TITANIUM SANDS LIMITED — Capital/Financing Update 2005

May 10, 2005

11^th May 2005

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

Dear Sir/Madam

SALE OF UNMARKETABLE PARCELS

The Company advises that it gives notice to shareholders under Schedule 2 of the Constitution that it intends to acquire and sell all unmarketable shareholdings.

The enclosed letter to shareholders and a Share Retention Notice will be dispatched today.

Yours faithfully PRECIOUS METALS AUSTRALIA LTD

Ian Macpherson Company Secretary

Level 2,
47 Colin Street
WEST PERTH WA 6005

Correspondence: PO Box 467 Claremont
Claremont
Western Australia 6910

Telephone: (08) 9385 0601
Facsimile: (08) 9385 0603

Home Page: http://www.pmal.com.au

11^th May 2005

Dear Shareholder

SALE NOTICE : UNMARKETABLE PARCELS OF SHARES PURSUANT TO SCHEDULE 2 OF THE COMPANY'S CONSTITUTION

Holder's of unmarketable parcels of shares may have difficulty selling those shares and may face proportionally high costs in doing so. The Company also faces share registry, printing and compliance costs in respect of several hundred holdings of unmarketable parcels. The Stock Exchange allows a procedure for the grouping together and sale of these holdings in a way that is designed to produce a higher net return (after costs) to those shareholders than they would otherwise receive.

Our records show that you are the holder of shares (shown on the attached Retention of Shares Notice) in Precious Metals Australia Limited (the Company) the number of which at the date of this notice, constitutes an unmarketable parcel of shares, as defined by the Australian Stock Exchange Listing Rules. These rules define an unmarketable parcel as that number which in aggregate has a value of less than \$500. The trading price of the Company shares on $11^th$ May 2005 was 18 cents, therefore an unmarketable parcel at this date was 2.777 shares or less.

The ASX Listing Rules and Schedule 2 of the Company's Constitution empower the Company to sell on behalf of the holder, unmarketable parcels of shares allowing the Company to reduce administrative costs and share registry costs associated with the Company's obligations under the Corporations Act to keep members informed. The Company shall bear the cost of the sale of unmarketable parcels.

Under the Company's Constitution the procedure to sell an unmarketable parcel requires a sale notice notifying of the intention to sell unmarketable parcels. Holders of unmarketable parcels who do not notify the Company in writing of their intention to retain their holding within 6 weeks of the sale notice will have their shares sold following the expiration of the 6 week period.

This notice constitutes the sale notice under Schedule 2 of the Company's Constitution. The Company intends to sell your shareholding upon the expiration of 6 weeks from this notice. If you do not wish for your shares to be sold you must complete and return the enclosed notice of retention to our share registry, Advanced Share Registry Services by 24^th June 2005.

If you wish your shareholding to be sold there is no need to do anything. As soon as is practicable after $24^th$ June 2005, the Company will forward the proceeds of the sale of your unmarketable parcels to you.

If you have any questions concerning the contents of this letter, please contact the Company Secretary by telephone on +61-8-9321 3514.

Yours faithfully

Ian Macpherson Company Secretary

PRECIOUS METALS AUSTRALIA LIMITED Level 2, Correspondence: PO Box 467 47 Colin Street WEST PERTH WA 6005 Western Australia 6910

Telephone: (08) 9385 0601 Facsimile: $(08)$ 9385 0603 Home Page: http://www.pmal.com.au

Shareholder Name and Adress

SRN/HIN $\ddot{\phantom{a}}$ Number of Ordinary Shares held on close of business of 10^th May 2005:

SHARE RETENTION FORM

If you wish to retain your shareholding in the Company, you must complete this Form and return it to the Share Registry, Advanced Share Registry Services, PO Box 1156, Nedlands WA 6909 or 110 Stirling Hwy, Nedlands WA 6009 by no later than 5.00pm on Friday 24th June 2005, otherwise your shares will be sold.

If you wish to sell your shares, you DO NOT need to complete this Form.

	Retention of Ordinary Shares
	I/We refer to the notice from the Company dated 11 May 2005 and record my/our wish to retain my/our shares.
В	Signature(s)
	All shareholders must sign (please see instructions below).
	Individual or Securityholder 1					Securityholder 2			Securityholder 3
	Sole Director and Sole Secretary						Director/Company Secretary			Director/Company Secretary
C	Contact Details
	Provide your telephone number and a contact name in case we need to contact you.
	Area Code				Daytime Phone Number
	Email Address: _____
	Contact Name: ______
	Signing Instructions Natural Person
	The Share Retention Form must be signed by you (for joint holders all must sign) or by your attorneys.
	Corporate Shareholder
	If the shareholder is a corporation the Form should be signed by the member or the member's attorney, or if a corporation, executed
	in accordance with Section 127 of the Corporations Act 2001.
	Attorney/Deceased Estate If signed under Power of Attorney, the attorney hereby states that no notice or revocation of the power has been received. If the
	Power of Attorney or other authority (if any) has not been previously noted by Advanced Share Registry Services, it must be
	produced for noting to Advanced Share Registry Services. A certified copy of a Power of Attorney is acceptable.
	If a Deceased Estate, all executors or administrators must sign, and if not already noted by Advanced Share Registry Services, a
	certified copy of Probate or Letter of Administration must accompany this form.
	Return of the Form If you would like to retain your shares, please return this Form to Advanced Share Registry Services.
	The Form must be received by 5.00 pm on Friday 24 June 2005 otherwise your shares will be sold. A facsimile copy of the Form
	will not be accepted.
	Consolidation of shareholdings
	If you have more than one holding on the Precious Metals Australia Limited register, you should consider consolidating them. For
	further advice in this regard, please contact Advanced Share Registry Services on (08) 9389 8033 (within Australia) or 61 8 9389 8033 (outside Australia)