TITANIUM SANDS LIMITED — Capital/Financing Update 2006

Jun 18, 2006

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement. application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 177/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003.

Name of entity

Precious Metals Australia Limited (Entity)

ABN 65 009 131 533

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

$\mathbf{1}$ ⁺Class of ⁺securities issued or to be issued

Unlisted options to acquire fully paid ordinary shares

• $\mathcal{I}$ Number of ⁺securities issued or to be issued (if known) or maximum number which may be issued
• Principal terms of the ⁺securities 3 (eg, if options, exercise price and expiry date; if partly paid *securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)

200,000 employee options

Unlisted options to acquire ordinary shares at \$1.75 issued pursuant to the PMA Employee and Executive Option Plan. Options expire 100,000 (7 September 2006) and 100,000 (28 $Mav 2011$

⁺ See chapter 19 for defined terms.

4	Do the securities rank equally in all respects from the date of allotment with an existing "class of quoted securities? If the additional securities do not rank equally, please state: the date from which they do which extent the to they participate for the next dividend, of $(in$ the case a. trust. distribution) or interest payment the extent to which they do not rank equally, other than $\overline{\mathbf{m}}$ relation to the next dividend, distribution or interest payment	Employee options securities	from of class a new
5	Issue price or consideration	Nil consideration
6	Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets)	Issued pursuant to Executive Share Option Scheme	PMA Employee and
7	Dates of entering "securities into uncertificated holdings or despatch of certificates	15 June 2006 (Dispatch date)
		Number	+ Class
8	Number and class οf all securities quoted on ASX. (including the securities in clause 2 if applicable)	74,720,429	Ordinary fully paid (PMA)

⁺ See chapter 19 for defined terms.

		Number	+ Class
9	and all Number †class – of *securities not quoted on ASX (including the securities in clause 2 if applicable)	500,000	Directors Options expiring 29 November 2007 exercisable at 15 cents. (PMAAI)
		100,000	Employee Options Expiring 7 July 2006 exercisable at \$1.30 (PMAAK)
		100,000	Employee Options Expiring 28 August 2010 exercisable at \$1.30. (PMAAK)
		100,000	Employee Options Expiring 7 July 2006 exercisable at \$1.40.
		100,000	Employee Options Expiring 28 February 2011 exercisable at \$1.40.
		100,000	Employee Options Expiring 7 September 2006 exercisable at \$1.75
		100,000	Employee Options Expiring 28 May 2011 exercisable at \$1.75

Dividend policy (in the case of a
trust, distribution policy) on the $10¹⁰$ increased capital (interests)

Part 2 - Bonus issue or pro rata issue

security $11$ $\mathbf{I}\mathbf{s}$ holder approval required?

Not Applicable

⁺ See chapter 19 for defined terms.

Appendix 3B New issue announcement

12	Is the issue renounceable or non- renounceable?
13	Ratio in which the "securities will be offered
14	Class of securities to which the offer relates
15	*Record determine date to entitlements
16	Will holdings on different registers (or subregisters) be aggregated for calculating entitlements?
17	Policy for deciding entitlements in relation to fractions
18	Names of countries in which the entity has "security holders who will not be sent new issue documents
	Note: Security holders must be told how their entitlements are to be dealt with. Cross reference: rule 7.7.
19	Closing for of date receipt acceptances or renunciations
20	Names of any underwriters
21	Amount of any underwriting fee or commission
22	Names of any brokers to the issue
23	Fee or commission payable to the broker to the issue
24	any handling $\circ$ f fee Amount payable to brokers who lodge acceptances or renunciations on behalf of *security holders
25	If the issue is contingent on *security holders' approval, the date of the meeting

• 26 Date entitlement and acceptance form and prospectus or Product Disclosure Statement will be sent to persons entitled
• 27 If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders
• 28 Date rights trading will begin (if applicable)
• 29 Date rights trading will end (if applicable)
• 30 How do *security holders sell their entitlements in full through a broker?
• 31 How do *security holders sell part of their entitlements through a broker and accept for the balance?
• 32 How do *security holders dispose of their entitlements (except by sale through a broker)?

33 *Despatch date

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

• 34 Type of securities (tick one) $(a)$
• All other securities

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

$(b)$

⁺ See chapter 19 for defined terms.

Tick to indicate you are providing the information or documents

• 35 If the "securities are "equity securities, the names of the 20 largest holders of the additional "securities, and the number and percentage of additional "securities held by those holders
• 36 If the "securities are "equity securities, a distribution schedule of the additional *securities setting out the number of holders in the categories $1 - 1,000$ $1,001 - 5,000$ $5,001 - 10,000$ $10.001 - 100.000$ 100,001 and over

A copy of any trust deed for the additional *securities 37

Entities that have ticked box 34(b)

• 38 Number of securities for which *quotation is sought
• 39 Class of *securities for which quotation is sought
• 40 Do the *securities rank equally in all respects from the date of allotment with an existing "class of quoted *securities?

If the additional securities do not rank equally, please state:

• $\bullet$ the date from which they do
• the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment
• the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment
• 41 Reason for request for quota now

Example: In the case of restricted securities, o restriction period

on conversion of another security, clearly identify other security)

tion
ho bm
. y that

⁺ See chapter 19 for defined terms.

$42₁$ Number and ⁺class of all ⁺securities quoted on ASX (including the securíties in clause 38)

Number	+ Class

Ouotation agreement

• *Ouotation of our additional *securities is in ASX's absolute discretion. ASX may Ť quote the "securities on any conditions it decides.
• $\overline{2}$ We warrant the following to ASX.
• The issue of the *securities to be quoted complies with the law and is not for an illegal purpose.
• There is no reason why those *securities should not be granted *quotation.
• An offer of the "securities for sale within 12 months after their issue will not require disclosure under section $707(3)$ or section $1012C(6)$ of the Cornorations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any *securities to be quoted and that no-one has any right to return any *securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the *securities be quoted.
• We warrant that if confirmation is required under section 1017F of the Corporations Act in relation to the *securities to be quoted, it has been provided at the time that we request that the "securities be quoted.
• If we are a trust, we warrant that no person has the right to return the *securities to be quoted under section 1019B of the Corporations Act at the time that we request that the *securities be quoted.
• 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.
• $\overline{4}$ We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before *quotation of the *securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

⁺ See chapter 19 for defined terms.

STATISTICS

Sign here:
Date: 19 June 2006 Mike Drew Company Secretary

$\begin{tabular}{ll} \hline \begin{tabular}{ll} \textbf{m} & \textbf{m} & \textbf{m} & \textbf{m} \ \textbf{m} & \textbf{m} & \textbf{m} & \textbf{m} \ \end{tabular} \end{tabular}$

⁺ See chapter 19 for defined terms.