TITANIUM SANDS LIMITED — Capital/Financing Update 2006

Oct 8, 2006

ABN 65 009 131 533

6 October 2006

Companies Announcement Office Australian Stock Exchange Limited Exchange Plaza Sherwood Court PERTH WA 6000

Dear Sir

Funds for Windimurra Received from Noble

Precious Metals Australia Limited ("Company") is pleased to announce that Noble Resources Limited ("Noble") has completed its direct investment in the Windimurra Vanadium Mine by taking a 9.999% interest in Windimurra Vanadium Pty Ltd, the special purpose company that owns the Windimurra assets. The purchase consideration of A\$13,500,000 has been received.

In addition to the direct investment in Windimurra, the Company is now able to call at any time on an A\$8.2m three year, unsecured convertible note. A condition precent to drawing upon this convertible note was the completion by Noble of due diligence on Windimurra, which Noble formally advises has been favourably completed.

The investment by Noble in Windimurra provides additional funding for the development of the project, which the Company is continuing to advance at a rapid pace.

Yours sincerely PRECIOUS METALS AUSTRALIA LIMITED

MIKE DREW Company Secretary

Level 4, 76 Kings Park Road West Perth Western Australia 6005

PO Box 620 West Perth Western Australia 6872

Telephone: +61 8 9423 1900 Facsimile: +61 8 9423 1999