TITANIUM SANDS LIMITED — Capital/Financing Update 2006

Mar 14, 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 1/7/96. 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).

	+ Class of + securities issued or to be issued	Unlisted employee options to acquire ordinary shares
2	Number of $\beta$ securities issued or to be issued (if known) or maximum number which may be issued	200,000
3	Principal terms of the securities (eg, if options, exercise price and expiry date; if partly paid *securities, the amount outstanding and due dates for payment; if securities, + convertible the conversion price and dates for conversion)	Options issues pursuant to the PMA Employee Option Plan at: 100,000 @ \$1.40 expiring 10 February 2011 100,000 @ \$1.40 expiring 28 February 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 extent to which they the 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	No.
5.	Issue price or consideration	Nil
6.	Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets)	Issued pursuant to contracts of employment with senior staff, and the terms and conditions of the PMA Employee Option Plan.
7	Dates of entering *securities into uncertificated holdings or despatch of certificates	13 March 2006
8	Number and class $\circ$ f all quoted on securities ASX (including the securities in clause 2 if applicable)	Number 74,720,429	+ Class Ordinary fully paid (PMA)

⁺ See chapter 19 for defined terms.

		Number	+ Class
9	Number and + class of aIl *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.
		100,000	Employee Options Expiring 28 August 2010 exercisable at \$1.30
		100,000	Employee Options Expiring 3 August 2010 exercisable at \$1.30.
		100,000	Employee Options Expiring 10 February 2011 exercisable at \$1.40.
		100,000	Employee Options Expiring 28 February 2011 exercisable at \$1.40.

$10₁$ Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)

Part 2 - Bonus issue or pro rata issue

11	approval holder security Is. required?
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	determine *Record date to. entitlements

⁺ See chapter 19 for defined terms.

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 new issue sent documents
	Note: Security holders must be told how their emitlements are to be dealt with.
	Cross reference: rule 7.7.
19.	Closing date for receipt of 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 fee Amount оf 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)

⁺ See chapter 19 for defined terms.

• 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

,我们也不会有一个人的事情。""我们的人,我们也不会有一个人的人,我们也不会有一个人的人,我们也不会有一个人的人,我们也不会有一个人的人,我们也不会有一个人的人, 第111章 我们的人,我们的人,我们的人,我们的人,我们的人,我们的人,我们的人,我们的人,		The Company's Company's Company's Company's Company's Company's Company's Company's Company's Company's Company's Company's Company's Company's Company's Company's Company's Company's Company's Company's Company's Company

Part 3 - Ouotation of securities

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

34 Type of securities (tick one)

$(a)$

• Securities described in Part 1
• $(b)$ 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

				Tick to indicate you are providing the information or
documents

• 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
• If the *securities are *equity securities, a distribution schedule of the additional 36 *securities setting out the number of holders in the categories $1 - 1.000$ $1,001 - 5,000$

35

⁺ See chapter 19 for defined terms.

$5,001 - 10,000$ $10,001 - 100,000$ 100,001 and over

37

A copy of any trust deed for the additional *securities

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:

• 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 quotation now

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

(if issued upon conversion of another security, clearly identify that other security)

Number and *class of all *securities 42 quoted on ASX (including the securities in clause 38)

	Number	+ Class
ı.

$+$ See chapter 19 for defined terms.

Quotation agreement

• *Ouotation of our additional *securities is in ASX's absolute discretion. ASX may $\mathbf{I}$ 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.
• $\overline{3}$ 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 $\angle$ ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

...................................... Sign here: Michael Drew, Company Secretary

⁺ See chapter 19 for defined terms.