TITANIUM SANDS LIMITED — Capital/Financing Update 2008

Jan 13, 2008

==> picture [126 x 101] intentionally omitted <==

ASX / MEDIA RELEASE

14 JANUARY 2007

WINDIMURRA SECURES US$127.5M DEBT FUNDING

Windimurra Vanadium Limited (ASX:WVL) has taken another major step toward production at its flagship vanadium project in WA’s Mid West, having secured a $US127.5 million debt financing arrangement.

Windimurra Managing Director Dr Iain Scott said the Company was pleased to advise that it has executed all documentation, including security documentation, in respect of the debt financing.

“This is a significant achievement for Windimurra and its shareholders – particularly in the current global credit market - and is testimony to the strength of the project’s fundamentals,” Dr Scott said.

“The funding means we will continue with full confidence in the redevelopment of the Windimurra Vanadium project and toward planned production in the second half of this year,” Dr Scott said.

Windimurra, located 600km north east of Perth, is based on one of the largest proven vanadium reserves in the world with initial mine life of 20 years. Once operational, it has the potential to make Windimurra Vanadium one of the world’s lowest cost vanadium producers.

The Company is pleased to advise it had strong financial commitment from Merrill Lynch, as well as global logistics leader and marketing partner Noble Group. The two organisations have participated at a significant level in the US$127.5 million (approximately A$145 million) debt placement.

Windimurra’s Financial Director Garry Korte confirmed; “This financing together with the recently announced A$54.8 million fully underwritten entitlement issue represents the entire A$200m funding package necessary to fully fund the development of the Windimurra project and is a key milestone in its development.”

During the past six months, Windimurra has successfully completed a number of major operational steps in the development of its world class vanadium project.

“We have secured all environmental approvals, have put in place 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,” Dr Scott said.

“With the debt financing arrangements now secure and the forthcoming entitlement issue fully underwritten we remain on track to bring the project into production, establish the Company as a major global vanadium supplier and drive real value for our shareholders,” Dr Scott said.

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

==> picture [126 x 101] intentionally omitted <==

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