TITANIUM SANDS LIMITED — Capital/Financing Update 2008

Jan 16, 2008

17 JANUARY 2008

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ASX / MEDIA RELEASE

$54.8 MILLION ENTITLEMENT ISSUE

Windimurra Vanadium (ASX:WVL) advises it has issued a Prospectus for a non-renounceable entitlement issue, to raise approximately $54.8 million for the development of its world-class vanadium project in the WA’s Mid West.

The Prospectus for the entitlement issue, which was announced on 4 January 2008, will be lodged with the Australian Securities & Investments Commission on 18 January 2008.

Windimurra Vanadium Managing Director Dr Iain Scott said the entitlement issue provided an opportunity for shareholders to further participate in the development of the Company, as it heads toward production at its Windimurra Vanadium project next year.

Under the entitlement issue, each shareholder eligible to participate will be entitled to subscribe for one new ordinary share in Windimurra for each three existing ordinary shares registered in their name at 3.00pm (Perth time) on 29 January 2008.

Windimurra will issue approximately 34.25 million new ordinary shares under the entitlement issue at an issue price of $1.60 per share, which is a 10.1% discount to the closing sale price on 17 January 2008 of $1.78. The entitlement issue will include an additional share facility allowing shareholders to apply for additional shares not taken up by other shareholders.

The entitlement issue is fully underwritten by Euroz Securities Limited and fully sub-underwritten by significant shareholder, Territory Resources Limited (ASX:TTY).

Attached is a letter regarding the entitlements issue that will be mailed to shareholders on 21 January 2008.

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 mining 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