TITANIUM SANDS LIMITED — Capital/Financing Update 2005

Apr 7, 2005

8 April 2005

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

Dear Sir/Madam

PLACEMENT

The Board of Directors is pleased to announce that it has approved the placement of 5,939,588 ordinary shares, at 8.5 cents a share, to clients of Montagu Stockbrokers pursuant to Section 708 of the Corporations Act 2001. The placement has raised \$504,865 before costs and will be utilised to further fund the working capital and ongoing legal expenditure of the Company in relation to the Company's litigation against Xstrata.

In particular, these funds will be primarily applied to satisfy the judgement delivered on $9^th$ March 2005 in relation to the security for costs application. The judgement ordered security for costs of \$500,000 be provided by the Company, payable as follows:

• \$250,000 on or before $15^{th}$ May 2005: and $\bullet$
• $$250.000$ on or before $15^th$ June 2005. $\ddot{\phantom{a}}$

Yours faithfully PRECIOUS METALS AUSTRALIA LTD

Roderick Smith Executive Director

Level 2, Lever 2,
47 Colin Street
WEST PERTH WA 6005

Correspondence: PO Box 467 Claremont Western Australia 6910

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

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