TITANIUM SANDS LIMITED — Board/Management Information 2005

Aug 30, 2005

31 August 2005

Company Announcements Office Australian Stock Exchange Limited Exchange Plaza Sherwood Court PERTH WA 6000

Dear Sir / Madam

RECRUITMENT OF CHIEF FINANCIAL OFFICER

The directors are pleased to announce that the company has continued its programme to recruit key personnel by appointing Mike Drew as Chief Financial Officer.

Mr Drew is an experienced commercial manager and finance executive who was previously involved between 1996 and 2000 in the development of the Windimurra vanadium mine.

Mr Drew has wide commercial experience including negotiation of joint ventures, project financing options, negotiation and documentation of major commercial arrangements, asset sales, litigation management, native title and operating contracts.

Since 2000 Mr Drew has held senior positions as Commercial Manager for a major mining company in Africa, and for an Australian mining services provider based in Indonesia.

As part of his employment conditions, Mr Drew will be issued up to 400,000 options to subscribe for ordinary shares in the Company. During the first year of employment, 100,000 options will be issued at the end of each 3 month anniversary of commencement, with an exercise price equal to the average closing price of the shares over the 10 days prior to issue of the options.

Mr Drew's experience in developing and managing the Windimurra operation will be of considerable value to the company in carrying out a new bankable feasibility study and redevelopment of the mine. Mr Drew joins a growing number of senior personnel previously involved in the development of Windimurra, now working towards its redevelopment.

Yours sincerely PRECIOUS METALS AUSTRALIA LIMITED

RODERICK SMITH Managing Director

Level 1, 30 Richardson Street West Perth Western Australia 6005 PO Box 620 West Perth Western Australia 6872

Telephone: +61 8 9423 1900 Facsimile: +61 8 9423 1999 www.pmal.com.au