TITANIUM SANDS LIMITED — Capital/Financing Update 2007

Dec 19, 2007

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MEDIA RELEASE

20 DECEMBER 2007

PROJECT UPDATE

Windimurra Vanadium Limited is pleased to advise that it is well advanced in finalising funding arrangements for its world-class Windimurra Vanadium project in the Mid West of WA.

With finance partner Merrill Lynch, Windimurra is completing a $200 million funding package which aims to take the project into production next year.

Windimurra Managing Director Iain Scott said the Company had adjusted its funding arrangements to allow for an increased portion of equity versus debt.

Together with Merrill Lynch and the company’s marketing partner, the Noble Group, Dr Scott said Windimurra had considerable resources to apply to the funding exercise.

Dr Scott said the Company was confident it would finalise its funding arrangements by early January 2008.

“While the global finance environment has changed as a result of the US sub-credit market, I am pleased to report that Windimurra is well advanced in securing funding, and we expect to be in a position to announce completion within weeks,” Dr Scott said.

Dr Scott said the Company had made considerable progress toward recommencement of production at Windimurra during the past six months.

“We have secured all environmental approvals, have put in placed key supply contacts including for gas, and have signed a $300 million service contract to build and operate the beneficiation plant which is now underway with Mineral Resources,” Dr Scott said.

Windimurra, located 600km north east of Perth, is based on one of the largest proven vanadium resources in the world. Global demand for vanadium is expanding, driven by growth in steel consumption, increasing intensity of vanadium use in developing economies and expanding use of vanadium-titanium alloy in aerospace applications.

Once operational, Windimurra has the potential to make the Company one of the world’s lowest cost vanadium producers.

For further enquiries call: Dr Iain Scott Managing Director Tel: +61 (0) 8 9423 1900

Warrick Hazeldine

Purple Communications Tel +61 (0) 89485 1254 Mob: 0417 944 616

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

Telephone: +61(8) 9423 1900 Website: www.windimurra.com.au

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Background

Windimurra Vanadium Limited (WVL), previously Precious Metals Australia, is a ferro-alloys company based in Perth, Western Australia and is listed on the Australian Stock Exchange (ASX:WVL). The Company’s focus is the development of the Windimurra Vanadium Mine, located 600km north east of Perth in WA’s Mid-West region.

WVL has a strategic alliance and off-take agreement with leading global supply chain manager, Noble Group Limited, based in Hong Kong. Noble has agreed to purchase the total vanadium output of the Windimurra mine, at prevailing market prices for the life of the mine.

Originally discovered in 1985, Windimurra contains one of the largest reported proven vanadium Ore Reserves in the world with current mineable reserves of 79.0 million tonnes at a bulk grade of 0.47% V205 (vanadium pentoxide), which will underpin an initial mine life of 20 years at the proposed mining rate of 3.9mtpa. A total of 148 million tonnes of resources have been modelled at a bulk grade of 0.46%.

The Windimurra mine was originally built by the Company with a joint venture partner in 1999, and, whilst operating, was the world’s largest primary vanadium mine, gaining recognition as one of the highest-quality sources of vanadium in the world market.

Since 2003, world demand for vanadium and the price of the commodity have increased strongly, largely driven by growth in Chinese steel production. Marketing studies commissioned by WVL forecast that vanadium demand will continue to increase through 2015 at a compound annual growth rate of 7.8%.

For more information, please visit www.windimurra.com.au

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

Telephone: +61(8) 9423 1900 Website: www.windimurra.com.au