TITANIUM SANDS LIMITED — Capital/Financing Update 2007

May 28, 2007

MEDIA RELEASE PMA SECURES WINDIMURRA GAS SUPPLY

Precious Metals Australia (ASX:PMA) has announced it has secured supply of natural gas from the North-West Shelf to its world-class Windimurra vanadium mine, under development 600km north east of Perth.

PMA has signed agreements worth \$35 million over three years for the purchase and delivery of natural gas to the Windimurra mine, making it the largest gas supply project in the Mid West. The supply agreement includes an option to extend for a further three years, providing longer-term security for the project.

PMA Executive Chairman Michael Kiernan said this was a milestone gas supply agreement, which provided longterm security for the operation of this project.

"Gas represents the largest single operating cost for this project, and execution of these contracts provides further confidence for the project as it moves from the detailed design to the construction and operational stage," Mr Kiernan said.

"With finance and funding well advanced, senior management positions filled and core mining infrastructure in place, PMA is poised to commence production at Windimurra mine early in 2008," Mr Kiernan said.

A Part Haul Shipper contract for the transmission of gas from the North West gas field to the MidWest Gas Pipeline takeoff via the Dampier to Bunbury Natural Gas Pipeline has been signed with the pipeline operator, DBNGP (WA) Transmission Pty Ltd. The contract for a term of 15 years secures Windimurra's place in the Stage 5A expansion of DBNGP due for completion in March 2008.

A Gas Transportation Agreement has also been reached with Horizon Power and APT Pipelines (WA) Pty Ltd for the transmission of gas from the DBNGP to the Windimurra Vanadium mine, via the Mid West Pipeline, for a term of 15 years. This 365km gas pipeline was originally built to facilitate development of Windimurra in 1999.

All gas purchase and delivery agreements have been conducted through PMA's 90% subsidiary, Windimurra Vanadium Pty Ltd. The gas will be used to fire the existing rotary kiln at Windimurra, and to power the 18.5MW gas turbine power station. The first three of four gas turbines being built for the Company by Solar Turbines of USA, will leave the factory next month.

Gas is an essential fuel for the Windimurra vanadium mine, and its use is unique in the vanadium industry. Roasting the ore concentrate with natural gas has previously been shown at Windimurra to yield a higher purity vanadium product than is produced by competitors who use pulverised coal.

PMA is currently redeveloping the Windimurra mine, with first production in early 2008. The mine is expected to produce 6,200 tonnes per annum of ferrovanadium, which will represent approximately 8% of the world market.

For further inquiries, call:

Michael Kiernan Chairman Tel: +61 (0) 8 9324 7000 Mob: 0418 904 165

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

Background

Precious Metals Australia (PMA) is a ferro-alloys company based in Perth, Western Australia and 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 first seven years of production.

Originally discovered by PMA in 1985, Windimurra contained the largest report vanadium Prove Ore Reserve in the world with current mineable reserves of 56 million tonnes at a bulk grade of 0.46% V205 (vanadium pentoxide), which will underpin an initial mine life of 16 years at the proposed mining rate of 3.4mtpa. A total of 148 million tonnes of resources have been modelled in order to meet at least the first 20 years of mining.

The Windimurra mine was built b y PMA with a joint venture partner in 1999, and, whilst operating, was the world's largest primary vanadium mine, and gained recognitions as one of the highest-quality sources of vanadium in the world market.

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

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

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