TITANIUM SANDS LIMITED — Capital/Financing Update 2022

Feb 10, 2022

==> picture [24 x 60] intentionally omitted <==

==> picture [124 x 29] intentionally omitted <==

ASX RELEASE

==> picture [146 x 13] intentionally omitted <==

11[th] February 2022

TITANIUM SANDS LIMITED ACN 009 131 533

Level 11, London House 216 St. Georges Terrace Perth Western Australia 6000 Tel: +61 (08) 9481 0389 Facsimile: +61 (08) 94636103 email http://titaniumsands.com.au

==> picture [146 x 13] intentionally omitted <==

Contact:

Dr James Searle Managing Director Tel: +61 419 949 636 james.searle@titaniumsands.com.au

TSL SECURES A$2m FUNDING FACILITY

• _____________  Facility of up to A$2m provided by two major shareholders

• Funds are available to be drawn down as required by the Company

• Funds to be repaid in either cash or shares at the election of the funder. Issue of shares as repayment will be subject to shareholder approval

• Facility repayment in shares attracts a conversion price of A$0.041 which is a 71% premium to the last closing price

• The funds raised will be used to strengthen the Company’s balance sheet and provide confidence as the Company’s main asset develops further

The Board of Titanium Sands Ltd (“TSL” or the “Company”) is pleased to report that the Company has today obtained a facility to borrow up to A$2m through agreements with TSL’s two major shareholders.

These agreements will provide the Company the necessary financial flexibility and balance sheet strength to accelerate growth through ongoing project development and next stage progression.

Formulating the proposed facility (including discussions with the ASX) and agreeing terms with the funders has been an extensive process. The terms agreed are considered favourable to existing shareholders and show great support from the funders (the two largest shareholders) given the conversion price is a 71% premium to today’s closing share price.

==> picture [146 x 13] intentionally omitted <==

The broad terms include:

Directors

Lee Christensen Dr James Searle Jason Ferris

• Total facility is to allow TSL to borrow up to A$2m which can be drawndown at any time until 31 December 2022.

• Repayment of the facility is by no later than 10 March 2023.

• Repayment in shares or cash is at the election of the funder:

• a) Issue of shares as repayment will be subject to shareholder approval (issued at $0.041 per share).

Ticket

ASX: TSL

• b) facility repayment in cash will attract an interest rate of 9% p.a on advanced funds.

As outlined in the recent TSL announcement (ASX:TSL 28/01/2022) the Company’s exploration drilling program is continuing with approximately 24% of the program completed. The primary objective of the program is to convert more of the Company’s JORC resource from an inferred to an indicated resource category. Completion of the program will allow revision of the project scoping study and will assist the Company’s proposed mining license application process.

TSL Managing Director, Dr James Searle said “ The support shown by the Company’s two largest shareholders is very encouraging given the conversion price of the facility being a 71% premium to Wendesday’s closing price. As the drilling program advances towards completion and release of updated results, the facility provided particularly the pricing, indicates the level of faith and belief the funders have in the project .”

Ends-

The Board of Directors of Titanium Sands Ltd authorised this announcement to be given to the ASX.

Further information contact: James Searle Managing Director T: +61 8 9481 0389 E: info@titaniumsands.com.au