Recently completed metallurgical testwork has successfully produced a fluorspar concentrate to a specification that would be saleable to consumers of acid-grade fluorspar with respect to both chemical and grain-size specifications (acid-grade fluorspar is the highest value grade of fluorspar in high volume commercial use).
The latest results, from tests being carried out at the metallurgical laboratories of SGS Minerals Services (Lakefield, Canada), are a breakthrough for the project. Previous testwork carried out in the 1970s produced fluorspar with acceptable chemical specifications, but only on samples that were ground to a grain size that was too fine for use in the majority of consuming acid plants around the world.
Tertiary’s testwork programme initially focused on reproducing the grinding conditions used in the 1970s testwork in order to investigate critical reagent schemes and conditions for fluorspar flotation (“flotation” is the principal mineral separation technology used in production of acid-grade fluorspar). The initial tests were successful in achieving acceptable chemical specifications – albeit at the same fine grain size. The latest test, carried out on more coarsely ground material has produced saleable fluorspar concentrate within the grain size limits required by acid-grade consumers. Further tests are in progress to evaluate other metallurgical parameters, including fluorspar recovery, and to provide information for operating and capital cost estimates.
The testwork programme has been progressing cautiously until now both in order to maximise the cost benefit of individual tests and also to preserve financial resources. Following these latest results and the recent fundraising announced by the Company, the pace of work on the metallurgical testwork will be increased with a view to completing the scoping study as soon as critical-path testwork allows.
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