TITANIUM SANDS LIMITED — Capital/Financing Update 2007

Sep 2, 2007

PMA PRECIOUS METALS AUSTRALIA LIMITED

ABN 65 009 131 533

MEDIA RELEASE DATE 3 September 2007

WINDIMURRA FUNDING AND GAS UPDATE

Precious Metals Australia (ASX:PMA) advises it has received debt funding proposals from two leading international banks, capable of completing the project financing of its world-class Windimurra vanadium mine, which is under development 600km north east of Perth.

The two funding proposals have been received in response to an extensive request for financing conducted by the company and are now subject to review by the PMA Board .

In April this year, PMA signed a three year agreement with Santos for the purchase and delivery of natural gas to the Windimurra mine. A condition of the agreement was for PMA to complete financing by 31 July 2007.

In early July, PMA advised Santos of the positive progress towards completion of funding for the Windimurra vanadium mine and requested an extension to the financing conditions precedent. Such an extension was contemplated in the gas supply agreement and was supported by the advanced nature of PMA’s financing negotiations.

Santos responded to PMA’s request for an extension to the financing conditions precedent by purportedly terminating the gas supply agreement and offering a new agreement, with an extension of time, but on terms that were unacceptable to PMA. PMA has reserved its position with Santos.

As a consequence, the Company has recommenced discussions with the energy market and has been encouraged by the response to source alternative fuel supplies to operate the plant including gas, diesel or coal.

PMA is confident of securing an energy provider by late 2008 when the recommissioning of the mine is expected to be completed.

In January 2007, PMA completed a successful equity raising of $51.2 million and is in a strong position with $60.7 million cash on hand at 31 July 2007. PMA has sufficient cash reserves to continue the scheduled works program for the construction of the Windimurra vanadium mine until financing is completed.

For further enquiries call:

Dr Iain Scott Managing Director Tel: +61 (0) 8 9423 1900

Warrick Hazeldine

Purple Communications Tel +61 (0) 8 9485 1254 Mob: 0417 944 616

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

PMA PRECIOUS METALS AUSTRALIA LIMITED

ABN 65 009 131 533

Background

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

PMA 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 by PMA in 1985, Windimurra contained the largest reported proven vanadium Ore Reserve in the world with current mineable reserves of 98.2 million tonnes at a bulk grade of 0.40% V205 (vanadium pentoxide), which will underpin an initial mine life of 25 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 built by PMA with a joint venture partner in 1999, and, whilst operating, was the world’s largest primary vanadium mine, and gained 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 PMA 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.pmal.com.au

The information in this report that relates to Exploration Results, Mineral Resources and Ore Reserves is based on information compiled by Mrs Hilary Wright, Senior Geologist, and Dr Brian White, Principal Mining Engineer, who are members of The Australasian Institute of Mining and Metallurgy, and who are both employees of Coffey Mining Pty Ltd, which is an independent consultant to Precious Metals Australia Limited. Mrs Wright and Dr White have more than five years relevant experience in the style of mineralisation and types of deposit under consideration and consent to inclusion of the information in this report in the form and context in which it appears. They are both qualified as Competent Persons as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”.

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