TITANIUM SANDS LIMITED — Capital/Financing Update 2008

Feb 19, 2008

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20 February 2008

Company Announcements Office Australian Stock Exchange Level 10, 20 Bond Street SYDNEY NSW 2000

By ASX Online

No. of pages: 2

McFEE AWARDED $30 MILLION CONTRACT

Please find attached an announcement regarding Paladio Group Limited’s (ASX: PDO) subsidiary McFee Pty Ltd being awarded a $30 million project by Windimurra Vanadium Limited.

Yours faithfully, PALADIO GROUP LIMITED

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Dick Wright Managing Director

McFEE AWARDED $30 MILLION CONTRACT

Paladio Group Limited ( Paladio ) is pleased to announce that its subsidiary, McFee Pty Ltd, has been awarded a $30 million project by Windimurra Vanadium Limited for the structural, mechanical, plate-work and tankage at its Windimurra Vanadium mine in the Mid West region of Western Australia.

Work on this project is to commence immediately and is expected to be completed in late calendar 2008.

Paladio’s Managing Director, Mr. Dick Wright, said “This win by McFee has brought the total value of new projects won by the Paladio Group of Companies since the start of calendar 2008 to over $80 million. The value of uncompleted work in hand now stands at nearly $100 million and reflects the expected award of several tenders which our operating subsidiaries have had under adjudication since the last quarter of calendar 2007.

“Paladio remains on track to enjoy buoyant trading conditions in the second half of this financial year and is focusing on building its order book to underpin continuing growth into the subsequent financial year and beyond, aided by tendering activities across the Group which remains high”, Mr. Wright said.

For more information about this announcement or Paladio Group Limited generally, please contact:

Mr. Dick Wright, Managing Director, or Mr. Len Troncone, Chief Financial Officer, on 08 9262 9999