TITANIUM SANDS LIMITED — Capital/Financing Update 2005

Feb 1, 2005

Company Announcements Officer Australian Stock Exchange Limited Level 8, Exchange Plaza 2 The Esplanade, Perth, WA 6000

2nd February 2005

Dear Sirs

ALLOCATION OF SHORTFALL ON RIGHTS ISSUE

Further to our letter dated $18^th$ January 2005, we are pleased to announce that the shortfall of 974,408 shares, which was realised as a result of the recent rights issue, has now been allotted in accordance with the underwriting agreement with Paterson Securities Limited, and that the issue is now completed.

Yours faithfully

Ian Macpherson Company Secretary

Level 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