TITANIUM SANDS LIMITED — Director's Dealing 2005

Dec 20, 2005

20 December 2005

Company Announcements Office Australian Stock Exchange Limited Exchange Plaza Sherwood Court PERTH WA 6000

Dear Sir

Recent Share Placement

The Company announces that it has today received \$13,939,200,00 being proceeds of the recent placement of 9,680,000 ordinary shares at a price of \$1.44 to institutional and sophisticated investor clients of Mirabaud Securities Limited, London.

The cash reserves of the company are now in excess of \$45m which secures the likely equity funding requirement for the proposed reopening of the 100% owned Windimurra vanadium mine, which is expected to cost approximately \$100m.

Attached are forms 604 and Appendix 3Y lodged by a director of the Company, Mr R J H Smith.

Mr Smith agreed to sell 614,000 shares to placees in the recent share issue, in order to partly make up the oversubscription to the issue. The Company was unable to issue additional shares as the placement already represented 15% of issued capital, being the maximum permissible under the Listing Rules, without seeking special approval at a general meeting of shareholders.

Yours sincerely PRECIOUS METALS AUSTRALIA LIMITED

MIKE DREW Chief Financial Officer

Form 604

Corporations Act 2001 Section 671B

Notice of change of interests of substantial holder

To Company Name/Scheme	Precious Metals Australia Limited
ACN/ARSN	009 131 533
1. Details of substantial holder(1) Name	Roderick James Hollas Smith
ACN/ARSN (if applicable).
There was a change in the interests of the substantial holder on	19 / 12 / 2005
The previous notice was given to the company on The previous notice was dated	20/12/2005 20/12/2005

2. Previous and present voting power

Thetotal numberof votes attached to all the voting shares in the company or voting interests in the scheme that the substantial holder or an associate (2) had a relevant interest (3) in when last required, and when now required, to give a substantial holding notice to the company or scheme, are as follows:

Class of securities (4)	Previous notice		Present notice
	Person's votes	Voting power (5)	Person's votes	Voting power (5)
ordinary	14,375,709	19.24%	13,761,308	18.42%

3. Changes in relevant interests

Particulars of each change in, or change in the nature of, a relevant interest of the substantial holder or an associate in voting securities of the company or scheme, since the substantial holder was last required to give a substantial holding notice to the company or scheme are as follows:

Date of change	Person whose relevant interest changed	Nature of change(6)	Consideration given in relation to change (7)	Class and number of securities affected	Person's votes affected
19/12/200	RIH SMITH	Off market sale	\$844,925,40	614.401	614.401

4. Present relevant interests

Particulars of each refevant interest of the substantial holder in voting securities after the change are as follows:

Holder of relevant interest	Registered holder of securities	Person entitled to be registered as holder (8)	Nature of relevant interest(6)	Class and number of securities	Person's votes
Horseshoe Exploration	Horseshoe	Horseshoe Exploration	Director/sharehold	Ordinary	2,311,594
Pty Ltd	Exploration Pty Ltd	Pty Ltd	er	2,311,594
Pacific Ouest	Pacific Ouest	Pacific Ouest	Director	Ordinary	8,622,876
Investments Pty Ltd	Investments Pty Ltd	Investments Pty Ltd	Shareholder	8,622,876
Pacific Ouest	Pacific Quest	Pacific Quest	Beneficiary	Ordinary	2,826,838
Investment Trust	Investments Pty Ltd	Investment Trust	Director of trustee	2,826,838

5. Changes in association

The persons who have become associates (2) of, ceased to be associates of, or have changed the nature of their association (9) with, the substantial holder in relation to voting interests in the company or scheme are as follows:

Name and ACNIARSN (if annlicable)	Natura of association

1. Addresses

The addresses of persons named in this form are as follows:

Name	Address

Signature

print name		capacity
sign here	Roderick J H Smith	date
	and a $\overline{\phantom{a}}$		20 December 2005

Appendix 3Y

Rule 3.19A.2

Change of Director's Interest Notice

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 30/9/2001.

PRECIOUS METALS AUSTRALIA LIMITED

65 009 131 533

We (the entity) give ASX the following information under listing rule 3.19A.2 and as agent for the director for the purposes of section 205G of the Corporations Act.

Rođerick James Hollas Smith Name of Director
Date of last notice	19 January 2005

Part 1 - Change of director's relevant interests in securities

In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust

Note: In the case of a company, interests which come within paragraph (i) of the definition of "notifiable interest of a director" should be disclosed in this part.

Direct or indirect interest	Direct and Indirect
Nature of indirect interest (including registered holder) Note: Provide details of the circumstances giving rise to the relevant interest.	Horseshoe Exploration Pty Ltd a company controlled by RJH Smith. Pacific Quest Investments Pty Ltd, a company associated with RJH Smith. Pacific Quest Investment Trust, a trust of which RJH Smith is a beneficiary, and Pacific Quest Investments Pty Ltd is the trustee.
Date of change	19 Dec 2005
No. of securities held prior to change	Total of $14,375,709$ as follows: RJH Smith - 614,401 Horseshoe Exploration Pty Ltd - 2,311,594 Pacific Quest Investments Pty Ltd -8,622,876 Pacific Quest Investment Trust -2,826,838
Class	ordinary
Number acquired
Number disposed	RJH Smith - 614,401

⁺ See chapter 19 for defined terms.

Value/Consideration Note: If consideration is non-cash, provide details and estimated valuation	\$844,925.40
No. of securities held after change	Total of 13,761,308 as follows: Horseshoe Exploration Pty Ltd - 2,311,594 Pacific Quest Investments Pty Ltd 8,622,876 Pacific Quest Investment Trust 2,826,838
Nature of change Example: on-market trade, off-market trade, exercise of options, issue of securities under dividend reinvestment plan, participation in buy-back	Off-market trade

Part 2 - Change of director's interests in contracts

Note: In the case of a company, interests which come within paragraph (ii) of the definition of "notifiable interest of a director" should be disclosed in this part.

Detail of contract	N/A
Nature of interest
Name of registered holder
(if issued securities)
Date of change
No. and class of securities to
which interest related prior to
change Note: Details are only required for a contract in relation to which the interest has changed
Interest acquired
Interest disposed
Value/Consideration Note: If consideration is non-cash, provide details and an estimated valuation
Interest after change

$+$ See chapter 19 for defined terms.