TITANIUM SANDS LIMITED — Capital/Financing Update 2005

Jan 18, 2005

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

19^th January 2004

Dear Sirs

ANNOUNCEMENT: RENOUNCEABLE RIGHTS ISSUES ACHIEVES 85% ACCEPTANCE

We are pleased to announce the closure of the renounceable 1 for 5 rights issue and provide the following information for shareholders.

The issue was highly successful with applications being received for 5,625,135 shares totalling \$393,759 (gross of relevant issue expenses). This equates to a take up of 85% of the entitlement. In addition, all directors took up all their entitlements under the issue.

Allotment of shares subscribed for under the rights issue will occur on Wednesday 19^th January 2005 and the shares will be allocated into the sub register on that date. The shortfall of 974,408 shares totalling \$68,208 will be allotted in accordance with the underwriting agreement and allottees will be notified in due course.

Additional information regarding the issued share capital of the company after the rights issue and the Top 20 shareholders will be sent under separate cover.

We are also pleased to announce that proceeds from rights sold on behalf of overseas shareholders will be donated to an appropriate charity to aid victims of the recent Tsunami tragedy.

Yours faithfully

Ian Macpherson Company Secretary Precious Metals Australia Limited