TITANIUM SANDS LIMITED — Capital/Financing Update 2008

Jan 3, 2008

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MEDIA RELEASE

4 JANUARY 2008

Project Update

Windimurra Vanadium Limited (ASX:WVL) is pleased to advise it will raise approximately $54.8 million through a non-renounceable entitlement issue to all shareholders on the basis of one (1) new share for every three (3) shares held by shareholders. The issue price will be $1.60 per share which represents an 8.57% discount to yesterday’s 14 day volume weighted average price of $1.75 per share. The issue will result in approximately 34,250,000 new ordinary shares being issued.

The funds from the entitlement issue will be used to continue the strong progress toward production at the Windimurra Vanadium project located 600km north east of Perth in WA’s Mid-West region, and for working capital for Windimurra.

The entitlement issue will be fully underwritten by Euroz Securities Limited and subunderwritten by significant shareholder, Territory Resources Limited.

Windimurra Vanadium Limited Managing Director Dr Iain Scott said the underwriting of the equity raising demonstrated the market’s support for the world class vanadium project.

“The non-renounceable entitlement provides shareholders with the opportunity to increase their investment in Windimurra as the company approaches first production in the last half of 2008,” Dr Scott said.

The underwriting agreement for the entitlement issue is subject to customary market conditions including completion of due diligence and lodgement of a prospectus for the entitlement issue with the Australian Securities and Investments Commission (ASIC). The entitlement issue is scheduled to be completed in February 2008.

The indicative record date for the issue is 21 January 2008. A complete indicative timetable for the issue will be contained in the issue’s disclosure document which is expected to be lodged with the ASX within 10 days.

The company is also pleased to advise shareholders it is close to concluding the debt financing arrangements for the construction of its flagship Windimurra Vanadium Project in WA’s Mid West region.

Both Merrill Lynch and Noble Group, key supporters of the Windimurra project, have demonstrated their confidence in the world class vanadium project by indicating their intention to participate in the syndicated debt.

A further announcement on the debt placement is expected to be made next week.

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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Over the past six months Windimurra Vanadium has achieved a number of major milestones in development of the project. This included the signing of a 10 year, $300 million contract with Mineral Resources to build, own, operate and transfer the beneficiation plant. Windimurra Vanadium has also successfully gained the project’s principal environmental approvals, and signed the EPCM contract with Proteus Engineers for the roasting and refinery sections of the plant.

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

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